What is the guarantee?
It guarantees Glendale's direct revenue, most based on hockey-game attendance, would meet annual projections up to a set amount. Otherwise, Hulsizer's team said it would make up any shortfalls to the city every five years, up to a total of $75 million in today's dollars or over the 30-year lease.
The annual projections would include streams of revenue going directly to Glendale, such as team rent, ticket surcharges, shared money if the team makes a profit and parking fees.
Hulsizer also promised to pay Glendale $25 million up front that the city had pledged to pay the NHL this season to cover team and arena losses.
"We are in the process of revising the lease with the city of Glendale to include a schedule of targeted revenue," said Jay Coppoletta, an attorney for Hulsizer.
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Why make the guarantee?
Hulsizer is trying to move forward the deal, which has stalled as the city experiences difficulty selling bonds because of Goldwater's threat it will sue.
Hulsizer wants to show Goldwater that Glendale would receive benefits from the deal worth about as much as, or more than, the city's payments. Goldwater argues that's a must for the deal to be legal.
Hulsizer said the guarantee, as well as consultant studies projecting the benefits Glendale would receive from keeping the Coyotes, makes the deal legally airtight.
A personal guarantee?
Hulsizer in a letter to Goldwater said his Delaware limited liability company, Arizona Hockey Holdings, would be responsible for any shortfall.
Goldwater contends Glendale taxpayers have no protection should the team later be put into bankruptcy. Glendale representatives counter that the lease contains strong language to prevent Hulsizer from breaking terms by declaring bankruptcy.t