Balsillie puts in $212.5 mil offer for the Coyotes

[guyincognito]

I don't know if the NHL will be able/willing to block the sale, but I don't know if they get any cut of the 212.5 mil if the deal goes through.

If they can block the sale, fold the franchise, and award someone else an expansion franchise for 200M, isn't that better for the other 29 owners than having the sale go through and not getting the expansion money?

Very disruptive. They have to disperse the Coyotes and then either immediately have an expansion draft or wait a year and play with 29 teams, which means less revenue (alright, it's the Coyotes, so not much less revenue).

 

[CHRDANHUTCH]

Move them to Seattle.

You solve the division problem and you get a great American market that just lost its basketball team.

Why does everyone mention Seattle as a relocation site?


It's the state of Washington and its business practices that put/pushed the Sonics out of Seattle, Flyers Fan Forever, not to mention Paul Allen owns the franchises there the NFL Seahawks and the Sounders, who happen to play in Qwest, that's why Portland, Oregon is not an option for hockey, not in this economic state we're in...

 

[GKJ]

Um, the Coyotes don't have a say. By enacting this situation, they have turned it over to the courts. The main issue is paying down creditors.

Yes, this is probably why Balsille went public with this.

 

[Coop]

http://www.nhl.com/ice/news.htm?id=421608&cmpid=rss-.com

Bill Daly wants some. The Coyotes made sure this happened without the league knowing about it.

Yea, looks like they are going to try to shut out Balsille again. Sounds like they want to keep the team where it is too. Unless it's just lip service. Not sure who they intend on getting to buy them though and operate at a loss in Phoenix. Bill Gates???

 

[MountainHawk]

http://www.nhl.com/ice/news.htm?id=421608&cmpid=rss-.com

Bill Daly wants some. The Coyotes made sure this happened without the league knowing about it.

God, I hope it turns out Basille paid Moyes to file for bankruptcy. Then we'll never hear his name again.

 

[seanlinden]

I don't know if the NHL will be able/willing to block the sale and I don't know if they get any cut of the 212.5 mil if the deal goes through.

If they can block the sale, fold the franchise, and award someone else an expansion franchise for 200M, isn't that better for the other 29 owners than having the sale go through and not getting the expansion money?

They can't block the sale; but they'd have ONE HECK of an anti-trust lawsuit on their hands if they expelled the team.

 

[TheHMan]

So it's official now? The Phoenix Coyotes are an NHL owned and operated team?

Man this is becoming a total joke. No offense to the Phoenix fans, but it seems like the support for the team just isn't there and Arizona just doesn't seem like much of a hockey market. It seems like it would just be best for the league to take a team thats on life support and just move it to a more profitable location.

 

[optimus2861]

Very disruptive. They have to disperse the Coyotes and then either immediately have an expansion draft or wait a year and play with 29 teams, which means less revenue (alright, it's the Coyotes, so not much less revenue).

Someone earlier brought up the possibility of an anti-trust suit. I think if the league tried this, Balsillie would be well within his rights to drop that hammer on them. The BK judge might have something to say about it as well.

 

[Trottier]

Looks like it's game over in Phoenix.

That's a baseless rush to judgement.

They need new ownership. The NHL will surely do everything it can to maintain the current market.

An NHL fan would certainly hope they do, for franchise stability is good for the league. Teams being forced to move geographically is not.

Bettman has gone on record saying that the Coyotes aren't going anywhere.

Nor is Bettman going anywhere. Under his stewardship, the league has expanded, revenues continue to increase. The league is growing.

 

[GSC2k2*]

I don't know if the NHL will be able/willing to block the sale and I don't know if they get any cut of the 212.5 mil if the deal goes through.

If they can block the sale, fold the franchise, and award someone else an expansion franchise for 200M, isn't that better for the other 29 owners than having the sale go through and not getting the expansion money?

Here is an interesting little wrinkle for you layfolks:

While I am not privy to whatever security agreement the league has with the team as part of the secured loans that the team made, I would be surprised if the agreements did not contain the right of the league to take over the management of the team.

As such, there may be nothing to prevent the league from simply assuming operational control of the franchise, installing new management and simply revoking the team's application for Chapter XI when the first court date comes around. Since the league is most certainly solvent, there may be nothing to prevent this, so long as the team provides assurances that the team will pay its bills on time.

MOD EDIT

 

[MountainHawk]

It was never Bettman's call ... always the BoG. I'm betting that the majority of owners just don't want to be associated with a sleaseball like Basille, so I bet the transfer of ownership will not be approved.

 

[Hunter Gathers]

That's a baseless rush to judgement.

They need new ownership. The NHL will surely do everythin git can to maintain the current market.

An NHL fan would certainly hope they do, for franchise stability is good for the league. Teams being forced to move geographically is not.

Thing is, this isn't in the NHL's hands.

 

[Jumptheshark]

Well


I will play the X factor here. What if the phoenix owners were taslking to Balise guy and they went behind the nhl back to prevent a last minute move by the nhl.

For a team to do this without the nhl knowing tells me that that there is somethikng going on that we do njot know about

 

[Egil]

The NHL needs to be careful that IF they try to block this that they don't screw over the creditors. Most NHL owners have borrowed money involved in their ownership, and if the NHL is seen to essentially screw these lenders over when they have an offer that would make them whole, the borrowing costs for weak NHL franchises are going to go through the roof. If the NHL manages to block this, I think it will have to be through a competing offer, and not through any other technique (like blocking the move to SO or forcing them to stay in Phoenix).

 

[speeds]

Very disruptive. They have to disperse the Coyotes and then either immediately have an expansion draft or wait a year and play with 29 teams, which means less revenue (alright, it's the Coyotes, so not much less revenue).

Are they willing to deal with that disruption for a $200M gain? I would imagine so, but I suppose it's up for debate.

As for less revenue, I don't think it's an issue. If anything, it's a benefit of folding the Coyotes - less money for other teams to have to spend in revenue sharing for the one year. Most revenues are realized locally anyways, so it doesn't have much effect on the other teams.

 

[seanlinden]

Here is an interesting little wrinkle for you layfolks:

While I am not privy to whatever security agreement the league has with the team as part of the secured loans that the team made, I would be surprised if the agreements did not contain the right of the league to take over the management of the team.

As such, there may be nothing to prevent the league from simply assuming operational control of the franchise, installing new management and simply revoking the team's application for Chapter XI when the first court date comes around. Since the league is most certainly solvent, there may be nothing to prevent this, so long as the team provides assurances that the team will pay its bills on time.

Mod-edit: deleted.

You are correct..... this is definitely something that they could do; but they would have to start pouring money into it if they did.... they would essentially become owners of the team if they pulled revoked the application. Moyes has been removed and he seems to be fine with that.

 

[Schenn]

i hope he gets the team, and moves it too kitchener! it would be near me, and i have connections to RIM! we could maybe posibally get free tickets yay.!

 

[Egil]

Here is an interesting little wrinkle for you layfolks:

While I am not privy to whatever security agreement the league has with the team as part of the secured loans that the team made, I would be surprised if the agreements did not contain the right of the league to take over the management of the team.

As such, there may be nothing to prevent the league from simply assuming operational control of the franchise, installing new management and simply revoking the team's application for Chapter XI when the first court date comes around. Since the league is most certainly solvent, there may be nothing to prevent this, so long as the team provides assurances that the team will pay its bills on time.

Mod-edit: deleted.

I know you have an agenda, so I will always take what you say with a grain of salt, but you are more knowledgable of these arrangements than I am.

Now, I would assume that the NHL is not the only secured creditor of the Coyotes (as I am sure that Moyes borrowed money to buy the team originally). So, in the presence of these other secured lenders, would such an agreement be allowed? And what rights would these other secured lenders have?

 

[GSC2k2*]

Here is an interesting little wrinkle for you layfolks:

While I am not privy to whatever security agreement the league has with the team as part of the secured loans that the team made, I would be surprised if the agreements did not contain the right of the league to take over the management of the team.

As such, there may be nothing to prevent the league from simply assuming operational control of the franchise, installing new management and simply revoking the team's application for Chapter XI when the first court date comes around. Since the league is most certainly solvent, there may be nothing to prevent this, so long as the team provides assurances that the team will pay its bills on time.

Mpd-edit: deleted.

What with all the quick posts, I didn't see the posts above about the NHL's statement. It appears that Mr. Daly agrees with me about this possibility, at least.

 

[guyincognito]

God, I hope it turns out Basille paid Moyes to file for bankruptcy. Then we'll never hear his name again.

Now, I think the NHL is the epitome of a garage league, but there's no way I can fathom them not knowing about this. If somehow they didn't, they cement this in my mind forever. The legalese in the filing makes me think they HAD to know because of the 6/30/09 contingency.

Secondly, I don't get what Daly is saying, if this isn't just cover. Is he insinuating the NHL now owns the team? Because unless there's something signed under the table that only they and Moyes know about... they don't.

 

[Vic Rattlehead*]

That's a baseless rush to judgement.

They need new ownership. The NHL will surely do everything it can to maintain the current market.

An NHL fan would certainly hope they do, for franchise stability is good for the league. Teams being forced to move geographically is not.


Nor is Bettman going anywhere. Under his stewardship, the league has expanded, revenues continue to increase. The league is growing.

The NHL will not find an ownership group that will put up as much money as Balsille is willing to put up for a dead franchise. People need to face the facts - the demand for a team losing a lot of money every season is going to be very low. I'm still surprised by how high Balsille's offer is, and I can't blame Moyes for accepting.

Another team in Southern Ontario will make a lot of money. Yes, it hurts the NHL's expansion into new markets, but with the shape of the economy, there is no reason to prevent a move to a more lucrative market.

 

[GKJ]

It was never Bettman's call ... always the BoG. I'm betting that the majority of owners just don't want to be associated with a sleaseball like Basille, so I bet the transfer of ownership will not be approved.

It might not be the NHL's decision.

 

[May Day 10]

maybe they can bring their pal "boots" back in to save the day

 

[Vic Rattlehead*]

It might not be the NHL's decision.

It's looking like that - it's going to the courts.

 

[Dolemite]

Nor is Bettman going anywhere. Under his stewardship, the league has expanded, revenues continue to increase. The league is growing.

...and Hockey is working in Arizona. I've seen it first hand. The problem with the Coyotes and the mess that they're in is the years leading up to the day Maloney was hired. The Coyotes are soooo on the verge of going to the next level and doing some damage in the NHL, it's not even funny.