Ballsy Update

Stephen Brunt has a nice work-up of how Balsillie's tactics have evolved as his previous attempts to buy a team have been frustrated.

From scouring the other articles available (Illegal Curve has a nice round up for those interested, you'll have to scroll down to find it though) the opposition of Bettman to the deal moves more into focus;

If Ballsy is successful in moving the Coyotes the new team would;

- Invade the 'territory' of the Leafs and Sabers - neither of whom are likely to be pleased, and both of whom would certainly represent members of the existing opposition among owners. MLSE in particular is likely to be the 800lb gorilla motivating Bettman to block the sale.

- Generate untold $Ms in legal fees for the NHL to fight the transfer

- Create a potential anti-trust lawsuit if the League attempts to enforce existing by-laws that give territorial rights to existing teams that block the transfer.

- Drive the league salary floor upwards, impacting on other low revenue teams - who surely won't be thrilled about it.

- Maybe most of all this humiliates Bettman on a number of levels;
A. Its moving a sun-belt team back to Canada - a direct slap in the face for Bettman's US presence program

B. It brings the maverick Ballsy into the old-boys club of the NHL against the wishes of Bettman (and a number of owners)

C. It puts Bettman in the position of defending a league supported cash pit in the middle of hockey nowhere over the wildly popular relocation a dead-franchise-walking to a hockey starved marketplace in a country of hockey mad fans, yeah, thats going to win you popularity contests Gary

D. It shows that when push came to shove at the chessboard, Bettman wasn't as smart as Ballsy - and that one in particular is going to hurt.

E. This is a big win for the NHLPA - who would vastly prefer that there be another rich team in Canada rather than a poor team in Arizona - if only for the upward salary pressure such a move creates. Interestingly, at least one article suggested the union was made aware of Ballsy's intentions as much as a week in advance and gave their approval for it. This certainly has the look of being a proxy fight for the Union to gain a victory over Bettman and his regime.

As always, Bob Mckenzie has a solid take on what roadblocks exist with the purchase;

"The question then becomes, can a bankruptcy court in Arizona mandate the NHL to relocate or transfer a franchise in order to satisfy the needs of the Coyotes' secured creditors?

It's an interesting legal question and without putting words in anyone's mouth – no one is commenting anyway – the safe bet is that Balsillie's group believes that's a possibility while the NHL doesn't believe a bankruptcy court can tell it how to conduct its affairs."

And he makes clear what Bettman's first legal strategy will be...

"The wording of the NHL press release suggests the league believes Moyes was perhaps not within his rights to file the bankruptcy claim and that he, by virtue of the NHL monies forwarded to the team since October, may not have been in control of the franchise. In any case, the league said it has now ''removed'' Moyes as an official of the club.

Clearly, the league is at odds with Moyes and vice versa."

So buckle up kiddies, this is going to be one marvelous ride!