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May 28, 2009
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Judge Moves Up Relocation Hearing In Coyotes Case To June 9

U.S. Bankruptcy Court Judge Redfield Baum yesterday ordered that a hearing on the relocation of the Coyotes be moved up to June 9 from June 22. Briefs and declarations on the issue are due June 5. Baum said, "If you lose the relocation issue, then the urgency of doing this (sale) by June 24 seems to have gone away." Should Coyotes Owner Jerry Moyes and RIM co-CEO Jim Balsillie win the relocation argument, a tentative auction will take place June 22. Should the NHL win the argument, a tentative auction has been set for September 29. Baum said he has already begun thinking about the issue of relocation. He has created one research book on the issue and said that he is beginning to work on a second research book (Tripp Mickle, SportsBusiness Journal). Baum said of the Balsillie group, “They pretty much said if it’s not approved we’re gone. The court has to factor that in. How do we resolve that? The bird in hand is worth $212.5[M]. That’s the only offer that’s on the table. I don’t say that one bidder gets to make the rules, but he sure has a lot of control because he’s the only game in town.” Balsillie’s attorney Richard Rodier said, “The key is the relocation motion. Once that issue is resolved, either we go home, or we’re looking at a closing at the end of June.” In Toronto, Kevin McGran notes Moyes’ legal team “must convince the judge that he has the power to overrule NHL bylaws by picking an owner and allowing the relocation of the team.” Baum: “I’m not sure I have the power to do that, and if I do, I’m not sure I want to use it. If I do that, I’m rewriting the constitution of their league. I’m not sure that’s within the power of this court” (TORONTO STAR, 5/28).

LEAGUE COULD APPEAL RULING: The GLOBE & MAIL’s David Shoalts notes if the NHL loses, the case “may drag on” because NHL Deputy Commissioner Bill Daly “said the league will appeal.” Daly: “We’re confident in what the law says, and the law is pretty clear with respect to our rights to control both the identity of our owners and the location of our franchises” (GLOBE & MAIL, 5/28). In Phoenix, Craig Harris notes if Baum rules in favor of the Coyotes, it will "set a precedent in professional sports, where leagues for the most part have long controlled who can own teams and where they play" (ARIZONA REPUBLIC, 5/28).

OTHERS INTERESTED? The NATIONAL POST's Joe O'Connor notes part of Baum's "rationale for accelerating the timetable was the court's belief that an early ruling on whether the Coyotes are portable -- or not -- will provide potential buyers with more time to materialize with concrete bids." Daly yesterday in an e-mail said, “We’ve had contact with a number of individuals with an interest in purchasing the Coyotes to operate in Phoenix” (NATIONAL POST, 5/28). Daly added that he is sure Bulls and White Sox Chair Jerry Reinsdorf “remains interested in buying the Coyotes and keeping them in Glendale” (TORONTO STAR, 5/28). Meanwhile, the GLOBE & MAIL’s Shoalts notes the Arizona Republic yesterday reported that Sports Properties Acquisition Corp. CEO Tony Tavares is “collaborating with Reinsdorf's investment group to buy the hockey team,” but sources said that that is “not the case.” The source said that the company has “no involvement in any bid for the team.” In an e-mail addressed to two NHL execs and filed with the court, NHL Commissioner Gary Bettman said that he “arranged for [Tavares] to do due diligence for Reinsdorf.” Shoalts notes if Tavares was hired for due diligence on Reinsdorf, he “would not have any part of an offer for the team” because the “investigator must be independent” (GLOBE & MAIL, 5/28).

TAKING THE NEXT STEP: Balsillie spokesperson Bill Walker said that Balsillie “will apply to the NHL on Monday to relocate the Coyotes.” Walker: “It will include an outline of how we intend to renovate Copps Coliseum.” Walker “would not provide financial details, but said current reported figures are inaccurate” (HAMILTON SPECTATOR, 5/28). In Hamilton, Steve Milton writes in the court case the “rules of engagement are clearly being set” by Balsillie. If NHL owners are “forced to vote quickly on Balsillie as an owner and on the relocation of the Coyotes to Hamilton, the front-and-centre issue would be the comparison of a location and owner bleeding money to an owner and site which will contribute heartily to the league’s overall hockey income.” An extended period to decide on relocation “works against Balsillie, because there would be time to fully discuss expansion as well” (HAMILTON SPECTATOR, 5/28). Former Lightning GM Jay Feaster said of the court case, "Getting  it done sooner rather than later is the right way to go." Feaster: "I just have to believe that the judge will recognize that a professional sports league … has to be free to set its own rules as far as when you're going to transfer a franchise, and I just don't see how Balsillie comes out on the right end of this without going through the right channels" ("NHL Live!," NHL Network, 5/27).


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