Balsillie Makes Offer To Purchase Phoenix Coyotes

[enduser1]

I'll just have to repeat myself because I completely agree with me:

Hamilton = no money, depressed economy, closing and closed business.
Kitchener Waterloo - Guelph - Cambridge = moneymoneymoney, big thriving business, expanding population.

Why would any business person put a very high risk cash hungry business into an economic loser area when there is a comparative shining jewel in his own home town?

Businesses pay the bulk of the way in major league arena sports, not the itinerant fan. The businesses have to earn predictable revenue whether the seats are full or not.

There will never be an NHL team in Hamilton. Nor Quebec city. Winnipeg is very marginal, probably never.

The only point I sometimes don't agree with myself is that if Ballsillie gets ownership of some team he might move it to Hamilton to use Copps until he builds new corporate box subscription lease arena in KW-G-C area, on land one of his companies already owns and is already developing with corporate conference center, golf course, sport recreation facilities...

It's business, not fans.

Hey,

I agree with your analysis. Hamilton is not a good area for a team where the fans don't have the cash to go to the games. Burlington or KW is much better. Personally I like Burlington because then you could take the GO train to see the games.

EU

 

[Neverenuff$]

sidebar: Maybe this isn't news but the latest Labatt's commercial encourages bringing another team to canada ...

 

[Mr. Lucky]

The Judge has to took at what Hamilton can provide also.


I think the Coyotes will be playing in Glendale

 

[SkyRider]

Hey if Balsillie gets to do this then he is creating a ugly monster for himself also .. What happens if someone wants to bring a team north of Toronto ie 401 region... Then Balsillie will understand the concept of regional rights ...

But isn't that what "free enterprise" is all about? "Regional rights" sounds like protectionism to me. Maybe that is why the Leafs feel no undue pressure to improve their product .

 

[Rockslinger]

It's the NHL and they have a league .... It's their league .... Why can't they dictate how many teams and where they are located ...

OMG this sounds so CCC (Canadian Cable Companies). They each have "regional rights". Is that why my cable bill is so high?

There was a time when baseball owners said this is "our league" and we own the players. Then Curt Flood took the "reserve clause" to court and the reserve clause is no more.

Anyway, I do wonder whether the NHL can be an exclusive club and not allow entry to women err I mean Balsaillie. The courts may have to decide. Would be an interesting case. Me think that ego headed Bettman just doesn't want an owner like Balsillie who is twice as smart as he (Bettman) is.

 

[Neverenuff$]

Well we all know theres a lot more to it, but it seems that a Billionaire that wants to put a struggling hockey team where the fans (money) are would be welcome with open arms .

seems to easy doeasn't it

 

[raptorizedguy]

The NHL would charge billionaire Jim Balsillie $100 million (U.S.) as a relocation fee to move the Coyotes to Hamilton.

Balsillie lawyer Susan Freeman let slip the amount — a dollar figure blacked out in all court documents — in a relocation hearing Tuesday.

Judge Redfield Baum said the league was within its rights to charge a "reasonable" fee and to take a "reasonable" length of time to consider Balsillie's applications to buy and move the team.

Balsillie's lawyer suggested the league was dragging its feet on the applications, hoping to freeze out Balsillie, who has threatened to pull his $212.5 million offer to buy the bankrupt team.

Freeman also suggested Balsillie would walk if the $100 million fee was approved by the court. The fee is not set in stone, but may be subject to negotiations.

The judge may order all parties to figure out the relocation fee prior to the June 22 auction, because if Balsillie withdraws, the auction would be moot, as would many of the other arguments laid out Tuesday.

 

[Frank Fingers]

Well it looks like Balsillie won't be moving the Coyotes to Hamilton, and thats fantastic news as far as I'm concerned.

I can't wait to see the look on that Hamilton's mayors old, haggard looking face the next time he shows up on TV talking about the Coyotes coming to Hamilton. He should know by now his city will never get a team. He said it best himself, that they're always the bridesmaid and never the bride.

Balsillie originally wanted to move the team to the Kitchener/Waterloo area and "use" Hamilton temporarily until a new arena was built in KW, but this mayor didn't want the team on a temporary basis. Oh well, Hamilton is getting no NHL team for sure now!

You look at most cities and you see beautiful condo's being developed, big businesses, newer arena's, great infrastructure and stuff to do in the city. Hamilton has none of this, and that is another reason why it doesn't appeal to the NHL.

The Honorable Judge Redfield T. Baum has laid down the law!

 

[lovelatinas]

Mr. Balsille's email to people who registered to www.makeitseven.ca, Jim Balsille remains optimistic.

_________________________________________________________________

I want to thank you for getting behind the Make It Seven campaign and personally provide you with an update. Yesterday Judge Redfield Baum asked all sides in a Phoenix bankruptcy court to provide him with information around a possible relocation fee the NHL may charge for the Coyotes franchise to be moved to Hamilton as I have proposed to do.

However it works out, the issue of a relocation fee, while a new development, does move us one step closer to bringing the Coyotes to Hamilton. I am fighting for Canadian hockey fans because I know you've been out there fighting for my bid. I appreciate your support. And I want to reassure you we're still moving toward our goal. We're looking forward to instructions from Judge Baum, but you should know as a makeitseven.ca supporter that I am committed to continuing and winning this fight to bring a seventh NHL team to Canada.

Our movement continues to build across the country. We've even got our own song now that we found on YouTube. Check it out at http://www.makeitseven.ca/index.php?id=watch&vid=1202552. Today, three new corporate partners are throwing their support behind the campaign. Prime Restaurants, DeWalt Tools, and FirstOntario Credit Union have joined anchor partners Labatt and Home Hardware on the Make It Seven campaign.

These new partners and the people signing up daily on the website are adding some tremendous new bench strength to the Make It Seven team. It's incredible to think that over 155,000 fans have joined the campaign by signing up to the website at www.makeitseven.ca.

We want to keep the momentum going and give Canadians an opportunity to demonstrate their desire for a seventh team, so I am excited to announce that we have chosen June 19th as Make It Seven Day in Canada. This will be a day for Canadians to show their support in a variety of ways. Our corporate partners will be celebrating Make It Seven Day with us and you will be hearing more about that in the days to come.

Please tell more of your friends to sign up www.makeitseven.ca, watch for our partners' Make It Seven Day promotions, start to plan your own Make It Seven Day activities and stay tuned for updates on our progress.

Thanks. Let's Make it Seven!

Jim

 

[spankingman]

I have only one thing to say about Hamilton getting a NHL Team ...

Arrrrrggggoooooossss

SUCK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Kilgore Trout]

In looking for a set figure for a relocation fee it looks like the judge is leaning toward Balsillie in this whole thing. He wants to know if Balsillie will pull his offer from table if relocation fee is too high, - that way he won't have to issue a final ruling.

Judge seems to be clearly unimpressed with NHL's disingenuous obstruction, foot dragging, blow smoke in the air tactics.

He wants a mediation session to determine an appropriate relocation fee.
Prior history will come in, - judge will want to know relocation fee for moving:

California Golden Seals to Cleveland (Barons)
Kansas City to Denver,
Denver to New Jersey,
Atlanta to Calgary,
Quebec to Colorado,
Winnipeg to Phoenix,
Hartford to Raleigh,
Minnesota to Dallas etc

http://www.thestar.com/sports/article/648510

 

[Kilgore Trout]

I wouldn't be suprised if the asks the government levels to pay the expansion fee ... The fee should be 150 million dollars ... 75 million to the league ... 50 to the Leafs and 25 to the Sabres ...

It's not an "expansion" fee, it's a relocation fee. And there's no historical precedent in the NHL for a relocation fee anywhere near that high. My guess would be closer to 80 million because the Southern Ontario market is such a good one for hockey.
And, I get the feeling Balsillie would pay it, because he wants to join the lodge really badly and he's supposed to be worth $3.0 billion U.S. or so anyway.
So, he won't blink.

 

[Kilgore Trout]

They are both fees .... Ducks had to give Bruce McNall 25 million dollars .... There hasn't been another relocation that a team was placed in another teams market ... The league has to protect it's members ... Having another team in Toronto's market will reduce the value of the franchise ... How about if the Bills want to move and move to Chicago or the Grizzlies of the NBA say hey I want to put another team in New York ... This is dangerous if judge allows this ...

If he pays an 80 million relocation fee, it's more than in line with what Anaheim had to pay to L.A. Kings and also with what N.J. paid to the Rangers/Islanders for moving close to their territory 25 years ago or so.
Of course you have to make adjustments for inflation to translate what they paid back back then to current dollars.

 

[lovelatinas]

The reason I want a team in Southern Ontario or even better in the GTA (Vaughn) is that it forces MLSE to better their product. No Stanley Cup for 42 years!!!

 

[spankingman]

The reason I want a team in Southern Ontario or even better in the GTA (Vaughn) is that it forces MLSE to better their product. No Stanley Cup for 42 years!!!

MLSE doesn't care about the old mug as long as asses fill the seats!

 

[lovelatinas]

That's why a team in Vaughn that becomes a contending Stanley Cup team will threaten MLSE. Many Leaf fans will change affiliations. Imagine empty seats at the ACC for Leafs games. I know, I know, it won't happen.

 

[Rockslinger]

The judge has ruled that Balsaillie can buy the team (if the NHL agrees) but he cannot move the team (unless the NHL agrees). He said the NHL is the owners' and Bettman's sandbox and the owners (not the law) make the rules.

 

[Neverenuff$]

The judge has ruled that Balsaillie can buy the team (if the NHL agrees) but he cannot move the team (unless the NHL agrees). He said the NHL is the owners' and Bettman's sandbox and the owners (not the law) make the rules.

So the owners all "go to pocket" to keep the team in Phoenix I guess

 

[lawyerman]

The judge has ruled that Balsaillie can buy the team (if the NHL agrees) but he cannot move the team (unless the NHL agrees). He said the NHL is the owners' and Bettman's sandbox and the owners (not the law) make the rules.

That's correct. It sounds right to me.

Even though I would love another team in Canada, things have to be worked out properly. There are too many variables involved including the lease agreement (which is the largest sticking point in my opinion). The league took over the operation of the club for the last little while and are managing it. We are not sure if there was mismanagement of funds (it looks like there was because they have lost money big time) but I do know that the team has attendance issues and are averaging less than 15,000 per game over the last 3 years.

I believe that an auction is a good way to go and maximize the value of the team but Balsillie has a pretty good offer on the table right now and the NHL should act fast on what to do.

 

[mandrill]

The judge has ruled that Balsaillie can buy the team (if the NHL agrees) but he cannot move the team (unless the NHL agrees). He said the NHL is the owners' and Bettman's sandbox and the owners (not the law) make the rules.

I haven't read the decision or a precis of it, but the above would seem to be common sense. The NHL sells "franchises", just like KFC or MacDonald's or Tim Horton's. One of the key things with franchising is that you control the product to some extent. Including where the franchises locate or relocate.

I'm sure all these terms and conditions are spelled out in the contracts that the owners all sign for each other.

What Ballsillie is seeking to do is buy up the sinks and cookers of the particular fried chicken outlet that has gone belly up in Phoenix and then use the franchisor's logo and other attributes without agreeing to any of the rules of the franchise operation and basically doing whatever the f he wants, regardless of the contracts which govern how the league operates.

It's egotistical legal nonsense.