Mon Aug 03, 2009 7:36 pm EDT
Why the "Night Court" image? Because things are getting a tad over the top in the Phoenix Coyotes ownership squabble.
The bitter Jerry Moyes, who sunk millions into the franchise and saw his attempt to push through a sale to Jim Balsillie thwarted by the NHL and the courts, is accused of leaking information about Jerry Reinsdorf's bid for the Coyotes and sending the Chicago sports icon's camp into hysterics.
Oh, and about that Balsillie fellow: Some of the news out of the courtroom today is pretty positive for his fledgling bid, if it still has a shot after getting shut down by the Board of Governors.
What a mess. If Dan Fielding had been representing either side, this thing would have been settled ages ago. And it also would have included plenty of double entendres, which is always a good thing.
The leaked confidential filings say Reinsdorf has asked for a special taxing district to be created in the district that would provide as much as $23 million next fiscal year through a "voluntary" surcharge on retail sales.
Additionally, if the team were still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and relocated, according to Moyes' filing. There was no indication that Glendale officials had agreed to any of these conditions, nor has a City Council meeting to approve such a deal been scheduled.
You can understand how a bidder for a team on the verge of relocation might be embarrassed by the public disclosure of an out clause for the franchise in five years.
Plus, conservative watchdog groups have been putting heat on the city for weeks regarding taxpayer dollars and the Coyotes; one assumes they'd like to know more about this "voluntary surcharge" on retail sales.
The other news today is that the auction for the Coyotes has been delayed until Sept. 10 to give the two ownership groups approved by the NHL -- Reinsdorf and Ice Edge, which received a strong "maybe" from the League for its proposed Phoenix/Canada split for the Coyotes -- more time to negotiate with the city and creditors.
That's the same day the "relocation auction" for the team was initially scheduled, and David Shoalts from the Globe & Mail reports that Judge Redfield Baum will rule on that second auction this week, and could combine the two for Sept. 10. From the Globe & Mail, even with his candidacy for ownership rejected by the NHL, Balsillie's still in the mix:
Despite the uncertainty, Balsillie, whose ownership application was rejected by the NHL last week, remains in the picture. Indeed, at one point in the hearing Judge Baum described Balsillie's $212.5-million cash bid (all currency U.S.) as the biggest and best of the three bids. Balsillie's bid is conditional on moving the Coyotes to Hamilton.
Both the Reinsdorf and Ice Edge bids involve relatively little cash for the creditors and are conditional on negotiating new deals with the team's creditors and a new arena lease with Glendale.
Balsillie received another boost yesterday when a lawyer for the Coyotes' largest creditor said it was only interested in being paid in full and in cash. A lawyer for SOF Investments, a fund owned by computer tycoon Michael Dell, told Judge Baum that only Balsillie's bid would do that, although the fund had issues with all three bids. Lawyers for SOF reserved the right to agree to any of the bids if negotiations with either Reindsorf or Ice Edge produced an acceptable result.
You know what's going to be a blast? The humungous number of lawsuits filed no matter who wins the right to own a team that can't make money in the first place.
Finally, if you're into the behind-the-scenes intrigue of this case, Sarah Fenske of the Phoenix New Times has a startling, lengthy piece that explores just how far back Reinsdorf's interest in this team goes and how far the city manager appears willing to go to hand the Coyotes to Reinsdorf and lobbyist John Kaites. Based on the info in the article, there are a ton of questions that need answered about favoritism and business relationships with these bidders.
Check out Five For Howling tweeting from the courtroom for more.
Puck Daddy is an NHL blog edited by Greg Wyshynski. Email him, and follow him on Twitter.

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49 Comments
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HORATIO: Bettman will direct it.
MARCELLUS: Nay, let's follow Wyshynski; He may Tweet
(apologies to Shakes)
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Too bad Chief - -missed it by that much.
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The answer is very clear.
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Does this mean that after this is all said and done, with the judge's ruling, lawsuits, countersuits, appeals, rejections, ect. After ALL that...
The Coyotes are going to just end up being sold for "50 Dollars and time served?"
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Does this mean that after this is all said and done, with the judge's ruling, lawsuits, countersuits, appeals, rejections, ect. After ALL that...
The Coyotes are going to just end up being sold for "50 Dollars and time served?"
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Does this mean that after this is all said and done, with the judge's ruling, lawsuits, countersuits, appeals, rejections, ect. After ALL that...
The Coyotes are going to just end up being sold for "50 Dollars and time served?"
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one or Brett Farve's retiring, unretiring, then retiring again.
With that I say that let Phoenix go to Hamilton and play in the eastern
conference and move Atlanta to the Western Conference.
Then the Pacific and Central divisions so that St Louis plays
in the Pacific and Atlanta in central.
Yeah is sucks for Stl but then Dallas and Minnesota
got the short end when divisions were realigned for expansion.
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I'm from Phoenix, and the New Times is a free distributed "newspaper" in the fact it's printed on newspaper. It somehow ends up in every college dorm room, mostly because you can check when the next Jimmy Eat World concert is. Half the thing is ads for sex shops and the other is for "articles" (read: unedited opinions with little or no fact checking) about pot, corrupt cops, and music reviews. I'd rather read an Onion article really. There is no information in that piece that is new , nor cannot be implied by anyone whose read any article about the Coyotes ownership.
Bottom line is, Moyes isn't gonna get compensated for his bad financial dealings or his bad handling of the Coyotes for the last 5 years. So, he wants the deal that is best suited for him, not the Coyotes, Glendale, or the fans. That deal is Balsille's, not Reinsdorf's. So why would he just roll over and see himself get screwed again, when he can throw a wrench in the thing and a) up his chances a potential rival bidder backs out and b) make Balsille look like a knight in shining armor.
The whole thing stinks, personally, as a hockey fan and a Yotes fan as well, I just hope we can play some damn hockey here soon. Money and hockey never mix. I'll take hockey anyday. Moyes should just lick his wounds. A bad investment is what it is, but at least let someone else try and rebuild it, rather than drag it on and make things worse.
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@ pb...probably best I stop drinking too...
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Please fix the teams you already have.
Love, Me
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You're sounding like Gary Bettman. 'Love, Me'
How about get some real facts before you bash the other Canadian teams. They are among the most stable franchises in the league right now despite the fluctuation of the dollar. More Canadian teams mean guaranteed interest in that franchise. Just because the Leafs suck doesn't mean they are not making money. Coming from a sad sack Leafs' fan, warm climate in the United States has only one way to succeed, WIN.
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As well, should Mr Balsillies offer be rejected by the NHL, then the way is open for the teams creditors left out in the lurch free to sue the NHL for the millions owed them. They will probably win.
This could get even uglier as time goes by.
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Please try actually paying attention to the NHL. "Fix" the teams? What needs fixing? The fact they sell out every single game? The fact that all but two of them have been competitive over the past 7 years? That three of them made the cup finals 3 years in a row (excepting strike year) and two came within a few bounces in game 7 of winning a cup?
Or that all of them are constantly among the most stable and high profit teams in the league?
Please get your head out of your a$$
Crapfully yours,
Me.
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