Canadian Competition Bureau Gives Leagues Relocation Control

The Canadian Competition Bureau (CCB) yesterday said that sports leagues "have the right to put the interests of the league ahead of the interests of an individual owner when it comes to relocating franchises," according to Paul Waldie of the Toronto GLOBE & MAIL. The bureau "had been studying the issue" since RIM co-CEO Jim Balsillie tried to buy the Penguins in '06 and the Predators in '07. CCB Assistant Deputy Commissioner Chris Busuttil said that the bureau examined both deals to "see whether the NHL's policies on team transfers violated Canadian competition laws." The bureau concluded that the NHL "did not engage in anti-competitive conduct and that it has the right to restrict relocations." The bureau said these restrictions "serve legitimate interests such as preserving rivalries between teams, attracting a broader audience, providing new franchises with an opportunity to succeed and encouraging investment in sports facilities and related infrastructure by local municipalities." Sources close to Balsillie have argued that NHL clubs "have a veto on any new franchise located within about 100 kilometres of their territory." However, Busuttil said that the bureau found that "no veto has existed since 1993, when the NHL changed its policies." But Busuttil added that any move now is "dependent on a majority vote of the [NHL BOG], which can offer compensation to a club affected by relocation." Busuttil said that the bureau "would be prepared to re-examine the issue if Balsillie bids for another club and runs into problems" (Toronto GLOBE & MAIL, 4/1). In Toronto, Rick Westhead notes it is "widely believed the Maple Leafs and [Sabres] would pressure the NHL to thwart any attempt to move a team to Hamilton" (TORONTO STAR, 4/1).

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