The NHL has worked very hard to play up the good about this season. There has been plenty to get excited about: interest is up, and the playoffs have been wonderful so far. However, there is a harsh reality looming in Arizona. While the league can claim health for 29 of its 30 franchises, there is one team that doesn't appear immune to the economic problems facing so many. The Phoenix Coyotes have filed for Chapter 11 bankruptcy, and it appears their future in Glendale is in serious doubt.
There is actually worse news than that for Phoenix fans.
Jim Balsillie has put in an offer on the Phoenix Coyotes.The Arizona Republic story notes that an effort will continue to find others who are willing to outbid Balsillie's group.
According to a media release, the Blackberry billionaire's offer of $212.5 million (US) for the team is conditional on the franchise relocating to Southern Ontario.
"The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and Southern Ontario," Balsillie said in the release.
Balsillie has tried to bully teams into the Hamilton, Ont., area for a few years. TSN notes that the league appears to be on to his game, even though this may be his best ploy yet.
Much like Balsillie's previous attempts to purchase an existing franchise, the NHL is once again unhappy with the provision in Balsillie's offer that states the deal hinges on the condition the team can be relocated to Southern Ontario.The big key for the NHL, should they decide to continue fighting Balsillie, will be finding local investors. If the guy has the money, and is willing to take on what has been an albatross of a franchise for some time, I see no reason to deny him the opportunity.
Sources say the NHL is not happy with what is perceived by the league as a powerplay by Balsillie and will wrestle with this matter in court.
The concept of hockey in the desert never had a great shot at being successful. While they had moderate success after relocating from Winnipeg, the Coyotes never got out of the first round, and they haven't even made the playoffs since 2002. When you're trying to grow a new hockey base, "consistent failure stemming simply from bad hockey" is not a good way to get it started.
As a result of the losing tradition, the Coyotes never seemed to grow a serious local following, and never got enough financial support to ensure their viability.
Any new local owners would be taking on a great risk, likely losing money for the first few years as they try to build a successful operation, on and off the ice.
UPDATE: NHL Deputy Commissioner Bill Daly has released a statement.
"We have just become aware of today's Bankruptcy Court filing purportedly made on behalf of the Phoenix Coyotes. We are investigating the circumstances surrounding the petition, including the propriety of its filing. We have removed Jerry Moyes from all positions of authority to act for or on behalf of the Club. The League will appear and proceed before the Bankruptcy Court in the best interests of all of the Club's constituencies, including its fans in Arizona and the League's 29 other Member Clubs."Sounds like we're in for an interesting couple of months.
Reading this statement, I'm guessing the league has no interest in letting a sale to Balsillie go through.
Reader Comments (Page 1 of 1)
5-05-2009 @ 10:14PM
Marvin Fletcher said...
What do the Maple Leafs think about this? I would find it hard to believe that they would be happy about a franchise moving in so close.
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5-05-2009 @ 10:17PM
Rob said...
I think Gary Bettman should just smarten up and sell the damn franchise to Balsillie, as quite obviously he actually cares about hockey and business, as opposed to the others...
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5-05-2009 @ 10:51PM
Colonial said...
The Leafs are a license to print money. I'd be more concerned about what the Sabres will say.
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5-06-2009 @ 5:13AM
darkheart1776 said...
The Coyotes should go back to Winnepeg and become the Jets once more. Hockey in Arizona just will not make it.
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5-06-2009 @ 10:33AM
meggreenel said...
the coyotes are a first rate fraud with the worst coach in hockey, making over 7 mil per.
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5-06-2009 @ 6:13PM
kfogs1957 said...
Canada should have more teams anyway. It used to be the US had so many franchises, and ended up getting Winnipeg & Quebebc because of the weak Canadian Dollar.All the upstarts, Nashville, Tampa,Florida, Anaheim were all US teams.Canada got nothing when the league expanded. Come on guys, the tide has changed. Ontario Canada will easily support another team. Do the right thing commissioner, if Balsillie is the problem, then find another buyer in Ontario. Phoenix, like Hartford and Buffalo and Nashvile don't have the corporate backing or the big dollar incomes to support it. Tampa has the retirees with discretionary income from the north, and a decent canadian population, they will survive just fine. The economy is such that the league can't be to picky unless they want to foot the bill.
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5-20-2009 @ 5:20PM
anthonymonroe78 said...
The team should move back to Winnipeg. No hockey team should be in the desert at all!
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5-20-2009 @ 5:30PM
anthonymonroe78 said...
True true. No hockey team deserves to be in the desert. It makes no sense. Put more teams in Canada and in the northern part of the United States. No team in Florida, North Carolina, Tennessee, Texas, Georgia, or Southern California. No need. Move those teams to cities like Kansas City, Salt Lake City, Portland, Seattle, and Indianapolis in the United States and Regina, Winnipeg, Saskatoon, Halifax, Quebec City, and London in Canada.
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