NHL Owners, Governors Debate Possible Coyotes Relocation Fee

Value Of All Sports Franchises Could Increase If Balsillie Relocates Coyotes

Three NHL team owners yesterday said that RIM co-CEO Jim Balsillie for the right to move the Coyotes to Hamilton “should pay a relocation fee of at least” $150M, while two governors said that the NHL “should appeal a court order to negotiate a relocation fee,” according to Paul Waldie of the GLOBE & MAIL. An Eastern Conference governor said that $50M each should go to the Maple Leafs and Sabres for “waiving any territorial rights” and $50M as a “relocation fee to divide among the remaining 27 NHL teams.” One Western Conference governor said that the “value of the team in Hamilton would be at least $300[M], and probably higher in Toronto where he thinks it should be located.” An NHL governor: “If Balsillie wins, the value of all sports franchises goes up because they’ll all now have wheels on them. If you can move your team, the value goes up.” NHL Deputy Commissioner Bill Daly yesterday said that the league “had not arrived” at a relocation figure." But he added, “I would think it’s a big number.” He said that the league in the past “has assessed the amount at roughly twice the value of the franchise.” However, Daly again stressed that the league is “‘very confident’ it can find a buyer who will keep the team in Phoenix” (GLOBE & MAIL, 6/10).

PRICE IS RIGHT? In Montreal, Red Fisher writes if the NHL sets a $100M relocation fee, Balsillie “probably won’t even wait until the weekend to say he’s leaving the game” (Montreal GAZETTE, 6/10). However, the NATIONAL POST’s Bruce Arthur writes if the fee is set at $100M, Balsillie “should lunge for his chequebook and start writing as fast as he can.” The $100M fee, plus the $212.5M price tag for the team, “would be a bargain.” The league, though, “cannot be dumb enough to ask for that little.” If you are going to “sell the golden goose, you might want to get more than” a little over $3M per team (NATIONAL POST, 6/10). In Toronto, Steve Simmons writes if the NHL “wants to be rid of Balsillie, they could price the move so high that it will force him to pull out of the sale of the club.” On the other hand, the judge “may ask the league not only to come up with a price, but to come up with reasons for the price” (TORONTO SUN, 6/10). 

CAMPAIGN PROMISES: Balsillie's Make It Seven campaign, which is seeking a seventh NHL team for Canada, has signed three new corporate partners: Prime Restaurants, DeWalt Tools and FirstOntario Credit Union. The new sponsors join anchor partners Labatt Breweries and Home Hardware. Meanwhile, more than 155,000 fans have signed up to support the campaign at www.MakeItSeven.ca, and Balsillie yesterday released a new campaign song. Balsillie also has designated June 19 as Make It Seven Day in Canada (THE DAILY).

HOW IT ALL BEGAN: Yesterday’s hearing is only the latest in a long line of events in the Coyotes saga. View a comprehensive timeline of significant moments leading up to the franchise’s current court battle (THE DAILY).