Balsillie Willing To Keep Coyotes In Glendale For '09-10 Season

Balsillie Again Sweetens Offer To City Of Glendale

RIM co-CEO Jim Balsillie "has once again sweetened his offer" for the Coyotes, as Balsillie yesterday "conceded he is willing to keep the Coyotes in suburban Glendale for the coming NHL season," according to David Shoalts of the GLOBE & MAIL. Balsillie's attorneys yesterday "introduced three changes" to his $242.5M bid for the team, one of which is to "defer the closing until" after December 31. This would "allow a buyer to emerge who is willing to keep the team in Glendale," and if one is found, Balsillie is "willing to step aside and drop his plans to buy the team and move it to Hamilton." Secondly, Balsillie's attorneys disclosed that $25M of the $50M Balsillie offered Glendale "in exchange for dropping its damages claim if the arena lease is broken will be paid as soon as the court approves a sale." Balsillie said that the city "can keep the $25[M] even if the NHL wins an appeal and Balsillie eventually loses his bid for the Coyotes." The final change is an "offer to agree to a stay of the sale if Balsillie's bid was accepted and the NHL appealed, plus post a bond sufficient to pay all of the creditors." Shoalts writes U.S. Bankruptcy Court Judge Redfield Baum "seemed impressed by the first two new terms." Baum told one of the NHL's lawyers, "To an old bankruptcy judge, $25[M] in cash no matter what happens seems like a big change." Regarding the "third term of posting a bond," Baum said that "that was what is required under bankruptcy law anyway." Meanwhile, Baum was "less sanguine about the prospects of mediation, although he reserved his decision." Baum: "My blunt guess is I see no prospect of settlement under the present posture of this case" (GLOBE & MAIL, 9/24). Still, Baum suggested that mediation "at least opens the door to the possibility of a final agreement." Baum: "As I listen to all this and I think about it, the one thing I think mediation might provide to everybody is some kind of consensual resolution. I think without mediation, it just won't happen." But NHL attorney Alan Meda said there is "no prospect for settlement from the NHL perspective, none whatsoever." Meda noted that the Coyotes are "floundering over the uncertainty" with the NHL season starting next week, and that the Coyotes "can't sell tickets or ads and are losing staff." Meda: "That's killing this team" (HAMILTON SPECTATOR, 9/24).

TEPID RESPONSES: NHL Deputy Commissioner Bill Daly said Balsillie's amended bid "doesn't change anything vis-à-vis the NHL's position." Daly: "The NHL owners unanimously rejected Jim Balsillie as an owner. From our perspective, there is nothing an amended offer can do to rectify that." Meanwhile, the Coyotes' creditors "urged the judge to reach a conclusion" in the case. Attorneys for the unsecured creditors wrote, "In a case where there has been little 'common ground' among the parties, everyone agrees the (Coyotes) must be sold and, to stem the tide of substantial losses, must be sold quickly" (TORONTO STAR, 9/24). Glendale Assistant Deputy City Manager Julie Frisoni said there is "no change in the city's position." Frisoni: "The city is only supportive of bids that will keep the team in Glendale. We are behind the NHL and support them in the effort to find a buyer to keep the team in Glendale" (NATIONAL POST, 9/24). However, Baum "highlighted Glendale's 'precarious position' with plenty of rights, but with a bankrupt franchise that has little ability to perform." Baum: "Even the NHL says it can't be sure of keeping the team in Glendale" (ARIZONA REPUBLIC, 9/24).

PULLING OUT ALL THE STOPS: The Coyotes for their October 10 home opener against the Blue Jackets will hold a "Welcome Back WhiteOut," offering "all lower-bowl tickets for $25 and upper-level seats for $15" (AZCENTRAL.com, 9/23). YAHOO SPORTS' Greg Wyshynski wrote it is "clear the gate for this game is going to be headline news around the hockey world," so the Coyotes "decided to get aggressive with their opening night pricing." Coyotes Dir of Media Relations Sergey Kocharov said that season-ticket holders will be "compensated by a 'one-for-one' free ticket deal." Kocharov: "If they have four tickets for the opening night, they're getting four additional complimentary tickets in the best seats available" (SPORTS.YAHOO.com, 9/23). Meanwhile, YAHOO SPORTS' Ross McKeon noted the Coyotes Friday drew about 3,000 fans for their second home preseason game at Jobing.com Arena, "about half of the 6,200 announced for the 17,800-seat arena." McKeon wrote, "This is how it's going to be until there's a definitive answer to the future of the franchise," and even when Baum decides who should own the franchise, the "support for the club is going to be minimal" (SPORTS.YAHOO.com, 9/23).