Bill Daly Says Leafs' Veto Argument In Coyotes Case Is Wrong

Daly Feels Leafs' Veto Argument Is Off Base

NHL Deputy Commissioner Bill Daly Thursday said that the Maple Leafs "cannot single-handedly stop the Coyotes from being relocated to Hamilton," according to Don McGowan of the NATIONAL POST. Lawyers for RIM co-CEO Jim Balsillie Wednesday in U.S. Bankruptcy Court asserted that the Maple Leafs' "veto was a key reason why the NHL is trying to block Balsillie from acquiring the team." But Daly in an interview on Toronto's CFMJ-AM said, "On relocation, it's the league's position that, no, the Leafs don't have veto power." He added that a "majority vote by the board of governors is all that would be needed to OK such a move." More Daly: "The veto is a red herring in this whole process. It happens to be a very important red herring from the Balsillie camp’s perspective. If you listen to the argument (Wednesday), it’s some grand conspiracy, but I can tell you it’s the league’s role to interpret the rules and enforce them as we see fit. Our intention, if ever called on to do it, would be a majority vote." Meanwhile, Ice Edge Holdings COO Daryl Jones Thursday spoke about his group's bid for the Coyotes and said, "We are in ongoing discussions with the City of Glendale and feel great about our progress. We are very close to doing what no one else could do, which is finalizing a new lease and partnership with Glendale" (NATIONAL POST, 9/4).

KEEPING A CLOSE EYE: The GLOBE & MAIL's David Shoalts notes NHL team owners will be "watching closely" when the bankruptcy court addresses whether the $104M Coyotes Owner Jerry Moyes "claims he has paid to cover operating losses over the years makes him a creditor or if that money represents equity" in the team. If the court "sides with Glendale and the NHL, it could mean any team owner who has to reach into his own pocket to pay for losses will similarly be left with nothing if his team goes bankrupt." But one NHL Governor contends that the "bigger problem for owners ... is the tax implications." The Governor said that "paying for operating losses as loans is common practice in professional sports for tax reasons." If the owner "puts in his money as equity it is treated as income and is taxed accordingly when he is repaid by the team," but loans are not subject to income tax. A lawyer involved with the Coyotes case said, "If you're saying that is now equity, I can't imagine any NHL owner wanting to (stay in the league)" (GLOBE & MAIL, 9/4).

Eisenberger Says City Married To Balsillie Until End Of October

ACCORDING TO JIM: Hamilton Mayor Fred Eisenberger said that the city "won't begin to consider overtures from other possible NHL suitors" until Balsillie's attempt to bring the Coyotes to the city has "run its course." Eisenberger: "We are married to Mr. Balsillie at the very least until the end of October. We'll have to decide by the end of October what the status is and how we will proceed." But with the "prospect of a lengthy appeal in the bankruptcy battle," the city will "have to decide what to do with its lease deal" with Copps Coliseum (HAMILTON SPECTATOR, 9/4).

TAKING CENTER STAGE: TORONTO STAR's Kevin McGran writes Balsillie attorney Jeffrey Kessler's performance in court Wednesday was "nothing short of riveting, joining the down-home, deliberate and dry-humoured bankruptcy judge as a forceful personality in this continuing saga." Kessler was "animated as he bounced around the courtroom and compelling as he connected the dots in a conspiracy-theory-sort-of-way that the Toronto Maple Leafs are somehow vetoing any move to Hamilton despite league protestations and evidence to the contrary" (TORONTO STAR, 9/4).

MAKE-IT-OR-BREAK-IT FOR BETTMAN: In Ottawa, Wayne Scanlan writes we "might want to start viewing the Phoenix crisis as a referendum, or sorts," on NHL Commissioner Gary Bettman's leadership. If Bettman "loses this battle and the man he so detests becomes a full partner around the NHL owners' table, what credibility will Bettman have left?" Scanlan: "If Bettman versus Balsillie, a 12-rounder for sure, goes the distance and Balsillie wins, Bettman should resign, like a politician unable to fulfill a mandate" (OTTAWA CITIZEN, 9/4).