The Phoenix Coyotes are one step closer to being sold after a Maricopa County Superior Court judge ruled Thursday that Glendale's deal can go forward.

Judge Dean Fink rejected the Goldwater Institute's argument and said the Glendale City Council's approval of a lease agreement with Coyotes suitor Greg Jamison should stand.



Read the ruling

Goldwater Institute responds to ruling

Judge: Coyotes deal not immediately effective

Experts: Goldwater's Coyotes lawsuit faces uphill battle

The Phoenix-based conservative watchdog group had sued to invalidate the Glendale council decision, saying it lacked the necessary votes to immediately take effect and that the city failed to put an arena management contract up for bid.

Earlier this month, Glendale inked a 20-year deal with Jamison, agreeing to pay $324 million, largely to manage the city-owned Jobing.com Arena.

But the National Hockey League, which owns the Coyotes, has yet to sell the team to Jamison.

Despite Thursday's ruling, other obstacles must be cleared, and the uncertainty is affecting Coyotes players' decisions about whether to start contract negotiations or look elsewhere. Even popular captain Shane Doan is questioning the franchise's future.

"I'd love to hear about the new ownership, and I wish that was going on," said Doan, who is set to become an unrestricted free agent on Sunday. "But the situation right now with Glendale, it's so disappointing. It's so disappointing for me because I have (a few days) before I have to make a major decision. You wish you had more information."

Meanwhile, two Glendale residents seek to overturn the city's deal with a referendum on the November ballot. The activists, aided by about two-dozen volunteers, have until early July to file the necessary 1,862 signatures. They said they had nearly 700 as of Thursday.

Fink's ruling comes more than a week after court arguments by Glendale and Goldwater, which has scrutinized past Coyotes deals.

In court documents filed Thursday, Fink rejected Goldwater's assertion that the city should have allowed multiple companies to submit bids for arena operations rather than simply accept Jamison's offer. He based the decision on previous court rulings and the Glendale city charter, which allows the city to avoid public bids for professional services.

Goldwater had argued arena operations were not a professional service and cited the city's rule that most contracts larger than $50,000 be put up for bid.

Fink wrote that Glendale's arena-management contract with Jamison, which has the city paying $10million to $20million annually, is an exception.

"Although there may be no recognized academic degree in arena management, plainly a wide range of specialized knowledge, predominantly mental or intellectual, is critical to success in the field," Fink wrote in his ruling.

The decision follows Fink's immediate ruling that Glendale and Goldwater attorneys agree to a wording change in the lease agreement ordinance to clarify the lease with Jamison would not go into effect until July 8, a month after the council vote.

City officials had initially tacked an emergency clause onto the measure in hopes there would be enough council support to allow it to be effective immediately. However, only four council members approved the deal rather than the five required for the clause.

Since it did not immediately take effect, it opened the door for a potential referendum against the Coyotes deal.

NHL Deputy Commissioner Bill Daly said the league is prepared to deal with that variable if it comes, but acknowledged a less-than-favorable ruling from the judge might have complicated efforts to sell the team.

"I think the ruling will clear the path for continued progress toward an ultimate resolution," Daly said. "The efforts to force a public referendum are what they are, and we will deal with the result of those efforts in due course."

Goldwater President Darcy Olsen praised the citizen efforts in a Thursday statement.

"We are disappointed in today's decision, but we are glad that Glendale taxpayers have taken matters into their own hands by working to refer the arena-management deal to the ballot," she said, adding that the watchdog group will examine the deal closely if it goes into effect.

The judge's ruling comes on the heels of a contract extension to allow the league to continue operating the arena until at least Aug. 1. The city has twice pledged $25 million to the NHL to manage the arena and cover losses.

City Attorney Craig Tindall said the judge's decision has left all parties hopeful an end could soon be in sight.

"The ruling is correct and we agree with it, but it's important to realize that we hope to conclude this transaction in the near future and we look forward to a very good season," he said. "The fans should be able to anticipate that in the very near future."

Republic reporter Sarah McLellan contributed to this article.