Balsillie puts in $212.5 mil offer for the Coyotes

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I don't think they really fudge the totals, it's just if you sell a thousand or so standing room, and you can do that 20 times, it's like having an extra full house and it skews the attendance up. You get a situation where they didn't sell out every game but still ended up over capacity.

Definately wasn't nearly as bad as the poster was making it out to be, though.

It's not so much the attendance as the gate, though... you can have teams that price like Boston and the Devils and get "meh" crowds, but still easily outpace teams like Buffalo that go at, or over, capacity in the gate department. The Devils, for example, brought down alot of their prices next year. They should draw well over 16K a night next year, unless that disaster of a Game 7 leaves a bad taste in everyone's mouth. But, with the dropped prices, the gate won't necessarily go up.

Problem for Phoenix is that they have *both* bad attendance and bad gate.

That's the thing. Ottawa's average ticket cost is way up there and yet they still average over 19,000 fans a night. Even the standing room tickets are expensive.

But with Phoenix you can get 4 tickets, 4 dogs and 4 pops for $80 and they still can't get people to the arena.

Offer that deal in Ottawa and people will be selling their first born for that deal.
 
They didn't sell out every game. So what? How many games didn't they sell out? 3? 4?
They still averaged over 100% capacity!

My point is, to assume that every single NHL game will sell out, just because it is in Canada is absurd.

The Canadian NHL teams are quite blessed with talent right now, the only teams that were not in the playoff hunt were Ottawa and Toronto. Ottawa may be on the decline, and both are coming off of consistent playoff appearances throughout the decade.

If Ottawa doesn't improve this offseason, if they get off to a slow start, don't expect them to be near 100% attendance.
 
It annoys me when people pretend that the on ice product does not matter.

Everyone wants to point to how successful the Canadian franchises are now. But I don't recall them always having sellout streaks, especially when some of them were bottom feeders.

When is the last time any Canadian team even struggled? Vancouver in 1999?

Put a bad team consistently in front of any market outside of perhaps Montreal, Toronto, and NYR....you will have empty seats...and financial problems if the lack of success is persistent.

You are right. Calgary and Vancouver did not consistently sell out during the 90's and the early part of this decade. Neither did Edmonton. http://www.andrewsstarspage.com/NHL-Business/NHL-attendance.htm

What is happening to Phoenix is a travesty on the level of what happened to Winnipeg and Q City. It is not lack of fan support that is the problem. It is horrible management and team performance.
 
I forgot to add that the CBC ran some numbers last season and the Coyotes were last for gate revenue at $450,000 per game.
 
My point is, to assume that every single NHL game will sell out, just because it is in Canada is absurd.

The Canadian NHL teams are quite blessed with talent right now, the only teams that were not in the playoff hunt were Ottawa and Toronto. Ottawa may be on the decline, and both are coming off of consistent playoff appearances throughout the decade.

If Ottawa doesn't improve this offseason, if they get off to a slow start, don't expect them to be near 100% attendance.

I agree with that. But to say that they'd plummet to the level of Phoenix is incorrect.
I don't think you'd ever see a Canadian team grossing as little as $450,000 per game.

The Phoenix apologists can round up all the excuses they like but the facts are staring them in the face - you're the worst grossing team in the league and I don't see that changing any time soon.

It's time to move this team. Personally, I couldn't care less if it was Hamilton or Portland, OR. Just move it someplace where the fans will actually give a crap.
 
NOTE to 90% of the posters in this thread:

...in "traditional" markets or markets with longstanding hockey culture and tradition:
--- more sellouts
--- higher attendance
--- more fans
--- more "gate revenue" and other revenue generated
--- some exception to the above includes periods of poor ownership (see Chicago Blackhawks for the past 10+ years before this year)
--- game isn't "growing" into new markets

... in "non-traditional" markets or "new hockey markets"
--- less sellouts
--- lower attendance
--- less fans -- HOWEVER, over time (1 generation? 2? 3?) this number will organically increase, especially as new rinks, new youth programs, and hockey culture begins to establish roots in that city
--- NHL footprint slowly expands, increasing overall market for the sport

You need BOTH types of teams in the NHL. They BOTH serve a purpose. The two sides can argue until they are blue in the face, but the fact of the matter is this league needs both types of teams to continue to produce a healthy product.

Can we all just accept this point and move on?
 
That's the thing. Ottawa's average ticket cost is way up there and yet they still average over 19,000 fans a night. Even the standing room tickets are expensive.

But with Phoenix you can get 4 tickets, 4 dogs and 4 pops for $80 and they still can't get people to the arena.

Offer that deal in Ottawa and people will be selling their first born for that deal.


http://andrewsstarspage.com/NHL-Business/ticket-prices.htm

Actually, the Atlanta Thrashers had a higher cost per ticket than Ottawa their first 3 seasons in the NHL. It was over $20/ticket higher in their first year(and the Thrashers set the attendance record for an NHL inaugural season at the time as well that year)

I think we need to be careful before we start going back in time and pretending that the financial performance of Canadian NHL teams has always been peachy keen. There is no doubt that right now the Canadian teams are a driving force financially in the NHL, however looking historically that has not always been the case....and to think that adding 3-4 teams in Canada is part of the long term solution to the NHL's financial stability is quite shortsited to say the least.
 
Winnepeg NEARLY kept at team with a population of 600,000... Where they are moving has a rough metro area of up to 8,000,000 depending on wether we go by American or Canadian guidelines for a metro area.

All your talk about success on the ice is completely and utterly irrelevent, noone here cares weather they win. This is the Business of Hockey forums, success = profitability not making the playoffs.

You have no concept of reality if you do not think another team in Ontario could be successful.

Take into consideration the money people spend to go see the Leafs, take into consideration what people spend in Pheonix.


You know it is nearly cheaper for me to fly to Pheonix get a hotel room, and watch the Oilers play in Pheonix than it is to get tickets in my own city? This is with a Metro area of 1,000,000. Consider a Metor Area of 8,000,000 divded by two teams + all the tourists in the greater Toronto Area compared to Edmonton.

I cannot have a logical conversation with you anymore so I am done with you.

I don't even know where to begin. Of course we cannot have a logical discussion because you seem to have a distorted reality of "logic" really is.

Yes, this is the Business of Hockey thread. Yes, profit does equal success. But you're missing a step...the "success" part. What makes a profitable team "successful?" By putting a good (i.e. "successful") team on the ice. The Coyotes are, as of right now, not profitable because they are not a successful product. If the Coyotes put a successful team on the ice, they will become profitable. I'm not sure how to phrase that any easier without trying to sound like a cave man.

However, this model of "success" also has outliers consisting of tradition (i.e. fan base). People are Leafs fans because they're parents were Leafs fans, and so on and so forth. People in Canada have had a foundation already cemented for them by previous generations whereas our foundation is just being laid. Rome wasn't built in a day you know....

That's ridiculous. There is absolutely no connection at all between the first edition of the Senators and the recent reincarnation in terms of fan support. I have never met anyone who truly recognizes those Cups wins from the 20's or any of the players in modern records or statistics. You could have named the team "The Ottawa Boners" and people would have showed up, so your point is moot.. Sure, Ottawa has had a lot of exposure to hockey and the NHL over the years, before we got a brand new expansion team, but try coming to a game when the Habs or Leafs are in town. That's where many loyalties were previously and have subsequently moved over. We weren't waiting in droves for an NHL team to return. It has been a tough battle for the organization to lure people over I should add. Your assertion is a complete joke and completely ignorant.

I'll agree that my argument about the Sens was a little off base. Still, why did they bring them back to that particular city with that name? That's my real question. If it wasn't for brand loyalty, then what was it?

First off the problems with Winnipeg and Quebec had more to do with a weak Canadian dollar than problems with fan support, but that is neither here nor there. We're talking about Southern Ontario here with a large population base here of hockey mad people. As we can demostrate with the Toronto Maple Leafs, winning isn't neccesary for making money....something that can clearly not happen in Phoenix...

You're absolutely correct. Unlike Toronto fans, Arizona fans do not reward failure. We want winners. We demand winners. We are not lemmings and will not follow a franchise "just because." That's a huge difference. I would love to play in Toronto. All I would have to do is show up and the people would still be there. Playing here is difficult. We want our teams to win, and win often, or else we don't care about you. Is that the thought process of the normal Coyotes fan? Absolutely not. We have, more than anyone else in the league, endured far greater and more difficult challenges than any Leafs or Habs fan. It's easy to be a Leafs fan, it's hard to be a Coyotes fan.

The difference is that nobody support the Jets while they were in Winnipeg either.
And I'm allowed to say that because I lived there for a year and went to many games. You could easily walk up on game day and get tickets anywhere.
On some nights, you could hear the players yapping on the ice from the upper deck. No joke.

In Hamilton, they'll be able to charge $50 for a nosebleed seat. In Phoenix that will get you four tickets, four hotdogs and a timeshare in Glendale.

Simply put, in Hamilton, Toronto, Waterloo, Kitchener, anywhere in Southwestern Ontario, you can sell out an 18,000 seat arena for any price you want every single night.
That means more money to keep the good players you have, or grab good free agents. This means a better chance at long term success.

I give the Coyote organzation props for going after Jokinen, signing Bryzgalov(sp?) long term and other players.
The problem is, most people in Glendale and Phoenix didn't care about the team. It's why it was the 3rd lowest in the league for attendance and that's with cutthroat prices.

There's better hockey markets out there. It's time to leave Arizona and find them.

See my response above.

But aren't there too many teams in that area anyways? Detroit, Toronto, Buffalo, and now maybe a 4th team? Why? How does that create a profit? Nobody from Detroit will go watch a team in Hamilton. People in Buffalo will, but now Buffalo loses fans. People from Toronto might as well, but why when you have the Leafs? Again, it's a lateral move.

All of the above would not happen in Hamilton or in Southwestern Ontario.

This team has been facing relocation for at least 2 seasons and how did the fans respond? By not showing up.

When Ottawa, Calgary and Edmonton faced relocation and extinction the fans responded by coming to the rink. Nuff said.

EDIT: I should add that expansion team Columbus sold out nearly every home game for 4 seasons before the fans grew restless with a losing organization. They didn't inherit an NHL team with bonafide stars that made the playoffs 5 of their first 6 seasons.
Phoenix was handed a midiocre team and that's the exact kind of fan support it's received.

I find it funny that there's only 3 guys in this entire thread that keep coming back defending what a fantastic hockey market Phoenix is. And anytime someone disputes this with evidence the excuse's come flocking out:
"The Canadian media is the reason we're in trouble!"
"We haven't won enough!"
"The arena is too far away!"

Face it. You filed Chapter 11. You were bleeding $30M a year. You had the 3rd lowest attendance in the league.
Even some of your own reporters don't care that the teams leaving.

It's over. Phoenix is a bad hockey market and all the numbers point to that.


I think you have some valid points. We were handed a mediocre team. That's not our fault. We came out to games when they first arrived here, but when they started to suck, we lost interest. Not me though. I try to watch as many games as I can, but it doesn't matter now.

To address the bolded section...we didn't file for chapter 11. Moyes did. He did it behind our backs (City of Glendale) and the NHL's backs. He's a scum bag. We were bleeding so much money a year due to a bunch of different reasons, not just attendance or lack of interest. If you want proof, look at the amount of investors ready to file lawsuits if Glendale restructures their contract. The Islanders had the lowest attendance...should we move them too? Every year we'll move the teams with the lowest attendance to Canada, how does that sound? Yes, let's punish every bad team every year because they couldn't turn a profit. That should solve all of our problems. Every year there is a team or teams that do not generate a profit in every sport and every league and yet nobody wants to move them.
 
Isn't the best argument that the only asset that Coyotes own that can be sold in the bankrupcy process is the right to operate an NHL franchise in Phoenix. That is the only asset the bankruptcy court /trustee currently has to sell and has to worry about getting top dollar for to protect creditors. The Coyotes do not currently own the right to operate an NHL team in whatever market they desire to put it. That is a completely different asset. And that is the only asset Balsillie has offered to buy. To "convert" the Coyotes' current asset (which Balsillie has not offered to buy and does not want) into the asset Balsillie has actually offered to purchase requires a bunch of intermediate legal steps and processes (i.e league approval to move to Ontario). But since that has not occured, and it now remains unclear if Moyes even has standing to make the request to the league (perhaps the bankrupcy trustee can), that may be difficult to do - especially on the expediated schedule Balsillie and Moyes desire (by June 30/09).

Plus, isn't a second team in the greater Toronto area worth a hell of a lot more than $212.5M??? I'm fairly certain if the league put out a press release saying they would accept bids on a expansion team to be in S. Ontario, they would seek and get a lot more than $212.5. (Tampa sold last year for close to that - A team in Toronto isn't worth more than a team in Tampa??? Come on). So essentially by this ploy, Balsillie and Moyes really undercut the league (and the other owners) of that prospective revenue.

Isn't the league better off saying it will promptly put an expansion team in S. Ontario (as soon as a suitable arena can be built), let Balsillie bid on it (with a bunch of other likely bidders) and reap maybe $300M plus expansion fee for the league and the other owners. Balsillie's and Moyes' way, the league and 29 other owners get $0.

Finally, as secured creditors the NHL and the Dell Hedge Fund get paid in full anyway with Reinsdorf's say $120M offer. Its only the unsecured creditor - Moyes who loses. But I'm not sure the league gives a rats ass about him anymore after going behind their back the way he did.
 
The Coyotes have no owner right now. If someone's willing to spend 200+ million on anything, he/she has a right to move them almost anywhere, whether that's Hawaii or Hamilton.
 
I agree with that. But to say that they'd plummet to the level of Phoenix is incorrect.
I don't think you'd ever see a Canadian team grossing as little as $450,000 per game.

The Phoenix apologists can round up all the excuses they like but the facts are staring them in the face - you're the worst grossing team in the league and I don't see that changing any time soon.

It's time to move this team. Personally, I couldn't care less if it was Hamilton or Portland, OR. Just move it someplace where the fans will actually give a crap.

keep in mind, though, in a bad exchange environment, that $450K a game looks more like $700K CND, maybe even more if there's a brutal exchange rate. of course, that's not the case now. but you can see where the gap between a bad US market and a middling Canadian market can be closed.

basically what is happening to the struggling US markets is the same thing that was happening to the non Habs/Leafs Canadian markets in the 90's. some of them are obviously worse off, so it'll stress them more, especially if this is long-term.

I would not really advocate this move, if not for the way it's happening. There's not much you can do here.
 
NOTE to 90% of the posters in this thread:

...in "traditional" markets or markets with longstanding hockey culture and tradition:
--- more sellouts
--- higher attendance
--- more fans
--- more "gate revenue" and other revenue generated
--- some exception to the above includes periods of poor ownership (see Chicago Blackhawks for the past 10+ years before this year)
--- game isn't "growing" into new markets

... in "non-traditional" markets or "new hockey markets"
--- less sellouts
--- lower attendance
--- less fans -- HOWEVER, over time (1 generation? 2? 3?) this number will organically increase, especially as new rinks, new youth programs, and hockey culture begins to establish roots in that city
--- NHL footprint slowly expands, increasing overall market for the sport

You need BOTH types of teams in the NHL. They BOTH serve a purpose. The two sides can argue until they are blue in the face, but the fact of the matter is this league needs both types of teams to continue to produce a healthy product.

Can we all just accept this point and move on?

I do somewhat agree but when expansion money came in and US teams had good economy and tv deals while watching a Canadian dollar do a peso dance Mr Buttman and his BOG let us have the stick up the ass
maybe winnipeg and Quebec could be alive today in that line of thought
Now its 6 Canadian teams generating the profits that keep the league alive and its time to take care of who cares about the game , grow markets where and if you can start getting junior leagues minor pros and developing players its how you grow longterm hardcore fans
i hope JB-RIM wins and Buttman gets his ass thrown across the ice time for a plan based on growing the sport properly not based on greed and a small man syndrome pres who is a control freak
 
Plus, isn't a second team in the greater Toronto area worth a hell of a lot more than $212.5M??? I'm fairly certain if the league put out a press release saying they would accept bids on a expansion team to be in S. Ontario, they would seek and get a lot more than $212.5. (Tampa sold last year for close to that - A team in Toronto isn't worth more than a team in Tampa??? Come on). So essentially by this ploy, Balsillie and Moyes really undercut the league (and the other owners) of that prospective revenue.

Isn't the league better off saying it will promptly put an expansion team in S. Ontario (as soon as a suitable arena can be built), let Balsillie bid on it (with a bunch of other likely bidders) and reap maybe $300M plus expansion fee for the league and the other owners. Balsillie's and Moyes' way, the league and 29 other owners get $0.

EXACTLY.

Business. Pure and simple fundamental business.

Balsillie needs to play by the rules like everyone else. The Leafs seem to continue to try and block a second S. Ontario team --- but it can't go on forever.

Assuming a viable arena is built and expansion happens, he can bid on a franchise like everyone else ... and pay a FAIR price for that market.
 
Maybe I need to clear up why I'm so emotionally involved in this. First, I've been a Coyotes fan since the first day they were announced. They have had a huge impact on my life including playing hockey for the first time, meeting life long friends, and even my first job. However, I'm also a tax payer in the City of Glendale. I paid for that stadium. Now that Moyes has filed for bankruptcy, he has a "get out of jail free card" from the penalty he would receive if he ended the contract prematurely. That means that our new rink will sit empty and it will be on my dime. That's unfair.

Everyone here can think of me how they want, but you don't understand the situation I'm in. Some of you do with former teams being moved, but it seems like most of you don't. Put yourself in my shoes for a minute and ask yourself, "What if it was my team?" No matter how awful the team is, nobody wants to see their franchise moved, let alone, foot the bill for an empty stadium. Some of your arguments are valid, some...not so much. To be quite honest, I don't care. You can argue with me until you're blue in the face and I'll keep saying the same thing; "I don't want my team to be moved." That's the bottom line. Most of you don't care if we lose our team and you should be ashamed. As hockey fans, we share a united bond of sorts through our sport. Canadian or American: it shouldn't matter the nationality because we all love hockey.

I'll be damned if I'm going to sit here and allow people to argue for the relocation of my team. I'll fight it to the very end. If you keep posting arguments for relocation, I'll keep rebutting them. You can count on that.

So, when you do post something, before you hit the "submit" button, think for a second. This is a team, a culture, that will be moved from the Southwest. There are people here who care even if you don't.
 
Delaware probably has the most favorable laws and tax/cost structure for incorporating companies. It's quite common for companies to incorporate in Delaware regardless of where they actually do business in the US.
In fact, Coyotes Hockey LLC is a Delaware company.
 
I do somewhat agree but when expansion money came in and US teams had good economy and tv deals while watching a Canadian dollar do a peso dance Mr Buttman and his BOG let us have the stick up the ass
maybe winnipeg and Quebec could be alive today in that line of thought
Now its 6 Canadian teams generating the profits that keep the league alive and its time to take care of who cares about the game , grow markets where and if you can start getting junior leagues minor pros and developing players its how you grow longterm hardcore fans
i hope JB-RIM wins and Buttman gets his ass thrown across the ice time for a plan based on growing the sport properly not based on greed and a small man syndrome pres who is a control freak

...and, I will agree with you ... Perhaps Bettman and the BOG expanded "too quickly" and "too aggressively" into the new markets in the past 15 or so years. Perhaps a 7th Canadian team should already be back on the ice.

I'm not sure the specifics on why Ottawa has been the only benefactor during the various rounds of recent expansion and movement, but none of this is Phoenix' fault nor the greater Sun-belt's fault.

We need both types of markets. The elitist mentality that exudes around here is exactly what helps prevent the sport from growing and becoming even more successful.

-t
 
The Coyotes have no owner right now. If someone's willing to spend 200+ million on anything, he/she has a right to move them almost anywhere, whether that's Hawaii or Hamilton.


Well no, they don't have the "right" to move the team anywhere they want - and that is the reason for the uncertainty of Phoenix's future.
 
I agree with that. But to say that they'd plummet to the level of Phoenix is incorrect.
I don't think you'd ever see a Canadian team grossing as little as $450,000 per game.

The Phoenix apologists can round up all the excuses they like but the facts are staring them in the face - you're the worst grossing team in the league and I don't see that changing any time soon.

It's time to move this team. Personally, I couldn't care less if it was Hamilton or Portland, OR. Just move it someplace where the fans will actually give a crap.

I'll agree with that. And I'm a Canes fan living in North Carolina, so no one can blame me of being a northerner or Canadian. Bettman's grand experiment in some places of southern expansion has reaped grand dividends, Raleigh and Dallas for example. Some other places, it's languid at best with no improvement from the previous location, and further places have been dramatically poor. In the interest of future growth and expanding the NHL, get rid of the dramatically poor, not only in the South or Southwest but wherever the dramatically poor are located on the continent. If a market doesn't work, it doesn't work. This is not a Seattle Supersonics deal where a perfectly good team was moved.

I was asking another person that used to be a broadcaster in pro sports (not hockey) that now lives in the Phoenix area about the Coyotes, him previously being a broadcaster he has more insight into how pro sports work behind the scenes than most of us on here. This is from a month ago before all the recent news came out, so FWIW:

I've been here 19 months and it seems to me that hockey here is a struggle. I'm not one who believes that winning takes the place of actual work to sell tickets, but the Coyotes haven't done much to capture the attention of the populace (no playoffs since 2002, I believe). If they had a 30-year-old Wayne Gretzky as a player instead of the 48-year-old Wayne Gretzky as a coach, maybe.

Personally, I don't know how you can lose $30-$35M a year. The economics of the NHL may be the most screwy, and I don't know if it's just been salary inflation or what. Their expansion to 30 teams may have contained more empty calories than anything I've ever seen.
 
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A sellout in Ottawa is 19,153. 1 home game took place in Sweden, so only 40 games in Ottawa. The Sens sold out 19 games this season. In 2007-2008, they sold out 38 games. Average attendance in Ottawa in 2008-2009 (so not including the game in Sweden), was 19,081 this season.
 
Isn't the best argument that the only asset that Coyotes own that can be sold in the bankrupcy process is the right to operate an NHL franchise in Phoenix. That is the only asset the bankruptcy court /trustee currently has to sell and has to worry about getting top dollar for to protect creditors. The Coyotes do not currently own the right to operate an NHL team in whatever market they desire to put it. That is a completely different asset. And that is the only asset Balsillie has offered to buy. To "convert" the Coyotes' current asset (which Balsillie has not offered to buy and does not want) into the asset Balsillie has actually offered to purchase requires a bunch of intermediate legal steps and processes (i.e league approval to move to Ontario). But since that has not occured, and it now remains unclear if Moyes even has standing to make the request to the league (perhaps the bankrupcy trustee can), that may be difficult to do - especially on the expediated schedule Balsillie and Moyes desire (by June 30/09).

Plus, isn't a second team in the greater Toronto area worth a hell of a lot more than $212.5M??? I'm fairly certain if the league put out a press release saying they would accept bids on a expansion team to be in S. Ontario, they would seek and get a lot more than $212.5. (Tampa sold last year for close to that - A team in Toronto isn't worth more than a team in Tampa??? Come on). So essentially by this ploy, Balsillie and Moyes really undercut the league (and the other owners) of that prospective revenue.

Isn't the league better off saying it will promptly put an expansion team in S. Ontario (as soon as a suitable arena can be built), let Balsillie bid on it (with a bunch of other likely bidders) and reap maybe $300M plus expansion fee for the league and the other owners. Balsillie's and Moyes' way, the league and 29 other owners get $0.

Finally, as secured creditors the NHL and the Dell Hedge Fund get paid in full anyway with Reinsdorf's say $120M offer. Its only the unsecured creditor - Moyes who loses. But I'm not sure the league gives a rats ass about him anymore after going behind their back the way he did.
Jake, you beat me to the punch over on this Board. Here is a post that i made on Mirtle's blog about three hours ago:

Here is the point that no one gets.

The possibility of a second team in southern Ontario is an ASSET belonging to the league. To an extent (geographic limitations), that asset is partially owned by MLSE. The right to place a franchise in ANY geographic location is an asset belonging to the league, subject to the rights of other owners who already have received that geographical asset.

Given that most of the major markets have been awarded one or more teams, one can readily say that the possibility of a second team in SO is in fact the most valuable asset that the league (which is really the collective of the owners) owns. It is worth hundreds of millions of dollars (evidence: JB’s bid). As of right now, the league has not monetized that asset through expansion. when they do monetize that asset, the proceeds will accrue to the league (read: the owners). Working from a $250 million value, that is $8+ million per team. That is the value of the SO market.

If one takes the view (I don’t but it is arguable) that SO could support three teams, the asset could be monetized twice, IF DONE CORRECTLY AND IN A CONTROLLED MANNER SO AS TO MAXIMIZE THE BENEFIT TO THE COLLECTIVE OWNERS.

What JB is doing is trying to acquire that asset without providing the league with the ability to monetize the asset. He is doing so in an uncontrolled way that would maximize his benefit, and not the league’s. One can also take the POV that, rather than the monetization of the market for the benefit of the owners collectively, Jerry Moyes is trying (in concert with JB) to monetize that asset for himself, even though he only paid for the Phoenix market. He would be converting what he paid for (an underdeveloped southern market) for what most people think is a prime-time top-five or top-ten market.

Layered on top of all that is the fact that, without the respecting of markets, you wind up in a situation where no one’s market is safe. What is to stop ATL or FLA from simply deciding that THEY are going to move to SO right across the street from wherever JB plants his flag? What if they decide to move to Chicago, or Detroit?

Now, as for the idea that “the league can’t revoke a franchise willy-nillyâ€, the league certainly has every right to revoke a franchise pursuant to an “event of defaultâ€, as such term would be defined in the franchise agreement. There would seem to be little doubt that Moyes was in default if he was not paying his bills, but certainly filing a petition in bankruptcy is an event of default under any franchise agreement that exists out there in any business. I am sure that, upon reflection, you would concede that franchises in any number of industries are revoked for cause every day of the week somewhere or other.

As for the offer, it is a conditional offer only. If the condition cannot be satisfied, then it is about as effective as an offer by you or me.

Certainly JB’s proposition is not favourable to the largest creditor of all – the City of Glendale. THe bankrupt’s position would be that they want to repudiate the lease. Even though they are allowed to, the court still takes that into consideration.

In any event, the NHL has a security interest against the Coyotes, covering all of their assets now or hereafter owned. That includes the franchise agreement. If the league comes to court toorrow prepared to revoke the filing and assume control of the team, with a plan to keep the team in place and ensure payment of the creditors – including the taxpayer as represented by the City – either through the proceeds of sale or through the assumption by a new owner, they are probably in good shape.

One thing that any good lawyer will tell you is that, if you are going to go to court, you better come with your hands as clean as possible. Moyes is coming to court with a plan to get himself paid as an unsecured creditor and screw the City that built an arena for him,and monetize his asset by transforming it into something that he never paid for (a team in Southern Ontario). You tell me.

Great minds think alike.
 
The elitist mentality that exudes around here is exactly what helps prevent the sport from growing and becoming even more successful.

No, what keeps the sport from growing is the fact that hockey is a regional sport in the United States, and some don't want to accept that.

As it has ever been. As it will ever be.
 
I'll agree with that. And I'm a Canes fan living in North Carolina, so no one can blame me of being a northerner or Canadian. Bettman's grand experiment in some places of southern expansion has reaped grand dividends, Raleigh and Dallas for example. Some other places, it's languid at best with no improvement from the previous location, and further places have been dramatically poor. In the interest of future growth and expanding the NHL, get rid of the dramatically poor, not only in the South or Southwest but wherever the dramatically poor are located on the continent.

Dude ... it's EASY to speed up the "slow, organic growth" of hockey in an non-traditional market WHEN YOU WIN A CUP. Dallas, Tampa, and Carolina have accomplished that. It speeds up the process for that community to embrace the sport.

Places like Phoenix, Nashville, and Atlanta haven't had anywhere near that kind of success. These markets take time. And by time I mean generations, decades. The seeds are planted and growing. You have to give them time!
 
Plus, isn't a second team in the greater Toronto area worth a hell of a lot more than $212.5M??? I'm fairly certain if the league put out a press release saying they would accept bids on a expansion team to be in S. Ontario, they would seek and get a lot more than $212.5. (Tampa sold last year for close to that - A team in Toronto isn't worth more than a team in Tampa??? Come on). So essentially by this ploy, Balsillie and Moyes really undercut the league (and the other owners) of that prospective revenue.

Isn't the league better off saying it will promptly put an expansion team in S. Ontario (as soon as a suitable arena can be built), let Balsillie bid on it (with a bunch of other likely bidders) and reap maybe $300M plus expansion fee for the league and the other owners. Balsillie's and Moyes' way, the league and 29 other owners get $0.

Finally, as secured creditors the NHL and the Dell Hedge Fund get paid in full anyway with Reinsdorf's say $120M offer. Its only the unsecured creditor - Moyes who loses. But I'm not sure the league gives a rats ass about him anymore after going behind their back the way he did.

I don't think you have an argument here.

K-W and Hamilton are both outside the GTA. I would put the value of a Hamilton franchise at about $250-280 million (it's not like we're talking about another Toronto or Montreal team). Hamilton simply isn't worth it in the long term to pay 300+ million.

If he moves the team he'll most likely have to pay territorial fees to Toronto and Buffalo, which could possibly hit 50-80 million.

212.5 + 17 + 50ish = 280+ million

I would hate to be an owner looking at all the money Moyes lost and start thinking that could be me next. It's hard to think that a judge would turn down 212.5 for 120. Money makes the world go round.
 
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