Balsillie's offer for the Coyotes

NHLPA Director Paul Kelly is interviewed on the Balsillie situation...from CBC.ca:

Paul Kelly says southern Ontario could support 2nd team

Wednesday, May 6, 2009

The executive director of the NHL Players' Association wants the bankruptcy issues surrounding the Phoenix Coyotes to be resolved by the end of June.

Paul Kelly arrived at the men's world hockey championship in Bern, Switzerland, on Wednesday on an overnight flight from Toronto to the news that the Coyotes had filed for Chapter 11 bankruptcy protection, and that Balsillie had made an offer of $212.5 million US to purchase the team and relocate it to southern Ontario.

Kelly has never hidden his support of putting more NHL teams in Canada.

"Obviously if Phoenix could have gotten new ownership and new investment and turned it around and made it a profitable franchise, we would have been very supportive," he said in an interview.

"If that can't happen, and I have said it many times, I think the league should look seriously at putting another team in southern Ontario, either in Toronto or in the Hamilton-Kitchener area. There is incredible enthusiasm for hockey in southern Ontario. Certainly they could support a second team."

Kelly also said he wants a quick resolution to the future of the Phoenix franchise.

"You have scheduling issues, you have the draft issues and we have players, frankly, that have commitments on homes, condos and families that have to be in school," he said. "You can't let the thing linger much past the end of June for it to be resolved one way or another."

Kelly was asked why he thought the NHL does not want Balsillie as an owner.

"I am not surprised by it. He is into his third attempt at buying a franchise and moving it," he said. "I have not been involved in any of his prior efforts, but I am certainly aware that the league does not like to be strong-armed and the league believes it has a number of legal and technical manoeuvres they can take to forcefully block anybody who tries to enter the ownership group.

"We want what is best for hockey and we want what is best for the players. If that turns out to be in Phoenix, that is great and we will support it. If it turns out that's bringing in a new owner and moving that team to southern Ontario, we will be extremely pleased and that would be great for our players."

While the NHLPA does not have input regarding team ownership, Kelly said whoever gets the team should have deep pockets.

"I know that the league does not wish to infuse any more money into the Phoenix Coyotes. If they are bringing in new ownership or a new investor, then that group is going to have to be able to either absorb the losses or fund the operation on their own. The league will simply not carry that.

"They did the right thing this year by advancing funds and infusing money to keep that team going, and it is good for the players and good for the league. At this point you need someone who can stand alone and handle the financial consequences."

Kelly on Balsillie as a potential owner: "I think anytime you have someone who is a passionate hockey guy who loves the sport and plays the sport, who is a true fan of the sport, as an owner, is a great thing," Kelly said. "If it happens that that person has deep pockets, that would be a better thing. Jim obviously has all of those attributes.

"I sensed his passion for the game [in conversations with Balsillie] and I do think it would be somebody worth considering. But there is a lot of politics and history here [between Balsillie and the NHL] that I am not in a position to comment on."

Kelly said the NHLPA would closely monitor the Coyotes' financial situation.
"At this point it is out of our hands," he said, "and we will watch it with real closeness and we will be keeping our players advised throughout the process."

Kelly is playing it smart and staying out of the battle, but letting it be known they feel that a team in Southern Ontario makes sense. He never says anything about moving a team though, just "a team".

A team in Southern Ontario means more money and exposure for the players, thats why Kelly supports it. Dont for one second think its for the good of the league... well entirely.

Neely4Life wrote:A team in Southern Ontario means more money and exposure for the players, thats why Kelly supports it. Dont for one second think its for the good of the league... well entirely.

Kelly and the NHLPA have their own agenda, that is for sure.

They always do.

As a footnote to today's whirlwind of activity, on RDS' 'L'Antichambre' broadcast tonight with Alain Crete, Michel Bergeron and Francois Gagnon, the panel confirmed that Jerry Reinsdorf, owner of the Chicago Bulls, had agreed to buy the Coyotes and was in Phoenix to do the deal when the news came of Balsillie's move to block the sale.

Messy, messy, messy.

Well, today's the court date in Phoenix getting things rolling.

If the NHL can't get the bankruptcy filing invalidated, they'll have to rely on Reinsdorf's offer (if there really is one) to buy the Coyotes to sway the court. But his offer is going to have to be at least the same as or greater than (not sure about this $5M more that McKenzie keeps talking about) in order to trump Balsillie's offer.

Should be interesting.

wow this is really going to get nasty before it gets resolved, and still will remain bitter even after it does get resolved. Does anything think that reinsdorf will match RimJim's (as DTR calls him) offer, does Bettman pull out his trust fund to try and prop up Reindorf's offer to block Jim getting a team in Southern Ontario (doubt that will happen though as a) its illegal I am sure and b) doubt Bettman's trust fund is that much anyway) This could be an epic legal battle, the sad thing is, it may detract from the playoffs, which is what should be concentrated on right now.

Darren Dreger just indicated that if the bankruptcy court approves Balsillie's offer, he'll need the following approvals from the owners to proceed:
- 3/4 approval for the sale (23/30 votes)
- a simple majority for relocation (16/30 votes)

I find it odd that the relocation vote is only a simple majority.

shabbs wrote:Darren Dreger just indicated that if the bankruptcy court approves Balsillie's offer, he'll need the following approvals from the owners to proceed:
- 3/4 approval for the sale (23/30 votes)
- a simple majority for relocation (16/30 votes)

I find it odd that the relocation vote is only a simple majority.

That is where Bettman can get him shut down, am sure the other owners have been poisoned against Balsillie by the NHL office, Toronto votes no regardless.

Interesting story but since I'm not a Jets or Coyotes fan I am finding it hard to get overly involved. When I think about the story my thoughts always go back to why aren't there more Canadian teams and one major reason could be the Canadian Dollar's ability to stay strong and stable. Edmonton, Calgary and Ottawa all struggled financially due to a weak dollar so adding more Canadian teams makes the Revenues even more dependant on the strength of the Canadian Dollar and if that fluctuates then there could be financial hardship for all Canadian teams.

I don't agree with trying to put teams in the Southern States that are barely surviving on life support and more effort should be made to grow the game where there is a market for it. Columbus was an excellent market and only started to fade after years of poor seasons, Minnesota has a waiting list for Season tickets and has a rich High school Hockey tradition, New York Rangers are huge and Chicago is winning back their fans as are Buffalo and Boston. Detroit has struggled in large part due to the Auto industry but have always been Hockey Town. NY Islanders have a winning history and to see them interested in moving is really a sad story and life could be breathed back into that franchise just as Chicago has regained new life IMO.

All this to say that if they insist on growing the NHL in the States then for gawd sakes do it where you have a shot at building a solid Market and interest. And do it much like teams like Dallas have where they grew interest in the lower levels of Hockey.

As for Canada you can't go wrong with a Billionaire owner and another team in Southern Ontario. The population and interest is so high there that there would be no lack of Corporate and fan support which could easily weather the storm of a shakey Canadian Dollar.

From this morning's chicagotribune.com, yet more complications in this whole fiasco:

CHAIRMAN OF THE BOARDS?

Jerry Reinsdorf involved in bid for Phoenix Coyotes

White Sox chairman working with NHL to keep NHL team in Arizona

By Dave van Dyck, Cjcago Tribune reporter
May 7, 2009

Jerry Reinsdorf, chairman of the Bulls and White Sox, is part of a group that could be making a last-ditch effort to buy the NHL Phoenix Coyotes and keep them from moving to Canada.

Reinsdorf declined comment Wednesday night through a spokesman at U.S. Cellular Field, saying "it was not appropriate to comment on the Coyotes situation at this time."

The Coyotes, who play in a new arena in Glendale, Ariz., are in serious financial trouble and owner Jerry Moyes immediately filed for Chapter 11 upon hearing an offer might be made by the NHL-led Reinsdorf group. He already has cut a $212.5 million deal with BlackBerry boss Jim Balsillie to move the team to southern Ontario.

The NHL is challenging the bankruptcy, hoping to keep the team in Glendale, not far from Reinsdorf's home and the new spring training home of the White Sox.

Reinsdorf and NHL Commissioner Gary Bettman were seen having dinner at a Glendale hotel in late March during spring training, perhaps discussing a financial deal. It is not known how much money Reinsdorf would invest in the Coyotes.

Glendale city manager Ed Beasley told the Associated Press an offer to buy the team and keep it in Arizona will be made soon and confirmed Reinsdorf and the NHL are working together.

"I will say we are very confident that an offer will be made," Beasley said.

Any ownership change could be months from happening now that Moyes has filed for bankruptcy and the NHL apparently will contest it.

Moyes, whose trucking business has suffered in the economic downturn, is believed to be $100 million in debt with the Coyotes. The city of Glendale reportedly is owed a $750 million penalty if the 30-year lease is broken, although that could change in bankruptcy court.

Copyright 2009, Chicago Tribune

SensFan71 wrote:

shabbs wrote:Darren Dreger just indicated that if the bankruptcy court approves Balsillie's offer, he'll need the following approvals from the owners to proceed:
- 3/4 approval for the sale (23/30 votes)
- a simple majority for relocation (16/30 votes)

I find it odd that the relocation vote is only a simple majority.

That is where Bettman can get him shut down, am sure the other owners have been poisoned against Balsillie by the NHL office, Toronto votes no regardless.

The owners--including Mario Lemieux--have their own views on Balsillie.

Remember how Balsillie tried to screw Mario and the Pens? Mario does.

Balsillie has already alienated a number of NHL owners...and now he expects them to welcome him into their club?

"The city of Glendale reportedly is owed a $750 million penalty if the 30-year lease is broken, although that could change in bankruptcy court."

This number keeps changing - I hear $400 million, $250 million.... at any rate, a huge amount of money is owed if the lease is broken... but bankruptcy can provide and out for that and allow them to break the lease without penalty I believe.

davetherave wrote:

SensFan71 wrote:

shabbs wrote:Darren Dreger just indicated that if the bankruptcy court approves Balsillie's offer, he'll need the following approvals from the owners to proceed:
- 3/4 approval for the sale (23/30 votes)
- a simple majority for relocation (16/30 votes)

I find it odd that the relocation vote is only a simple majority.

That is where Bettman can get him shut down, am sure the other owners have been poisoned against Balsillie by the NHL office, Toronto votes no regardless.

The owners--including Mario Lemieux--have their own views on Balsillie.

Remember how Balsillie tried to screw Mario and the Pens? Mario does.

Balsillie has already alienated a number of NHL owners...and now he expects them to welcome him into their club?

well put DTR, since it comes down to that, Balsillie will never be welcomed into the elite group of NHL owners unless he grovels for past wrongdoings and to follow proper procedure as another poster here had said in the other thread I believe. Talk about shooting yourself in the foot.

shabbs wrote:"The city of Glendale reportedly is owed a $750 million penalty if the 30-year lease is broken, although that could change in bankruptcy court."

This number keeps changing - I hear $400 million, $250 million.... at any rate, a huge amount of money is owed if the lease is broken... but bankruptcy can provide and out for that and allow them to break the lease without penalty I believe.

Expect a long, expensive and messy legal battle...with this kind of huge money in play.

It does appear, though, that the primary reason the NHL has been trying to resolve the Phoenix issue quietly is because of the $750MM lease-breaking penalty.

As long as things were quiet, the NHL could look to negotiate a settlement with the city of Glendale.

Reinsdorf is one of the most successful owners in pro sports, and there conceivably could have been some incentives for the City to reach a compromise.

With Balsillie and Moyes putting everything into bankruptcy court, who knows what happens next?

I guess it all depends on how many owners Balsillie has been courting in this time and does he have enough to get him "in" the club.

But, after all the Boots mess, perhaps they'd welcome an owner with actual money and deep pockets. Who knows.

shabbs wrote:I guess it all depends on how many owners Balsillie has been courting in this time and does he have enough to get him "in" the club.

But, after all the Boots mess, perhaps they'd welcome an owner with actual money and deep pockets. Who knows.

If money was the only issue, any billionaire could be an NHL owner.

As we are finding out, there are 'right' and 'wrong' ways to buy an NHL team.

IMHO it's safe to say Balsillie, based on his behaviour towards the NHL and the owners he has dealt with so far, has been zero in the courting department.

Don't imagine Mario Lemieux is going to roll out the red carpet after the 'Waterloo Penguins' debacle.

Don't imagine Larry Tanenbaum of MLSE is going to wrap his arms around Balsillie as RIMbo aims for a slice of the Toronto/Southern Ontario pie.

Former Tampa GM Jay Feaster said yesterday in an interview on 'NHL Live', "it's astonishing" that Balsillie has decided to use the courts as his strategy to muscle his way into league. "I have to believe Balsillie has some very bad advisors," he added.

Feaster essentially said Balsillie is burning bridges with the Board of Governors before he even crosses them.