The interesting factoid dropped into the discussion is that the Dallas Stars owner Tom Hicks may be facing his own bankruptcy situation - though the Stars are not a money losing enterprise like Phoenix, so moving them seems like a very remote possibility.
The Globe and Mail's Al Maki tries to review the legal landscape of Ballsy's bid and comes up with (what else) some contradictory readings;
"A group backing Balsillie's offer has gone to court in Phoenix to seek an injunction to overturn the NHL's relocation rules on the grounds they are anticompetitive and violate antitrust laws.
Several legal experts say U.S. courts have consistently backed sports leagues on that issue.
"My own view is that the league has every right to do that," said Gary Roberts, an expert on sports law at Indiana University."Vs.
"The agreement by which the NHL controls the location of a franchise is itself a contract," said Ross, who believes Balsillie might have a good case. "One of the things about bankruptcy is a bankruptcy judge can void any contract to protect creditors. … The NHL constitution is simply a contract, and from a bankruptcy point of view, it's no different from a contract that says I'll provide you with 5,000 rolls of toilet paper."
So at least that is all cleared up.
Last but not least, Stephen Brunt writing for the G+M suggests that 'the genie is now out of the bottle' - and that as a result of Ballsy's move sooner or later Southern Ontario will get another team.
"Just try explaining to the judge that the Coyotes' many creditors should be stiffed because you don't like the cut of Balsillie's jib (despite approving him unanimously when he tried to buy the Pittsburgh Penguins in 2006), or because you don't want him going through a franchise relocation that seems to conform exactly to the rules laid out for such a move in your own constitution."
The above is my reading as well. As much of a longshot as Ballsy seems to be playing there is more than a little logic to what he has done, and it may well payoff.
5 comments:
The real issue here is Bettman's head is so far up his ass, he thinks he is the be all, end all of the NHL voice. He thinks he can dictate to the board of governors his whim(s).
Now that Ballsille has kicked him in the ass, his head is spinning at the notion that someone outside the hockey world is standing up to him and challenging the top dog.
Ballsille is a successful businessman. Bettman is a lucky businessman.
I think in the end, Ballsille will win. The creditors are the ones who will have the final say regarding the Phoenix saga.
Bettman is appointed the position he is in, and his time may very well come to an abrupt end because of the poor decisions he has made with expansion.
I agree Mike... problem is, a lot of NHL owners / governors also have their heads up their ass and don't know what is best for hockey.
Doug makes a point earlier that it isn't so much that they have their heads up their ass as to what is best for the game, but that they are motivated by what is best for themselves.
A large expansion fee for a team in Southern Ontario (say $400M) goes straight to ALL of the owners pocketbooks (no slice for the players or Union) whereas a relocation of Phoenix to Southern Ontario only lines the pockets of Toronto and Buffalo.
Its the choice between free money for all the owners, and a larger share of free money for only two teams - two teams that would now have increased competition in the market place. That competition wouldn't likely dent the Leafs noticeably (if at all) but it would certainly impair the Sabers.
So all we need to understand about the situation is, as Doug points out, to follow the money - and once we do that everybody's motivations shift into focus.
Cam and Doug - I 'partially' agree with your thoughts on all this but I think there is more to it than money for owners. Billionaire owners do not just care about their pocketbooks when they buy a sports team which usually is more of a 'passion' to them (or a toy if you are the NYI or TB owners).
I think they might feel justified in that Ballsille trying to circumvent things but then again they already should have dealt properly with him a long time ago. The owners and Bettman need to suck it up and do the right thing and kill off the weakling american teams and bring hockey to where it is wanted.
We'll see...hehe
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