http://www.thestar.com/sports/article/629536
May 05, 2009 09:50 PM
Kevin McGran
Sports Reporter
The NHL took control of the Phoenix Coyotes on Tuesday evening, removing owner Jerry Moyes from all positions of authority and seems set to challenge the very notion that the troubled NHL franchise is bankrupt.
While all this was going on, Canadian billionaire BlackBerry boss Jim Balsillie admitted he has put in an offer to buy the cash-strapped Coyotes and move them to Southern Ontario after the Coyotes filed for Chapter 11 bankruptcy protection.
Balsillie was swarmed by reporters, where he was appearing at the Metro Toronto Convention Centre, and took some questions about his $212.5 million (U.S.) offer.
However, he would not comment on which city he would move the franchise to if he were successful.
"There's more to unfold on this," he said, adding that the bankruptcy process has to go through the U.S. courts.
He added that his offer is "firm" and he's "enormously excited" about the opportunity to bring a seventh NHL team to Canada.
"I believe this is a serious commitment," he told reporters.
Balsillie said he made the offer on Tuesday.
Balsillie is looking for help in his bid to establish a seventh Canadian NHL team. He's asking fans who want to see a seventh NHL franchise in Canada to make their voices heard. He's asking fans to log on to
www.makeitseven.ca to add their voices to his bid.
The NHL, which has blocked Balsillie in the past to move an NHL team to Canada, made a statement following the bankruptcy hearing.
"We have just become aware of today's Bankruptcy Court filing purportedly made on behalf of the Phoenix Coyotes," said NHL deputy commissioner Bill Daly. "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."
Last week the league denied it was in control of the team, despite assertions from Glendale city manager Ed Beasley the league was running the show. The league had forwarded millions of dollars to help the team pay its rent and meet its payroll.
The league also said last week it expected the Coyotes to operate in Phoenix next season.
But earlier Tuesday, in a bid to maximize the value of team, the franchise filed for Chapter 11 bankruptcy protection.
The league remains worried that Balsillie could purchase the team and move it to Ontario.
The co-CEO of BlackBerry maker Research In Motion said that his offer is conditional on the Coyotes relocating to Canada, where they existed as the Winnipeg Jets before moving to Phoenix for the 1996-97 season.
The filing included the proposed sale of the franchise to PSE Sports & Entertainment, LP, a Delaware limited partnership, which would move the franchise to southern Ontario. The Star has learned that PSE Sports and Entertainment is backed by Balsillie.
"Extensive efforts have been undertaken to sell the team, or attract additional investors, who would keep the team in Glendale," Moyes said in a news release before being relieved of his duties as the Coyotes chief executive officer.
"Creating a process under the supervision of a judge assures that anyone wishing to purchase the team will have the opportunity to bid.
"Likewise, the City of Glendale, which has been very cooperative with efforts to keep the team in Glendale, will be able to provide potential buyers assurances of the city's willingness to offer incentives to keep the team as a tenant in the Jobing.com arena, the lease for which is subject to rejection in bankruptcy. The process assures that the identities of the new owner and the team's location will be known by June 30, 2009, thus enabling the NHL to include the team in its 2009-10 schedule."
Balsillie had made previous failed attempts to purchase the Nashville Predators and Pittsburgh Penguins with the hope of moving them to Hamilton.
"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 a statement.
"I am excited to move closer to bringing an NHL franchise to what I believe is one of the best unserved hockey markets in the world - Southern Ontario. A market with devoted hockey fans, a rich hockey history, a growing and diversified economy and a population of more than seven million people."
At the request of the Coyotes ownership, Balsillie said he has also agreed to provide $17 million in financing to allow the franchise to keep going in advance of the sale.
Balsillie's offer does not guarantee that the Coyotes will move.
"If others want to come in and there's an offer that is deemed better by the courts, then ultimately that would be a court decision," said Steve Roman, a spokesman for Moyes. "As I understand it, the hope and the plan is that all of this would be dealt with by June 30, 2009. You have a person who has a purchase agreement, but at the same time there could be other players who want to get involved."
In March, NHL commissioner Gary Bettman said the financially struggling Coyotes were actively seeking investors or possibly new ownership, but reiterated that the team won't be relocated.
"Our goal is to bring in new capital and make this franchise solvent," Bettman said on March 26 while attending a Coyotes home game. "That's our direction, and at this point moving the franchise elsewhere is not on the table."
With files from Associated Press
