Quote:
Originally Posted by Djeffery
As the NHL said many times back when Balsillie was talking Hamilton (and Kitchener), the other teams don't have veto power, as is falsely stated all the time. Bruce McNall got a nice payout when the Ducks joined the league, but that was just a matter of negotiation. He wasn't stopping the team from joining. Buffalo likely wouldn't even enter the conversation about compensation, being well beyond 50km from Hamilton.
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II: THE APPLICABLE PROVISIONS OF THE NHL CONSTITUTION
Rules and policies restricting franchise movement are common in professional sports leagues. In particular, preventing other teams from operating within the restricted “home territory” of another franchise(s) is a nearly universal aspect of a professional sports league constitution.
Sections 4.1, 4.2 and 4.3 of the NHL Constitution are the primary rules outlining the relocation and territorial rights of the league and its member
clubs. According to Section 4.1(c) "each Member Club shall have exclusive territorial rights in the city in which it is located and within fifty miles of that city's corporate limits."
This section, known as the franchise “home territory” clause, provides the
NHL’s member teams the ability to veto any relocation of existing or newly formed franchises into a 50 mile, or 80 kilometre radius that constitutes its “home territory”.
Section 4.2 of the NHL Constitution states:
The League shall have exclusive control of the playing of hockey games by Member Clubs in the home territory of each member, subject to the rights hereinafter granted to members. The members shall have the right to and agree to operate professional hockey clubs and play the League schedule in their respective cities or boroughs as indicated opposite their signatures hereto. No member shall transfer its club and franchise to a different city or borough. No additional cities or boroughs shall be added to the League
circuit without the consent of three-fourths of all the members of the League. Any admission of new members with franchises to operate in any additional cities or boroughs shall be subject to the provisions of section 4.3.
It appears section 4.2 outlines an unqualified ban over the proposed relocation of existing franchises unless they comply with the very restrictive Section 4.3. Section 4.3 states:
Each member shall have exclusive control of the playing of hockey games within its home territory including, but not being limited to, the playing in such home territory of hockey games by any teams owned or controlled by such member or by other members of the League. Subject only to the exclusive rights of other members with respect to their respective home territories as hereinabove set forth, nothing herein contained shall be
construed to limit the right of any Member Club to acquire any interest in any hockey team, whether professional or amateur in any league which recognizes and honors the territorial rights, contracts and reserve lists of the National Hockey League, except as limited by Section 8.1(a) of this Constitution. No other member of the League shall be permitted to play games (except regularly scheduled League games with the home club)
in the home territory of a member without the latter member’s consent. No franchise shall be granted for a home territory within the home territory of a member, without the written consent of such member.
Section 4.3 translates into an individual team’s right to veto the relocation of any club within their market and appears to be in contravention of the antitrust legislation in both the U.S. and Canada; however, the NHL has also enacted specific bylaws intended to cure any perceived antitrust violations.
Bylaw 36 allows any planned relocation of existing franchises to be determined by a majority vote of the Board of Governors, which is intended to over-ride individual vetoes outlined in Section 4.3 of the Constitution.
A relocation vote initiated under bylaw 36 does not render automatic approval however, as any franchise owner seeking to transfer his or her team is first required to comply with an extensive process that includes a written application to the NHL Commissioner no later than January 1 of the year prior to the proposed relocation. The application requires justification for the transfer, complete with supporting documentation, which leads to the commissioner striking a committee to review the merits of the application and reporting back to the Board of Governors. Prior to the vote, the franchise seeking relocation has the chance to present to the Board and answer questions. Upon a simple reading of bylaw 36 it appears in compliance with general antitrust legislation in form, but in substance, may provide a
veto all but in name to the NHL and the club whose territory is being invaded.
http://www.cba.org/cba/cle/PDF/COMP0...ward_paper.pdf