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Could lawsuit sink Glendale arena deal?

Phoenix CoyotesThe Glendale (Az.) City Council is expected approve a Arena lease where the city pays potential Phoenix Coyotes (NHL) owner Matthew Hulsizer $197 million to operate the team. Could legal action from a public watchdog group sink the deal — and in the process chase the Coyotes from the state?

The Globe and Mail — which follows things like franchise-ownership shifts like a hawk — is reporting the Goldwater Institute may take legal action to scuttle the deal on the basis that Arizona law prohibits excessive public subsidies for private enterprises. That’s a big if, of course: it takes lots of resources to undertake a legal challenge against a municipality.

And, of course, a victory would be Pyrrhic: if the deal is voided, there’s little doubt the NHL would be out of town pretty quickly. No main tenant, no good way to pay off the debt already on the books.

RELATED STORIES: Glendale proposal: pay Hulsizer $197M to run $170M team

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