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Balsillie ends legal battle for Phoenix Coyotes

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Canada AM: Trevor Whiffen from Toronto
The sports and entertainment lawyer says he is surprised at Balsillie's decision to accept the court's ruling, and expects that he has a 'Plan B' in the works.
CTV National News: John Vennavally-Rao reports
It came as a complete surprise and now, not only will the Phoenix Coyotes not be moving to Canada with Jim Balsillie, they won't be going anywhere with the NHL either -- at least for now.
CTV News Channel: Howard Bloom, publisher
The publisher of SportsBusinesNews.com who has been watching the battle for the coyotes describes the number of hints the judge gave over the last few months which showed that he would not accept either of the rival bids.
CTV News Channel: Darren Dreger, TSN
A TSN sportscaster explains what will happen to the beleaguered Phoenix Coyotes after a U.S. bankruptcy court judge threw out both the NHL's and BlackBerry-billionaire Jim Balsillie's bids for the team.
CTV News Channel: Matt Sekeres, Globe and Mail
A sports writer pinpoints the number of slip ups BlackBerry billionaire Jim Balsillie made during the bankruptcy proceeding.

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Upper deck tickets in Toronto 73.00, Upper deck ticket in Phoenix 15.00.No fair! The leafs do not care about their Fans!

ck

Balsillie ends legal battle for Phoenix Coyotes

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Balsillie ends legal battle for Phoenix Coyotes

CTV.ca News Staff

Date: Wed. Sep. 30 2009 8:39 PM ET

BlackBerry billionaire Jim Balsillie will not be appealing a ruling by a U.S. bankruptcy court judge that rejected both his and the NHL's bids for the beleaguered Phoenix Coyotes.

The ruling effectively ended Balsillie's long legal battle to relocate the team to Hamilton.

"From the beginning, my attempt to relocate the Coyotes to Hamilton has been about Canadian hockey fans and Canadian hockey. It was a chance to realize a dream," Balsillie said in a statement. "I believe I got that chance. I respect the court's decision, and I will not be putting forward an appeal."

The ruling was clearly a victory for the NHL, even if it didn't win outright.

Bill Daly, the NHL's deputy commissioner issued a statement saying, "We are pleased that the Bankruptcy Court has confirmed the League's rights to select its owners and the location of its franchises. It remains our goal to secure the long-term stability of the Coyotes in Glendale (Arizona)."

Judge Redfield T. Baum's decision leaves the fate of the Coyotes in the NHL's hands.

"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," Baum wrote in his decision.

However, the judge seemed warm to the NHL's offer for the team, saying that the league could "easily cure" the problems in its bid.

Baum said Balsillie's bid was tossed aside because the Research-in-Motion CEO could not garner the approval of the NHL to move the Coyotes to Hamilton.

"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)," the judge ruled.

The 28-page ruling said the Balsillie offer was denied "with prejudice," while the NHL's bid was rejected "without prejudice."

The Coyotes filed for bankruptcy in May, and Balsillie immediately offered US$212.5 million for the team, contingent on it moving to Hamilton. He later upped that bid to US$242.5 million.

The NHL Board of Governors would not approve Balsillie as an owner and the NHL filed its own US$140 million bid for Phoenix.

Baum was concerned with the NHL's proposal to pick which unsecured creditors it would pay out in full -- payouts that would not include former owner Jerry Moyes and ex-coach Wayne Gretzky, who resigned last week.

"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," Baum said.

From early on in the proceedings, Baum expressed hesitation to set a precedent. The NFL, NBA and Major League Baseball all voiced support for the NHL's position.

The Coyotes play their first game of the regular season on Saturday, Oct. 3.

The team has been massively unsuccessful, both financially and on the ice, since the club moved to Phoenix from Winnipeg in 1996.

Court records cite losses of $75 million in 2004, $50 million in 2005, $75 million in 2006, $117 million in 2007 and $72 million in 2008.

The financial statements "raise substantial doubt as to the company's ability to continue as a going concern," Baum said.

The franchise has not made it past the first round of the playoffs since 1987, when they were known as the Winnipeg Jets.

Despite his loss, Balsillie said Canada is closer to having a seventh NHL team.

"Nobody can deny that we are now a big step closer to having a seventh NHL team in Canada. It doesn't matter who owns that team. When that day comes, I will be the first in line to buy a ticket to the home opener," he said.

Hamilton Mayor Fred Eisenberger called the decision "very disappointing."

"The good news in it for Hamilton is that all have agreed that hockey in southern Ontario is viable and that it would be a successful market for them to start working with," Eisenberger said.

Comments are now closed for this story

Dan
said
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I think the judge ruled wisely.


mark
said
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It is a shame, it would make $$$ in Hamilton, if even 50% of the Canadian fans boycotted the first three or four home games of their team when they played an American team maybe Bettman would get the hint. I never for a moment thought the judge would let it come to Canada, no let the USA have another team maybe in New Mexico you know somewhere where ice comes in a drink and 90% of the population think Hockey is a house plant vs. another team north of the border where it is a house hold name! Fire Betman!!!


Prof. Pye Chartt
said
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Predicted. Mr. Balsillie has continued to mistake PUBLIC support for his proposed venture as influential leverage in the workings of a PRIVATE sports organization. The NHL doesn't have to dance to his tune; he has to dance to their tune. Period. They don't like his attitude, and they've long expressed their disinterest in Hamilton; yet, Mr. Balsillie keeps playing that card. It's time to pick a better venue (hint: build "Walter Gretzky Arena" in Kitchener-Waterloo) and quit annoying the owners of Toronto and Buffalo. Come on, Jim. You can still win the game. Change your strategy.


robert
said
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Who cares.


Dave in the West
said
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There is more important things to worry about in the world.I could care less is these poor billioniares don't get the rights to an NHL team.


Geg in Cambridge
said
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Doesn't sound like an impartial judgment to me. $100.000 Million more for the team wasn't good enough to pay off the creditors?Very suspicious.


Drew
said
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It blows me away that the NHL can be so shortsighted as to not allow a franchise into an extremely viable market. Yes, it is in the best interests of owners to have some really crappy, money losing teams in the mix so they don't have to up their salary cap, but it most definitely is not in the best interest of the game in the long run.The fact that the Leafs put all their muscle behind stopping JB makes me despise them even more than I already do (GO CANUCKS).


John (EDM)
said
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Saw this decision coming down from a mile away. No judge would ever set the precedent that a franchisee (NHL team owner) can dictact the terms to the franchisor (NHL). If you don't like the franchisor don't join them or start your own business. So much for Balsille being a smart businessman. I think he has actually hurt the chances of Hamilton ever getting a team. Buffalo and Toronto surely will push for new bylaws to additionally protect their interests.


darren
said
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Hey JB, there used to be a WHL, there is a league in Europe which has been attracting NHL players the last few years. Radulov and friends. Tell Gary where to go and start your own league ! I will buy tickets, heck i will even come to work for you marketing ! It has been done before and there are alot of good hockey players out there.


reidjr
said
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John (EDM)
You really beleave a team should not be allowed to move.


reidjr
said
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If i was a fan of the yotes i would not be to happy.This will be the last year there in phoneix more then likely.


Mike
said
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Here we go, let the money making teams support the coyotes for another year. God forbid our game can have another team north of the border. Who hired an American to control "our "game!


Tim Bitt
said
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Hey Jimmie-----Just a thought---- Why buy some old team that is all worn out when you could start your own brand new team all by yourself. If you tried playing by the rules and it does'nt work; try breaking the rules.But seriously Jim , aren't there more valid ways to spend your millions that would benefit mankind more than just buying a hockey team and bringing it to Southern Ontario? Just think of the problems you will cause if your wishes are granted by The Good Fairy (Mr. Bettman). If indeed Hamilton gets a professional hockey team then Toronto will want one too! And we all know that will never happen!


DGRose
said
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And the NHL mediocrity parade plods along behind bandleader Bettman...


B. Kelley, Ontario
said
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As long as Bettman is at the helm there will never be another Canadian team added to the NHL. The board of governors still have stars in their eyes thinking they can match the NBA or NFL in US popularity. They simply cannot but they will destroy the league in a vain attempt to do so. I predict that the NHL will collapse under its own weight within 10 years and the new organization that rises from the ashes will consist of 5 teams from Canada and three from the U.S. (Despite the symbolism, it won't include Phoenix) Maybe they can call it the "New Recycled NHL".


Alan In Halifax
said
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It seems a bit foolish that the NHL won't let the Coyotes go back to Canada just because they don't LIKE Balsillie! It's just hockey, folks!! 389 MILLION dollar loss in 5 years would be a nice chunk of change towards Obama's health care, though!!


Jim
said
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pathetic .... Bettman must go before I watch or go to another game


alan
said
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That's a baumer


Greg
said
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Who cares. These teams and players make way too much money while the rest of us are going bankrupt. The only reason these teams and players make millions of dollars is because people support them. Personally, they are all over paid and I won't support them until they make normal wages and get paid what they are worth.


Tony
said
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And Gary Bettmans is one step closer to putting a team in Kansas City. We all know that Kansas City has way more hockey fans that Hamilton does. Right?


STEVE H.
said
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Well it's finally over!! I gotta give Jim B. an "A" for effort/percerverance but in the end it cost him a lot of money for nothing. IMHO, this is the beginning of the end for the NHL in the southern USA and maybe overall!! I'm completely shocked that the NHL/Bettman/the Owners would turn down an offer of almost $250 million USD for a team that is worth maybe half that amount. It would've meant the Coys would have been bailed out completely with only one stippulation, to move the team to Hamilton where we all know it would have become a very profitable team. So now what?? Who pays what's owing to the creditors? What happens when they play another losing season in Phoenix? Next season when the this team is on the rocks yet again and they go to Jim B to see if he's still interested I hope he tells Bettman to stuff it. Maybe Jim B should buy the NHL and fire Bettman!! Meanwhile the profitable teams like TO and NYR will have to share their revenues to keep that lame team going. Glad to see Wayne G saw the writing on the wall and made his departure even though he's owed approx 25 million. When it's all said and done, Gary Bettman has completely failed the league and its fans and he should resign immediately!! God help the NHL...


Steve B
said
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it is about case law and precedent. Baum does not want to set it for future Pro Sports rulings. A greater fear of the NHL is the Kontinental Hockey League. Balsillie could easily start a North American Division to the Kontinental League and attract some of the best as the Russion/European league has.


Jay
said
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YAWN!! Who cares anymore.

The NHL is becoming more and more marginalized as a sport in North America. Fewer and fewer kids are playing hockey in Canada. In the GTA, teams and clubs are folding annually.

The once great dream of building hockey into something special is now dead thanks to the short sightedness of team owners and the NHL brass.

When there is nothing left but a dead carcass to beat, the NHL will have no one else to blame but themselves.


ck
said
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Upper deck tickets in Toronto 73.00, Upper deck ticket in Phoenix 15.00.No fair! The leafs do not care about their Fans!


DM Vancouver
said
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Montreal Toronto Boston New York Detroit Chicago Vancouver Philadelphia Moscow Oslo Stockholm and Prague

Now that would be a league - the 6 old-timers, 2 expansion, and 4 Europeans.


MAL of TO
said
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Let's take away the Hockey, JB, Bettman and the NHL and make this just a regular bankruptcy case. The creditors had an offer of 245 million and they and the judge declined it in favour of...... uhh, nothing.Dang, US tax write-off laws must be sweet to cover that kind of a loss because the next thing we'll be reading is some service denied to the team like electricity, soft drinks...... I would love to be a stockholder in one of these creditors and ask where the money is going to come from.


cambridge
said
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OK . KEEP the team in Glendale then FOREVER and may the Gendalians choke forever on the red ink. Be careful what you wish for .. you just got it.


milt
said
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The NHL is just a joke.The highest bid for a bankrupt old team and you dont take it? So much for the fans. The cyotes will stay for another year and poor old Gretzky will sit, the spoiled brat that he is, too bad sooo sad..


rose
said
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Sounds like protectionism to me the yankees are going to far. Its all money to them not the sport. ! After all Canada started the game.Ask them to turn it ti Canada


Doug
said
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A note to all the owners of NHL teams; Dump both Bettman and Daly. You have a billionaire willing to invest big in your league and what do we get from these clowns. Bettman says we will never let you in because you did not approach us right the first time. Daly says if you are humble enough and apologize; well, maybe. Do you really want these two managing the head office of your organization, or wouldn't you rather have business executives at the top.


Carl NS
said
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I don't watch hockey to much. Now after the way the NHL likes to blow millions of dollars , just to think they are right. I will never watch it agian. GOOD BYE!!!


FrankCanadian
said
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So much for sportsmanship. Until weaselly Bettman hangs his head in shame and leaves the NHL, I'll not contribute another Canadian cent to the league. Free games on TV for me.In the meantime, Habs are going to rule the Leafs this season.


Ray Jorritsma
said
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Yup, leave Bettman to run the NHL into the ground. Don't know why the owners stick with this guy--he's clearly a fool. A team in Hamilton would make money hand over fist but to New York living Bettman, it''s just not a large enough 'maw-ket'.


Mr Burns
said
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Hey Jim, Nice try, but the NHL does not care about SW Ontario hockey fans, they want new fans from the south...they think that the massive US population is thier ultimate meal ticket.Thier worst fear is a Hamilton vs. Edmonton final! no one south of the border would watch that...in June?You are a true hockey fan Jim, and all of us in SW Ont admire your efforts on our behalf. Hey, here's an idea...get a KHL team over hear for a few games (ala Buffalo Bills in TO) to test the waters. I for one would watch the likes of Jagr any day over the Leafs.Da! Bring it on Comrade!PS Don't you think Bettman looks like Mr. Burns?


Scott Land
said
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Hey Tim Bitt: You are perfectly correct when you suggest that Jim B. could use the money in a more humanitarian cause but lets face it; the legal fees that he has run up in his quest wouldn't even come close to paying for all the publicity he has had in the past months. I suggest that his next attempt should be made from the RIM boardroom then his company would get millions of dollars in (almost) free advertising (and maybe even a hockey team as well)Your comment regarding Toronto wanting a professional hockey team also, was hitting a little below the belt, accurate but still a low blow!


Lyle
said
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Anybody who thinks there will ever be a 7th Canadian NHL team is "smokin". The NHL cannot afford to have a winning team in Canada. The US networks, their bread and butter, would abandon the game if there was ever a Stanley Cup final between Ottawa and Hamilton. Balsillie will fail and fail because his intentions are to build a winning franchise for a Canadian team. The NHL doesn't want that. Why do you really think the Leafs, the wealthiest franchise in the history of the game, cannot field a winning team? Because they choose not to and I'll leave up to the readers to figure out why..


K in Stoon
said
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Sure, the NHL has its rights as an organization. That was a good ruling. On the other hand, you know what happens when the leaders of an organization abuse their power in full view of the organization's patrons? The organization goes in the toilet. Way to go Gary. Hey, anyone ever heard of the CHL? That stands for Canadian Hockey League.


reidjr
said
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Jay
THe gta is a bit unique while its is a great nhl market it for the most part is awful hockey market.Anything below nhl gets little to no support.Take i beleave it was mississauga had 3500 a few games back vs ottawa who had 8700.


Hockey Fan
said
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I'll be in line for the second ticket Mr. Balsillie. Very professional of you!!! Awesome class unlike the NHL!! They had their chance.


Wolfeden
said
0 0

The NHL has been pretty much useless since the first players' strike in the 90's. Bettman wants an American league and the NHL will soon implode! The days are numbered.


KJ in Brampton
said
0 0

Once again, that Canada hating Bettman will get his way. He is the worst thing to happen to hockey since its inception. I just hope that RIM finds out which of the NHL owners has Blackberrys and a way to make them inactive. Sounds to me like the judge was in the NHLs pocket.


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