Frequently Searched

Glendale needs to protect taxpayers when considering Coyotes' future

November 4, 2014

Glendale City Council members could use a cold splash of water – perhaps with the hockey ice from Jobing.com Arena – if they finalize a deal with potential new Phoenix Coyotes team owner Jerry Reinsdorf. Council members signed a non-binding agreement earlier this month to allow Reinsdorf to sell the team in five years if it doesn’t turn a profit. Why does that matter? Because the deal also potentially requires city taxpayers to pony up $165 million for the private sports franchise. It’s a lose-lose for taxpayers and hockey fans alike.

Surprisingly, the City rejected another deal proposed by Ice Edge Holdings, which would have asked fans to pay more of the Coyotes’ operating expenses through a ticket surcharge and parking fees. Ice Edge owners also committed to making Jobing.com Arena the team’s permanent home. The City could have signed agreements with both groups and continued negotiating, but it inexplicably gave Reinsdorf the nod and sent Ice Edge packing.

Reinsdorf insists the City guarantee up to $100 million to cover his losses and demands the right to abandon the arena lease after five years with no penalties. The other $65 million might come from taxpayer-backed bonds whose proceeds would be paid to the National Hockey League on Reinsdorf’s behalf. It’s the kind of one-sided deal Reinsdorf has been known to drive. In 1983, when he threatened to move the Chicago White Sox from Illinois to Florida if taxpayers didn’t build him a new stadium, Reinsdorf explained, “a savvy negotiator creates leverage.”

But Glendale has the leverage here, and it is time for council members to start exercising it. The City owns Jobing.com Arena where the Coyotes currently play. Although the NHL could make Reinsdorf the new team owner, the City can choose not to lease the arena to him if his demands are out of line, as they appear to be now. In fact, the City cannot lease to him if he requires a subsidy because that violates Arizona’s Constitution. Glendale officials need to let this savvy negotiator know that the interest of taxpayers, not billionaire sports team owners, is all the leverage they need.

Carrie Ann Sitren is an attorney with the Goldwater Institute Scharf-Norton Center for Constitutional Litigation.

Learn More:

Goldwater Institute: Arizona Supreme Court Strikes Down Future Taxpayer Subsidies

Goldwater Institute: Glendale Sued for Denying Public Records Request

 

 

More on this issue

Donate Now

Help all Americans live freer, happier lives. Join the Goldwater Institute as we defend and strengthen freedom in all 50 states.

Donate Now

Since 1988, the Goldwater Institute has been in the liberty business — defending and promoting freedom, and achieving more than 400 victories in all 50 states. Donate today to help support our mission.

We Protect Your Rights

Our attorneys defend individual rights and protect those who cannot protect themselves.

Need Help? Submit a case.

Get Connected to Goldwater

Sign up for the latest news, event updates, and more.

Wait! Don’t close this yet!

We are grateful for your support of the Goldwater Institute’s efforts to advance and defend liberty throughout the United States. For over 36 years, we’ve been defending the rights of Americans to live their lives free from government interference.

And Goldwater is unique in that we direct our efforts to the 50 states where we introduce and advance innovative ideas that expand freedom. And we fight in courtrooms and capitals nationwide to defend individual liberty.

In 2024 alone, we scored over 50 policy and litigation victories defending liberty!

And that’s just the beginning.

Our plans for 2025 include:

  • Stopping pernicious DEI and other woke programs in America’s universities.
  • Ensuring that patients suffering from rare and terminal diseases have access to cutting-edge, lifesaving medical treatments, without having to first seek permission from the government.
  • Defending parental rights across the United States so that parents can send their kids to the school that best fits their needs, free from leftist indoctrination.
  • Eliminating government interference in the fundamental right of individuals to own property and use it as they see fit.
  • And much, much more

We seek to restore the presumption of liberty; that people are free to act without first asking permission from the government.

But we cannot do this without you. Will you join us as we fight to preserve and advance liberty throughout the country? As we seek new and innovative ways to defend freedom in all 50 states?

And there’s great news: Thanks to a generous Goldwater supporter, your donation today will be doubled!

So please, join us in fighting to advance liberty and score real wins for freedom from coast to coast!