So how goes the hockey team?

[SteelTown]

Predators' woes raise hopes for Hamilton
Former Nashville co-owner's hearing may open door for Balsillie

October 04, 2008
Kevin McGran
Torstar News Service

The future of the Nashville Predators – with the tantalizing possibility the team may ultimately move to Hamilton – will begin to play out Monday in a U.S. bankruptcy court in San Francisco.

On that day, disgraced financier William (Boots) Del Biaggio III – former minority owner of the NHL club – will begin to face down the people to whom he owes millions of dollars.

And watching it all, at least from afar, will be Research In Motion co-founder Jim Balsillie, oft-thwarted in his bid to bring a second NHL team to southern Ontario.

Among the people lining up for the court:

The remaining owners of the Predators, claiming damages of up to $100 million (all figures U.S.), who have painted a doomsday scenario for potential losses that brings into question the team's viability. The team has already defaulted on a $40 million loan, but wants to buy Del Biaggio's share of the team.

Craig Leipold, owner of the Minnesota Wild, out $10 million.

Philip Anschultz's Anschultz Entertainment Group, owner of the Los Angeles Kings, out $7 million.

Former L.A. Kings star Luc Robitaille, claiming he was duped of $2 million.

It promises to be a long, drawn-out battle, with various creditors making various claims against Del Biaggio as lawyers face off against accountants and try to stickhandle their way past the judge.

On Monday, one group of unsecured creditors will make the case that "confidential" material need not be released to the public, essentially freezing out the media from the action. Also, a finance company will make the case it should get its $90,000 Mercedes-Benz back.

On Oct. 21, another group will make the pitch that this should be a Chapter 7 bankruptcy, not Chapter 11, thereby giving creditors more control over Del Biaggio's estate, a move that might speed up liquidation.

The juicy bits begin later.

On Nov. 3, lawyers for Leipold will seek his $10 million, essentially returning his share of Del Biaggio's 27 per cent holding of the Predators so that he might sell it himself.

The move could put him at odds with other creditors, who may be looking at a big sale price for the share, ensuring more money for them.

With the backdrop being an FBI investigation into allegations of fraud against Del Biaggio, the NHL could emerge from this red-faced in more ways than one. How did Del Biaggio fool them into thinking he had money? How did commissioner Gary Bettman not know other NHL owners had loaned Del Biaggio money?

Ultimately, Del Biaggo's stake in the Predators may be put up for auction by the court, which has the job of selling Del Biaggio's assets to the highest bidder. The court has the right to sell it to any bidder without regard to the NHL's wishes if it deems the NHL's ownership approval process to be unreasonable, said Chicago-based bankruptcy lawyer Douglas J. Lipke, who is not involved in these proceedings.

But Lipke added a potential buyer would have to heed the NHL's wishes because "a bankruptcy judge is not likely to deem these restrictions unreasonable."

Usually, the trustee will talk with potential investors to find from among them a "stalking horse" – an unnamed bidder willing to set an opening price. One, apparently has been found and it may or may not be Balsillie.

Another potential stalking horse is the Predators' current group of owners, who may want to submit a low bid to get Del Biaggio's share at an undervalued price.

[Berklon]

What an embarrassing league the NHL is. Run by a bunch of amateur crooks who have no idea how to run a successful business.

The NHL struggles in the best economic times - with the US economy going down the crapper we'll see how weak this garage-league really is.

I want a team in Hamilton but part of me thinks this city shouldn't associate with these moronic crooks... we have enough running this city as it is.

[highwater]

The hockey owner to be longed for

From Saturday's Globe and Mail

October 3, 2008 at 11:56 PM EDT

It is probably too much to ask the National Hockey League's brain trust to go on bended knee to Jim Balsillie, the Research In Motion billionaire, apologize to him for blocking his attempted purchase of the Nashville Predators, and let him know that if he ever wishes to rescue that troubled team or some other one, the NHL will do everything in its power to help him.

Well, a Canadian can dream. Mr. Balsillie, a co-founder of Waterloo, Ont.-based RIM, would be a wonderful owner, and the NHL should be over the moon to have him. He would in all likelihood bring a team home to southern Ontario, perhaps to Hamilton. There would be seven Canadian teams out of 30, not enough, but an improvement on six. Justice would reign on earth, at least for the moment.

The behind-the-scenes shenanigans that led to Mr. Balsillie's $238-million offer being rejected last year in Nashville, for an amount approximately $40-million smaller, also brought in a minority owner named William (Boots) Del Biaggio III.

The league claims it did its due diligence. But then in June, William (Boots) Del Biaggio III declared bankruptcy. He is the subject of a grand jury investigation in California, and a separate federal criminal investigation. Some due. Some diligence.

And what is not to like about Mr. Balsillie? Apart from his success at RIM, and his deep pockets, he has hockey in his blood; there is every reason to believe he would be in for the long haul. He is public-spirited, having donated $33-million to set up Canada's biggest international-relations school, the Balsillie School of International Affairs. He is, as hockey announcers would have it, a competitor. Again, what's not to like?

Some don't like it that Mr. Balsillie's sights are set on Canada. The Toronto Maple Leafs and Buffalo Sabres have a veto over franchises moving into their territory. Monopolies are nice to own, but adding one team into a region of eight million people, most of them hockey-crazed, would create new rivalries and boost TV revenues.

A good comparison is offered by the fact that the new baseball franchise in Washington struck a deal with the Baltimore Orioles to give that team part of its TV revenues.

Maybe the perfect storm is about to give Mr. Balsillie his opening. There are ownership troubles in Nashville. The Predators just defaulted on a $40-million loan. The credit crisis is rattling the economy of the United States. Several NHL teams with high levels of debt may be in trouble, if their bankers call their loans.

The trustee overseeing William (Boots) Del Biaggio III's former stake in the Nashville Predators has to sell to the highest bidder. The National Hockey League, however, has to approve the new minority owner. That owner may be able to take control of the team (Boots's original deal is said to have allowed for that) and may not be locked into a lease for the long term.

Mr. Balsillie's time may soon come. When it does, the league should not stand in his way.

[drpgq]

Sigh. This was actually pretty depressing for me to read.


DAVID SHOALTS

From Tuesday's Globe and Mail

* E-mail David Shoalts
* | Read Bio
* | Latest Columns

October 21, 2008 at 12:18 AM EDT

TORONTO — NHL governors are talking informally about placing a second hockey team in Toronto alongside the Maple Leafs, The Globe and Mail has learned.

“Why shouldn't we put another team in the best and biggest market in the world?” one of several NHL governors who spoke with The Globe anonymously said of the Greater Toronto Area.

According to this governor, one idea floated is for prospective owner Jim Balsillie to be rewarded with an expansion team in Toronto after helping to restore financial ballast to the Nashville Predators.

“I've heard this exact scenario,” a second governor said.

Calgary Flames co-owner Harley Hotchkiss, a former chairman of the NHL board of governors, is also aware of the Balsillie movement.

“I've heard bits and pieces of this scenario, although not in that kind of detail,” he said. “Our priority is to have the existing franchises solid.”

“[It is] an interesting scenario,” Mr. Hotchkiss added, “ but I can only speak generally.”

Richard Peddie, president of Maple Leaf Sports and Entertainment, said the organization would not automatically reject the idea of a second team in Toronto.

“When and if the league brings expansion to the table, we'll listen and decide what is best [for hockey],” he said.

As to the potential impact on the Maple Leafs, the first governor dismissively waved his hand. “The Maple Leafs would not be hurt one bit. In fact, it would help them. They could make all kinds of money renting the Air Canada Centre to the other team.”

Richard Rodier, a Toronto lawyer who acts as spokesman for Mr. Balsillie on hockey matters, declined to comment. Bill Daly, the deputy commissioner of the NHL, did not respond to a request for comment.

Two more NHL governors said the league should put a second team in Toronto, although one of them said it should be by relocating an existing franchise rather than expanding.

“I don't think it can be an expansion team,” a governor said. “We can't expand because we would be the laughingstock of professional sports.

“We've got too many troubled franchises. We've got to look at relocating a couple of them. These franchises were troubled long before the economic downturn and next year is going to be worse on them.”

Mr. Balsillie, the co-CEO of Research in Motion Ltd., angered league executives by attempting to buy the Nashville Predators with the intent of moving the franchise to Hamilton.

The league will never allow Mr. Balsillie to put a team in Hamilton for two reasons, according to one governor. One is that the city would be a tough sell for U.S.-based teams, and the other, more significant reason, is the belief it would ruin the Buffalo Sabres.

“It's a minor-league town,” the governor said of Hamilton. “How could we sell a team from Hamilton? Do you think the New York Rangers want to put the Hamilton Steelers on their marquee at Madison Square Garden? Do you think anyone in Manhattan would buy tickets to see them?”

He also said a team in Hamilton would mean thousands of fans in the Niagara Peninsula who attend Sabres games would simply drive to Hamilton to avoid border lineups.

“We do not want to kill the Sabres,” the governor said. “But if there was a second team in Toronto, that would not hurt Buffalo.”

A comparable situation exists in Los Angeles, where the Staples Center houses three professional teams – the Kings of the NHL, plus the Lakers and Clippers of the NBA.

A third governor thinks the Buffalo Sabres might accept a second team in Southern Ontario as well if it made business sense. He said that means charging Mr. Balsillie as much as $700-million (U.S.) for an expansion franchise.

[Berklon]

That's a joke.

Southern Ontario needs another team that's NOT a Toronto team. They've had the hockey market to themselves for the longest time, and we're supposed to reward them another team?

A team in Hamilton would mean so many hockey fans wouldn't have to make the trip to Toronto to watch a game. It'd be nice to service the rest of Southern Ontario instead of Toronto again.

And screw Buffalo. If they can't support their own team and rely on fans from another country - then they shouldn't have a team to begin with.

[raisethehammer]

that would be dumb to put a second team in TO. Shows how much Bettman doesn't want a team here.

[flar]

“It's a minor-league town,” the governor said of Hamilton. “How could we sell a team from Hamilton? Do you think the New York Rangers want to put the Hamilton Steelers on their marquee at Madison Square Garden? Do you think anyone in Manhattan would buy tickets to see them?”

I guess it's like when Edmonton comes to town?



That's a kick in the pants, I'll just keep ignoring the NHL and badmouth it whenever I can.

[FairHamilton]

I'm guessing that Maple Leaf Sports would be a big supporter of putting another team in Toronto. They know Hamilton would be a competitor to their franchise with no additional revenue for them. Putting another team in Toronto would result in a lot of additional revenue for them at the ACC.

I know I'll get lots of support for this statement; The NHL blows!!!

[SteelTown]

First Hamilton is too close to Toronto to get a team now it's that Hamilton is too far from Toronto to get a team. Jeez!

[BrianE]

This is BULL!

Propose to drop another NHL team on the door step of Toronto and all of a sudden they have no issues with competition and possible lack of revenue.

Propose to have a team down the road in another city all together and there's a big fuss about market infringment and protecting the Maple Leafs interests.

I used to think people were being a little paranoid when they would say that buisness interests in Toronto were actively screwing over Hamilton. It turns out there's something to that after all.

[raisethehammer]

So, let me get this straight. Now the NHL's new operating mantra isn't whether a place has a great fan base, corporate sponsors, season ticket base or real hockey fans, but whether the New York Ranger feel excited about putting that city's name on their marquee?? these guys are full of crap.
I'm sure New Yorkers line up around the block when Columbus or Ottawa come to town.
If we're talking about the state of the city, then how can Buffalo and Detroit still have a team?? Both cities have been emptying out at a remarkable rate in the past 3 decades and crime is rampant.
I guess the NFL should kick out Green Bay if this is the new sports league operating motto.
BETTMAN BLOWS!!!

[FairHamilton]

Originally Posted by BrianE

This is BULL!

Propose to drop another NHL team on the door step of Toronto and all of a sudden they have no issues with competition and possible lack of revenue.

Propose to have a team down the road in another city all together and there's a big fuss about market infringment and protecting the Maple Leafs interests.

I used to think people were being a little paranoid when they would say that buisness interests in Toronto were actively screwing over Hamilton. It turns out there's something to that after all.

Trust me, this is Toronto's idea. They have to be the most powerful and profitable franchise in the NHL. Look at what's happening, now that it's inevitable that 3 or 4 teams in the US are going to fold, they know there is no way to further rebuke Basille.

So what does Toronto's Maple Leaf Sports and Entertainment do? It follows the old saying; "Keep your friends close, and your enemies closer". They know there's going to be additional competition in their marketplace (southern Ontario) and putting a team in Toronto means rent at the venue they own, the ACC.

I mean where else is a team going to play?? Maple Leaf Gardens is too old and needs lots of $$ to put back into working order.

Instead of 3 or 4 teams, I truly hope 7 or 8 teams fold in the US. Now that would look good on the NHL Board of Governors. Heck the Canadian $ has dropped to $0.83 in the last 6 months so even Canadian teams are feeling an economic pinch.

[the dude]

this is an old idea and it shouldn't surprise anyone that it's resurfaced. nobody likes us, we smell and we're definitely not invited to the big dance. the best thing you can do i simply ignore the stupid league. i've been doing it for years. support the bulldogs, the real mccoys, dundas blues, etc. feels good. feels damn good.

[DHLawrence]

New York Islanders, anyone? 9_9

[Boomtown_Hamilton]

I think as far as the Toronto Maple Leafs are concerned if they had a choice between having a team in Hamilton or Toronto they would prefer to have it here in Hamilton because they would rather be the only players in town in Toronto. I think the last thing they want to see happen is have another NHL team based out of Toronto winning the Stanley Cup.

When it comes to a team called "Hamilton" being able to sell out an arena like Madison Square Garden in New York that should never really be our concern that should be New York's. If it were Copps Coliseum having a problem selling out for a team they would blame it on the Hamilton market but when its New York having a problem selling their rink it's the other team's fault??? Give me a break.

The bext case scenario I feel would be for the city of Hamilton to make a pitch at the Bufffalo Sabres and bring them here to town. We are already going to see the Bills play a regular season NFL game in Toronto with some suggesting that eventually the Bills will be making the permanent move to Toronto. Buffalo is a shrinking market and the smallest NHL market in the U.S. with a corporate base that is also shrinking. Move the Sabres here to Hamilton. Approach the owner there, you never know if the right person with money approached him there in Buffalo he may be willing to unload the team. Also, by having the Sabres here and out of Buffalo you would eliminate the territory infringement issue that they've been using in Buffalo over the years as a reason to block a team from landing here in Hamilton.

A team in Hamilton would be drawing fans from all over Southern Ontario and because of it would be more of a regional team instead of city team. The team's name may have to reflect that and be named after the province of Ontario or maybe even something like "Upper Canada" in order to appeal to those folks down in places like New York and Madison Square Garden.

[Boomtown_Hamilton]

...also, one more point. Having another NHL team in Toronto I don't think is an idea that the Maple Leafs support. What most people don't realize is right now the Maple Leafs are in the bad books of a lot of NHL Board of Governors. Right before the NHL lockout the Leafs were strongly apposed to voting for a lockout and were linched behind closed doors by all of the other club owners. When someone is suggesting to place another team in Toronto that is an idea that belongs to one of those other owners who despise the Maple Leafs. If we're smart here in Hamilton we could use this as a way to get the Maple Leafs on our side to get their support for an NHL team moving here to Hamilton.

[Boomtown_Hamilton]

Gretzky speaks:

http://www.youtube.com/watch?v=_IgSfWhPQBg

[oldcoote]

The NHL, again, is showing how myopic they are.

A team in Hamilton would be a boon to the league for many reasons:

1. It would draw well.

2. It would create natural rivalries with Toronto, Buffalo, Detroit, Ottawa, and probably Montreal.

3. It would give non-Leaf fans (and there are a ton of them) in Southern Ontario a home team to cheer for.

Yet, predictably, the league goes on about selling the game in the U.S. and affecting neighbouring franchises.

This league will always be a gate-driven league. Always! Bettman et al should just give up on the pipe-dream of a viable U.S. national television contract.

Buffalo and Toronto could realize a huge positive affect if this were marketed correctly. Imagine the spin-offs for Leafs TV and cross promotions?

And that governor who slammed the Hamilton Steelers should be ashamed. Honestly.

[coalminecanary]

the toronto maple leafs versus the toronto maple saps

[SteelTown]

I think Balsillie is using this situation to his advantage. It has been suggested in the past Balsillie would allow MLSE to take over Copps, have them control merchandising, concessions and TV rights.

Balsillie will probably bargain for this type of deal but have the team in Copps.