The Puck Stops Here
Next entry: Colorado In First Place
Previous entry: New AHL Leader
A Sale Solves Nothing
by PuckStopsHere on 10/27/09 at 04:08 PM ET
Comments (5)
Bankrupt Phoenix Coyote owner Jerry Moyes has agreed to sell his team to the NHL. This is after the Phoenix market has been basically destroyed due to a summer of litigation and bankruptcy. Moyes would accept the NHL‘s $140 million offer. This offer would pay nearly $80 million to SOF Investment (the Coyotes largest secured creditor - who had provided the team with a line of credit). It would pay the NHL back $37 million for funding the team since last fall (that‘s right some of the money in the $140 quote paid by the NHL is paid to the NHL). It pays about $13 million to other Coyote creditors. This leaves about $10 million for Moyes (and possibly Wayne Gretzky who has a $22.5 million claim in the bankruptcy case).
Basically, this offer has Moyes losing his shirt. He accepted it because the NHL would continue to deduct the operating costs of running the team from their offer, if it ran into the future. Jerry Moyes had no other options. Wayne Gretzky has not agreed to this offer.
Because the Phoenix Coyotes are in bankruptcy, the Judge Redfield T Baum, the judge overseeing the case must approve the sale. It is not clear that this will happen. He already turned down a similar offer from the NHL in the failed auction of the team. He claimed that the NHL cannot pick and chose which creditors get paid and which do not. It appears nothing has changed with this agreement - except that Moyes removes his objection.
If this sale passed, it would not solve the Phoenix Coyotes plight. The NHL would attempt to sell the team as soon as a buyer could be found. They could sell the team to their chosen buyer (i.e. not Jim Balsillie) - assuming they have a chosen buyer. They claim that they would like to sell to somebody who will keep the team in Arizona, but it is not clear that anyone exists who fits that description. Phoenix would remain in limbo until such an owner was found or until other pressures forced the NHL to approve the relocation or contraction of the franchise.
This potential sale does not end the problems in Phoenix. It might get worse under prolonged NHL ownership as the team might be forced to keep a minimum payroll. These prolonged financial problems in Phoenix are not getting better and the strong southern Ontario market remains available for another team. This remains a blight on the NHL.
Filed in: | The Puck Stops Here | Permalink
Tags: Jerry+Moyes, Phoenix+Coyotes,
Comments
Oh no…they’re moving the team. It’s not a matter of if, it’s when. It may be back to the Phoenix area, it may be elsewhere. Just not in the middle of the season.
Posted by stoneman from vegas on 10/27/09 at 05:13 PM ET
One of the things that the NHL was looking for in an owner was somebody to keep it in its fan base area of Phoenix. I’d like to see if the attendance issue they’re having is because they thought the team was bad, or because they were fed up with all of the bad publicity. I’d like to see if that improves at the end of the season. If it does, they’ll probably keep the team in Phoenix. But, you’re right, they’re not going to keep the team in Phoenix if nobody comes to watch them.
Posted by Eric on 10/27/09 at 05:16 PM ET
This remains a blight on the NHL
While there are plenty of fans in So Ont for Toronto and Buffalo. Why would anyone want to have a match up in their building with a team from Hamilton? Can you see a VERSUS match up: Tonight NY Rangers VS Hamilton Bulldogs!
WTF
Posted by Timbits on 10/27/09 at 09:07 PM ET
Why would anyone want to have a match up in their building with a team from Hamilton? Can you see a VERSUS match up: Tonight NY Rangers VS Hamilton Bulldogs!
Twenty years ago you would have said the same thing about Tampa Bay, Florida, Carolina, Atlanta . . . now that’s 4/5 of a division.
Posted by Steve Strowbridge from St. John's, NL, CA on 10/27/09 at 11:08 PM ET
Add a Comment
Please limit embedded image or media size to 575 pixels wide.
Add your own avatar by joining Kukla's Korner, or logging in and uploading one in your member control panel.
Captchas bug you? Join KK or log in and you won't have to bother.
Commenting is not available in this weblog entry.
Most Recent Blog Posts
Missing Other League All Star Games
Top Defenceman So Far This Season
Karlsson Top Offensive Defenceman
About The Puck Stops Here
The Puck Stops Here was founded during the 2004/05 lockout as a place to rant about hockey. The original site contains over 1000 posts, some of which were also published on FoxSports.com.
Who am I?
A diehard hockey fan.
Why am I blogging?
I want to.
Why are you reading it?
???
Email: .(JavaScript must be enabled to view this email address)
When learning from experts it’s best to learn personally from them, or from their blog. We can provide that with poker lessons blog, your home to learn poker personally.
Do you get shocked from the luck in the game of poker? Stop getting shocked and start being a Poker Shoker
Donate to Kukla’s Korner
This whole thing with Phoenix just needs to end. I can understand not giving the team to Balsillie, but now, they pretty much have to find a new owner. It’d also be nice to get an owner that would keep the team in the Phoenix area.
Posted by Eric on 10/27/09 at 04:37 PM ET