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Now What?
by Paul on 09/30/09 at 03:38 PM ET
Comments (14)
via the Twitter of Damien Cox,
Arizona bankruptcy judge denies BOTH Balsillie and NHL bids…...sheesh!
added 4:41pm, via Paul Waldie of the Globe and Mail,
Bankruptcy court judge Redfield T. Baum has rejected both bids for the Phoenix Coyotes.
“In hockey parlance, the court is passing the puck to the NHL, who can decide to take another shot at the sale net or it can pass off the puck,” Judge Baum wrote.
“In the final analysis, the court cannot find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton without first having a final decision regarding the claimed rights of the NHL and the claims of the debtors and [Balsillie],” the judge ruled.
added 5:47pm, Read the ruling if you wish, posted at CBC.
added 7:03pm,
NEW YORK (September 30, 2009)—Bill Daly, Deputy Commissioner of the National Hockey League, released the following statement regarding today’s ruling by Bankruptcy Court Judge Redfield T. Baum:
“We are pleased that the Bankruptcy Court has confirmed the League’s rights to select its owners and the location of its franchises. We are reviewing the opinion and considering how we can best address the Court’s concerns regarding our offer to purchase the Coyotes. It remains our goal to secure the long-term stability of the Coyotes in Glendale.”
Filed in: NHL Teams, Phoenix Coyotes | KK Hockey | Permalink
Comments
So does this mean either the NHL has to add over $109M to it’s bid or the team will go into Chapter 7?
Posted by Nick on 09/30/09 at 04:04 PM ET
If I understand correctly, the judge says he has to reject the NHL’s bid because it doesn’t adequately protect the interests of Moyes and Gretzky financially and he has to reject Ballsillie’s bid because his bid fails to protect the NHL’s interest in being able to exclude people they don’t like from ownership and tell them where they can and can’t play their home games.
Seems to me that Balsillie is farther away from being able to secure a team than ever with this decision.
Posted by J.J. from Kansas on 09/30/09 at 04:38 PM ET
I think the simple version of Baum’s decision is:
“You two, go home, play nice, and work it out.”
He’s right that both offers fail to satisfy all parties involved.
I don’t know that this means Balsillie is farther away—as far as a timeline, yes he’s farther, but as far as cracking the NHL open, he might be closer, as this might open the door for the dreaded anti-trust suit.
Posted by Nathan from the scoresheet! on 09/30/09 at 04:43 PM ET
but as far as cracking the NHL open, he might be closer, as this might open the door for the dreaded anti-trust suit.
Part of Balsillie’s argument was that the NHL doesn’t have the right to play keep-away with their decision if they’re a competing bidder. The judge doesn’t seem to agree that this is a marked conflict of interest for the league.
I guess it means that Balsillie is just as far away from owning a team as he ever was, considering it’s probably always boiled down to his need to win an anti-trust suit against the league if he wants to own a team (or it least it has since the Predators debacle).
I agree that the judge made the right call in the light of everything borne out in his decision. It would have been a major coup for a bankruptcy court judge to tell a sports league that their right to deny somebody a place in their league based on their own written rules doesn’t count.
Posted by J.J. from Kansas on 09/30/09 at 04:52 PM ET
Fair enough, I guess my take on it was that since it was always unlikely he’d win this case, and an anti-trust suit was he most likely way to crack through a small group of people that don’t like him (sorry, not buying the 26-0 crap), that now that every step closer to that suit (and the outcome) is that much closer to him having a team (if he wins).
The whole thing is stupid. I’m sure that 26-0 vote would turn around pretty fast after the owners have to help subsidize the Coyotes, yet again, through even worse losses.
Posted by Nathan from the scoresheet! on 09/30/09 at 04:59 PM ET
Ok.. let’s re-open the bidding…
I bid $0.53! (All currency US)
Posted by Hippy Dave from Portland by way of Detroit on 09/30/09 at 05:21 PM ET
So for now the NHL “owns” the team, which means operating expenses are being shared by the 29 other teams…..no?????
If this is the case what happens if one of the other 29 owners decides he doesn’t feel like writing a $20 million check to subsidize a sink hole in the desert ?????
Posted by Down River Dan on 09/30/09 at 05:49 PM ET
I bid $1.00 - on the condition I get to rename the team the North American Primordial Soup and change their logo to a DNA molecule. 
Posted by Baroque from Michigan on 09/30/09 at 06:45 PM ET
Get the damn team out of the fn desert. I’m sure all the players are loving this. I bet its like Glendale is like Perani Arena when the Flint Generals play. a fn ghost town.
Posted by ME on 09/30/09 at 06:47 PM ET
Congratulations NHL. You’ve won the right to keep pouring $30 million down the drain.
Hey - would you like to bid on my credit card bills? If you’re just throwing away money….
Posted by CJBear71 on 09/30/09 at 06:53 PM ET
Posted by Baroque from Michigan on 09/30/09 at 07:45 PM ET
Ah…but would you sign Todd Bertuzzi? 
Hey - would you like to bid on my credit card bills? If you’re just throwing away money….
Posted by CJBear71 on 09/30/09 at 07:53 PM ET
Or my student loans…not even 2% of 30 million. That’s like, pocket change…
Posted by mrfluffy from Long Beach on 09/30/09 at 08:39 PM ET
No non-human primates permitted.
On those grounds, Ovechkin might be a little iffy, too.
Posted by Baroque from Michigan on 09/30/09 at 09:44 PM ET
NAPS… I like that, Baroque. I’m a fan of naps.
Posted by Hippy Dave from Portland by way of Detroit on 10/01/09 at 12:56 AM ET
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Wow. What a fustercluck in the desert. What next, a repo auction for the club?
Hockey fans in Phoenix and Ontario lose today. Afterall, is it likely ANYBODY wants the club and wants to stay in Phoenix long term? Methinks not.
I feel the judge dis not want to set precedent that would impact MLB and the NFL.
Posted by VooX from Behind the Bar in the Hasek Club Car on 09/30/09 at 03:58 PM ET