Judge Expresses Reservations Over NHL, Balsillie Coyotes Bids

Bettman Says NHL Has Discussed Adding Second Team In Hamilton

U.S. Bankruptcy Court Judge Redfield Baum Thursday "expressed reservations" over both the NHL's $140M offer for the Coyotes and RIM co-CEO Jim Balsillie's $242.5M offer, according to Kevin McGran of the TORONTO STAR. Baum: "You're all forgetting there's a third option here. No sale." Baum "seemed to express dismay at the NHL's offer, in which there is so little money for Coyotes owner Jerry Moyes," as he said that the league was "too vague and ordered it to clarify some items." Baum also "strongly suggested the league find a way to treat Moyes more 'fairly.'" Meanwhile, court documents released Thursday indicated that the NHL "put a price tag of between" $261-279M on the "value of a team in Hamilton." The league indicated that a franchise there "would be among the top five in league revenues" (TORONTO STAR, 9/11). The GLOBE & MAIL's David Shoalts notes the value is "almost $100[M] more than the estimate of Balsillie's own economic expert," Smith College sports economist Andrew Zimbalist, who estimated that a Hamilton team would be worth $174.9M. This disparity "made it appear the NHL was contradicting itself over its opposition to a move." NHL Commissioner Gary Bettman Thursday also confirmed that "some NHL governors have informally discussed adding a second franchise in Hamilton or Southern Ontario." Bettman: "It's not a question we haven't considered, wouldn't consider. It hasn't been right" (GLOBE & MAIL, 9/11).

EXPERT TESTIMONY: In a front-page piece for the HAMILTON SPECTATOR, Ken Peters reports Balsillie attorney Jeffrey Kessler and NHL attorney Shep Goldfein Thursday "battered the expert witnesses over the relocation issue for nine hours." At one point the "lengthy cross-examination drew a rebuke from Baum, who suggested too much time was spent on the relocation issue, which he suggested was not the most important one to be resolved" (HAMILTON SPECTATOR, 9/11). The GLOBE & MAIL's Shoalts reports Zimbalist "made a report for Balsillie on the value of an NHL team in Hamilton and projected revenues of $83.74[M] in the first season, rising to $116.4[M] in the sixth season." Zimbalist said that a "reasonable fee for relocation would be no greater than" $12.9M. Goldfein "questioned everything from Zimbalist's methodology to his competence, which resulted in some testy moments between the two." But the "most Goldfein could get Zimbalist to admit was that a team could be viable in Glendale but only, Zimbalist insisted, if the city gave it an annual subsidy of at least" $15M. Meanwhile, the first of the NHL's three economic experts, Franklin Fisher, was "put on the defensive by Kessler," who "tried to get Fisher to admit the Coyotes would be worth more in Hamilton than they ever could be in Phoenix." Fisher said it "may be advantageous for the team to move but it's not established that it's appropriate for the league" (GLOBE & MAIL, 9/11). In Hamilton, Steve Milton reports former CFL Commissioner Tom Wright, who authored Balsillie's application to the NHL, "endured a vigorous examination" from Goldfein, who "attacked Wright's conclusion that NHL hockey could not succeed in the Glendale market, focusing on the fact the Coyotes were a team that had never made the playoffs in Glendale." Wright replied that a "reliable business plan should never include an assumption of competitive success." Under Goldfein's questioning, Wright said that he had received $115,000 in fees to date from Balsillie's PSE Sports & Entertainment (HAMILTON SPECTATOR, 9/11).

Hamilton Mayor Has Written Letter To NHL Saying Copps Coliseum Can Be Upgraded

CITIES VYING FOR TEAM: In Montreal, James & Stubbs report the city of Glendale at the beginning of Thursday's hearing "announced it would not bite on PSE's offer of $50[M] made earlier this week to assume the city's outstanding claims in the Coyotes' bankruptcy proceedings." Glendale lawyer William Baldiga: "We vehemently object to the PSE bid; we much prefer the NHL bid" (Montreal GAZETTE, 9/11). Meanwhile, in Hamilton, Daniel Nolan reports Hamilton Mayor Fred Eisenberger "has written a letter to the NHL saying that Copps Coliseum can be upgraded to host a team and that he is 'confident' senior levels of government will fund the effort." Eisenberger wrote in the letter, "I would like to assure the National Hockey League that the planning process for the renovation of Copps Coliseum is currently in progress and we are confident that a financing commitment for the project will be made by the appropriate levels of government in Canada in partnership with the City of Hamilton." The letter was "referenced in the Phoenix courtroom" Thursday. Eisenberger said that the letter "did not indicate a change from his original position that Hamilton taxpayers not fund any part of the $150[M] renovation of Copps proposed by Balsillie" (HAMILTON SPECTATOR, 9/11).

OTHER OPTIONS ABOUND: The GLOBE & MAIL's Paul Waldie reports Ice Edge Holdings LLC "may be out of the running for the Phoenix Coyotes, but the group is still interested in buying a professional sports franchise and has already been approached by a few teams." Ice Edge CEO Anthony LeBlanc said that the group, which is "made up of eight Canadian and U.S. businessmen," has been "approached by investment bankers working for a handful of NHL teams and one English Premier League soccer team." LeBlanc "declined to identify the clubs," but a source said that "one suitor" is the Lightning. LeBlanc: "I wouldn't say that we're actively looking at other NHL franchises (and) I don't know if we would. I am sure based on what we've gone through we would certainly explore it if something came up." Waldie notes Ice Edge for now "plans to focus on buying an AHL franchise and relocating it to" Thunder Bay, Ontario, where LeBlanc grew up. The group also is "working with Thunder Bay officials on a plan to build a 7,000-seat arena for about" C$100M. Meanwhile, Goldfein Thursday during the court hearing suggested that CFL Toronto Argonauts co-Owners Howard Sokolowski and David Cynamon are "involved with Ice Edge" (GLOBE & MAIL, 9/11).