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August 14, 2009
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Judge Rules Peddie Does Not Have To Answer Balsillie's Questions

Judge Denies Request To Question
Peddie From Balsillie's Attorneys
Maple Leaf Sports & Entertainment President & CEO Richard Peddie was "let off the hook" Thursday night by U.S. Bankruptcy Court Judge Redfield Baum, who ruled that Peddie "does not have to submit to questioning" by attorneys for RIM co-CEO Jim Balsillie, according to David Shoalts of the GLOBE & MAIL. Balsillie "had asked that Peddie be examined along with four other NHL executives" because Balsillie and his lawyers believe that the Maple Leafs are a "major force behind the NHL's opposition to his plan to buy the Phoenix Coyotes and move them to Hamilton." Baum "ruled without comment" that NHL Commissioner Gary Bettman, Deputy Commissioner Bill Daly, Bruins Owner Jeremy Jacobs and Wild Owner Craig Leipold "can be questioned but not Peddie." Baum "did not give a reason for denying Balsillie's lawyers the chance to question Peddie." Meanwhile, Baum ruled that Balsillie, his attorney Richard Rodier and Coyotes Owner Jerry Moyes "can be examined" by NHL attorneys. Baum also "accepted an amended schedule of events leading up to a Sept. 2 hearing that will decide if Balsillie's bid can be accepted for the sale even though he was rejected as an owner" by the NHL BOG. Shoalts notes the "two key dates" for filing motions, applications and objections are Friday and August 25. Prospective bidders "have to file ownership applications by [Friday] and their formal bid on the 25th" (GLOBE & MAIL, 8/14). The AP's Andrew Bagnato reported Baum also authorized a deposition from an "unnamed, but to be disclosed, NHL representative regarding the impossibility of relocating the Coyotes for the current season." Meanwhile, in a separate order Thursday, Baum "denied a motion by the Goldwater Institute, on behalf of eight Glendale taxpayers, to file a conditional bid objection." The Goldwater Institute "had argued that the taxpayers have a right to know the details of Glendale's arena lease negotiations" with the bid group led by White Sox and Bulls Chair Jerry Reinsdorf, but Baum ruled they "do not have a direct financial stake in the outcome of this case" (AP, 8/13).

NOT TOTAL LOSS FOR BALSILLIE: In Toronto, Paul Hunter reports Baum Thursday "did agree to the discovery of some information requested by Balsillie," as he ruled the NHL must produce "documents evidencing that the NHL has decided that the territorial veto in its Constitution has been legally abandoned by the NHL." Baum also ruled that the NHL "must make available gate receipts for the last five years from several teams, including Toronto, as well as any study on expansion into Hamilton in the last 10 years and information on expansion and relocation fees." Meanwhile, Daly Thursday night in an e-mail "made it clear he believes Baum made the right call saying that Peddie is 'not even close' to being behind Balsillie's rejection as an owner." Daly: "The whole Balsillie 'campaign' is a joke. Mr. Balsillie obviously doesn't have a good sense of how NHL governors perceive him. Which is very negatively" (TORONTO STAR, 8/14).


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