So how goes the hockey team? - Page 55

markbarbera · #**1081** Posted **Sep 10, 2009, 3:37 PM**

In yesterday's LA Times:

Quote:

Let Jim Balsillie buy the Phoenix Coyotes
September 9, 2009 | 2:45 pm

Much like an annoying Lady Gaga ringtone that you can't get out of your head, it appears NHL commissioner Gary Bettman is going to have to deal with Mr. BlackBerry for at least a few more days.

That's because Ice Edge Holdings, a group of high-risk-takers who actually wanted to take on the formidable task of turning the bankrupt Phoenix Coyotes into a profitable franchise, pulled out of the bidding for the team on Wednesday. So it looks as if the only ones who'll be holding bidding paddles at the team auction on Thursday and Friday will be the NHL and that supposedly evil Canadian propagandist Jim Balsillie.

Unfortunately for Balsillie, his mission to convince Canadians (and maybe even some folks in Phoenix) that struggling hockey teams should relocate to the Great White North has helped make him public enemy No. 1 at the NHL.

But why does the league hate this guy so much? Balsillie is willing to pay top dollar for a bankrupt NHL franchise at a time when the league needs more revenue. He also seems like he'd be an enthusiastic owner who's dedicated to building a successful franchise as long as it's north of the 49th parallel.

His only crime is that he threatens the NHL's goal of trying to make hockey work in the Sun Belt. Expansion in the southern part of the United States has been successful overall, but it's not as if the league will fall apart if hockey doesn't survive in Phoenix or South Florida. Colonizing hockey rinks in warm locales isn't alone going to make the game grow.

Other Balsillie-haters point to how another team in Ontario, Canada, will hurt the Toronto Maple Leafs and Detroit Red Wings. That's absurd.

Hockey fans in Ontario practically are like stars in the sky. And the hurting American auto industry is the main reason why there might be fewer octopi on the ice at Joe Louis.

It's a shame the NHL won't let Balsillie help them when it could use somebody who has a lot of money and a passion for the game. I understand challenging your potential bosses in court is one of the seven deadly corporate sins, but what else has this guy done to deserve the photo-on-the-dartboard treatment?

Besides, Balsillie is probably going to continue to be a pain for the league if he doesn't get the Coyotes. There are other NHL teams that are not on the most sound financial footing, and it could be just a matter of time before Balsillie tells his lawyers to go play fetch once again.

markbarbera · #**1082** Posted **Sep 10, 2009, 3:41 PM**

National Post live blog now up:

http://network.nationalpost.com/np/blogs...10/live-blog-auction-day-in-phoenix.aspx

SteelTown · #**1083** Posted **Sep 10, 2009, 4:16 PM**

Relocation is front and centre at court now. Tom Wright is up at the stand.

holymoly · #**1084** Posted **Sep 10, 2009, 4:18 PM**

Missing part of his daughter's wedding to be there!

SteelTown · #**1085** Posted **Sep 10, 2009, 5:18 PM**

Wright is done. Few points I found:

PSE paid $115,000 for the relocation report, whoa!
NHL has a report that admits Copps could generate revenue with current condition, Judge overruled the NHL when they wanted that part dropped
NHL used Hamilton and Toronto from CFL bankruptcy, found local owners
PSE want 3 levels of government to fund renovation of Copps, no firm commitment yet, suggest Basillie willing to fund renovation (they will probably ask Balsillie when he takes the stand)
Current Argo owners part of Ice Edge failed bid

drpgq · #**1086** Posted **Sep 10, 2009, 5:20 PM**

From the NP blog. Apparently the Argo owners were part of Ice Edge, although now that Ice Edge is done, does it matter much for this hearing?

1:04 p.m. Balsillie lawyer is on redirect with Wright. He's asking about Copps Coliseum, and what kind of shape the 24-year-old rink is in these days:

PSE lawyer: Could NHL hockey be played at the Copps Coliseum this season?
Wright: I believe so. Yes. SF

12:50 p.m. Goldfein, the NHL lawyer, asking Wright about the Toronto Argonauts and the Hamilton Tiger-Cats, who both went bankrupt in the 2003 season. Goldfein asks if the CFL revoked the ownership before petitioning for bankruptcy. He then pointed out that the CFL was able to pick out its own owners — owners who were approved by the CFL's board of governors.

Goldfein goes on, asking if the Argos' owners — David Cynamon and Howard Sokolowski — had been able to make the team into a success. Goldfein says Cynamon and Sokolowski were part of the Ice Edge group. Bombshell. SF

12:46 p.m. Goldfein’s next target: Copps, and where the money is supposed to come from for a $100-150-million renovation. Wright says the government, naturally. And government, ladies and gentleman, means you. And me. And there has been no formal commitment made by government, at any level, to actually fix Hamilton’s aging arena for NHL hockey. Who is going to pay then, Goldfein wonders, “Mr. Balsillie?” JO

12:41 p.m. NHL lawyer now shifting focus to Copps Coliseum, where the Balsillie group has secured a lease option for the Coyotes. Is it up to NHL standards? How much work is needed? Wright is talking around some of the questions. "Rather than trying to anticipate the questions, given the time, why don't you just try to answer my questions?" Goldfein asks. SF

12:36 p.m. Goldfein argues that the Golden Goose, the remedy that will cure all that ails the Coyotes in Arizona, is winning. Phoenix has not made the playoffs since the team moved into the gleaming new arena in Glendale six years ago. Goldfein cites the Chicago Blackhawks and the resurgence of a franchise that used to draw, well, just about as poorly as Phoenix, until they started winning and their attendance soared to the top of league attendance. Wright is not backing down. “If you go back in history, Chicago has been a very strong hockey market.” JO

12:28 p.m. NHL lawyer Shep Goldfein is beginning to learn what Canadian football reporters had already known: Tom Wright is intelligent, with a capacity for expert evasiveness. Wright wrote the relocation application for PSE, the Balsillie-owned company seeking to buy the Coyotes.

Goldfein: Would you agree that Wayne Gretzky believes that NHL hockey can succeed in Arizona?
Wright: I've not spoken with Wayne Gretzky, so I don't know what he's said.
Goldfein: If that was his view, by being part of the Ice Edge group, would you be in disagreement with him.
Wright: I don't know what his view was.
Goldfein: That's not my question, sir. If his view WERE that NHL hockey can work and be successful in Glendale, you would disagree with him, correct?
Wright: What I would say is that, from the financial numbers that I have been exposed to and privy to, is that the financial results and the research that we did, and the historical level of fan support from the numbers that I saw, and from the analysis that I did, I still believe that, in the city of Glendale, the NHL will not be successful.
Goldfein: To cut through all of that, you would disagree with Mr. Gretzky, if that was his view, correct?
Wright: Like I said, I don't know what Mr. Gretzky's view was. I'm just telling you what my view is. SF

12:17 p.m. Tom Wright is appearing on the stand for the Balsillie side. He will testify on the relocation issue. The former CFL commissioner is here as a witness. He is on the stand, was sworn in, and now getting cross-examined by NHL litigator, Shep Goldfein. JO

12:15 p.m. Judge Baum asks the court if there are, for the record, any other parties interested in bidding for the Coyotes. The courtroom is silent. "Record will reflect that there are no other bidders," he said. SF

12:12 p.m. It seems unlikely that Judge Baum will offer a definitive ruling today. There is so much material to cover, and so many arguments to hear — there just does not seem to be enough time in a day. Court began a little after 8:30 a.m. local time, and will probably go late into the afternoon. Baum is grilling the NHL over its offer now, and will likely do the same to Balsillie’s group. SF

12:08 p.m. Baum keeps hammering away at NHL lawyer, Greg Milmoe, and the NHL’s bid proposal that will satisfy some creditors and cut some others off from the pie, namely: the Coyotes' owner Jerry Moyes. The NHL bid does not earmark much for Moyes. There is “unpaid office rent” and monies owed to “Swift Aviation.” “I have some doubt I can approve the NHL bid until I see the schedules,” says Baum. JO

11:57 a.m. The lawyer for the NHL does the bob and weave, and says the actual value of the money going to the estate would be “substantially more” than the US$2-million. Baum has more questions, and a statement to the NHL:

Baum: “To be blunt, I don’t think I can approve a bid I don’t understand. The estate gets the two million dollars and that’s it?”
NHL Lawyer: “Yes sir.” JO

11:50 a.m. Baum has a question: Would the NHL's purchase agreement only provide US$2-million cash on closing to the estate? SF

11:47 a.m. Lawyer for NHLPA seeking assurances that both remaining bidders would agree to uphold the articles of the collective bargaining agreement. Both sides agree. “So, we have the no player left behind,” Baum said, to laughter in the court. SF

11:41 a.m. Thomas Salerno, lawyer for Phoenix Coyotes owner Jerry Moyes, has the podium as the first of two pivotal days of hearings begins inside an Arizona bankruptcy court. Judge Redfield T. Baum will have to decide whether or not he will allow Canadian billionaire Jim Balsillie to bid on the NHL club, over the league's objections. SF

SteelTown · #**1087** Posted **Sep 10, 2009, 5:22 PM**

Judge suggest he could rule no sale, no to NHL and PSE. Silm chance though.

oldcoote · #**1088** Posted **Sep 10, 2009, 6:09 PM**

Glendale still supports NHL bid over Balsillie. I guess the added $ didn't sway them.

Actonite · #**1089** Posted **Sep 10, 2009, 6:19 PM**

Quote:

Originally Posted by SteelTown

Judge suggest he could rule no sale, no to NHL and PSE. Silm chance though.

...a shot fired over the bow of both the NHL and Balsillie ships.
The judge knows as well as any one in that court room that the best thing to happen would be the NHL and Balsillie sitting down and working out a mutually agreed upon deal to move the Coyotes to Ontario beginning next season.

SteelTown · #**1090** Posted **Sep 10, 2009, 11:02 PM**

From NHL own report on Hamilton...

"Fan attitude survey in '06 brought up...study says to/ham area has by wide margin most nhl fans anywhere inc ny and la, support 2 teams"

Man would I LOVE to read this report from the NHL.

Distill3d · #**1091** Posted **Sep 10, 2009, 11:09 PM**

Well, we all know its not fan support that garners having an NHL team these days. Winnipeg certainly taught us that lesson.

SteelTown · #**1092** Posted **Sep 10, 2009, 11:22 PM**

Trail is getting more interesting now...

Balsillie's lawyer asks Fisher if he can think of any relocation fee in any sports of $40 million? Fisher said no

Distill3d · #**1093** Posted **Sep 10, 2009, 11:27 PM**

From HockeyBuzz.com

History of Relocation fees:

Quote:

7:18 cmacsports: Pse -- history of relocations fees Hartford to Carolina - 4 mil Winnipeg to phx - no fee Que to col - 8 mil

7:20 cmacsports: Relocation cont... Minn to dal - no fee Col to nj - 5.1 mil Atl to cgy - no fee Kc to col - no fee

So uh, when Winnipeg moved to Phoenix, the NHL didn't charge a relocation fee. It seems to be an arbitrary but non-mandatory thing. I'm thinking Balsillie could walk away without paying a fee or even paying a nominal fee (between 5 and 10 million).

SteelTown · #**1094** Posted **Sep 11, 2009, 12:52 AM**

Looks like it's over for the day now. Whoa that went on for like 10 hours. Looks like Balsillie won't be on the stand tomorrow, no one wanted him on the stand. But some did want Bettman up on the stand tomorrow.

I'm betting tomorrow's trial will have fireworks.

Anyone believe Baum will select a winner for the auction tomorrow like he suggested, Friday by 4pm their time.

Distill3d · #**1095** Posted **Sep 11, 2009, 1:18 AM**

Depending on what Gary Bettman says tomorrow, I'm in the belief that Judge Baum may throw out the NHL's bid and declare Jim Balsillie the proud new owner of the Phoenix Coyotes.

Either that or he's going to throw them both out and dissolve the team.

SteelTown · #**1096** Posted **Sep 11, 2009, 1:25 AM**

They pretty much spent the whole day talking about relocation and the relocation fee. A foreshadow of what to expect? Tomorrow they'll continue round two of the relocation issue as well.

Actonite · #**1097** Posted **Sep 11, 2009, 1:44 AM**

Quote:

Originally Posted by SteelTown

They pretty much spent the whole day talking about relocation and the relocation fee. A foreshadow of what to expect? Tomorrow they'll continue round two of the relocation issue as well.

The judge was not impressed and warned the two sides they were spending far to much time on the relocation fee issue. He said there were more important things to take care of.

I feel how ever if the NHL is spending so much time dealing with relocation as opposed to just having Balsillie's bid thrown out of court then maybe, just maybe they are starting to hunger a little for the cash Balsillie has to offer and they want to see what they can squeeze out of him.

Can Balsillie's new advisor Doug Maclean help bridge the gap between the two sides? Maclean was a member of the BoG and he said on the fan 590 today that he has a good relationship with Bettman.

SteelTown · #**1098** Posted **Sep 11, 2009, 2:42 AM**

Hamilton would be among top five in revenue, NHL admits
Judge talks tough with NHL, says league should not be able to select which creditors get paid

Sep 10, 2009 10:31 PM
Kevin McGran
SPORTS REPORTER
http://www.thestar.com/sports/article/693658

PHOENIX – The NHL put a price tag of between $261 million and $279 on the value of a hockey team in Hamilton, and a franchise there would be among the top five in league revenues, according to confidential documents that were released in court Thursday in what is turning into a legal version of Deal or No Deal.

There was no shortage of surprises on the first day of cross examinations in the bankruptcy case of the Phoenix Coyotes, with Judge Redfield Baum dropping the biggest bomb: he may not sell the team at all.

The judge expressed reservations over both the NHL's $140 million offer that would, at least temporarily keep the team in Glendale, and BlackBerry billionaire Jim Balsillie's $242.5 million offer that would move it to Hamilton.

"You're all forgetting there's a third option here," said Baum. "No sale."

That caused an audible gasp in the court room, with lawyers later saying they had no idea what would happen if the judge went through with this previously unfathomable thought.

"I don't like to second guess or prognosticate what (the judge is) going to do," said NHL commissioner Gary Bettman. "This is the judge's procedure now and he'll conduct the proceedings as he sees fit."

Bettman — who will have to testify Friday — was asked by reporters about the league's resistance to go to Hamilton. Its own experts — in previously classified documents that were revealed in pieces Thursday — said Hamilton could be the fifth most valuable in the NHL. Bettman answered in a double negative, suggesting the league has indeed considered expansion to Hamilton.

"It's not a question that we haven't considered, wouldn't consider," said Bettman. "It hasn't been ripe."

The actual auction is scheduled for Friday afternoon. No surprise bidders emerged, but there were other developments:

-Balsillie won't testify — the NHL says it doesn't need to talk to him.

-Wayne Gretzky and Argos owners Howard Sokolowski and David Cynamon were in on the ill-fated Ice Edge bid.

-Gretzky is offering to take a $6 million pay cut if the team stays in Phoenix.

More surprises may come Friday when both sides talk up their bids.

The judge seemed to express dismay at the NHL's offer that there was so little money for owner Jerry Moyes. The league is not designating any money for him, but said the bankrupt estate could receive as little as $4 million and up to $13 million depending on what happened with other creditors.

The judge said the league was too vague and ordered it to clarify some items. He also strongly suggested the league find a way to treat Moyes more "fairly."

Asked after court about the possibility of the league could sweeten its offer, Bettman said: "In the final analysis we'll have submitted a bid we think best reflects what we need to do."

As hot as it was in court on Thursday — the judge told lawyers in the packed room it would be okay to remove jackets — it could get even steamier on Friday when Bettman is cross-examined by Balsillie's chief lawyer, Jeffrey Kessler.

Ballsillie offered no comment after court, and didn't want to speculate why the NHL was not interested in cross-examining him.

Thursday was spent mostly by lawyers intent on attacking the credibility and numbers associated with various experts.

Former CFL commissioner Tom Wright held up under attacks from NHL lawyer Shep Goldfein, who inferred Wright's lack of knowledge about hockey should be reason to disregard Wright's reasoning behind the relocation application he wrote for Balsillie.

Wright stuck to his guns that "no amount of life support" will bring hockey back to life in the desert.

Much of the time — to the judge's chagrin — was spent arguing franchise costs and relocation fees posted by various experts. Balsillie's people want the relocation fee to range between nothing and $16 million. The NHL believes the range is between $101 million and $195 million.

SteelTown · #**1099** Posted **Sep 11, 2009, 2:43 AM**

Classic Bettman talk, double negative. I hope Judge Baum doesn't allow that crap from Bettman at court tomorrow.

SteelTown · #**1100** Posted **Sep 11, 2009, 2:54 AM**

Copps is reno-ready, mayor tells NHL

September 10, 2009
Daniel Nolan
The Hamilton Spectator
http://www.thespec.com/News/BreakingNews/article/632498

Mayor Fred Eisenberger has written a letter to the NHL saying that Copps Coliseum can be upgraded to host a team and that he is “confident” senior levels of government will fund the effort.

“I would like to assure the National Hockey League that the planning process for the renovation of Copps Coliseum is currently in progress and we are confident that a financing commitment for the project will be made by the appropriate levels of government in Canada in partnership with the City of Hamilton,” the mayor writes.

“We believe the Copps renovation plan is … well within the scope of available government funding programs.”

The letter was referenced in the Phoenix courtroom Thursday by officials from both the NHL and Waterloo billionaire Jim Balsillie.

NHL solicitor Shephard Goldfein said the letter indicated Hamilton would be part of a funding partnership for Copps renovations and Team Balsillie member Tom Wright said the mayor’s letter expressed unqualified support for the renovations.

Eisenberger said his letter did not indicate a change from his original position that Hamilton taxpayers not fund any part of the $150-million renovation of Copps proposed by Balsillie to elevate the arena “to the standard of a top-tier NHL facility.”

He says both Queen’s Park and Ottawa have offered “positive responses” to the idea of helping out.

The mayor said Hamilton will be making a financial contribution, but that will be Copps itself.

“The facilities are worth upwards of $300 million,” the mayor said in an interview. “That’s a significant contribution in my mind to facilitate hockey in Hamilton.”