I was referring to what he did in his attempts to purchase the Predators. With the Penguins he hadn't gone public with the desire to move the team to Hamilton. When he did the ticket drive with the Predators he was already on bad terms with the league.
This is all broken down here:
Why Balsillie went ballistic - Macleans.ca
Also Smith isn't actively engaged in a sales process with a team right now. He is campaigning for the league to expand. Again I doubt he would do that if the league didn't ok it. Maybe the league wants him out there because it will put more pressure on AZ to get a deal done then he gets an expansion team.