Glendale's $197 million deal with Phoenix Coyotes buyer Matthew Hulsizer to keep the team at Jobing.com Arena is more expensive than the subsidies that court documents show former team owner Jerry Moyes requested from the city in 2008, months before he declared the team bankrupt.



Glendale, Hulsizer strike deal on Phoenix Coyotes

The Goldwater Institute urged the City Council at Tuesday's meeting to vote against the deal, saying it may violate the state's gift clause.



Letter from the Goldwater Institute

The deal with Hulsizer is also more expensive than arrangements that fell through with Chicago sports owner Jerry Reinsdorf and Ice Edge Holdings, two interested buyers,this year.

Of course, hindsight may be 20/20 when comparing the deals. And Glendale is more desperate now than ever to strike a deal, with the National Hockey League's threat of moving the team if the city did not work out a lease deal with a buyer by the end of the year. Despite the apparent increase in cost to Glendale, city officials say there are some differences that make Hulsizer's a better deal, including a long-term lease.

But critics wonder if Glendale officials could have worked out more favorable terms if they had acted earlier. Moyes, a successful Glendale businessman, had sought to work out a deal with Glendale long before he filed bankruptcy in May 2009.

Glendale resisted some of Moyes' proposed lease changes and questioned how the trucking magnateran the team, including paying an unusually hefty salary to former coach Wayne Gretzky.

Court documents show Moyes had wanted to reduce the amount he paid the city in ticket fees by $2.5 million.

He also asked the city to cover his losses in managing the arena, which ranged between $7 million and $8 million per year. Under his lease with Glendale, he bore the cost of arena management.

But there has been some shift in Glendale's attitude. Mayor Elaine Scruggs recently said the former lease may have been too good of a deal for the city.

Under the proposed deal with Hulsizer, Glendale would take over the arena management cost, expected to average $17 million a year.

The Phoenix-based Goldwater Institute warned city leaders they may be violating the Arizona law by paying more than fair value to a private business.

Goldwater attorney Carrie Ann Sitren said the city's proposed funding to Hulsizer, $100 million for parking rights and $97 million over 5�1/2 years to manage arena events, may be "grossly disproportionate" to the value the city will receive.

Without considering interest based on how the city would have financed each of the proposals, here's a look at the amounts the city was asked to pay the buyers:

-�The Hulsizer deal would require Glendale to pay an average of $39.4 million each year over the next 5�1/2 years and additional funding in following years to manage the arena.

-�The Reinsdorf deal would have obligated Glendale to pay an average of $23 million each year over seven years.

-�The Moyes request asked Glendale to pay $12.5 million each year, indefinitely.

-�The Ice Edge deal would have compelled Glendale to pay an average of $10.25 million each year over 10 years.

Several factors set the Hulsizer deal apart.

-�Hulsizer plans to keep the team in Glendale through 2040. The Reinsdorf deal allowed him to move the team if it was not profitable after a time, while Ice Edge could have sold the team after five years under certain conditions to a buyer keeping it in Glendale.

-�Hulsizer would continue to pay Glendale the same revenues as did Moyes, as much as $6 million per year. -�Glendale expects to recoup $100 million of its payments to Hulsizer by charging for parking near the arena. The Moyes request did not include a way for Glendale to recoup money.

-�Glendale can renegotiate its annual arena management payments to Hulsizer, averaging $17 million per year after 5�1/2 years.