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August 21, 2009
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Senators Owner Eugene Melnyk Fires Back At Jim Balsillie

Melnyk Calls Balsillie A  
"Desperate Man"
Senators Owner Eugene Melnyk and NHL Deputy Commissioner Bill Daly Thursday "fired back" at RIM co-CEO Jim Balsillie after he "pointed fingers at Melnyk and other NHL owners for questionable character," according to Ken Warren of the OTTAWA CITIZEN. Balsillie in a legal document filed Wednesday in bankruptcy court as part of his bid to buy the Coyotes challenged the NHL's decision to reject his ownership on the "grounds that he was lacking 'good character and integrity.'" Melnyk Thursday in a statement said, "I have watched, with some dismay, Jim Balsillie's fall from being a deserving business icon to what now appears to be a desperate man willing to say anything or do anything to buy an NHL franchise. ... I've tried to reach Jim through his office to find out why he would say something like this about me -- we barely know each other -- but I’ve received no response." Melnyk added, "His willingness to drag down anyone he can get his hands on along with him is discouraging and saddens me." Daly in an e-mail defended Melnyk, saying, "Balsillie's attempt in any way to disparage (Melnyk’s) reputation and his good standing as an NHL owner is nothing more than a malicious act of desperation. ... Why would any team or owner in our league want him as a business partner? Those who live in glass houses are particularly ill-suited to throwing stones" (OTTAWA CITIZEN, 8/21). SI.com's Jim Kelley wrote Balsillie's battle with the NHL was "never a 'play nice' dispute," but his "broadside raises the bar in terms of cross-court attacks and there's likely more to come from both sides." Kelley: "Ugly doesn't begin to define where this battle is going. Expect long knives to be drawn soon" (SI.com, 8/20).

DESERT DISH: U.S. Bankruptcy Court Judge Redfield Baum Thursday, ruling on outstanding issues in advance of the September 2 hearing to determine if Balsillie can bid for the Coyotes in a September 10 auction, decided that Balsillie's PSE Sports & Entertainment group "does not have to produce" e-mails between him and attorney Richard Rodier, which the NHL has requested. Baum also will allow Rodier to "sit in on a deposition of Balsillie, something the NHL was trying to block" (TORONTO STAR, 8/21). Meanwhile, the GLOBE & MAIL's David Shoalts reports the city of Glendale asked the court to "hold an emergency hearing" before the September 10 auction to decide if the team owes Managing Partner & coach Wayne Gretzky $9.3M. Glendale lawyers contend that Gretzky's claims "should not be allowed under bankruptcy laws or they should be capped as employment-related claims" (GLOBE & MAIL, 8/21).


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