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June 5, 2009
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Franchises

New Group Plans To Pursue Toronto NHL Expansion Team, Arena

Lopez Unveils Plans For Expansion
NHL Franchise In Toronto
Toronto Legacy Group's Andrew Lopez and Order of Canada member Herb Carnegie Friday unveiled "their dream for a new arena and NHL expansion team by 2012" for Toronto, according to Kevin McGran of the TORONTO STAR. The group Thursday said that it has C$1B in financing, and Lopez noted that they have "investors from across the country -- and one from outside the country -- lined up," though he was "reluctant to part with names." NHL Deputy Commissioner Bill Daly said that he has "never heard of the group." But Lopez said, "We thought we'd share this with Toronto first. ... We don't want to impose our will on the NHL or anyone else." McGran notes the group Friday announced the "name of a team, arena, jersey, site plan and architect renderings of the arena." The group becomes the third to "announce they're pursuing a team for the Greater Toronto Area" (TORONTO STAR, 6/5). McGran reports the prospective team, named the Toronto Legacy, would play at a 30,000-seat arena to be built in Downsview Park, which would be part of a complex also including a "swimming pool, four outdoor rinks, two office towers, four condominiums, a hotel and community athletic centre." Twenty-five percent of the team's annual profits "would be divided between charitable foundations and non-profit organizations," and Carnegie's Future Aces Foundation for at-risk youth would be the first recipient (THESTAR.com, 6/5). The NATIONAL POST's Sean Fitz-Gerald reports the franchise would "play in an arena built on what is now an empty patch of government-owned land near an undisclosed subway stop." Lopez said the Maple Leafs and the NHL "will see that we're not here to hurt them" after details of the plan are announced. Lopez: "We're here to help, to help them grow hockey in Canada and, at the same time, give millions of dollars every year to the people who need it the most" (NATIONAL POST, 6/5). Sources said that the group includes former Royal Group Technologies Chair & CEO Victor De Zen (OTTAWA SUN, 6/5).

NEWS TO THE LEAGUE: The NHL said that it "isn't considering expansion and was not aware of Mr. Lopez's hopes to bring a second team to Toronto." Daly said in an e-mail, "We are not aware of their plans. Most expressions of interest we receive are generally communicated to us privately. It's apparent that this group is taking an alternative approach." The GLOBE & MAIL's Wingrove & Grange note the NHL "will be in court next week to hear" whether RIM co-CEO Jim Balsillie's plan to purchase the Coyotes and move them to Hamilton will be approved by U.S. bankruptcy judge Redfield Baum, which the league is fighting. But Lopez "sees the pending court decision as separate from his pitch" (GLOBE & MAIL, 6/5). Meanwhile, Sussex Strategy Group President Paul Pellegrini is denying that he and his organization are directly associated with the proposal. A press release states Pellegrini was approached by Lopez to gauge his interest, to which Pellegrini noted his firm "would be interested to consider providing counsel." However, he denies committing to "any direct association or affiliation" (THE DAILY).

PLAYING NICE WITH OTHERS: In Toronto, Steve Simmons writes, "You would think people would learn by now: If you want to play in the NHL, you have to play nice with the NHL. That isn't so hard. That isn't so complicated. If you want an expansion franchise, even if the league hasn't announced any plans at all to expand, the least you should do is meet with commissioner Gary Bettman or [Daly] and inform them of your plans." Simmons adds, "You may not like Bettman, but you have to respect him or at least respect how he wants his business done. And you have to respect the timing of conducting that business." All those factors combine make the group "irrelevant before they even begin" (TORONTO SUN, 6/5).


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