Legal battle between Arizona Coyotes, Glendale continues

A legal battle is underway between the Arizona Coyotes and the City of Glendale.

The city cancelled it's 15-year deal with the team, but the Arizona Coyotes are fighting back.

The Arizona Coyotes issued this statement on Friday:

"The Arizona Coyotes have acted to defend their rights and reaffirm their continuing commitment to their great fans by seeking a restraining order to stop the City of Glendale's baseless attack on, and improper attempt to void, the Coyotes' lawful and proper lease to play at Gila River Arena. The suit was filed in Maricopa County Superior Court against the City of Glendale, the Glendale City Council and other City officials."

Glendale pays the team $15 million a year to play in the city. Many taxpayers say they don't want to subsidize the professional sports team.

But, the big question is whether the city has the legal case to terminate the contract.

The Coyotes say the city's legal claims are baseless, and the team attorney says they spent the entire day gearing up to stop the plan from going forward.

The Coyotes' future in Glendale is on thin ice after the council voted to terminate the teams leasing agreement with the city.

Local businesses, like Opa Life Greek Cafe, believe they can survive without the Coyotes in Westgate, but it will be tough.

Opa Life's owner says they work heavily with the Coyotes and losing them would probably cripple them by 30 to 40 percent.

Legal analyst Monica Lindstrom spoke with FOX 10. Can the city legally cancel the deal?

"I really think it's just a chance to renegotiate the lease agreement," said Monica Lindstrom.

The council says the Coyotes violated state "conflict of interest" laws when they hired the city's former attorney.

It's a move that could make the contract void.

The Coyotes say the city waived the conflict of interest issue, in a severance agreement with the former city attorney. Now the team says it will seek $200 million in damages from the city.

"As soon as that written notice of cancellation is given to the Coyotes they are going to turn around and go to court, they're going to get an injunction which basically means  judge lets keep everything at the status quo until we fight this out and figure out what is going to happen," said Lindstrom.

Where the team would go from Glendale is up in the air. Phoenix Mayor Greg Stanton and AZ Governor Doug Ducey wants the team to stay local.

"As Mayor of this city I view the Coyotes as a very important regional asset, and I speak for most leaders, and most speakers in the community, to say we don't want to see the Coyotes leave," said Greg Stanton.

"This is a Glendale issue, let's see what Glendale's solution are, I'm a Coyotes fan, I'm a hockey fan, I'd like to see them stay here, but right now the ball is in Glendale's court," said Doug Ducey.

FOX 10 reached out to the City of Glendale and at this time a spokesperson said they cannot comment on the case because of pending litigation.

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