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Balsillie 'moving forward' in bid for Coyotes
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CTV.ca News Staff
Date: Tue. May. 19 2009 10:41 PM ET
Jim Balsillie said late Tuesday he's not giving up on his bid to bring the Phoenix Coyotes to Canada, after a U.S. bankruptcy judge ordered the NHL and the team's majority owner into mediation.
"I am moving forward," Balsillie said in a statement. "I have tabled a comprehensive and attractive offer. I will also be filing formal applications to the NHL both for transfer of ownership and for relocation to Southern Ontario to my chosen Hamilton Copps Coliseum venue."
Judge Redfield Baum has asked the NHL and Coyotes majority owner Jerry Moyes to resolve issues over who controls the team, and he wants a report on the outcome by May 27.
Baum also said he wants a hearing on June 22 to decide whether the team can be relocated. If not, Balsillie will lose his chance to move the Coyotes to Hamilton.
"I appreciate the court's careful consideration of the facts at hand and I respect Judge Baum's decision to recommend mediation for the Coyotes and NHL on the issue of current ownership," said Balsillie. "I also respect his decision to hold a June 22 hearing on the relocation issue."
Balsillie's lawyer, Richard Rodier, was also confident as he spoke to reporters outside the Phoenix, Ariz., courthouse.
"We have the rules covered," he said. "We have the criteria covered in spades. How the NHL deals with that, and how the court deals with that -- well, we have the utmost respect for the process and the courts in the state of Arizona."
The key issue in the dispute is whether Moyes had the authority to file for bankruptcy and negotiate the team's sale, or if the NHL had control of the Coyotes.
On May 5, Moyes announced he had put the team into Chapter 11 protection. That same day, Balsillie, Co-CEO of Research In Motion, made a $212.5-million offer to purchase the team but only if he could relocate it to Southern Ontario.
NHL commissioner Gary Bettman alleges in court filings that he had control of the team -- not Moyes -- and any talks of selling or moving the franchise should have been directed to him.
Bettman alleges that on Nov. 14, 2008, he "assumed control of all interests and rights" of the Coyotes, but "made the management decision to delegate certain responsibilities relating to the continued operations of the Club to Moyes" and other team officers and staff.
Trevor Whiffen, a sports and entertainment lawyer, said that normally, control of a business resides with the owner. But in this case, the NHL is asserting that Moyes delegated that responsibility by signing two proxies last November giving the NHL the authority to run the team and the arena.
In return, Moyes received millions in funding from the NHL on a line of credit.
"Does that proxy go so far as to prevent Jerry Moyes from filing bankruptcy? I would have thought, without seeing the document, that he would have reserved that right," Whiffen said.
He said he thinks the court will allow Moyes to file for bankruptcy.
If that happens, the court's mandate at that point is to sell the assets for the highest amount of money to make sure that the creditors of the team are all looked after.
Although Balsillie's bid would cover the debts, Whiffen said he still has hurdles to clear.
"He will have to get the approval of 23 of the 30 owners in the National Hockey League," Whiffen said. "Then he has to get permission to move that team to Ontario... he has to get a vote of 16 of the 30 votes."
With files from CTV's Lisa LaFlamme in Phoenix
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.


Comments are now closed for this story
OttawaWingsFan
said
Dave
said
Jose Reyes of Arizona
said
Trent
said
Hawky Phan
said
The owners of the Canadian teams had better be part of the required numbers that vote in favour of the sale and move to the north.
Otherwise its time to take our game back and start a Canadian Hockey League.
NHL denies freedom of speech - wants to control
said
The NHL control monoply must be broken and rebuilt and Gary Bettman is the prime obstacle right now.
Nancy- NDP in Manitoba scare away NHL Business
said
No business man will do business in Manitoba with an NDP Government the name is poison to business, the people deserve it but the NDP stands between the people and investments.
I hope we get another team and hopefully one day Manitoba will create the conditions for a winning team.
Josh Toronto
said
R/H Ontario
said
Joanne
said
Terri
said
Pete
said
Ian Ottawa
said
Crystal
said
Why is he SO against having more Canadian teams? Battman is anti-Canadian and that bothers me. Balsillie offered 212 million dollars...take the money and let's see what he can do!!!
Steve T
said
Our new arena holds around 13,000 people and our current AHL team, the Moose, usually draw 7,000 during the regular season. The salary level of the Moose is about 1/10th of an NHL team. So given that you can't get 10x more fans, presumably that means ticket prices are going into the stratosphere. If you can get people to actually buy them, which you may not.
Winnipeggers are getting their egos stroked by the comments of Bettman, but the reality is we can't support an NHL franchise. And how do you think our Moose players are feeling, when they are nearly in the AHL finals and all we can talk about is ditching them for an NHL team?
Tin plated god has spoken
said
a. the Stanley cup is a Canadian national treasure. It doesn't belong to the NHL, it was a trophy for amateur sport. Take it back.
b. the NHL moved to the US as a business decision by the American team owners. Move it back to Canada or shut it down.
c. Fire Bettman-he doesn't act in the best interests of anyone but his specific backers.
Lumberjack
said
Now Bettman says he had control of the Coyotes and that the ownership had no right to file for bankruptcy. Well if Bettman and the NHL had control of the Coyotes, why is the team not paying their bills. Seems to me that Bettman is saying he isn't doing his job.
David -Ontario
said
MK from NS
said
Shaun M
said
It is pretty sad that Bettman is protecting the (dis)interests of fans like you over the passion of Canadian fans.
ADM Saskatchewan
said
Brian from Saskatchewan
said
Angry Canadian
said
Tono
said
Marty
said
Should Pheonix be moved because of the lack of money and support there? Probably... perhaps most likely. But the fact that 89% of people in the daily CTV poll said the owner should have more control over the team than the NHL shows people's ignorance and that they answered that question based on emotions rather than logic. Each team is part of an organization--the NHL. You can't have every team playing by their own rules.
Doug BC
said
While I am also inclined to support another team for Canada,I am more inclined to support another city.One not so close to existing teams and one that would include access to NHL hockey for other parts of Canada.
And finally,we need to be careful what we wish for here folks.If owners are given a free ride,and the courts decide they can move their teams anywhere they want,any time they want,we may find ourselves in more trouble than we are now.We might enjoy this decision if a team decides to move TO OUR CHOSEN CITY.What will we think when a team LEAVES OUR CHOSEN CITY ? Will we be as anxious to support the owner under those conditions??
Un-intended consequences are a real possibility here.
mr. venice
said
Dave in Moncton
said
Martin-Edm.
said
Dani - Red Deer
said
mn_edmonton
said
DougB
said
shawn
said
I think if Jim Balsillie was an American and wanted to move the team to some place like Houston, San Francisco or wherever there would be no court case, the team would be on the move already.
daver66
said
Riehl - Trenton, ON
said
PT
said
Question for you....do you know where the Coyotes originated? Bettman says they don't run out on cities. He sure ran from Winnipeg. I'm not in favor of another team in Ontario...give them back to Winnipeg. It's where they have always belonged.
Foon Der
said
Judge Baum's decision will hinge on legal documentation and interpretation. JB probably spent some time researching whether he is on firm legal ground or not. If he didn't then he should have becuase the NHL has done their research and is now taking their case to court. There are no sentimental or idealistic values being fought here i.e. he doesn't want southern Ontario to have another franchise. Nothing of the sort. It is all about control and monopoly and the NHL want to preserve it (and their franchise values). So all you folks that are getting personal about Bettman's motives are off-base. It is about control, power and money, pure and simple.
The decision will be based on the legal framework of the NHL and Jerry Moyes' agreement to abide by the NHL charter. The legal guys have it all covered. It is wrong and so is Bettman wrong to have tried to expand into Atlanta, Nashville and Anaheim but that is all hindsight. The only issue here is whether Jerry Moyes still controls the team after taking league money. Even if the court case by the NHL is dismissed the NHL Board still holds the trump cards. Good luck Southern Ontario.
Calgary, AB
Mark (Ottawa)
said
Pure greed.
Prof. Pye Chartt
said
I'm getting a little tired of Bettman, a control freak, and his gang of self-interested suits always battling for a cause that often seems to run counter to the best interests of Hockey, the NHL, and the players.
In terms of basic revenue, tickets and television, all the aforementioned parties deserve to have EXISTING markets tapped...instead of this continual overriding effort to establish "new" American (or Canadian) markets.
For his part, in my humble opinion, Balsillie needs to quit flogging Hamilton like it's some golden oasis; just because it's proximate to Toronto and happens to have a sizeable but barely-passable venue. This isn't a winning choice, and Bettman and his gang have ALREADY turned their noses up at it.
Put a new arena ("Walter Gretzky Arena") on the table for Kitchener-Waterloo and get things in gear. Geographically, the locale works perfectly for a non-conflicting regional draw with adequate population base, transportation, and demographics.
Research In Motion (RIM), headquartered there, can reap the associative benefits along with the Regional Municipality.
Probably won't happen but...
said
Walter (Toronto)
said
Hamilton or Kitchener can get an expansion team - there is enough room for another few teams.
DAve Hammond, Cobourg
said
If Hamilton can support a team, and if there is a person ready to buy the failing Coyotes, then why Mr. Bettman, are you standing in the way? Give us a GOOD REASON for the team not to go to Hamilton. And a good reason is not that you, Mr. Bettman, don't want it to go. That is selfish and may I say rather childish. If you hate Canada as so many commenters have suggested, then maybe commissioner of a sport that started in Canada and is watched avidly by the great majority of Canadians is a job not suited for you. Perhaps you should be commisioner of .... oh... maybe fishing... or .....bowling.... I hear there's a lot of bowlers in Pheonix.
vince
said
Rick in the hat
said
2010 we take gold, gold and gold.
Pip
said
If the Manitoba Moose can't get more than half the MTS center filled, on average, what will happen if an NHL team is put in there, and ticket prices double (or more)? And it's no good crying to the Winnipeg or Manitoba governments for funds. I doubt any politician in the province would get agree with using tax money to prop up a hockey team whose players earn six figure salaries and whose owner expects a seven figure profit. Any money available for such use would be far better spent improving local sports facilities for local amateur teams. That way, thousand of kids would benefit instead of a couple of dozen spoiled pros.
So, Mr. NHL commissioner, cross Winnipeg off your list!
Ryan P.
said
It's HOCK NIGHT IN CANADA, not Arizona!
said
I think you said it best. Bring hockey back to Canada or strip the NHL of all the emblems & prizes that are Canadian - Startign with the Stanely Cup!
A Girl from Phoenix
said
I think moving the Coyotes back to Canada is the right move - where the true fans and supporters are. I just don't agree with Hamilton as the location. Moncton or Halifax would be great options. The Maritimes need a NHL team. There are already 2 teams in southern Ontario. I also agree with other people who posted that if the owners are given the authority to move their team wherever they want, whenever they want, there would be major problems. The NHL does need to approve whether or not a team moves.
just another canadian
said
GOLeafsGO
said
bob
said
larry Hultgren
said
Dave H. Cornwall, Ontario
said
kenny g
said
Steven B
said
P'd off Fan
said
Please stop
said
Never like this!
Stanley - PHX
said
Gord
said
Bill Foster
said
Balsillie has business sense and the backing of all of Canada to make it work here in Ontario. We have no problem putting our tax dollars behind him too. We would get something solid for our money.
toonfan
said
Bill
said
I think Balsillie has good business sense, and would be open to adding our tax dollars promote the league here in Ontario.
Adam
said
JJ
said
doodles
said
These creditors are wanting the team to be sold so they can at least re-coup some of thier money that they put into this team.
Now reports have outside sports comming to the aid of the NHL.
If I were a creditor and if the NHL wins this, I would be pulling out and running for the hills and lets see how many teams in Bettmans be-loved USA will stay aflot. even teams that been around for many years would fail.