The *Official* Coyotes/Bettman/Balsillie Drama Thread

BAUM TURNS DOWN BOTH BIDS FOR PHOENIX COYOTES

Quote :

After months of back-and-forth disputes over who would ultimately obtain control of the Phoenix Coyotes franchise, Judge Redfield T. Baum turned down both bids by the National Hockey League and Canadian billionaire Jim Balsillie on Wednesday.

"In hockey parlance, the court is passing the puck to the NHL, who can decide to take another shot at the sale net or it can pass off the puck," Judge Baum wrote on Wednesday.

Judge Baum threw out the bid by Balsillie, saying it could not work because he could not properly satisfy the NHL's rights regarding relocation. "In the final analysis, the court cannot find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton without first having a final decision regarding the claimed rights of the NHL and the claims of the debtors and (Balsillie)," he ruled.

He then ruled that the NHL's bid would not work because it allows the league to specifically select the creditors will be paid. The NHL said it would pay all their creditors in full - with the exception of former head coach Wayne Gretzky and majority owner Jerry Moyes.

"There has been no determination that the Moyes and Gretzky claims are not 'legitimate creditors.' It would be inherently unjust for this court to deprive them of their possible rightful share of any proceeds without first providing all involved a fair trial on their claims."

The Coyotes originally filed for Chapter 11 bankruptcy protection on May 5, opening the door for Balsillie to make an offer to buy the club. The initial offer of US$212.5-million was made, conditional on the team moving north to Southern Ontario.

The NHL quickly responded, claiming they had been in control of the franchise since November 2008. The league insisted that because they were running the team, majority owner Jerry Moyes did not have the right to file for bankruptcy.

A week later, Hamilton's city council approved a lease deal that would leave the door open until October, for the Coyotes to call Copps Coliseum home. The NHL contended that that territory belonged to the league, making it impossible for the Moyes/Balsillie deal to be completed.

As Balsillie's group pushed forward, they announced Labatt Breweries and Home Hardware as corporate sponsors if and when the team made its way to the Steeltown.

The NBA, NFL and Major League Baseball all voiced their support behind the NHL's stance regarding ownership transfer and relocation. Each league provided documents urging the courts to help them set a precedent in these matters. Judge Baum ordered Moyes and the NHL into mediation to establish who was in charge of the team.

In late May, Balsillie filed an application to the NHL Board of Governors, asking them to approve him as a potential owner of the Phoenix franchise. Balsillie also announced a $150-million renovation plan for the aging Copps Coliseum, to upgrade the facilities.

While no resolution had determined, in June, Judge Baum stated that the NHL had a right to demand payment for a team moving into the territory of Southern Ontario.

By the end of July, the NHL Board of Governors had voted unanimously (26-0) to reject Balsillie as a potential owner.

As the issue hit a fever pitch, Balsillie requested that the U.S. Bankruptcy Court probe the reasoning as to why the NHL owners' determined he was unfit to own a franchise in their league.

The league put their support behind the bid of Chicago Bulls and White Sox owner Jerry Reinsdorf in late July, but the bid was withdrawn on August 2. The NHL stepped up with their own bid of $140-million and another group, Ice Edge Holdings, also made a bid of $150-million.

The Ice Edge bid was short-lived and was withdrawn on September 9, after the group announced it was unable to work out a new arena lease with the city of Glendale.

As the date of the auction drew closer, Balsillie raised his bid to $242.5-million.

On the first day of the auction, Judge Baum told both bidders he might not award the team to either party.

Day 2 saw both sides make alterations to their respective bids. Balsillie adjusted his bid to ensure Glendale would receive $50-million if he was awarded the team and removed a deadline of September 21 for the sale to be completed.

The NHL changed their bid around so that $14-million of the money would be split between Moyes and Coyotes head coach Wayne Gretzky.

At the conclusion of the auction, Judge Baum made it clear he would take time to make his ruling. He said he wanted to word his decision clearly for the next court under the assumption the ruling would be appealed regardless of what it turned out to be.

The Coyotes opened camp on September 12, but Gretzky was not there due to uncertainty with his contract.

Phoenix was 36-39-7 last season and finished 13th in the Western Conference last season.

Looks like JB completely lost in this, and even though the NHL's bid wasn't accepted, it's still a victory for their rights for controlling relocation.

So.......who wins? Is the bidding still open? Since the Judge rejected the NHL's bid....who owns the team? Moyes?

Moyes still owns the team, but the NHL still controls it. They were not permitted to purchase it, but they are in control of who can.

TaLoN wrote:

Moyes still owns the team, but the NHL still controls it. They were not permitted to purchase it, but they are in control of who can.

The NHL is currently operating the team, that's true. But from what I read, the court is still in control of who will ultimately own the team. Any bid for purchase would have to go through it to make sure it satisfies all the creditors. The NHL bid was invalid because it "picks and chooses" which creditors to satisfy. IMO, had Balsillie not included relocation as a part of his offer, he would be the owner of the Coyotes tonight.

Yes, the court has to approve any sale, but it is up to the NHL to get prospective buyers.

TaLoN wrote:

Yes, the court has to approve any sale, but it is up to the NHL to get prospective buyers.

I don't think that's what the Judge said....It sounds as if the auction is still open...and if I had roughly $200 million to spend and not include any stipulations like relocation in my offer, I could move into the owners chair...without having to go through the NHL first.

Beyond all that...the NHL HAS to know that there is no long-term value to keeping the team in Glendale...they know, like everyone else, that the team's future is somewhere else...they just want to determine where.

I bid 20 bucks and if I win I will put them on ebay for 45 bucks, doubling my cash after the ebay fees.

Too bad, I was hoping Balsillie would get his way because then maybe Bettman would be fired!