Judge Schedules Emergency Hearing On Coyotes Mediation

Emergency Hearing Scheduled Tomorrow On Moyes' Request

U.S. Bankruptcy Judge Redfield Baum "has scheduled an emergency hearing for tomorrow morning on a request by Phoenix Coyotes owner Jerry Moyes to force the NHL into mediation over the contentious issues surrounding the sale of the team," according to Bob Baum of the AP. Moyes wants Baum to "force mediation over, among other things, the NHL's rejection" of RIM co-CEO Jim Balsillie as an owner. Baum is "expected to rule in the next few days whether to award the team to the NHL or to Balsillie, who would move the team to Hamilton, Ontario, over the league's vehement objection." Baum "could also reject both bids." The NHL and the City of Glendale "filed objections on Friday to any mediation." The league in a filing said, "The NHL board of governors voted unanimously to disapprove Mr. Balsillie as an owner. As a result, his qualification to become an owner is not something that the NHL can compromise, and it is not something the NHL is willing to mediate" (AP, 9/21). Coyotes creditor SOF Investments also "opposes mediation, citing the franchise's continued financial losses as it awaits determination of its fate on the brink of the start of the NHL season." SOF in a statement said it is "gravely concerned that any imposed mediation will unnecessarily delay the court's determination regarding the outcome of the auction and related issues, to the detriment of SOF and other creditors" (CP, 9/21).

OPENING A NEW DOOR: In Toronto, Kevin McGran notes Balsillie's camp yesterday "tried to open up another legal challenge by bringing what it terms 'new evidence' to the judge." Balsillie's lawyers claim a radio interview on Toronto's The Fan 590 AM last week with Senators Owner Eugene Melnyk proves the NHL "continues to adhere to the territorial and veto rights that the NHL has, in these proceedings, denied exist." Melnyk in the interview said that he "could prevent a team from moving into Gatineau, Que., which is the Senators territory, and that he couldn't simply have the Senators play an exhibition game in Mississauga without first negotiating it with the Maple Leafs." But NHL Deputy Commissioner Bill Daly in an e-mail said Melnyk's "answers to questions on a radio program are hardly probative of what the league's rules actually are, and how the league will interpret and enforce them" (TORONTO STAR, 9/22). Daly said that Melnyk "isn't completely in tune with the exact rules." Daly: "You could tell in the hesitation in Eugene’s voice that he didn’t really know the rule. Certainly he is familiar with the concept of territorial rights, but he probably doesn’t know the niceties of the constitution and bylaws and how they interact with each with respect to territorial rights" (OTTAWA SUN, 9/22).

DESERT DISH: Suns G Steve Nash in an interview with the CBC that aired Saturday said the Coyotes situation is "a shame." Nash: "I would love to see it sold out in Phoenix every night, the team to be winning and hockey to be thriving in Phoenix. But the team hasn't been that great for a long time. They haven't had a great fan base, probably in large part because of the lack of success. So the franchise struggles. It would probably thrive in Hamilton. On one hand, it'd be great in Hamilton, I'm sure. On the other hand, it'd be sad to see hockey go because there are a lot of Coyotes fans in Phoenix. If the team's not going to succeed financially, you can't keep the team in Phoenix. If they feel like they can't succeed financially, they've got to move" (AZCENTRAL.com, 9/21).