The Twits and the Phoenix Coyotes

I don't know how many of you are still following the Phoenix Coyotes saga, but just when things appear to be settled or calmed down, something really stupid happens and things are once again thrown into turmoil. Like Phoenix's white night, Jerry Reinsdorf, pulling his bid off of the table and dropping his quest to save the Coyotes for Phoenix.

But don't worry. The NHL has found a new owner. The NHL. That's right. The NHL is making a bid to purchase the team from bankruptcy, and get this, its offer is for even less money than what Reinsdorf was offering up. And from I've read, the NHL's plan is to purchase the team and then sell it to whoever will offer up cash for it -- and the team doesn't even have to stay in Phoenix.

And coming up next week, the Judge is supposed to decide if he will allow Jim Balsillie to bid on the team, or whether the NHL's vote finding him "not qualified" to be an owner will keep him from bidding on the team.

I no longer have any idea of what is going to happen here. But I'm pretty sure, after everything that's happened, that the NHL is being run by this group of twits.

So, Just How Financially Stable Are The Dallas Stars?

So while researching some info for a mothership post for tomorrow, I came across something rather interesting, and something which I thought I might bring out over here for discussion purposes, if you guys don't mind.

Now I've written in the past that Tom Hicks and Hicks Sports Group are having some financial problems and that Hicks has decided to deliberately default on his debt. He has placed a majority interest in the Texas Rangers up for sale, and he has placed a minority interest in the Dallas Stars up for sale. Now we're being told that everything is a-ok with the Stars, and that the team has no financial problems and will make it through the season fine.

And that could be so, but...

It is now being reported in Dallas that Major League Baseball is effectively running the Texas Rangers, going so far as to step into negotiations between the team and a draft pick and withdrawing an offer that the team had made and substituting a substantially lower offer at the signing deadline because other MLB owners thought the offer was too high.

I'm not sure of what exactly this means for the Stars, but I've really got to question just how stable the Stars really are.

Coyote Creditors Now Support Reinsdorf Bid

Last week, after the largest creditor of the Phoenix Coyotes backed Jim Balsillie's bid for the team as the only one that they would accept, I thought for sure the Coyotes would be no longer for Phoenix after this season. But today, that same creditor announced that it has reached a deal with Jerry Reinsdorf, so they are now willing to accept Reinsdorf should his bid be chosen by the judge -- I still don't understand this in that it still does not appear that Reinsdorf is parting with any cash, but if the creditor's happy, then the judge should be happy. (There's no word on how all of the creditors feel about this, but the Court cares more about the big guys than it does the little guys.)

Frankly, I now think this dooms Balsillie's bid. Sorry Canadians, but it's looking like a city that doesn't really seem to want the team is going to continue to have a team while a country that loves hockey continues to have an under-served market.

It still appears, however, that Reinsdorf has to work out a deal with Glendale over the use of the arena. And the auction for September 10 is open to any and all bidders, so it's still possible that another bidder could swoop in and making an even better bid which the judge would accept. I still think, from what I've read of Reinsdorf's bid, that the Coyotes are doomed to failure to Phoenix, but instead of ending it, the NHL is just going to stretch things out because of Bettman's hatred of Balsillie, and I'm surprised that Reinsdorf is willing to go along with this -- oh, wait, no I'm not as there appears to be a rather crooked political deal going on involving Reinsdorf.

[Addendum] The Phoenix Coyotes Are Dead, Almost, Just Give It A Minute

Ding dong. The witch is dead. Maybe. Almost. We'll know more next month. But in a ruling that perhaps surprised only the NHL, the Phoenix bankruptcy judge overhearing the Phoenix Coyotes bankruptcy today announced that the Jerry Reinsdorf no-money bid, the mythical-yet-to-be-submitted bid from Ice Edge Holdings, and the $212.5 million bid of Jim Balsillie will all be considered by the bankruptcy court in an auction on September 10.

Originally, there were to be two auctions regarding the Coyotes -- a keep the team in Phoenix auction which was supposed to have been done today, and the September 10 open to relocation auction if the original auction was deemed to be unsatisfactory. But Jerry Reinsdorf's bid has proven to be a bit inadequate, and he's still attempting to negotiate with the city of Glendale, AZ over the use of the Coyotes arena, so he and the NHL requested a delay so as to work on the bid. The judge granted that delay, with the result being that all bids will be considered on the same day.

This is bad news for Phoenix, Reinsdorf, and the NHL seeing as how the judge and the leading creditor have both stated that they prefer Balsillie's bid, seeing as how actual money is involved and the creditors are paid off. But in even worse news for Phoenix, Reinsdorf, and the NHL, the judge also stated that the auction is "open to any and all bidders including, but not limited to P.S.E. [Balsillie]."

What that, in effect, means is that the everybody is welcome to bid on the team, and there has been speculation that once the team was open to relocation more bidders might leap in. So it's possible, seeing that this team can now be moved and is not stuck with having to stay in Phoenix, that other parties are going to submit bids to purchase the team and move it, and the NHL has virtually no way to prevent this unless they find a way to get Reinsdorf to offer up at least as much cash as Balsillie.

There is also going to be a court hearing next Tuesday so as to address the fact that the NHL last week rejected Balsillie's bid. My thinking is that the judge will hear the NHL out, tell them to shut up, and get on with the real work. Considering some of the owners they have let into the league, like "Boots" Del Biaggio for example -- it's funny to listen to Minnesota Wild owner Craig Leipold go on about Balsillie being a liar when you consider that Leipold thought Del Biaggio was an honest guy -- I don't think the judge is going to be too sympathetic to the NHL's concerns. Especially since the judge's concern is getting the money back to the creditors, not helping Gary Bettman dig himself out of this grave he's buried himself in.

So the future of the Coyotes in Phoenix is dead. Almost. Not quite. But in a minute. They'll be stone dead soon. It won't be long.



ADDENDUM:

I want to be clearer about something: with the bidding process thrown open to anybody who wants to buy the club and move it, I wouldn't be shocked or surprised if someone makes a bid that surpasses that of Balsillie's and ends up with the team.

Disorder In The Court: The Phoenix Coyotes Drag On And On

For those of you still attempting to follow along, the idiocy continued in Phoenix today as once again, the bankruptcy judge refused to bring things to an end. Of course, there are a couple of good reasons the bankruptcy judge didn't bring things to an end, first and foremost being that the idiots running the NHL couldn't get a decent bid from the savior that is supposed to be Jerry Reinsdorf, and Reinsdorf and the other so-called bidder seeking to keep the team in Phoenix begged for a delay in the auction so as to have more time to negotiate with the creditors -- primarily the city of Glendale.

Another reason that the judge couldn't end things today is that there's only one legitimate bid, and that's Jim Balsillie's bid to move the team to Hamilton, but that portion of the auction is scheduled for next month. The judge declared Balsillie's bid to be the "highest and best" of the offers, and it's actually the only one in which creditors will get money.

That's probably why the largest creditor of the Coyotes, SOF Investments, a fund owned by Michael Dell of Dell Computers, appeared in court and said it was only interested in being paid in full and in cash and requested that the court reject the other bids. That should end up having a big influence on the court because the role of the bankruptcy court is to make sure that the creditors get their money back -- and when the largest creditor is happy with only one bid, then that's probably the bid the judge will end up backing.

The matter as to Reinsdorf is now being postponed until September 10 to give Reinsdorf and the mythical bid (mythical because a bid has yet to actually be made) time to get their act together and get not only concessions from the city of Glendale, but also to find a way to make creditors like SOF Investments happy. (There will be a hearing on Wednesday as to whether the relocation auction will be still be held on September 10.)

There are major problems arising with Glendale, and Coyotes owner Jerry Moyes revealed these problems in court filings last Friday. Primarily, Reinsdorf is trying to get a $23 million subsidy from the city over the use of the arena, and that subsidy would be raised by creating a special district around the arena which would charge a so-called voluntary surcharge on retail sales in the district which includes a large mall. More importantly, the district also includes the stadium used by the Arizona Cardinals, and the Cardinals have made it known that they're not happy about this: "The NFL team’s stadium would be in the special district and team president Michael Bidwell was quoted in local media reports as saying it was not fair that Cardinal fans should have to pay for the Coyotes’ problems."

And it gets better, if Glendale couldn't raise the necessary money through the surcharge, the city would end up paying the Coyotes out of city funds, and if, within five years, the team was still not showing a profit and if the city then refused to pay the team $15 million a year, then Reinsdorf would be able to move the team.

And if you have the time, there's a good story from a sister paper to the mothership which reports that there are some very serious shenanigans on the part of Glendale's city manager to make sure a good friend of his (a co-bidder from Reinsdorf) gets the team, and that this city manager has failed to offer up similar deals and concessions to the current owner and any others who might have been interested in the team.

So, in summary, there will be a hearing on Wednesday to determine if the relocation auction originally scheduled for September 10 will still take place on September 10, or whether it will be pushed back so that the incompetent fools chosen by the NHL can attempt to get their act together in time for another auction on keeping the team in Phoenix on September 10. Further, the judge likes the Balsillie bid. The largest creditor likes the Balsillie bid and has stated it wants to be paid in full and in cash. There's some shady business dealings going on between the city of Glendale and Jerry Reinsdorf, and even the Arizona Cardinals are against the Coyotes.

At this point, I think we should all be happy that George W. Bush put Mike Brown in charge of FEMA and not Gary Bettman because I can't help getting the feeling that the Gulf Coast would still be under water from Katrina if Bettman was running things.

P.S.: For a little fun, here's some real disorder in the court.

NHL May Accept Reinsdorf, But That Means Nothing To The Court

For those of you wondering about what the NHL's action of approving Jerry Reinsdorf's bid to purchase the Phoenix Coyotes means, I provide as a simple an answer as possible: NOTHING.

The NHL has no say in this matter anymore. It's all up to the bankruptcy judge. And if the bankruptcy judge doesn't like Reinsdorf's bid, then it doesn't matter a bit what the NHL wants. The judge will consider the bids next week. There is, technically, only one bid for the judge to consider, and that's Reinsdorf's bid which doesn't even involve any money -- it's just Reinsdorf assuming the debts and promising to pay back the creditors at some point. The so-called second bid from another Canadian group was nothing more than a letter of intent to make a financial bid at an unspecified time in the future. The Court was quite clear that the it wanted bids, but it's possible that the judge will also consider this as a bid and take this into account at the auction next week.

It's quite possible -- I really wouldn't rule it out because there's never no telling what will happen in bankruptcy court -- that next week the judge will accept Reinsdorf's bid. But he will accept or reject the bid on the basis of what's actually included in the bid, not on the basis of what the NHL decided on yesterday. The judge has already indicated in the past that he thinks the NHL is full of it, so it's quite possible the NHL decision could harm the chances of the team staying in Phoenix past this upcoming season.

Like I said, it's possible the judge will rule in the NHL's favor and give the team to Jerry Reinsdorf. Personally, I doubt it as bankruptcy judges don't like being bossed around by parties that have no role in the proceedings. But we're not going to no until next week.

An Update on the Phoenix Coyotes Situation

Toward the end of last season, I spent a lot of time on the Phoenix Coyotes bankruptcy situation. Things have been kind of quiet recently as the bankruptcy proceedings have been ongoing. Well yesterday was the deadline for prospective owners to submit bids for the franchise to the Phoenix bankruptcy judge. These are the bids that would go to keeping the club based in the Phoenix suburb of Glendale, and the auction is set for August 5th.

Only one bid was submitted for the franchise. Jerry Reinsdorf, as expected, submitted the only legitimate bid. But the seriousness of this bid is somewhat questionable to me. The bid is only for about $148 million. There will be no cash exchanged, and will consist of Reinsdorf assuming the team's debts. The deal is also contingent upon Reinsdorf achieving huge concessions from the city of Glendale regarding the use of Jobing.com Arena in Glendale, and it is also contingent upon concessions from the creditors. Also, Jerry Moyes, the current owner of the team, would not receive much from Reinsdorf.

I've been surprised by the judge's actions in this case in the past, but I just can't see the judge accepting this bid, not when Jim Balsillie has already offered up $215.5 million in a bid that would actually provide the creditors with real funds and not require any concessions on their part. I know if I were a creditor I would want the real cash, not some other sucker coming in and taking over the debts with the pledge to pay them off later. And under the Balsillie bid, Moyes would actually receive money for his share of the franchise.

I know the NHL thinks it's above the rules, but the role of the bankruptcy judge is to set whole the creditors, not to make the NHL happy. And you would think that the NHL would have done everything possible to make sure an actual bid with actual money was offered. This just serves to prove Moyes contention back when he filed for bankruptcy that he couldn't find any buyers fo for the team so he was left with no choice but to go into bankruptcy and accept Balsillie's bid.

If the judge doesn't accept this bid, new bids will be accepted from people seeking to move the team out of Phoenix, including Balsillie. And that auction would be held in September. So no matter what, I think the Coyotes will be playing in Phoenix this season.

Along with the Reinsdorf bid, a letter of intent was filed which stated that a real bid would be following at a later date. I honestly don't see the judge accepting this because it's not an actual bid, and the rules set forth by the judge were rather clear and easy to understand.

Hey Dallas! Have You Been Paying Attention To Phoenix?

I hope the Dallas Stars fans have been paying attention to what's been going on with the Phoenix Coyotes, because Tom Hicks is having some severe financial problems with the Texas Rangers, and there's nothing to indicate that, come hockey season, this won't be happening with the Stars.

Specifically, and stealing from my summary over at my ClownVision Chronicles blog, it goes like this. According to Yahoo! Sports the Rangers recently borrowed $15 million from MLB to meet payroll obligations.

Now, unlike with the NHL and the Phoenix Coyotes, MLB isn't claiming that this loan of money is allowing it to take control of the team. It is assumed that should the team attempt to add payroll come the trading deadline, that MLB will have a say in whether that happens -- kind of like what happened when MLB was running the Montreal Expos.

There's been some major financial problems with the Rangers and Stars for Tom Hicks this year, and the problems have been so serious that owner Hicks has announced that he's selling a controlling interest in the Rangers and is willing to part with an ownership interest in the Stars. And earlier this year, Hicks purposefully defaulted on loans for money that was used to purchase the Rangers and the Dallas Stars.

This could all mean nothing when it comes to the Stars. The Yahoo! post seems to imply that the Rangers will soon be sold, which would probably give Hicks the money needed to handle affairs with the Stars. But if not, is it possible that there could be another repeat of Phoenix in Dallas with the NHL loaning Hicks money to keep the Stars afloat and the NHL attempting to take control of the franchise?

It's too early to know the answer to this question. But for those of you interested in the well-being of the Stars, keep a close eye on the state of the Texas Rangers. The sicker the Rangers, then possibly the sicker the Stars.

And The Coyotes Stay in Phoenix...For Now

The bankruptcy judge in Phoenix ruled late on Monday night that the June 29, 2009 deadline set by Jim Balsillie for the transfer of ownership of the Phoenix Coyotes to him did not allow enough time for the court to handle all of the complex issues that needed to be settled in the case, so the judge rejected the proposed sale of the franchise from current owner Jerry Moyes to Balsillie.

It is late, I've been sick, and I don't see much else out there on this yet, so it's hard for me to provide much analysis on the basis of an Associated Press article. But the one thing that I found interesting was this: the judge didn't care about the argument from the NHL (supported by all of the other major professional leagues) that its own internal rules were paramount above all else, and that allowing this sale to Balsillie would set the stage for mass franchise relocations across the country. The AP quotes the judge as saying that "Financially challenged sports teams have the same rights and obligations as any business" when it comes to bankruptcy.

From reading that statement (and the entire article), I get the feeling that the only thing that kept the Coyotes from relocating to Hamilton was timing in that the judge did not feel he had enough time to get all of the matters settled -- primarily the problems with the 30-year arena lease -- in the time desired by Balsillie.

It should get fun as the onus is now on Gary Bettman and the league to put up or shut up. I'm going to have to see some more in-depth stuff tomorrow, but the team is still in bankruptcy, and that means the judge is still in control of everything, and there is a plan from the NHL that if an auction that would keep the team in Phoenix does not come in at a price that would set the creditors whole, then the NHL will hold a second auction that would allow relocation. So I don't see that judge letting Gary Bettman get by with a sweetheart deal to one of his buddies.

And The Phoenix Coyotes...Oh, To Hell With It, There's Still No Ruling

And the soap opera that is the Phoenix Coyotes will continue just a little while longer. The bankruptcy court judge -- who had earlier said he would hold a hearing regarding the possible relocation fee that Jim Balsillie would pay to move the club to Hamilton -- issued a statement yesterday that he will not hold a hearing regarding the relocation fee and will instead issue one ruling on all matters that were heard by the court earlier this week.

There are two possible explanations for this: one, the judge has decided that the team can't move without NHL approval, so the relocation fee issue is moot; or, two, the judge did a little research and discovered that relocation (or indemnification) fees are not allowed under U.S. law -- for which Balsillie would owe a big debt of gratitude to one Al Davis. And indeed, looking at past NHL relocations, it has been determined that all indemnification fees paid were voluntary. And also of importance, the last time a NHL team invaded the territory of another NHL team, an indemnification fee was not paid.

The NHL expanded in 1993, and one site of the expansion was a place called Anaheim which was part of the territory of the Los Angeles Kings. The Walt Disney Company paid $50 million for the rights to the expansion franchise, and Michael Eisner, the man who was running Disney, refused to pay an indemnification to Bruce McNall, the owner of the Kings. To make up for this, the NHL gave McNall half of the $50 million expansion fee. And McNall has confirmed that this is what happened.

All of this would play into Balsillie's contention that he is not legally obligated to pay a territorial rights or indemnification fee. And all thanks to the NHL's own ineptitude.

The NHL is now claiming that, if Balsillie's court bid fails, that it will hold an auction to be supervised by the bankruptcy court for the franchise. Only qualified bidders will be allowed, and to be a qualified bidder, the bidder must agree to keeping the team in Phoenix. A $10 million deposit deposit and bids must be submitted to the court by August 10, with the auction on September 10, and the bids must be in $2 million increments.

The NHL has declared that $120 million will cover most of the team's creditors. But if the NHL does not get a bid that good to keep the team in Phoenix, it will hold a second auction for the purpose of relocating the team, and they will allow Balsillie to enter that auction.

The judge has not indicated when he will deliver his ruling, but it is expected to come before June 22, which is the date that Balsillie has indicated is his drop dead date.

And The Phoenix Coyotes Go To...Who Knows Yet?

There is not expected to be a final ruling on the Phoenix Coyotes situation today, but based on the line of questioning by the judge, and some of the statements he provided, it's looking like the NHL is currently positioned to end up as the loser.

The Judge didn't buy the NHL's contention that it has received "four expressions of interest" for the club: "This old judge is not that excited about expressions of interest," the judge told lawyers for the league according to the Toronto Globe and Mail. "You either make an offer or you don't."

The Judge also called bull on the NHL's contention that the move could wreak havoc with sports leagues and their various rules, and he used as support the midnight move of the Baltimore Colts to Indianapolis.

The primary issue appears to be relocation fees, with the judge seeming to agree that, if he approves the move, Jim Balsillie will have to pay the NHL a relocation fee on top of the $200-plus million he has already bid for the team. The NHL has claimed in papers that the relocation fee should be $100 million. Attorneys for Balsillie argued that that fee is too excessive, and that if that is what the NHL should charge, he will drop his bid.

The Judge stated that the relocation fee must be resolved, and it must be resolved in a manner that protects the interests of the creditors. A fee that is too excessive could cause Balsillie to drop out, and if there are no other legitimate bids -- which there do not appear to be -- the creditors would be harmed by having the NHL continue to run the team out of Phoenix. The Judge has asked the parties involved to settle this issue.

And so the matter continues.

And The Phoenix Coyotes Go To...

Quick note: for those who are tired of this topic, hang on, the mothership should have an Aeros post later today that I will link to over here. Now on with, to me, the fun stuff...

The parties to the mess that is the Phoenix Coyotes will be convening inside a Phoenix courtroom today, and it's just possible that the bankruptcy judge will make some kind of decision that might determine the fate of the team. The Toronto Star says that the judge is faced with making a decision that has Jim Balsillie easing creditor debt versus his reluctance to buck the tradition of sports that has the leagues being the rulers regarding where franchises are located: "(If) Judge Baum is focused on helping creditors, (it) means Balsillie should win," says Penn State law professor Stephen Ross. "But many judges are reluctant to challenge the tradition of sports, which helps the NHL."

One of the mistakes I've been making is that I thought the focus of this case, and the one true precedent, was the one involving Al Davis and the NFL where Davis won the right to move the Raiders to Los Angeles without NFL approval. But it just so happens that there this is a case that is even more on point -- and one which I should know since I'm such a baseball fan. But in 1970, on the literal eve of the regular season, the Seattle Pilots of the American League were relocated to Milwaukee, WI where they became the Milwaukee Brewers. The Pilots were put into bankruptcy by their ownership group, and Bud Selig moved in and purchased the team while it was in bankruptcy.

The Pilots owners were losing money, and they struck up a deal to sell to Selig and his partners for $10.8 million. Local officials in Seattle objected to the deal, and they tried to stop it. The owners then put the team into bankruptcy protection and argued that the deal should be approved because it would pay off the creditors -- does that sound kind of familiar? The NHL argues that the one difference is that the American League supported the move, to which Balsillie has responded that the American League only approved of the deal after the bankruptcy court judge approved of the plan and had instead insisted the team had to remain in Seattle.

I'm not the judge, and what I say has absolutely no power. But I've thought from the get-go this is a loser for the NHL. I understand that they're trying to protect the integrity of the league constitution and by-laws, and that they're trying to prevent the chaos that could result in teams constantly relocating, but I've thought ever since this thing ended up in bankruptcy court that the league was going to lose because the judge's primary concern is the setting whole the creditors, not protecting league constitutions. And frankly, if bankruptcy court judges can go about voiding union contracts, then they can go about approving this deal. (I also feel good about this as it seems there are a lot of bankruptcy experts who agree with what I think.)

(A side note, for anyone interested in reading more about the Seattle Pilots, then allow me to recommend Jim Bouton's groundbreaking Ball Four, which was about the season he spent between the expansion Pilots and the Houston Astros.)

And Gary Bettman really needs to be careful regarding the arguments that he is pushing before the Court. For instance, over the weekend, the NHL filed papers in which they questioned Balsillie's integrity, noting that Balsillie recently settled with Canadian and American securities regulators regarding allegations that he and others backdated stock options at Research In Motion with Balsillie and his fellow company officials paying more than $70-million (Canadian) to settle the allegations.

Now the reason that Bettman might want to be careful with this argument can best be summed up by one name: William "Boots" Del Biaggo. Boots recently pled guilty to falsifying documents to obtain $100 million in fraudulent loans, and that he did so by way of a Ponzi scheme. Boots used these loans to purchase a $25 million stake in the Nashville Predators. Now the Predators were actually supposed to be purchased from Craig Leipold, current owner of the Minnesota Wild, by one Jim Balsillie. But when Balsillie started making plans to move the Predators to Hamilton, Bettman and the league stepped in to stop the deal and to broker the deal which allowed Boots to become one of the owners.

If Bettman wants to keep pressing the integrity issue at Balsillie, then any attorney who knows what he's doing will certainly push back with Boots Del Baggio, and I can guarantee that that attorney, and the judge, are going to know what exactly Bettman and the league knew about Boots, and when they learned it.

It was also reported that the owners of the CFL's Toronto Argonauts are interested in purchasing the team, and that they would keep the Coyotes in Phoenix. But from what I've read, only an idiot would believe that -- so I guess that means Bettman has either fallen for it or else he's lying. In fact, according to the Toronto Globe and Mail, these guys want to move the team to Toronto.

So later today, maybe, hockey fans might have some idea of what is to become of the Phoenix Coyotes. I've been wrong, often, but I think the law is in favor of Balsillie.

More From Chapter 11: The Strange Case of the Phoenix Coyotes and Some Other NHL Oddities

There was a bankruptcy court hearing in Phoenix yesterday regarding the attempt of Jerry Moyes to put the Phoenix Coyotes into Chapter 11 Bankruptcy while selling the team to Canadian billionaire Jim Balsillie who wants to move the team to Hamilton, Ontario. And in 12 days, we should all have some idea of where the Coyotes will be playing next season.

The judge yesterday ordered all parties to file briefs by June 5, 2009, and he ordered a hearing for June 9, 2009, in which he stated he hopes to offer a ruling on whether putting the Coyotes into bankruptcy allows the team to be relocated without approval, per NHL bylaws, of the owners. The NHL, with the support of the NBA, NFL, and MLB, is arguing that the bankruptcy court doesn't have the power to order a move that contradicts league bylaws. Moyes and Balsillie say that the court can void whatever contracts it wants and ignore whatever internal bylaws it wants in order to set whole the creditors.

According to the Toronto Globe & Mail, the judge expressed reluctance to order the move, and says he's not sure that he has the power to rewrite NHL bylaws. He might be reluctant, but I call bullshit on his argument about NHL bylaws. If bankruptcy courts can void union contract after union contract after union contract when mismanaged corporations go into Chapter 11, then he can ignore NHL bylaws.

The judge stated that if he rules in favor of relocation, the bankruptcy auction for the club will be held on June 22. If he rules that there can be no relocation, then the bankruptcy auction will be held on September 10.

Balsille has stated that if there is no decision regarding relocation by June 29, he will withdraw his bid for the team. And the Globe & Mail is also reporting that the NHL will be spending about $17 million over the next several weeks to keep the team running -- most of that money will be going to one Wayne Gretzky.

AND SOME MORE NON-HOCKEY NHL NEWS:

The Wall Street Journal yesterday mentioned that one of the teams closely following the Coyotes matter is the Atlanta Thrashers. Without citing any sources, the Journal reported that if the Chapter 11 relocation is allowed, then the same thing would probably be happening with the Thrashers. It also stated that the Nashville Predators are also in the mix for this type of relocation since the team has a clause in its contract that allows it to get out of its lease if the team averages under 14,000 per game in attendance for a season.

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The Columbus Blue Jackets, meanwhile, are heading up an effort to sell Nationwide Arena to Franklin County, the county where the Blue Jackets arena is located. The purpose of the sale would be to help the Blue Jackets, who are having financial difficulties that are partly originated from the lease the team has with the arena.

Apparently, the County's assuming of the arena would result in a better lease for the team. As it stands, the Blue Jackets lease the arena and pay for its operations, but arena revenue isn't covering the operating costs. The club states that this forces the team to take money from hockey operations to make up the rest of the operating costs.

The sale of the arena to the county would be funded by, of course, the taxpayers, who would pay increased tax costs on alcohol and tobacco sales. The puck is now in the zone of the state politicians who are debating whether to grant the county the authority to impose the tax, or else giving the county the approval to hold an election on the issue.

Oh, and the Blue Jackets stated that if the lease problems aren't resolved in their favor, they will relocate to another city.

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Charles Wang, the owner of the New York Islanders, announced last week that unless the Town of Hempstead, NY approves of an arena project for the Islanders by October 3, then the Islanders will be relocating when the team's lease expires in 2015. The franchise, apparently, makes the Coyotes look like a financial success, having lost between $15-20 million last season alone. And among the suitors mentioned for the Islanders, should relocation result, are all of the usual suspects: Hamilton, Las Vegas, Kansas City, and Houston.

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And things are getting interesting up Dallas way where today Tom Hicks, owner of the Dallas Stars and Texas Rangers, announced that he is now selling a majority interest of the Rangers. It was not long ago that Hicks defaulted on loans to the creditors who made the purchase of the Stars and Rangers possible, saying that the default was just a negotiating tactic to get better terms on the loans. At that time, Hicks also stated that he was willing to sell a minority interest in the Stars and Rangers.

Now he's on the record as saying that he's up for selling a majority interest in the Rangers. It appears, for now, that the Stars are safe. But then again, Hicks appears to be having some real financial difficulties, no matter the PR spin, so I wouldn't count out Hicks putting a majority interest in the Stars up for sale soon.

More On The Strange Case of the Phoenix Coyotes, Part The Continued

And in my quest to bore you out of your mind with the Phoenix Coyotes situation -- which I find fascinating because, well I'm a lawyer and I don't like Gary Bettman -- I bring you some more info on what actually happened yesterday.

According to the Canadian media, who were actually present at the hearing, the judge appeared to side with Jerry Moyes on the whole control of the team issue and doesn't quite think the NHL is being quite truthful regarding Moyes signing a proxy to surrender control of the team -- I know, the NHL lying is a rather shocking development. That said, the judge still refused to rule on the matter and punted it over to a mediator to try and get the parties to settle the matter.

The mediator has until May 27 to get this matter settled, at which point the parties will return to the bankruptcy court. At that point, it's expected that, if the mediator hasn't gotten a settlement in this matter, then the judge will actually make a ruling as to who has operating control of the franchise. And even scarier for the NHL is that the judge made it clear yesterday that he doesn't care about their internal franchise relocation rules and that he considers the franchise to be a movable asset if it turns out that relocation is the best method of increasing franchise value and raising money for the creditors.

But that doesn't necessarily mean that Jim Balsillie gets the franchise should that occur. If the judge so rules, he probably put the franchise up for auction and accept the highest bid. Balsillie's bid is the highest, but if there's a chance of moving the team out of Phoenix, then there's no telling what kind of bids might actually come flooding in. But -- and again but -- the judge probably won't even hold hearings on the whole relocation aspect until the end of June.

So there are two issues to be decided: control of the team, and whether the team can be moved without NHL approval. The judge indicated in arguments yesterday that he thought the NHL was a loser on both points, but until there are hearings and actual rulings, no one knows for sure what the judge will do, and who knows, maybe all of that will force the NHL to listen to some logic about the viability of Phoenix.

But another problem is that the Judge might not even get around to ruling on these issues for several months, which might end up meaning that, by default, the Coyotes are forced to play in Phoenix next season.

What Does J-U-D-G-E Spell? Can You Say Coward?

Bloomberg News is reporting from Phoenix that the bankruptcy court judge has ordered the NHL and Jerry Moyes/Jim Balsillie/Phoenix Coyotes into mediation. And the subject of who has the power to send the team into bankruptcy, i.e., who actually has the power to run the team, is to be decided in mediation.

For those of you not up on your legal speak, that means the bankruptcy court judge is a pussy who doesn't want to make an actual ruling on a tough subject.

This happens all of the time in legal proceedings, and it always pisses me off. Judges are appointed to these courts so as to make tough decisions. Instead, they wimp out and have a party who is responsible to no one make the actual decision. That way, no one can get mad at the judge. This means that the mediator will go back and forth for however long it takes -- while billing out of his ass -- to try to get the parties to agree on who runs the team's actual day-to-day operations. This way, instead of the judge actually doing his damn job, he's taken the cowardly way out. And I despise cowardly judges.

All the mediation will do is determine who is really running the team. There's still the matter of Chapter 11 which will have to be determined, though I get the feeling from the pussy bankruptcy judge that he will continue to let others handle all of the hard work while he works on his golf game. God forbid that the people of Phoenix or Hamilton get any decision anytime soon -- none of that is as important as a good round of golf.

(Can you tell I'm frustrated? Well I am because there's no legit justification for this decision. It should be a relatively easy one for a judge to make.)

Since many people get confused, there is a difference between arbitration and mediation. A mediator shuffles between the parties, trying to get them to agree to a middle ground. An arbitrator makes a legally-binding decision in favor of one party after hearing arguments -- it's kind of like being a judge except that arbitrators make way more money and aren't responsible to anybody.

And in non-court related Coyotes news, it's being reported today that part of the mythical Jerry Reinsdorf bid for the team -- mythical because I don't think the deal has ever been fully reported or seen by anybody but certain NHL flaks -- is that Wayne Gretzky must go.

It was also reported today that, in order to qualify for league revenue sharing, Moyes himself was actually buying thousands of tickets out of his own pocket then distributing them around the city. That's because, to qualify for revenue sharing, not only does the team have to be poor, it has to meet minimum attendance requirements, and the Coyotes weren't meeting these requirements. The NHL, however, did put a stop to this.

Gary Bettman Steps In It: More On The Strange Case of the Phoenix Coyotes

I've been a bit slack on updating everybody about the Phoenix Coyotes situation, so here's a quick update. First, the parties are all in court today, arguing before the Bankruptcy Court whether or not Jerry Moyes actually has the power to put his team into bankruptcy. I'll have more on that later tonight.

But this little bit from yesterday's Toronto Globe and Mail is really interesting, especially to our friends from Winnipeg who might be in town for the Moose/Aeros playoffs series. It seems that early last month, while the NHL was attempting (and failing) to help the Coyotes find new ownership, NHL commissioner Gary Bettman sent an e-mail to people at the Coyotes updating the situation. Bettman makes it clear in the e-mail that it's proving to be nearly impossible to find a new owner to take over the team and keep it in Phoenix, and that "if we don't have an alternative, I will have to start looking at the moving option."

And just where does that moving option start? Well, it starts with Winnipeg, the original home of the Coyotes. And as for Hamilton/Southern Ontario, Bettman essentially writes that he just wants to string them along.

Nice going, Bettman.

What you have here is Bettman and the NHL saying that the team probably has to move because it can't find a buyer to keep the team in Phoenix because it's not financially viable to keep the team in Phoenix, and you also have Bettman saying the best option is Winnipeg while the folks in Hamilton are just strung along as suckers. And Moyes did what Bettman said the league would probably do: he found a buyer in Canada, but because of lease problems, he had to go through bankruptcy court.

(Oh, and one thing I haven't made clear in the past: the NHL is not objecting to the Coyotes going into Chapter 11. They're objecting about who is sending the team into bankruptcy.)

But we should have a better idea of what's going to happen with Phoenix later today, when the court hearing is finished.

Et Tu, Wayne: More On Chapter 11 And The Strange Case of the Phoenix Coyotes

Things continue to get interesting in the bankruptcy controversy of the Phoenix Coyotes.

Before I get further into that, let's further address an issue that arose on Saturday when I noted there were reports that the Atlanta Thrashers were being sold to Canadian interests who would move the team to that same Southern Ontario region that the Phoenix Coyotes are hoping to relocate to. But representatives for the Thrashers announced over the weekend that the team was not for sale and that it would not be relocated.

So that aside, what about the Phoenix Coyotes?

The really interesting news came yesterday when the judge in the bankruptcy court ordered the NHL to produce all documents relating to the possible sale of the franchise to Chicago White Sox owner Jerry Reinsdorf (or any other parties who have been in discussions about buying the franchise). This was requested by current (?) Coyotes owner Jerry Moyes. And the judge rightfully granted the motion.

It's one thing for the NHL to state that Jim Balsillie's bid to purchase the team in bankruptcy should be denied because they've got another lined up. But at some point in the proceedings, the NHL has to demonstrate that a valid bid was actually made because the Court's concern is setting whole the parties, particularly the creditors. And if Balsillie's bid will do more to set the whole the creditors than Jerry Reinsdorf's bid, then the judge is going to go with Balsillie. NHL objections be damned.

But the NHL has petitioned the Court to stay that order until after the Court has made a ruling as to whether Jerry Moyes actually has enough control of the club to put it into bankruptcy. The NHL is stating that Jerry Moyes gave all control of the franchise to the NHL in return for financing that would keep the club operating (it's somewhat ironic that the NHL is now making this argument considering that they spent most of this season arguing that the Coyotes were in fine financial shape and that the NHL was exercising no control over the team). But there are also reports that part of an agreement between Moyes and some of the minority owners (including one Wayne Gretzky) overrides any agreement between Moyes and the NHL. (I reiterate what I stated last week: I think this argument is a loser for the NHL).

And the NHL is further arguing that exposing the details of the Reinsdorf bid would actually harm the sale and the value of the club. Once again, I think that's a losing argument. If there's a valid bid that sets things right, then I don't really think a judge will give a damn if a lesser bid is harmed -- especially if that bid was never going to come close to eclipsing the larger bid.

The Toronto Globe and Mail took a more in-depth look into the matter, and it's got a bunch of legal experts saying that the NHL will win because they don't think a judge will dare to go against internal NHL rulings regarding relocation. Most of the experts think the Oakland Raiders matter was just a hiccup, but I still disagree with that. The guys they talked to seem to know the workings of the leagues, but none of them discussed the antitrust aspects, and I firmly believe that that Raiders decision is firmly on point when it comes to the Coyotes -- and if that decision is followed, then the NHL loses and the Coyotes are in Hamilton come this time next season.

There was another expert who made a point, based in bankruptcy law, that the bankruptcy courts can void legal and legitimate contracts to protect creditors. And the franchise agreement between the NHL and the franchises are contracts that can be voided to protect the creditors. Could this harm the league (and all leagues) should the court void that contract? Yes, it could. But damn it, this is the fault of the NHL and Gary Bettman who have let this situation get to where it is now.

The interesting thing, to me, is some stuff I read earlier which is stating the trigger to this whole thing is one Wayne Gretzky. Gretzky's a minority owner of the Coyotes, and supposedly he's the one who forced Moyes to file for bankruptcy and accept the deal with Jim Balsille. It seems that, despite the NHL supposedly assuming control of the franchise, neither Gretzky (in his role as head coach), the team ticket sellers, nor nearly 400 other team employees have been paid recently, so it's alleged that Gretzky is forcing this deal and might be the man responsible for the demise of Gary Bettman.

And finally, last month I wrote about the situation with the Dallas Stars and Tom Hicks, who put the team into default to its debtors by refusing to make debt payments. Well there are people out there who think that Tom Hicks is carefully paying attention to the Coyotes situation because the Stars could be next to take the Chapter 11 route.

There's a long time to go before this matter is settled. But right now, I just think the NHL is a loser on this. Especially if this stays in bankruptcy court, and especially if the antitrust argument begins to come into play. I love hockey, and I really want the NHL in Houston some day, but the NHL deserves what it's getting. It's a poorly run league with a poor TV deal and almost no national coverage in the country where most of its teams are located while the country that longs for hockey is almost shut out.

More On The Strange Case of the Phoenix Coyotes

I find this whole thing with the Phoenix Coyotes to be fascinating. So if you don't mind, I'll keep blogging on it awhile.

First, to address one of the comments from my earlier post: supposedly, the only out in the lease agreement between the Coyotes and Glendale, AZ regarding the use of Jobing.com Arena is bankruptcy. And since the city is seen as one of the creditors because of the money that the team owes on the lease, the Coyotes argument will be that the sale and relocation will allow the team to pay off what it owes on the lease. The city and the NHL are expected to argue that while past debts will be paid off, future income from the team that will be lost by the move will not covered. I don't think a bankruptcy judge cares that much about lost future income. I could be wrong, and we'll be getting an answer to that over the next several months.

Next, I'd like to address a response to this whole issue by a deputy of NHL commissioner Gary Bettman. Jim Balsillie is threatening to take the league to court and charge it with violations of antitrust law if the NHL attempts to stop the relocation of the team to Hamilton, Ontario.

NHL Deputy Commissioner Bill Daly stated: "If I didn't know any better, I would think I was living in a time warp. It's as if the complaint was drafted 30 years ago. Since that time, case after case after case has established a sports league's right to control the location of its franchises. Maybe they haven't been paying attention."

Now maybe it's just me, but I tend to follow these things rather closely. And as much as I can recall -- and I took multiple classes on antitrust and sports law while I was in law school -- there's been only one major court opinion that is on point to this issue. And the league lost. And it lost badly. That case happens to be known as Los Angeles Memorial Coliseum Commission v. NFL ("Raiders I"), 726 F.2d 1381 (9th Cir)., cert. denied, 469 U.S. 990 (1984). And for those who don't recall the matter by that name, it's the case that found the NFL in violation of the U.S. Antitrust laws because it would not allow Al Davis to move the Oakland Raiders to Los Angeles. And as we all know, the Raiders won the case, moved to L.A., then ended up moving back to Oakland.

I suggest Mr. Daly give that a read before mouthing off.

Now here's the thing. I don't think there are have been anymore cases regarding franchise relocation like this one where a particular owner was attempting to move his franchise and the league wouldn't allow it. The Baltimore Colts moved to Indianapolis in the middle of the night without league approval and the league did nothing. The NFL made no attempt to stop Art Modell and Bud Adams from moving their franchises. Los Angeles Raiders moved back to Oakland. The St. Louis Cardinals moved to Phoenix. The Los Angeles Rams moved to Anaheim and then to St. Louis. And the law suits that have been filed in these matters weren't from the team's owners fighting the NFL. They were from Houston and Cleveland and Los Angeles trying to stop the moves. So whatever decisions came from those moves aren't on point.

Meanwhile, do you know why there is a baseball team in Seattle? Because the Mariners were part of a court settlement brought by various Seattle officials after the Seattle Pilots moved to Milwaukee and became the Brewers after just one year in Seattle. And do you know why Tampa Bay has the Rays? Because in 1992 the San Francisco Giants were sold to interests who were going to move the team to Tampa Bay, but MLB and Bud Selig stepped in, found a local owner, and forced the team to stay in San Francisco. So with the Tampa Bay region threatening to sue, MLB caved and granted the city an expansion franchise.

So the NHL can huff and puff all that it wants, but the law is on the side of Jim Balsillie when it comes to franchise relocation.

Oh, and before I go, another NHL team that is in serious financial trouble is suddenly being rumored as to be heading to Hamilton for next season. The Atlanta Thrashers, whose ownership group has been suing each other from almost the moment they brought the team, may have found a Canadian owner who wants to relocate the team to Hamilton. It's all just rumor and innuendo, of course, but there it is.

Chapter 11: The Strange Case of the Phoenix Coyotes

This is the story of Chapter 11 and the Phoenix Coyotes. It's a strange story. It's a sad story. It's maddening. Frustrating. I've spent the past two days -- when not following the Aeros -- on the internets trying to get a firm grasp on all of the personalities, figures, numbers, and arguments. I don't know if I have succeeded, but I'll also give you some links to other sources so that those of you who are interested story can try to understand just what is going on.

But first, a brief primer. The Phoenix Coyotes were born as the Winnipeg Jets way back in 1972 as part of the World Hockey Association. The Jets were one of the few WHA teams to survive the competition with the NHL, and following the 1979 season, the Jets joined the NHL. Despite an avid fan following in Winnipeg, the NHL allowed the team to be sold to interests in Phoenix, AZ, where the team relocated and became known as the Phoenix Coyotes following the end of the 1995-96 season.

The team went through several owners and arenas while in Phoenix, eventually winding up under the control of trucking magnate Jerry Moyes in 2005. Jerry Moyes began to suffer from financial difficulties, both with the hockey franchise, and his trucking business, and was losing lots of money. At some point in the 2008-09 season, the NHL moved in to help run the franchise, pay bills, and to assist with finding a new owner for the franchise.

That brings us to a man named Jim Balsillie. Balsillie is the co-CEO of RIM -- the company that developed the BlackBerry. He is also Canadian and a very rich man who loves hockey. He has, on several occasions, attempted to buy a NHL franchise with the hopes of relocating the team to the Hamilton, Ontario region of Canada. His attempt to purchase the Pittsburgh Penguins in 2006 fell apart when he refused to guarantee that the team would remain in Pittsburgh.

He then attempted to purchase the Nashville Predators in 2007. In a deal ripe with implications of fraud and league chicanery, Balsillie was shut out and the team was sold to a group headed by William Del Biaggo (Del Biaggo appeared to have pulled a Bernie Madoff with many of his clients and is on his way to jail at the moment) who purchased the team from now-Minnesota Wild owner Craig Leipold for far less money than Balsillie offered.

Throughout the first half of the 2008-09 season, the NHL and league commissioner Gary Bettman denied all rumors of financial difficulties with the Coyotes. Thus it proved to be quite a shocker to many when the NHL moved in and took over some of the team operations -- there is some questioning as to when this actually happened and whether some of the team's questionable trades at the trading deadline were made by the NHL so as to help other teams get out from under questionable contracts.

On Tuesday of this week, May 5, 2009, Moyes filed a petition for Chapter 11 Bankruptcy Reorganization in Phoenix. As part of the the petition, Moyes submitted a plan of reorganization that involves Balsillie purchasing the team for $212.5 million on the condition that he could move the team to Southern Ontario -- this is seen as the city of Hamilton since they are the only city in that region with a NHL capable arena. And as part of the petition, Moyes requested that the court implement a court-approved sale of the team under the Federal Bankruptcy Code, and of which would be open to all bidders -- but it is doubted that any bidder would top Balsillie's pre-submitted bid.

The NHL is attempting to stop this action. First, the league is claiming that Moyes, in exchange for loans from the NHL to keep the team running, effectively gave up all control of his team, thus he does not have the legal ability to move for Chapter 11. And the NHL, which was surprised by the move of Moyes and Balsillie, have been hastily searching for a buyer with ties to Phoenix the area, and they appear to have settled on Jerry Reinsdorf, the owner of the Chicago White Sox and the Chicago Bulls.

Oh, and there's two more things: the Coyotes are supposedly locked into an ironclad 30-year lease with the city of Glendale, AZ to play in Jobing.com Arena; and the Canadians want desperately for the Coyotes to fail and to be forced to move back to Canada because they're rightfully pissed that Commissioner Gary Bettman allowed two of the Canadian franchises to move to the U.S. while expanding deep into the U.S. south in what is widely being seen as a failed attempt to grow the sport's popularity.

Confused much? Well it gets better, or worse, because I'm about to take a look at the laws that might come into play.

But first, a lot of the above info came from the blogs From The Rink and Puck Daddy -- and I have attempted to link to some of the posts, but if you want to really understand, just head over to those blogs and read everything they have, because they have a lot more info than I do, and they've been following the situation a hell of a lot longer. Also, info regarding the history of the Winnipeg Jets, Phoenix Coyotes, and Jim Balsillie came from Wikipedia -- yeah, it's not always the most accurate of sources, but most of what I read jibed with everything else that I read, so it just makes sense to send you there.

So with all of that out of the way, where do all of the parties really stand, and who is likely to triumph? Good questions, which I will try to answer.

Now remember, though I'm an attorney, my only brush with that end of the legal arena came with my own personal bankruptcy back in the late-90s when I was unemployed -- kind of like now, I guess. So I went to the internets. And the info on how Chapter 11 Bankruptcy operates comes from this government website. The blog Bleacher Report has an excellent post on this topic -- one with which I largely agree -- and I also just hit various sites. I also need to tell you that I've studied antitrust law and done some actual court work there, so that knowledge will mostly come from what's left of my mental capabilities.

Essentially, Chapter 11 Bankruptcy provides a generally for a reorganization of a corporation or partnership. The debtor usually proposes a plan of reorganization to keep the business alive while allowing it to pay off creditors. Usually, a trustee will be appointed by the Court to look over the plan and to deal with the creditors. So Moyes filed for a Chapter 11 bankruptcy, and as part of his petition, he filed his plan for reorganization which includes Balsillie paying $212.5 million for the team.

Now if this plan is accepted, that should allow for all creditors to get paid and it should help Moyes out of his financial difficulties -- which appear to be numerous. The NHL says that Moyes lost his ability to file for Chapter 11 when he agreed to take loans from the NHL. This argument will more than likely lose. I can't see a bankruptcy judge telling a party that legally owns a company that it can't file for Chapter 11 because a company which loaned it money wants to keep it running until it can force the sale of that company and recoup its investment. Especially when, as in this instance, the party trying to file for Chapter 11 has a deal lined up that will let all of the investors, including the complaining party, recoup all of their money.

Balsillie's offer is the best that is going to be made for Coyotes. It bails out Moyes, the NHL, and most other debtors -- interestingly, Balsillie posted $17 million in debtor-in-possession financing, so he jumps ahead of the NHL and everybody else and becomes the number one creditor that must be paid back -- something he will probably waive should his bid be accepted.

Should the NHL fail to get the bid dismissed, it is threatening to revoke the ownership rights from whomever owns the team. But if the Chapter 11 isn't dismissed, I'm of the opinion that there's no way a bankruptcy judge will allow for this to happen because that makes the prime asset -- the team -- worthless, which means no creditors are repaid. And that's not what bankruptcy court is about. If there is a means for setting right the debtor and the creditor, that court will do it. It's not about protecting the rights of the NHL.

Part of Balsillie's terms are that he gets to relocate to Southern Ontario without going thought league channels -- in other words, the Toronto Maple Leafs can't veto the deal because he's moving into their territory. But if the NHL's not careful, this whole thing can end up not only in bankruptcy court, but in Federal Court where Balsillie will argue that the league's actions are illegal under antitrust laws. And the only league that has an exemption from antitrust laws is Major League Baseball. And just ask the NFL how it's attempts to stop Al Davis moving where ever he wants to go worked out.

My conclusion in this sloppier-than-intended post, is that Balsillie's in control of this thing. The NHL doesn't like Balsillie -- he sounds like a Canadian version of Mark Cuban -- and it also appears that the NHL doesn't want to admit it was wrong when it allowed an established franchise to move to Phoenix. But once this thing gets into bankruptcy court, where I think it will stay, it's out of luck. The court could care less about the NHL's internal organizational rules; it cares about getting the best deal for the creditors -- of which the NHL is one -- and the debtor. And if they make Balsillie fight this on antitrust grounds, they definitely lose this thing.

Ultimately, I think that Gary Bettman is going to have to swallow his pride and come to an agreement with Balsillie. And the reason for that is simple: the more strong franchises the league has, the better the league is as an entity. The Canadians love hockey like Americans love football. It makes no sense to keep a struggling franchise going when it can be moved into a market where it will thrive.

Now Balsillie is also going to have to compromise. But frankly, I see his movements in this matter as setting up his compromise. I think he agrees to stay in Phoenix for a few years as a lame duck in an attempt to get the lease situation in Glendale fulfilled while a better arena is built in Hamilton. I also believe that Balsillie pays a huge relocation fee, most of which will go to the Maple Leafs to make up for the Coyotes moving into their territory. But seriously, the Maple Leafs shouldn't be worrying about losing any profit -- if Anaheim and Los Angeles can co-exist in the NHL, it makes no sense whatsoever to say that Toronto or Hamilton will fail because there aren't enough people.