Balsillie puts in $212.5 mil offer for the Coyotes

[digger18]

It's not fantasyland where you invent the money out of thin air.

No that place is called the Federal Reserve, then they loan it to the American Government and charge them interest on the money they created out of thin air. Putting the American Citizens into a debt that they can basiclly never pay off. The biggest scam in the history of the world. Then the American government has the nerve to say the Banks are struggling, so they give them even more of your hard earned money in tax dollars, in hopes that the banks will inturn lend more money to the American citizens and charge them even more interest! Hows that for a basic runthrough on why Capitalism is failing?

 

[digger18]

It Appears that Balsille sat in the weeds until the Coyotes filed for chapter 11. He then put in his offer knowing that a Cash offer of that amount will more than likely never be matched. He Basiclly now has Gary Bettman over a barrell. The League will have no choice but to eventually cave and let this sale go through, any kind of prolonged blockage would just cost the NHL way too much money in a bunch of different areas! Court fees, Operating losses in Phoenix etc...

 

[Respect Your Edler]

Its funny to see the usual suspects try to argue that contraction or continued losses of 25 mil a year are better for the NHL than having Balsille buy the Yotes.

 

[Jakeman]

It Appears that Balsille sat in the weeds until the Coyotes filed for chapter 11. He then put in his offer knowing that a Cash offer of that amount will more than likely never be matched. He Basiclly now has Gary Bettman over a barrell. The League will have no choice but to eventually cave and let this sale go through, any kind of prolonged blockage would just cost the NHL way too much money in a bunch of different areas! Court fees, Operating losses in Phoenix etc...

Bettman hates Balsillie it will never happen, he doesn't have Bettman over a barell at all. I bet he blocks Balsillie 's offer due to the re-location demand and sells it to a different bidder lik the white socks owner who is wanting to aqcuire the club.

 

[Brodie]

There is no guarantee the judge rules in the NHL's favor by determining Moyes had no right to declare bankruptcy.

From what I can gather, we have conflicting stories about who owns the team and any guesses as to what is true and what is a lie are just that.

 

[asdf]

I really dont know why Bettman is so intent on keeping Balsille form owning a team and moving it to Canada? All 6 Canadian rinks have been packed to the rafters for quite a few games now. There is not a more passionate fanbase in the wolrd when it comes to hockey. The Maple Leafs have a huge fan base across the country, I just cant see a team in Hamilton taking all that much away from the Leafs gold mine. Not to mention it would be a bus ride rivialy created that would cut down travel exsenses as well as build even more passion for the game of hockey, in an area already full of it. No offense to the people of Phoenix who truly love the game, but its clear the team isnt working down there, something needs to be done. I would not be surprised to see another Southern team or 2 following the Coyotes bankruptcy route and at least one of them ending up in Winnipeg eventually to. Putting teams where there are hoards of passionate hockey fans is just good buisness if you ask me!

Maybe the owners of the Leafs, Wings, and Sabres are putting a lot of pressure on Bettman to stop this from happening.

 

[DaHabMan]

even if the nhl wins the case and retains ownership of the team, where are they gonna find an owner ready to lose 20-30 million a year just for the sake of having hockey in phoenix??? Any other owners found will also want to move the team elsewhere, just not in southern ontario. Bettman needs to take off his rose-colored glasses and realize nhl hockey has failed in phoenix. He has to be incompetent to prevent a team that gets money from revenue-sharing and move it to somewhere where the team will pay into revenue-sharing. Sadly, i feel bettman and his cronies will find a way to stop this and the coyotes will stay in phoenix where they will continuasly (spelling) lose money for the new owner(if one is found) and we'll be right back talking about this in a decade. Bottom line: phoenix is not a viable nhl market.

 

[Bizz]

new owner(if one is found)

That's the thing right there. IF. IF they find a new owner. How long have they been looking for one? 2-3 years now?

 

[HockeyAndTheSox]

Bettman was in Phoenix yesterday to talk details with Reinsdorf about buying the team. Then Moyes went behind the league's back and filed for Chapter 11.

That, in a nutshell, is why the league has stripped Moyes of authority to make decisions based on the Coyotes.

 

[Nalyd Psycho]

All the bankruptcy court can do is approve the transfer of title.

The NHL would have to approve him the legitimate owner for him to have a vote on the board of governors, or for him to have legitimate decision making powers, for the general manager he appoints to be allowed to enter into standard player contracts, or in fact, for the franchise to even continue to exist.

This seems to be the key. If Balsillie's offer is conditional on moving the team, as most sources seem to be saying.

Now, maybe I'm ignorant of the way the legal system works, but, I fail to see how a court in Arizona has the authority to enforce the condition. It is out of the courts hands on many different levels. On the civic level, they can't override municipal governments in Canada, although I doubt they'd need to. And they can't override the leagues rules without first taking it to a higher court. Which is the problem. Because of the condition, Balsillie's offer is bum offer. The bankruptcy court cannot be guaranteed payment if they accept the offer. Therefore if another offer is placed without conditions, the bankruptcy court would take that because a lesser guaranteed payment is greater than a larger unguaranteed payment. If blocking the move would start an anti-trust lawsuit, that's irrelevant. Because blocking the move would also invalidate Balsillie's offer until the anti-trust lawsuit is finished, and possibly permanently. Therefore, the bankruptcy court would find in favour of an offer that will be guaranteed.

 

[Dolemite]

This seems to be the key. If Balsillie's offer is conditional on moving the team, as most sources seem to be saying.

Now, maybe I'm ignorant of the way the legal system works, but, I fail to see how a court in Arizona has the authority to enforce the condition. It is out of the courts hands on many different levels. On the civic level, they can't override municipal governments in Canada, although I doubt they'd need to. And they can't override the leagues rules without first taking it to a higher court. Which is the problem. Because of the condition, Balsillie's offer is bum offer. The bankruptcy court cannot be guaranteed payment if they accept the offer. Therefore if another offer is placed without conditions, the bankruptcy court would take that because a lesser guaranteed payment is greater than a larger unguaranteed payment. If blocking the move would start an anti-trust lawsuit, that's irrelevant. Because blocking the move would also invalidate Balsillie's offer until the anti-trust lawsuit is finished, and possibly permanently. Therefore, the bankruptcy court would find in favour of an offer that will be guaranteed.

Check this out.

http://www.azcentral.com/members/Blog/DanBickley/52563

 

[Nalyd Psycho]

Check this out.

http://www.azcentral.com/members/Blog/DanBickley/52563

I have to think that if Reinsdorf can broker a deal, it's in the bag.

With the shenanigans he's pulling, I have to think the NHL will do anything and everything to block Balsillie, up to, and including allowing a team to relocate to Ontario.

 

[Hawker14]

since the lease can apparently be voided in bankruptcy court as had been posted earlier, and

it's obvious moyes will attempt to void it if he has legal authority to do so ...

why would the nhl not attempt to void it as well if they do in fact have the legal authority, that they now claim ?

seems like a windfall as they would have the city of glendale over the barrel, since the franchise would otherwise be portable without financial ramnifications.

 

[Neil Patrick Harris]

There is no guarantee the judge rules in the NHL's favor by determining Moyes had no right to declare bankruptcy.

From what I can gather, we have conflicting stories about who owns the team and any guesses as to what is true and what is a lie are just that.

From what seems to be true now is that Moyes filed for bankruptcy, and the league pushed him out once they discovered that Balsillie had made an offer.

I think Moyes had the right. The team is losing him money and he was tired of waiting. It would be hard for him to get a good offer for the team considering the economic situation and the financial situation of the Coyotes, but Balsillie was willing to make an offer giving him way more than the team is worth.

I have to think that if Reinsdorf can broker a deal, it's in the bag.

With the shenanigans he's pulling, I have to think the NHL will do anything and everything to block Balsillie, up to, and including allowing a team to relocate to Ontario.

I'm sure Reinsdorf is sitting around wondering how much he is willing to spend. He needs to offer at least 217.5 million. Does he want to spend that much on a financially struggling franchise?

 

[Nalyd Psycho]

I'm sure Reinsdorf is sitting around wondering how much he is willing to spend. He needs to offer at least 217.5 million. Does he want to spend that much on a financially struggling franchise?

Except he doesn't. The NHL can claim ownership of the team and pull it out of bankruptcy, this would have longterm consequences, but, if they turn around and sell to someone who can keep the team in Glendale, then there are no consequences. And, as I stated, Balsillie's conditions may puncture wholes in his master plan. The bankruptcy court cannot guarantee the conditions will be met, thus, his offer is not as strong as one that is without conditions or has all conditions resolved.

 

[seanlinden]

To me at least, the situation that has gone down is becoming a bit clearer.

1. The NHL made that $35million loan and gained the right to take over the team and rights to all assets (including the franchise agreement). They have since done that after Moyes filed for bankruptcy, and will no doubt challenge Moyes authority to file for Chaper 11. However, this may be an uphill battle as he filed for Chapter 11 before being removed from power.

2. Balsille's offer includes enough money to pay back all secured debtors INCLUDING the NHL. Therefore, the NHL doesn't have a right to start poaching assets as the team's assets have effectively been "frozen" until the bankruptcy hearing happens; in which case the sale will go through and the NHL will be repaid its $35million. Therefore, they cannot claim title to the franchise agreement. It is a given that all secured creditors will be paid in full.

3. The Bankruptcy judge must now decide how to best pay back the unsecured creditors; which means gettign the most money for the team. However, Balsille's offer is conditional upon the arena lease being declared "null and void". However, if declared null and void, the City of Glendale might have a legitamite claim as an unsecured creditor.... which means that everyone else's claims will be diluted. It won't be $790 million of unsecured debt, but it will be a significant number. Therefore, the judge may be willing to accept a lower offer which allows them to keep the arena lease or use a re-worked lease agreement (city of glendale needed to get off the pot earlier and make this a better deal) in order to reduce the amount of unsecured debt which needs to be satisfied.

4. The NHL can stop this by putting together an ownership group to either outbid Balsille with (something that seems very unlikely) the intent to move them to KC or Portland; or to financially back an owner who agrees to keep the arena lease in place (or works with glendale to revise it)

5. The judge can then award Jim Balsille title to the team; however, as posters have mentioned, he would not be in the NHL owners group until ratified by the BOG. Part of the franchise agreement that the Coyotes have with the NHL states that they must follow the NHL constitution. This means that all sales & moves must be approved by the BOG. So, the BOG would have to decide between approving Balsille as the owner of the Coyotes or revoking the franchise. Neither one seems palattable.

6. If they revoke the franchise; you can bet that Balsille will launch one hell of an anti-trust lawsuit against the NHL... seeking an injunction forcing the NHL to change their constitution (remember that NHL constitution does not supercede the government). Whether or not he gets it is debatable, but the risk is certainly there. The NHL may want to avoid going through this path as it would inhibit their ability to control future sales of franchises.

7. If Balsille is accepted into the NHL board of governers, his next step is obviously to move the team.... which it comes down to the same deal if the BOG doesn't approve. He moves the team, signs a lease agreement with Copps, NHL revokes franchise, anti-trust lawsuit all over again.

Either way, there aren't many good ways this can go down if the NHL can't find the money to put together a better offer than Balsille.

 

[end]

I don't see why they don't just let the **** have a team already. He's more excited to own a team and lose money than 27 other owners.

 

[Hawker14]

I don't see why they don't just let the **** have a team already. He's more excited to own a team and lose money than 27 other owners.

that would be an admission that the "great southern footprint" has holes in it. after 20 years, starting with the gretzky trade, it is hard to put into words how huge a failure the relocation will seem publicly.

 

[GSC2k2*]

http://theviewfrom111.blogspot.com/2009/05/balsillies-back.html

Apparently ...



Earnest $$s. (If the court and/or NHL BOG rules against him, might he never see that $$ again?)


http://www.fromtherink.com/2009/5/5/866123/balsillie-makes-offer-on-coyotes
Mirtle on the afternoon's events

That isn't "earnest" money.

 

[Ward Cornell]

No, just...no. Even if Balsillie wanted to do this, there has been absolutely zero indication that MLSE would want to do this.

Balsillie's stated M.O. is to move a team to somewhere that doesn't already have a team within the southwestern Ontario region - Hamilton, K/W, even Mississauga or the Vaughan/York region areas would apply.

Not another team at the ACC - that team would just be the L.A. Clippers. They'd be the redheaded stepchild to the Leafs, their landlords - they'd get third crack of dates behind the Leafs and Raptors.

MLSE sole purpose is to make money, their largest shareholder is the Ontario Teachers Pension Fund. By allowing a team in the ACC they will get millions of doallars in terrotorial rights plus millions in rent. They make money just from that then throw in the money that they wouldn't lose by having concerts and other events playing in the Blackberry Arena that would've played in the ACC.

 

[saskganesh]

Any apologies offered up to Bob McCown and David Shoalts yet?

pfft. Shoalts got lucky.

 

[saskganesh]

that would be an admission that the "great southern footprint" has holes in it. after 20 years, starting with the gretzky trade, it is hard to put into words how huge a failure the relocation will seem publicly.

We are reading way too much into it. Going back to the Oakland Seals and KC Scouts, the NHL averages a franchise move/relocation every 5 years. It's just business as usual.

 

[ranold26]

Here are the bankruptcy documents that were filed..

http://www.scribd.com/doc/14999927/Phoenix-Coyotes-Bankruptcy-Petition

 

[GKJ]

I bet folding the Coyotes franchise, if the hearing Thursday does not go the NHL's way, is under consideration.

Suspending operations might be more likely than outright folding them.

 

[Northern Dancer]

that would be an admission that the "great southern footprint" has holes in it. after 20 years, starting with the gretzky trade, it is hard to put into words how huge a failure the relocation will seem publicly.

What about the great northern failure ??? Two out of eight teams moved in the past 15 years !!! That's 25% last time I checked !!!!