The meddling of conservative watchdog group Goldwater Institute in the Phoenix Coyotes sale has threatened to completely blow up the entire situation, which would almost certainly send the team elsewhere as a result.
According to the group, the City of Glendale, Ariz. will violate the state constitution should they take out $100 million in bonds, as planned, to assist Hulsizer's purchase of the team. The taxpayers would be on the hook for losses the team could incur in that situation.
Hulsizer told Fox Sports Arizona on Sunday, however, that he's sent a letter to GWI with the intent of squashing their concerns. The basic idea here: Hulsizer says he'll accept those bonds, pay $25 million back to the City and that he'll place a guarantee on the other $75 million.
SB Nation's Five For Howling recounted the conversation:
Hulsizer announced on Fox Sports Arizona's first intermission report that he has changed the deal in significant ways, getting the taxpayers of Glendale pretty much completely off the hook for the payments on default of the bond issue. Hulsizer said that he and the investors would guarantee the bond payments so that the city wouldn't be on the hook. Without knowing the specifics I'd say that what he's trying to say is that if there's a shortfall between the parking revenue and the payment on the bond that they'd make up the difference.
There's still the question of whether or not GWI will agree with Hulsizer or if they'll accept his guarantee, and as we all know, this situation is never over when we think it is. Still, it's another step forward in the process. We'll see what happens next.
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