“Both” Phoenix Bids Rejected
Jim Balsillie’s long, exhausting process to purchase the Phoenix Coyotes franchise with designs on moving it to Hamilton has come to an end.
U.S. Bankruptcy Court Judge Redfield T. Baum rejected both offers to buy the financially ailing franchise: one from the Canadian billionaire and the other from the NHL. Of course, the NHL was given the opportunity to amend its proposal. This has opened the doors for the NHL to essentially seize control of the franchise, as they will be the only ones in the bidding arena.
Judge Baum recognized the authority of the NHL’s Board of Directors in the final analysis, rejecting Balsillie’s bid “with prejudice” while rejecting the NHL’s bid “without prejudice.” The difference here is clear: Balsillie didn’t have the blessing of the league and, therefore, was dismissed on such a basis. Perhaps it was only a foregone conclusion all along.
In the end, though, it was the Board’s decision that ultimately made up the judge’s mind on the case.
In order for Balsillie to have any appeal on the case, he’s have to look into anti-trust laws or consider the possibility of moving any additional hearings. The RIM billionaire has already stated his intent to essentially “walk away” from the process, however, which pretty much means his part in any of this is done. He will not appeal the decision, nor will he make any moves to try to move the process elsewhere.
When it comes back to the NHL to amend its bid on the Coyotes, they’ll basically have to sweeten the deal and add more money to the pot. Of course, Baum didn’t include a dollar amount in his final ruling and this may be to the peril of all interested parties. The NHL bid won’t have to pay the city of Glendale anything, which should save them some money. They’ll also have less to shell out to creditors and, as one would expect, could probably care less about helping Jerry Moyes break even.
In the end, it’s not just Balsillie and hockey’s potential in Hamilton that took a hit here. The city of Glendale did, too. They rejected Balsillie’s $50 million offer out of hand and, as it happens, will now turn out to be simply holding the bag. They won’t get a dime from the NHL and, if Bettman has his way and puts his plan into the works, they won’t have a team either.
There’s simply no reasonable rationale behind keeping the team in Phoenix. Bettman and Co. were blowing smoke when they said that hockey was viable in Glendale. They know that the team is posting nothing but fiscal losses and they have every intention of moving things elsewhere when another buyer steps up to the plate.
This was personal and it happened because Balsillie didn’t play ball with the Old Guard in the NHL’s clubhouse. Had he done things “their way,” he might have stood a chance and might be owning the Coyotes right now. But I think it’s safe to say that the box-out on Balsillie began as soon as he tabled his interest in the club and, from that point on, this whole process was doomed.
Posted by Jordan Richardson.
Tags: bankruptcy court, Gary Bettman, jim balsillie, phoenix coyotes