Is An NHL Team in Hamilton The End For The Sabres?

One of the potential aspects of an NHL team in Hamilton, some say, would be a negative impact on the fan base in Buffalo.

On Corus Sports Radio today, former Habs, Bruins, Leafs and Devils coach Pat Burns declared that as much as half of the Sabres fan base, and as much as a quarter of their season ticket sales, come from Southern Ontario.

His interview here (audio in French)
http://www.corussports.com/radio/audioplayer.php?file=expert_2009-05-21_083401.mp3&mode=fs&id=43271

This story in the Associated Press adds some detail to Burns' observations.

In an earlier post on the Balsillie discussion threads, I posted an excerpt from an interview with an NHL owner who told David Shoalts of the Globe & Mail that Sabres owner Tom Golisano would, in his words, eagerly sell out to Balsillie.

BUFFALO, N.Y. — The Associated Press, May 21, 2009


U.S. Sens. Charles Schumer and Kirsten Gillibrand of New York are opposed to the Phoenix Coyotes relocating to southern Ontario because it would have a potential “crippling” effect on the Buffalo Sabres.

In a letter sent to NHL commissioner Gary Bettman on Thursday, the two Democrats sided with the league in its bid to prevent BlackBerry boss Jim Balsillie from purchasing the bankrupt Coyotes and moving them to Hamilton, located about 45 minutes west of Buffalo.

The Sabres, one of the NHL's strongest U.S. small-market franchises, generate about 20 per cent of their revenue from across the border.

The NHL has asked a bankruptcy judge to uphold the league's right to determine who owns a franchise and where it plays.

TSN is reporting this as well...

http://www.tsn.ca/nhl/story/?id=279460

"The Sabres, one of the NHL's strongest U.S. small-market franchises, generate about 20 per cent of their revenue from across the border."

A legitimate concern for sure.

shabbs wrote:TSN is reporting this as well...

http://www.tsn.ca/nhl/story/?id=279460

"The Sabres, one of the NHL's strongest U.S. small-market franchises, generate about 20 per cent of their revenue from across the border."

A legitimate concern for sure.

So the question is...if Balsillie knows the Sabres are for sale, and he has known it for some time according to the aforementioned NHL owner, why hasn't he tried to buy them?

Why has Balsillie taken the absolutely most difficult route to ownership?

This all makes no sense.

MADNESS, I tell you...MADNESS!!!!

I'm sure Balsillie will attempt to buy them, but the stumbling block will always be the "no movement clause" that Gary wants in any deal. It was the issue in Pitt and Nashville. Balsillie does not want any type of NMC in a purchase agreement.

shabbs wrote:I'm sure Balsillie will attempt to buy them, but the stumbling block will always be the "no movement clause" that Gary wants in any deal. It was the issue in Pitt and Nashville. Balsillie does not want any type of NMC in a purchase agreement.

Why is it so important for Balsillie to move a team to his own backyard, except to satisfy his ego?

davetherave wrote:

shabbs wrote:I'm sure Balsillie will attempt to buy them, but the stumbling block will always be the "no movement clause" that Gary wants in any deal. It was the issue in Pitt and Nashville. Balsillie does not want any type of NMC in a purchase agreement.

Why is it so important for Balsillie to move a team to his own backyard, except to satisfy his ego?

Well, it would be "his" backyard as opposed to some foreign country. Perhaps he feels he can work better with local munic/govt here instead of there?

Or perhaps this has now gotten personal, and no longer has anything to do with the team, or with hockey.

He's going through a process that involves a court battle to allow him to even buy the team (and perhaps change the operating landscape for every pro sport in North America), then he has to over-pay by $82.5M (is that all?), then he'll have to fight the BOG (his best friends by now), and then he'll still have to battle the potential issue of territorial rights (some estimates have suggested amounts up to $800M!). And then, once he gains all this, he's going to have to work with all the people he just pissed off.

It almost seems childish, like a 4-yr old that is so hell-bent on getting something, that by the time he gets it, he forgets why he wanted it. I wouldn't be surprised if he gets the team, plays with it for a few years, and then sells it because he's bored with it.

It is equally childish that the league keeps pushing this guy away. Single owners are more stable than group owners. This guy wants to throw a ton of money into the league and turn a failing franchise into an extremely successful franchise. Bettman doesn't it want this because a) it would mean admitting failure of his grand plan b) he has a grudge against Basille becuase he doesn't play by the rules. All the while the BOG are putting money into a sinkhole that they will never get back.

The Ottawa Citizen's Ken Warren explores the implications of a Balsillie victory in an article now posted on the new thread:

"Will the NHL someday be playing musical chairs?"

IMHO everyone will find it a fascinating read, and, I expect, will have more than a few comments...

The thing is that one of them doesn't have to lose for the other to win.

Balsillie can have his team, and Bettman can still come out looking like the hero.

They just need to come out of mediation agreeing that the NHL controls the team, and that the NHL has agreed to move the team if it can't be successful after one more season in Phoenix (Balsillie has already agreed to staying there for one year). Then come up with a reasonable amount for the territorial rights fees (Toronto has lots to lose if the NHL destabilizes, so Bettman would have to handle this out of court), and proceed.

Somewhere in there, they'd have to allow the bankruptcy proceedings to continue, but now create a revisionist history that Moyes acted on behalf of the NHL; this could begin the process of getting them out of the current contracts. Pay a small penalty if they must; revenues would likely rise anyhow as a new team would result in a rush of new merchandising, etc. Balsillie could also agree to move his minor league affiliate to Phoenix as compensation (crowd size is about appropriate...)

Bettman is a hero for keeping the team in Phoenix for at least another year, and averting the crisis; Balsillie pays off more debt than any other suitor and gets his team in his own backyard.