Maple Leafs Assert Veto Right Over Coyotes Move To Hamilton

The NHL's "oft-stated position that its teams cannot protect their territories by casting a veto at the board of governors table is not shared" by the Maple Leafs, who are "one of two teams that could be affected" if RIM co-CEO Jim Balsillie acquires the Coyotes and moves the team to Hamilton, according to David Naylor of the GLOBE & MAIL. The Maple Leafs in a November '06 letter to NHL Commissioner Gary Bettman said that they do "not share the NHL's interpretation of its constitution." The letter, filed Friday in U.S. Bankruptcy Court by Balsillie's attorneys, stated, "The Toronto Maple Leafs do not agree that a relocation of another club into their home territory would be subject to a majority vote (of the league board). They continue to believe that a unanimous vote would be required before a team could relocate into their home territory." The letter was "in response to a decision made at an NHL board of governors' meeting in September of 2006 to tell the Canadian Competition Bureau that approval for franchise relocation was determined by a majority vote." NHL Deputy Commissioner Bill Daly said that the league "stands by its position." Daly: "It doesn't really matter how one of 30 teams may interpret league rules. It's the league's interpretation that matters." Naylor notes Balsillie on Wednesday is "expected to argue that the NHL's opposition to his participating in the auction for the Coyotes is to protect the Leafs' stated right to keep NHL competition out of their territory" (GLOBE & MAIL, 8/31). The NATIONAL POST's Bruce Arthur notes the letter "sheds a little more light on why the NHL is fighting so hard to keep another team out of Hamilton." As "inept as the Toronto Maple Leafs may recently have been, they can still afford to field a formidable team of lawyers" (NATIONAL POST, 8/31). The GLOBE & MAIL's Stephen Brunt writes, "Knowing Maple Leaf Sports and Entertainment, knowing what they believe their legal position to be, knowing how the company has thrived as the only game in town, ask yourself: Why would they shy away?" (GLOBE & MAIL, 8/31).

LONG BATTLE AHEAD: In Toronto, Kevin McGran writes court filings in the Coyotes case over the weekend "lay the groundwork for a long appeals battle -- especially" the Maple Leafs' letter. A study done for Balsillie's PSE Sports & Entertainment "valued a team in Hamilton at anywhere between" $143-185M, "considerably less than it's willing to pay for the Coyotes," having offered $212.5M for the team. PSE also said that the Maple Leafs are "due no indemnity fees whatsoever, nor was the league in any position to set a relocation price, which it argued should be as low as" $12M (TORONTO STAR, 8/31). Meanwhile, in Hamilton, Ken Peters noted the NHL is "threatening to tie up any sale of the bankrupt Phoenix Coyotes to Jim Balsillie 'in years of litigation.'" NHL attorney Alan Meda in a court filing said the league will be "irreparably harmed if it is forced to accept an owner which has not been approved by it and must defend itself from the threat according." Peters wrote the filing "provides the strongest wording yet of the NHL's resolve to use every legal challenge available to keep the team out of Balsillie's hands" (HAMILTON SPECTATOR, 8/29).

Gretzky "Actively Working" With Ice Edge Holdings

GRETZKY PICKING SIDES? The TORONTO STAR's McGran cited an NHL filing in support of the league's bid for the Coyotes as saying Coyotes Managing Partner & coach Wayne Gretzky is "actively working" with Ice Edge Holdings LLC in its bid for the team. Ice Edge COO Daryl Jones said, "We have been working with Wayne very closely throughout this process. If we are successful, and we expect to be, he will have a major role in the Coyotes." McGran noted Ice Edge officials are "late arrivals to the Coyotes bankruptcy case who are rapidly turning from darkhorse into serious contender." Daly: "I think their bid has a chance to be successful. They've come a long way in a very short period of time. But there is still work to do" (TORONTO STAR, 8/29).

STANDING BY COYOTES: Jobing.com has the naming rights to the Coyotes' current home arena in Glendale, and company Dir of PR Theresa Maher said the Coyotes' bankruptcy case "doesn't have anything to do with us at this point ... on the financial level." Maher: "The fact that it happens to be the venue where they do play and our name is in the press, we still support the Coyotes 100[%], we want them to stay in the valley. I don't think anybody's associated anything dealing with that bankruptcy suit to our organization because it's simply the naming rights of the venue." Meanwhile, Phoenix-based Gemini Sports Group Founder & President Rob Yowell, who repped the Coyotes when they sold the naming rights of the arena to Jobing.com, said that there is "an 'out' clause in the agreement should the Coyotes leave that would allow the deal to be cancelled or amended." Maher said that Jobing.com is "not yet considering that option" (NATIONAL POST, 8/29).