After months of back-and-forth disputes over who would ultimately obtain control of the Phoenix Coyotes franchise, Judge Redfield T. Baum has turned down both bids by the National Hockey League and Canadian billionaire Jim Balsillie.
The Coyotes originally filed for Chapter 11 bankruptcy protection on May 5, opening the door for Balsillie to make an offer to buy the club. The initial offer of US$212.5-million was made, conditional on the team moving north to Southern Ontario.
The NHL quickly responded, claiming they had been in control of the franchise since November 2008. The league insisted that because they were running the team, majority owner Jerry Moyes did not have the right to file for bankruptcy.
A week later, Hamilton's city council approved a lease deal that would leave the door open until October, for the Coyotes to call Copps Coliseum home. The NHL contended that that territory belonged to the league, making it impossible for the Moyes/Balsillie deal to be completed.
As Balsillie's group pushed forward, they announced Labatt Breweries and Home Hardware as corporate sponsors if and when the team made it's way to the Steeltown.
The NBA, NFL and MLB all voiced their support behind the NHL's stance regarding ownership transfer and relocation. Each league provided documents urging the courts to help them set a precedent in these matters. Judge Baum ordered Moyes and the NHL into mediation to establish who was in charge of the team.
In late May, Balsillie filed an application to the NHL Board of Governors, asking them to approve him as a potential owner of the Phoenix franchise. Balsillie also announced a $150-million renovation plan for the aging Copps Coliseum, to upgrade the facilities.
While no resolution had determined, in June, Judge Baum stated that the NHL had a right to demand payment for a team moving into the territory of Southern Ontario.
By the end of July, the NHL Board of Governors had voted unanimously (26-0) to reject Balsillie as a potential owner.
As the issue hit a fever pitch, Balsillie requested that the U.S. Bankruptcy Court probe the reasoning as to why the NHL owners' determined he was unfit to own a franchise in their league.
The league put their support behind the bid of Chicago Bulls and White Sox owner Jerry Reinsdorf in late July, but the bid was withdrawn on August 2. The NHL stepped up with their own bid of $140-million and another group, Ice Edge Holdings, also made a bid of $150-million.
The Ice Edge bid was short-lived and was withdrawn on September 9, after the group announced it was unable to work out a new arena lease with the city of Glendale.
As the date of the auction drew closer, Balsillie raised his bid to $242.5-million.
On the first day of the auction, Judge Baum told both bidders he might not award the team to either party.
Day 2 saw both sides make alterations to their respective bids. Balsillie adjusted his bid to ensure Glendale would receive $50-million if he was awarded the team and removed a deadline of September 21 for the sale to be completed.
The NHL changed their bid around so that $14-million of the money would be split between Moyes and Coyotes head coach Wayne Gretzky.
At the conclusion of the auction, Judge Baum made it clear he would take time to make his ruling. He said he wanted to word his decision clearly for the next court under the assumption the ruling would be appealed regardless of what it turned out to be.
The Coyotes opened camp on September 12, but Gretzky was not there due to uncertainty with his contract.
Phoenix was 36-39-7 last season and finished 13th in the Western Conference last season.
Home 
Search 
Register 
Log in 
Wed 30 Sep - 16:52
