Jim Balsillie and the NHL
History of the BlackBerry Magnate’s Attempts to Own an NHL Team
To the NHL, Jim Balsillie is a fly that despite their best efforts is almost impossible to swat, and so he just keeps buzzing around in search of a safe place to land.
To Balsillie, the league is the bouncer who kicks out groupies after they’ve already snuck in backstage.
The three-year relationship between the Research in Motion CEO and the NHL has been a contentious one, to say the least, and it’s been rocky practically since day one.
Balsillie Bids for the Pittsburgh Penguins
Balsillie first appeared on the league’s doorstep in 2006. He had his eye on the struggling Pittsburgh Penguins, who were in desperate need of a new arena. On October 5, 2006, it was announced that he had reached an agreement in principle to purchase the team from Mario Lemieux’s ownership group. Images of him flashing a Penguins logo on his BlackBerry graced every visual medium.
But not everything was fine and dandy. On December 15, 2006, Balsillie withdrew his bid. And, details of meetings between he, Commissioner Gary Bettman and Deputy Commissioner Bill Daly that had previously been under wraps were revealed in a declaration by Daly in a Phoenix court on August 5, 2009.
In it, he stated that when the three met in August 2006, Balsillie appeared to share the NHL’s focus in securing an arena deal for the Penguins to keep the team in Pittsburgh. However, Daly also declared that at the same time, Balsillie expressed concern over possibly being able to move the team after he had bought it, in the event that an agreement on a new arena could not be reached.
Nashville Predators
Before the recent court filings, it was believed that Balsillie first irked the National Hockey League when he sought ownership of the Nashville Predators. On May 24, 2007, he had come to a deal with then-majority owner Craig Leipold to buy the team.
Just one week later, he flung open a door of hope for hockey fans in Southern Ontario; Balsillie re-opened a deal providing him exclusivity in working out a lease option to bring an NHL club to Hamilton’s Copps Coliseum on a permanent basis. Shortly thereafter, he launched a season ticket initiative in which Ticketmaster began accepting deposits for the “Hamilton Predators”.
Though interest was high, there would be no NHL team in Hamilton. On June 27, 2007, Leipold ended his tentative deal with Balsillie and instead turned to California businessman William “Boots” Del Biaggo.
Balsillie Wants to Buy the Phoenix Coyotes
Much time passed after Balsillie further cemented his status as the NHL’s nemesis, until he popped up with a wad of cash in exchange for the Coyotes. In the time between, reports surfaced that he had inquired about the availability of two Northeast Division teams.
In May 2008, The Toronto Star reported that Balsillie had gotten in touch with Buffalo Sabres owner B. Thomas Golisano. Golisano apparently suggested he’d be willing to sell, but would listen only to offers that intended on keeping the franchise in Buffalo.
Six months later, La Presse reported that then-Canadiens owner George Gillett had informed Balsillie the historic club was for sale. The story was vehemently denied by Gillett, and Balsillie’s lawyer, Richard Rodier, denied his client ever made such a statement.
The billionaire’s latest attempt to join the NHL ownership fraternity began on May 5, 2009. Swimming in debt and struggling on the ice, Coyotes majority owner Jerry Moyes placed the franchise into bankruptcy protection. Balsillie subsequently jumped at the opportunity, offering $212.5 million (US) for the team, provided he could move it to Hamilton.
Since then, it’s been a step forward here, a step back there.
- June 15, 2009: Bankruptcy court judge Redfield T. Baum rejects the sale of the Coyotes to Balsillie due to the limited time available to resolve numerous issues before Balsillie’s imposed deadline of June 29, 2009.
- July 29, 2009: The NHL’s Board of Governors unanimously approves Jerry Reinsdorf’s bid.
- August 5, 2009: Baum rules that all bidders will be allowed to participate in the auction for the Coyotes, to be held on September 10, 2009. Originally a “non-relocation” auction, the new ruling opens the door to Balsillie.
- August 10, 2009: The NHL files a motion requesting that Judge Baum throw out Balsillie’s ownership bid based on the outcome at the Board of Governors meetings in July.
- September 2, 2009: After a lengthy day in Phoenix bankruptcy court, Judge Baum makes no ruling on whether Balsillie can 1) buy the team and 2) move it to Hamilton, both against the NHL’s wishes.
- September 30, 2009: Judge Baum rejects both the NHL's and Balsillie's bids, but agrees with the league's right to admit approved owners, to decide where teams play and to set a relocation fee. Balsillie says he won't appeal the decision.
Balsillie appears to be done after the rejection by the Phoenix bankruptcy court, but few would be surprised if he eventually starts buzzing around another struggling NHL franchise.
Jim Balsillie Has His Eye on the Phoenix Coyotes
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Jim Balsillie Tried to Buy the Nashville Predators
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