Puck Daddy - NHL

As Leahy mentioned earlier tonight, Jim Balsillie's bid to move the Phoenix Coyotes to Hamilton was blocked by U.S. Bankruptcy Judge Redfield T. Baum. We've received a statement from Bill Walker, a spokesman for the Make It Seven movement, regarding the ruling:

Jim Balsillie's bid to bring a seventh NHL team to Canada continues. We're still here. The Phoenix court confirmed Mr. Balsillie was approved as an NHL owner in 2006 and remains so. We believe he has made the best offer and Hamilton remains the best location for this team.

The court did not approve either our approach or the NHL's. Judge Baum did state he does not have time to decide all the relocation issues. But the court still controls the sale process.

As a result, we look forward to hearing from the NHL soon on its view of our relocation application and an appropriate relocation fee, so as to allow the court to determine if that fee is reasonable. We still think there is enough time for the NHL to approve Mr. Balsillie's application and move the team to Hamilton by September. The court invited mediation on these issues and Mr. Balsillie is willing to participate in such mediation if the NHL is also willing to do so.

Of course, what the statement fails to mention is that there is no legally binding reason for the NHL to sell to Jim Balsillie and PSE, or allow them to move the team to Southern Ontario. The NHL wants the Coyotes sold to a party that'll keep them in Glendale. Balsillie wants to buy them and move them to Hamilton. Thanks again for playing this round, Jim.

From AZ Central, a further rebuttal of the Make It Seven reaction:

Walker's statement ignored several aspects of the ruling that were made against Balsillie. Baum shot down the claim by Coyotes owner Jerry Moyes and Balsillie that failure to allow the team, over the objection of the NHL, to move would violate antitrust law. "This court can not find that antitrust law, as applicable nonbankruptcy law, permits the sale free and clear of the relocation rights of the NHL," Baum wrote.

He added, "It is not an antitrust violation for professional sports leagues to have terms and conditions on relocations of its members."

But Balsillie's group makes an very valid point that was offered in the judge's ruling: That the NHL already approved Balsillie once as an owner in 2006. Whether it's another bid for the Coyotes, a bid for another U.S. team in turmoil or an eventual expansion team, Balsillie's going nowhere -- nor should he.

Even at what appears to be the end of this Coyotes saga, Balsillie is still a winner.

He's solidified support in Canada for bringing a seventh team "home," and sufficiently made the case that Hamilton/Southern Ontario should have an NHL franchise in the near future.

When a guy whose life's mission has been the return of the NHL to Winnipeg called Balsillie a "Canadian god" on this blog, we knew the BlackBerry billionaire had achieved folk hero status for many Canadians -- especially as an agent of agitation for Gary Bettman. That reputation has been established and cemented. Balsillie's a player in the NHL, going forward.

The Toronto Star has Baum's ruling online; a few random thoughts about it and the Coyotes' situation ...

First, from the Star, what this means for the Coyotes in the near future:

Now that Baum has sided with the NHL, it's likely an auction would be held in mid-September, and the Coyotes would remain in Glendale, Ariz.

The judge's decision is also a win for the city of Glendale, which had spent $183 million to build an arena for the Coyotes and had contended the franchise could not use bankruptcy to evade its lease.

• Clearly, Balsillie and Moyes had, for lack of a better term, a case of premature adjudication. Based on legal precedent, according to the judge, it was essential for PSE to file a request with the NHL to relocate the team in order to challenge its refusal to move the team on the basis of antitrust law. Trouble is, Balsillie's team filed that motion with the NHL on May 19 after the court basically said, 'Hey, you might want to actually file a relocation request with the League before yammering on about getting stonewalled.' From the ruling:

"The fundamental problem with those assertions is that the NHL has never made any decision about the relcoation of the Phoenix Coyotes to any site, be it Ontario, Canada or anywhere else, i.e. The NHL has not yet applied its relocation requirements to this request."

• Another issue with the Balsillie claim ended up being timing with regard to the Stanley Cup Playoffs. The judge cited the fact that Gary Bettman "literally left the court" on the day of Game 6 of the Stanley Cup Final to fly to Pittsburgh. The judge wrote the court was "unconvinced" that it should force the NHL to consider the relocation bid to meet the June 29 deadline.

• The judge was fairly clear that, despite other professional sports leagues lining up to support the NHL, there's no clear evidence that the hostile takeover of teams for the purposes of their relocation is detrimental to the leagues. It's sort of hard to make the case when Indianapolis, Baltimore and Cleveland all have thriving franchises in the NFL.

That said, the judge seemed to rule with respect to the sanctity of those leagues' rules and procedures for relocation.

Five For Howling, one of the most vocal and public voices from the Coyotes fan community in this situation, only used eight exclamation points in its "Coyotes Staying" headline.

The great Tyler Dellow takes a gander at the decision, and presents the following conclusions:

What happens next? I've had about thirty minutes to consider this, and I would predict the following:

1. Balsillie will be approved for the purposes of bidding for ownership of the team;
2. The NHL will reject his relocation application;
3. The NHL is going to come up with someone who will pay enough to satisfy all of the creditors except Moyes, possibly because Glendale is going to offer various subsidies/breaks on the lease; and
4. The NHL is going to try to convince the judge that Moyes isn't really a creditor.

• Meanwhile, Make It Seven's Facebook page isn't giving up the fight ... or the chance to have a public relations holiday in Canada:

Make It Seven supporters need to make their voices heard to convince the league by participating in Make It Seven day on June 19. Read more about how you can support Make It Seven Day at http://www.makeitseven.ca/.  Jim will be emailing all of us with his planned next steps, so we continue to ask you to urge people to sign up now to show their support on the Make It Seven site. Tell your friends, family members, neighbors and co-workers to sign up.

• Finally, let's not lose sight of the fact that the Coyotes are, without question, a damned mess. The NHL might find someone to buy them and keep them in Glendale. But that doesn't change the fact that the coach is being paid a gajillion dollars to not make the playoffs, the team is bleeding money and the only way to get fans to come to the arena is with cheap-ass tickets and elaborate promotions ("all you can eat!").

We've learned a lot about the NHL during this process. We've yet to learn how it intends to make the Coyotes a thriving franchise free of crushing financial burdens. But it won't involve Jim Balsillie; at least not in the near future.

digg delicious
more

68 Comments

Post a Comment
  1. Can't We All Just Get Along?
    1. Posted by Can't We All Just Get Along? Tue Jun 16, 2009 12:11 am EDT

    Report Abuse

    My name says it all!
  2. ICEMEN4
    2. Posted by ICEMEN4 Tue Jun 16, 2009 12:31 am EDT

    Report Abuse

    Good, Now that there staying where they belongs, Fire the Coach along with is staff, and All of the Front office.. Get better people to replace them, sign a few good vets and put a better team on the ice.
    Problem solved!!!
  3. habs1rule
    3. Posted by habs1rule Tue Jun 16, 2009 12:31 am EDT

    Report Abuse

    There seems to be a few questions nobody can answer for me..According to the NHL Constitution we all read recently, the rulers of the league are the owners, with Bettman as their spokesperson..A New Canadian team makes SEVEN...American cities still have Twenty-Three teams...What do Canadians actually win here.. Also, wont a new team in Ontario hurt the Leafs and Sabres fan base...Stay in Phoenix..Balsille, Buy the Habs!!
  4. Neil A
    4. Posted by Neil A Tue Jun 16, 2009 12:40 am EDT

    Report Abuse

    Make it 24!
  5. Christopher
    5. Posted by Christopher Tue Jun 16, 2009 12:43 am EDT

    Report Abuse

    Congratulations NHL. You've won the right to flush another $30+ million down the toilet next year in Phoenix. Really wonderful job there.
  6. nubpwner1871
    6. Posted by nubpwner1871 Tue Jun 16, 2009 1:02 am EDT

    Report Abuse

    Some day Gary Bettman will be gone, somebody competent will be running the NHL, and we will have all forgotten a time when the NHL and its owners wasted tens of millions of dollars trying to turn the league into something it's not. I can't wait.
  7. NostraChronus
    7. Posted by NostraChronus Tue Jun 16, 2009 1:31 am EDT

    Report Abuse

    Ball-Sacked
  8. blues_fan_mk
    8. Posted by blues_fan_mk Tue Jun 16, 2009 1:33 am EDT

    Report Abuse

    How could any self respecting business person make a bid for this team without moving it to a new city? What is the business case - pay exorbitant amounts of money for an investment that loses exorbitant amounts of money annually? Maybe I'd do it for fun if I had $10 billion and knew I could never run out of money, but I have a feeling billionaires have that much money because they don't make obviously stupid business decisions.
  9. Jemuu K
    9. Posted by Jemuu K Tue Jun 16, 2009 2:03 am EDT

    Report Abuse

    Move them to Mexico City. Total tangent: What was up with the fake Stanley Cup the Penguins got? I thought it had a silver Maple Leaf on the bottom not the top of a Whopper wrapper or whatever the Gretzky that was.
  10. Fin-atic
    10. Posted by Fin-atic Tue Jun 16, 2009 2:08 am EDT

    Report Abuse

    I wouldn't change the jerseys or the team name. They'll be back within 3-5years anyway and then you'll have to change it back. If Canada wanted or could support more teams, they would still have the Nordiques and the Jets.
  11. Albert W
    11. Posted by Albert W Tue Jun 16, 2009 2:29 am EDT

    Report Abuse

    That's it...I'm done with the NHL. I will no longer follow the sport. I'm dead serious. I only watched one game this season (Game 7 of the Finals). Next season I will watch zero. I'm tired of the NHL executives acting on behalf of their own interests instead of the interests of the game and the fans.
  12. OdinMercer
    12. Posted by OdinMercer Tue Jun 16, 2009 2:33 am EDT

    Report Abuse

    Woooooooo!!!!!!!! I thought eight exclamation points showed remarkable restraint on my part...
  13. Reppin 4rm Big D to Jrzy
    13. Posted by Reppin 4rm Big D to Jrzy Tue Jun 16, 2009 2:45 am EDT

    Report Abuse

    they need to break the lease in glendale and get a new bball/hockey arena built in downtown phx, then fire the coach and the front office ppl for lettin the coach consistently lose.....then they need to ship off the old bodies(doan, jova, etc) and get a young core together to go w/ mueller and bryzgallov.....might ship him too if montoya can play up to his potential
  14. Josh G
    14. Posted by Josh G Tue Jun 16, 2009 3:05 am EDT

    Report Abuse

    congrats to bettman for winning this battle and getting to keep a team in its current location and allow it to continue to miss the playoffs, lose millions of dollars each season, and not be able to gain a good footing with their fans. What a much better alternative then going to canada and selling out every game even if they do suck
  15. Patrick H
    15. Posted by Patrick H Tue Jun 16, 2009 3:15 am EDT

    Report Abuse

    "The judge was fairly clear that, despite other professional sports leagues lining up to support the NHL, there's no clear evidence that the hostile takeover of teams for the purposes of their relocation is detrimental to the leagues. It's sort of hard to make the case when Indianapolis, Baltimore and Cleveland all have thriving franchises in the NFL."
    sounds like he is talking about relocated teams. the problem with this is that the cleveland browns are not a relocated team. they are technically an expansion team of 98. the browns were the victims of a hostile takeover however. the browns fit right in with the minnesota wild.
  16. Brian C
    16. Posted by Brian C Tue Jun 16, 2009 5:01 am EDT

    Report Abuse

    Habs1 - I remember seeing a report by a financial guy saying that, from his priliminary observations and without any hard studies, that his opinion was that a team in Hamilton would not hurt the bottom line of MLSE or the Sens. I mean, yes there would be some loss of merchandise revenue, but not so much to hurt the teams. Leafs fans are pretty set, and the Sens are farther north. Theres enough hockey fans in southern Ontario that you could split the fans amongst Leafs/Sens/New Team and still have everyone do well.
    The team who will be affected most will be the SABRES. Buffalo has been dying a slow and painful death for years, and the team relies on fans crossing the border from Hamilton and the like to see hockey. Theres a lot of Sabres fans in southern Ontario.
  17. garbage can moochers
    17. Posted by garbage can moochers Tue Jun 16, 2009 5:39 am EDT

    Report Abuse

    gary bettman you have made the nhl into a laughingstock !!! bettman new pacifist league sucks nhl owners get rid of this hack who knows nothing about hockey and hire a real hockey guy either brett hull or bobby orr to run this league
  18. Bones
    18. Posted by Bones Tue Jun 16, 2009 7:16 am EDT

    Report Abuse

    Takes a lot of guts for the NFL to do any talking about relocating teams setting "a bad precedent".
    From 1982 to 1997, a span of just 15 years...
    1982: Oakland/LA Raiders
    1984: Baltimore/Indianappolis Colts
    1988: St. Louis/Phoenix/Arizona Cardinals
    1994: LA/St. Louis Rams
    1995: LA/Oakland Raiders
    1996: Cleveland Browns/Baltimore Ravens
    1997: Houston/Tennessee Oilers/Tennessee Titans
    Seven teams relocated in just fifteen seasons.
    Or maybe that's just the point. In a seventeen year period, from 1980-1997...
    1980: Atlanta/Calgary Flames
    1982: Colorado Rockies/New Jersey Devils
    1993: Minnesota North Stars/Dallas Stars
    1995: Quebec Nordiques/Colorado Avalanche
    1996: Winnepeg Jets/Phoenix Coyotes
    1997: Hartford Whalers/Carolina Hurricanes
    ...The NHL relocated six teams...and expanded by nine teams...mostly to the US southeast; San Jose, Columbus and a replacement team for Minnesota being the exceptions.
    I guess the idea here is: Relocation's only a good idea when the league decides it needs relocation fees or it fits league marketing strategy, ala,"Let's Get Disney to Buy In!" and "Hockey Night in Dixie"?
    Those were both solid,strategies that have been a veritable license to print money for the NHL! [/sarc
  19. CoyoteQ
    19. Posted by CoyoteQ Tue Jun 16, 2009 7:34 am EDT

    Report Abuse

    #11 Albert W. PLEASE - stop watching hocley... go bury your arrogant head in the UFC ring.
    "I'm tired of the NHL executives acting on behalf of their own interests instead of the interests of the game and the fans." Yeah except the only fans you want to respect are the ones you pick and choose.
    I am a Coyotes fan. Since 1996. My car is Coyote Red, personalized license plate reads "Coyote Q". I love my team, I want my team to stay in Glendale where the arena and the district surrounding it are AMAZING to visit and watch a game. Now, the fact that I currently live in Indiana and will be moving to Virginia Beach, VA soon does NOT make me less of a fan. It just means I can't be a season ticket holder until I win the lottery and get my Condo in Glendale right outside the arena!
    Q
    Is happy her year old, $160, Coyote tattoo isn't going to be obsolete just yet!
  20. CoyoteQ
    20. Posted by CoyoteQ Tue Jun 16, 2009 7:36 am EDT

    Report Abuse

    #11 Albert W. PLEASE - stop watching hocley... go bury your arrogant head in the UFC ring.
    "I'm tired of the NHL executives acting on behalf of their own interests instead of the interests of the game and the fans." Yeah except the only fans you want to respect are the ones you pick and choose.
    I am a Coyotes fan. Since 1996. My car is Coyote Red, personalized license plate reads "Coyote Q". I love my team, I want my team to stay in Glendale where the arena and the district surrounding it are AMAZING to visit and watch a game. Now, the fact that I currently live in Indiana and will be moving to Virginia Beach, VA soon does NOT make me less of a fan. It just means I can't be a season ticket holder until I win the lottery and get my Condo in Glendale right outside the arena!
    Q
    Is happy her year old, $160, Coyote tattoo isn't going to be obsolete just yet!
  21. CoyoteQ
    21. Posted by CoyoteQ Tue Jun 16, 2009 7:38 am EDT

    Report Abuse

    Sorry for the double post and the typo.... "Stop watching hoc K ey"
    Q
  22. Max_Powers
    22. Posted by Max_Powers Tue Jun 16, 2009 7:47 am EDT

    Report Abuse

    Cleveland was an expansion team, not relocation.
    I think you meant Baltimor, Indianapolis, and Tennesee.
  23. Strikers09
    23. Posted by Strikers09 Tue Jun 16, 2009 7:58 am EDT

    Report Abuse

    what better way for the NHL to get good ratings and keep the league relevant... Block a guy from owning a team and relocating them to a market that will support a NHL franchise!
    Well done Bettman and Co, you will keep hockey as the 5th major sport in the USA (Behind MLB, NFL, NBA and NASCAR). Hockey does not belong in the desert! Get them in a Market that will support them.
  24. jkrdevil
    24. Posted by jkrdevil Tue Jun 16, 2009 9:03 am EDT

    Report Abuse

    The judge stated that for the NHL to reject Balsillie they will have to show that circumstances have changed since that time. Considering his SEC violation, Hamilton Predators ticket drive, and leaking of private e-mail after that deal fell apart they can show that circumstances have indeed changed
  25. commish_15
    25. Posted by commish_15 Tue Jun 16, 2009 9:30 am EDT

    Report Abuse

    doesn't make sense.
    you're guaranteed to loose more money again in Phoenix and yet the NHL says STAY.
    yet you're guaranteed an owner who would drop almost $3-4M to buy a franchise that hasn't made a nickle in 13 years and the NHL says NO???

Puck Daddy

Add to My Yahoo! RSS

Greg Wyshynski

Puck Daddy is an NHL blog edited by Greg Wyshynski. Email him, and follow him on Twitter.

Teams

Customize to follow news and rumors on your favorite teams. [ Sign in ]

Related Photo Gallery

Y! Sports Blogs

Puck Daddy Recent Readers

Watch Live Hockey Online with GameCenter Live™