Judge hints at mediator to end fight for Coyotes
September 24, 2009
Ken Peters
The Hamilton Spectator
http://www.thespec.com/News/Local/article/640632
An Arizona bankruptcy court judge is strongly hinting he will hand the Jim Balsillie-Phoenix Coyotes saga to a mediator to resolve.
Judge Redfield T. Baum is mulling over the prospect of sending the matter to U.S. mediator Antonio Piazza after listening to legal arguments yesterday.
Balsillie, the Coyotes and team owner Jerry Moyes favour mediation. The National Hockey League, the City of Glendale and the committee for the creditors oppose it.
Balsillie also made three major bid concessions yesterday, including a commitment to keep the Coyotes in Phoenix this season and offering the City of Glendale a guaranteed $25 million for its support "win or lose." The city rejected the offer.
After five months of court hearings, Baum suggests mediation at least opens the door to the possibility of a final agreement that would end, once and for all, the increasingly bitter and personal court case.
"As I listen to all this and I think about it, the one thing I think mediation might provide to everybody is some kind of consensual resolution," Baum said in court.
"I think without mediation, it just won't happen," Baum said.
"I'm fairly confident that once I rule I don't think that will be the last stop in the legal journey. The one big thing you can say about mediation is that if everybody can agree, it's over. There is no more court hearing, there are no appeals, there's no motions to reconsider, it's resolved."
The judge went event further.
"If, and I emphasize that word, if, there is any chance that these matters can be resolved, it's going to have to be by people sitting down and talking to each other for a while to figure out if there is common ground."
The National Hockey League response to mediation was blunt.
"There is no prospect for settlement from the NHL perspective, none whatsoever," said league lawyer Alan Meda, adding the NHL will appeal any decision to put the Coyotes in the hands of Balsillie.
Meda noted the season begins next week, but the Coyotes are floundering over the uncertainty.
"That's killing this team," said Meda, adding the Coyotes can't sell tickets or ads and are losing staff.
But Baum chided Meda for suggesting the circumstances had not changed.
"In fairness, PSE has made a significant monetary offer to the City of Glendale. At least to an old bankruptcy judge, $25 million cash today no matter what happens is a lot of money. It seems to be in that sense things have changed."
Balsillie is now willing to keep his offer on the table until the Dec. 31 deadline the NHL has set to find owners who would keep the Coyotes in Glendale. Should those owners be found by that time, Balsillie would rescind his bid. But if not, the Balsillie offer would proceed and he would relocate the club to Hamilton for the 2010-11 season.
Baum made special note of the timing, calling the change significant.
"The Phoenix Coyotes are going to play the 2009-2010 season in Glendale, is that correct?" he asked.
Balsillie lawyer Jeffrey Kessler said his client might consider moving the club during the two-week Olympic break in February but probably wouldn't.
"I believe that as a practical matter that if we want to get this done we would be willing to say that the team would stay here this year, that's correct," Kessler said.
Secondly, Balsillie is now saying that of the $50 million US he is offering the City of Glendale, it would give $25 million US to the city -- win or lose -- in return for its support.
And finally Balsillie won't contest an NHL request for a stay in the proceedings should he be awarded the club. The stay would likely keep the club in Glendale until the NHL's appeal could be heard.
Baum wanted Glendale solicitor William Baldiga to be clear about what the city was turning down by rejecting the latest Balsillie overture.
"It sounds like they are offering your client $25 million under certain conditions whether they ultimately win or lose the battle that has been submitted to this court."
Baldiga said Glendale believes if PSE prevails it would receive more than $50 million US for its claims.
"It's not an increase in our minds of what the city would get," he said.
Glendale has suggested the cost of losing its major tenant at the city-owned Jobing.com Arena could amount to as much as $500 million US.
Baum, who heard final arguments on the case Sept. 11 and had been expected to deliver a ruling this week, has previously promised the parties he would decide the fate of the Coyotes by the start of the NHL season Oct. 1.
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