Balsillie's offer for the Coyotes

More coverage from SNet...

http://www.sportsnet.ca/hockey/2009/05/05/balsillie_coyotes/

Sounds like the Coyotes owners are asking Balsillie to do this... interesting.

according to the guys in cbc media center during the intermissions for someone to over bid Basille they have to go 5 mill above what he has so they would need to put up 217.5 million to a team that has lost 200 million in eight years......something like that i dont remember exactly what they said but along those lines

Hockeyhero22000 wrote:according to the guys in cbc media center during the intermissions for someone to over bid Basille they have to go 5 mill above what he has so they would need to put up 217.5 million to a team that has lost 200 million in eight years......something like that i dont remember exactly what they said but along those lines

Interesting... but that was not the way it went down in Nashville if I remember it correctly. They sold it for less than Balsillie was offering to someone who would keep it local. The deal breaker was the relocation to Canada. I can see that happening here too... if someone steps up that is local.

well the courts still have to decide and could side with a lower bid... that just what a person would have to bid to out bid basillie...the league really doesnt want to relocate the team and even if the courts agree they will probably have to go back since moving a team requires the leagues approval

It's a complicated process, no doubt.

Bankruptcy courts will move assets to the highest bidder. Unless Bettman can start a bidding war with a Vegas owner stepping up, I think Balsille will get this team.

No move has ever been disallowed because of "territorial rights".

Why is Balsillie doing all of this in such a public manner?

davetherave wrote:

Flo The Action wrote:just saw the nutty proffesor(basillie) with his conference on TSN, man that guy can hardly stand still. i hope he gets his team and i like the way he's going about it. the league could use more eccentrics like him. if anything it's a nice firm slap :fight: in bettman's face.

You mean like Koules and Barrie?

NO! that's the grade A moron category. besides they're not eccentric they're armchair GM's that bought a team and went haywire.
speaking of Tampa, is there really a need for a GM in Tampa with tweedle-d and tweedle-dummer in charge?

i don't think basille would meddle as much with his team.

soo much court mumbo jumbo has to happen before we can know anything adn they first meet on thursday

Flo The Action wrote:

davetherave wrote:

Flo The Action wrote:just saw the nutty proffesor(basillie) with his conference on TSN, man that guy can hardly stand still. i hope he gets his team and i like the way he's going about it. the league could use more eccentrics like him. if anything it's a nice firm slap :fight: in bettman's face.

You mean like Koules and Barrie?

NO! that's the grade A moron category. besides they're not eccentric they're armchair GM's that bought a team and went haywire.
speaking of Tampa, is there really a need for a GM in Tampa with tweedle-d and tweedle-dummer in charge?

i don't think basille would meddle as much with his team.

Fact is...we know nothing about Balsillie except that he's filthy rich and an exhibitionist.

Careful what you wish for...

davetherave wrote:Why is Balsillie doing all of this in such a public manner?

I think he feels no one can push him around and now he and Gary are waging a "public" war. To be honest, I think it's the wrong way as "the club" will rally around Gary.

Here's the complete article from TSN:

BALSILLIE PUTS IN OFFER ON COYOTES

TSN.CA/5 May 2008

Jim Balsillie has put in an offer on the Phoenix Coyotes.

The Research in Motion CEO made his intentions known in a media releason on Tuesday which confirmed that a $212.5 million (US) offer was on the table to purchase the team. One condition of the purchase was that Balsillie would relocate the franchise to an unspecified region in Southern Ontario.

"The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and Southern Ontario," Balsillie said in the release.

"I am excited to move closer to bringing an NHL franchise to what I believe is one of the best un-served hockey markets in the world, Southern Ontario. A market with devoted hockey fans, a rich hockey history, a growing and diversified economy and a population of more than 7 million people," he said.

The release also says, Balsillie agreed to post debtor-in-possession financing of $17 million (US) at the request of the Coyotes franchise. The money will keep the franchise going before the sale is completed.

Balsillie re-iterated his desire to purchase the Coyotes at a hastily called press conference at the Metro Toronto Covention Centre Tuesday night where the Blackberry billionaire was attending a business awards banquet.

"This is a very clear and serious offer, and I'm excited and delighted to make this offer and try to bring a seventh team to Canada for hockey fans in an un-served market of Southern Ontario," Balsillie told reporters.

The Arizona Republic reported that the Coyotes filed for Chapter 11 bankruptcy protection on Tuesday. Coyotes' CEO Jerry Moyes stated that they have done everything they can to try and keep the team in Arizona.

"Extensive efforts have been undertaken to sell the team, or attract additional investors, who would keep the team in Glendale," Moyes told the Republic.

The city of Glendale, where the Coyotes play at the Jobbing.com Arena, released a statement of their own Tuesday expressing disappointment that the team has filed for bankruptcy, stating they remain hopeful that a way can be found to keep the team in Arizona.

"The decision by the ownership of the Phoenix Coyotes to initiate bankruptcy proceedings without consultation or approval of the National Hockey League is an unfortunate turn of events for the NHL, the State of Arizona and the Coyotes' loyal fans. Even as the propriety of this unprecedented action is being thoroughly investigated by the NHL, city officials are working diligently to ensure that the public's interest is fully protected throughout this process.

"The City appreciates the decision by the NHL to assume control of the Coyotes and we are confident that every effort will be made to honour all contractual commitments. It is our hope that the NHL action will provide immediate stability to the franchise and allow the Coyotes to remain an important part of the Arizona community."

During his five-minute press conference in Toronto, Balsillie also stated how encouraged he was by the support he has received for a website that he has set up called makeitseven.ca, a website dedicated to bringing a seventh team to Canada.

"I've just been told we've been overwhelmingly flooded with thousands and thousands of people registering comment just in the past hour," Balsillie stated.

Much like Balsillie's previous attempts to purchase an existing franchise, the NHL is once again concerned with the provision in Balsillie's offer that states the deal hinges on the condition the team can be relocated to Southern Ontario.

Sources tell TSN that the NHL is not happy with what is perceived by the league as a powerplay by Balsillie and will wrestle with this matter in court.

Those proceedings are expected to begin on Thursday.

After learning of the purchase on Tuesday, the NHL's deputy commissioner Bill Daly released the following statement:

"We have just become aware of today's Bankruptcy Court filing purportedly made on behalf of the Phoenix Coyotes. We are investigating the circumstances surrounding the petition, including the propriety of its filing. We have removed
Jerry Moyes from all positions of authority to act for or on behalf of the Club. The League will appear and proceed before the Bankruptcy Court in the best interests of all of the Club's constituencies, including its fans in Arizona and the League's 29 other Member Clubs."

While Balsillie's offer appears solid, it does not guarantee that the Coyotes are on the move.

"If others want to come in and there's an offer that is deemed better by the courts, then ultimately that would be a court decision," Steve Roman, a spokesman for Moyes told the ASSOCIATED PRESS. "As I understand it, the hope and the plan is that all of this would be dealt with by June 30, 2009. You have a person who has a purchase agreement, but at the same time there could be other players who want to get involved."

This is not the first time that Balsillie has drawn the league's ire when by attempted to bring a team to the Golden Horseshoe.

In 2007 Balsillie attempted to purchase the Nashville Predators in an effort to re-locate the team to Hamilton, and even gave fans the opportunity to put a down payment on season tickets. The deal fell through leading to speculation that the league was not interested in Balsillie attempting to move a team before he actually owned them.

These new details come on the heels of a series of confusing reports last week that the NHL was in charge of the Coyotes, a report Coyotes president Doug Moss refuted. The league did not release a comment.

In addition there seems to be a growing sentiment of bringing a second team to the Southern, Ontario region, recently deputy commissioner Bill Daly met with a group who are attempting to bring a second team to the Greater Toronto area.

According to a release by the NHL following that meeting, that is not on the league's agenda.

"There is no consideration of bringing a second franchise to Toronto. We have no intention to expand in the foreseeable future, and there is no desire to relocate any of our existing franchises."

If Balsillie is successful in bringing the Coyotes to Canada it would mean that the franchise has come nearly full circle after the team was forced to relocate to the desert from Winnipeg in 1996.

---

Reading this, the first thing that struck me is that this is a TOTAL mess.

And an even bigger mess brewing...from CBSSports.com tonight:

NHL strips Coyotes owner of authority, opposes move to Canada

May 5, 2009/CBSSports.com wire reports

NEW YORK -- Angered by the Phoenix Coyotes' bankruptcy filing, the NHL stripped owner Jerry Moyes of the authority to run the club. A few hours after Moyes announced Tuesday that the team had filed for Chapter 11 bankruptcy protection -- a move that could allow the cash-strapped franchise to be sold and moved to Ontario -- the NHL said it would represent the team in bankruptcy court. "We have just become aware of today's bankruptcy court filing purportedly made on behalf of the Phoenix Coyotes," NHL deputy commissioner Bill Daly said in a statement. "We are investigating the circumstances surrounding the petition, including the propriety of its filing. "We have removed Jerry Moyes from all positions of authority to act for or on behalf of the club. The league will appear and proceed before the bankruptcy court in the best interests of all of the club's constituencies, including its fans in Arizona and the league's 29 other member clubs." Earlier, BlackBerry boss Jim Balsillie announced a plan to buy the Coyotes and move them to Ontario. The co-CEO of BlackBerry maker Research In Motion said that his $212.5 million offer is conditional on the Coyotes relocating to Canada, where they existed as the Winnipeg Jets before moving to Phoenix for the 1996-97 season. "The decision by the ownership of the Phoenix Coyotes to initiate bankruptcy proceedings without consultation or approval of the National Hockey League is an unfortunate turn of events for the NHL, the State of Arizona and the Coyotes' loyal fans," the city of Glendale said in a statement. "Even as the propriety of this unprecedented action is being thoroughly investigated by the NHL, city officials are working diligently to ensure that the public's interest is fully protected throughout this process. "The City appreciates the decision by the NHL to assume control of the Coyotes and we are confident that every effort will be made to honor all contractual commitments. It is our hope that the NHL action will provide immediate stability to the franchise and allow the Coyotes to remain an important part of the Arizona community." The team's Chapter 11 bankruptcy filing included the proposed sale of the franchise to PSE Sports & Entertainment, LP, which would move the franchise to southern Ontario. "Extensive efforts have been undertaken to sell the team, or attract additional investors, who would keep the team in Glendale," Moyes, the Coyotes chief executive officer, said in a statement announcing the Chapter 11 filing. "Creating a process under the supervision of a judge assures that anyone wishing to purchase the team will have the opportunity to bid. "Likewise, the City of Glendale, which has been very cooperative with efforts to keep the team in Glendale, will be able to provide potential buyers assurances of the city's willingness to offer incentives to keep the team as a tenant in the Jobing.com arena, the lease for which is subject to rejection in bankruptcy. The process assures that the identities of the new owner and the team's location will be known by June 30, 2009, thus enabling the NHL to include the team in its 2009-10 schedule." There was confusion last week when the Glendale city manager said the NHL was in charge of the team. Coyotes president Doug Moss rejected that report. Citing Glendale records, the Arizona Republic reported that the Coyotes stopped paying rent to Glendale, parking fees and most of its security costs at Jobing.com Arena in August. The paper also said the city was paid nearly $351,000 for past rent on Feb. 25, the day after the NHL agreed to loan the team an unspecified amount. As part of the loan agreement, the league had the right to take over the franchise if the loan was not paid, the paper said. Balsillie made a well-publicized attempt to purchase and move the Nashville Predators to Hamilton in the spring of 2007. The deal fell through, with speculation that some in the NHL did not like Balsillie's insistence that the team be moved to Canada. He also failed in a bid to buy the Pittsburgh Penguins. "The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and Southern Ontario," Balsillie said in a statement. "I am excited to move closer to bringing an NHL franchise to what I believe is one of the best unserved hockey markets in the world -- Southern Ontario. A market with devoted hockey fans, a rich hockey history, a growing and diversified economy and a population of more than seven million people," he said. At the request of the Coyotes ownership, Balsillie said he has also agreed to provide $17 million in financing to allow the franchise to keep going in advance of the sale. Balsillie's offer does not guarantee that the Coyotes will move. "If others want to come in and there's an offer that is deemed better by the courts, then ultimately that would be a court decision," said Steve Roman, a spokesman for Moyes. "As I understand it, the hope and the plan is that all of this would be dealt with by June 30, 2009. You have a person who has a purchase agreement, but at the same time there could be other players who want to get involved." In March, NHL commissioner Gary Bettman said the Coyotes were actively seeking investors or possibly new ownership, but reiterated that the team won't be relocated. "Our goal is to bring in new capital and make this franchise solvent," Bettman said on March 26. "That's our direction, and at this point moving the franchise elsewhere is not on the table."

It almost sounds like this was a plan hatched between Balsillie and Moyes, as Balsillie filed his offer right after the bankruptcy filing, essentially kick starting the bidding process via the courts and taking the NHL out of the picture.

What I don't understand is, can the courts dictate to the NHL who can buy this franchise?

shabbs wrote:Has anyone seen the website that has been setup?

http://www.makeitseven.ca/

Heh heh.

I signed up.

Cap'n Clutch wrote:

shabbs wrote:Has anyone seen the website that has been setup?

http://www.makeitseven.ca/

Heh heh.

I signed up.

Same here.

shabbs wrote:

Cap'n Clutch wrote:

shabbs wrote:Has anyone seen the website that has been setup?

http://www.makeitseven.ca/

Heh heh.

I signed up.

Same here.

As soon as I can get a hold of some contact info I'll see if the Co-founders are interested in posting their link on here.

Cap'n Clutch wrote:

shabbs wrote:

Cap'n Clutch wrote:

shabbs wrote:Has anyone seen the website that has been setup?

http://www.makeitseven.ca/

Heh heh.

I signed up.

Same here.

As soon as I can get a hold of some contact info I'll see if the Co-founders are interested in posting their link on here.

Not much info to be got other than it was Netfirms, Inc. that registered the site.