Phoenix Coyotes Moving to Hamilton?
Balsillie Attempts to Purchase, Relocate Club to Ontario
It's no secret that the Phoenix Coyotes are in deep financial trouble, and have been for quite some time. So much so that the club may be under new ownership and possibly relocate to Hamilton, Ontario by the start of next season. But the story of the eminent sale and attempted relocation of the club is more complex than that, and it's anyone's guess as to what the future of the possibly-soon-to-be-former Phoenix Coyotes franchise will hold.
Moyes Files for Chapter 11 Bankruptcy, Stripped of CEO Title
Coyotes' owner Jerry Moyes filing for Chapter 11 bankruptcy, and his negotiations with Blackberry boss Jim Balsillie, have most likely circumvented terms in the NHL constitution that deal with financially troubled teams and those on the selling block or seeking relocation to another city. As a result of Moyes' actions, the league has stripped him of his CEO status, and the issue as to who is in actually in control of the Coyotes has gone to federal court. At best, the two have run afoul of the NHL Board of Governors and commissioner Gary Bettman, which despite the mess that has become of the Coyotes, will not expedite the club's sale to Balsillie for a reported $212.5 million.
Making matters more difficult is that Balsillie's purchase of the club is contingent on moving the club to Hamilton, Ontario. Bettman has already stated he is not interested in moving the club, and that the league, not Moyes, controls the Coyotes' future. At the very least, if Balsillie's proposal was to come to a vote, the sale would most likely earn "no" votes from owners of the Maple Leafs and Sabres based on territorial concerns. Bettman's desire appears to be keeping the club in Phoenix with new ownership approved by the league, even though court documents filed by Moyes claim the club has lost $73 million over the last three seasons in Arizona. The Coyotes are, for the time being, stranded in the desert, and winning games and making money seem to be a mere mirage.
Third Time the Charm For Balsillie?
Balsillie, despite apparently rubbing some owners the wrong way, needs to be given the benefit of the doubt and his conditions for purchasing the Coyotes franchise need to be addressed, However, Balsillie should also understand that being more diplomatic with his possible peers, and not blatantly circumventing NHL protocol in purchasing a franchise, is the better route to take if he wants his third attempt to own an NHL club to be successful. Perhaps it's not too late for Balsillie to make amends, but to ruffle feathers the way he has in similar attempts to purchase the Predators and the Penguins and now the Coyotes will not help his cause.
Wang: I Regret Purchasing the Islanders
The Coyotes' problems are indicative of what is going on with several NHL franchises and the league as a whole. For instance, Islanders' owner Charles Wang was recently quoted as saying that he regretted purchasing the franchise and called the team's current arena, the Nassau Coliseum, a "dump." And it is no secret that several other franchises are in as much financial trouble as the Islanders and Coyotes. After hearing Wang's lamentations, it shows just how much Balsillie loves the sport, and the idea of being the owner of an NHL franchise maybe even more, that he would want to undertake a similar risk in such tough economic times.
The Future of the Coyotes
Somebody will own the Coyotes for the 2009-10 season, and it may be Balsillie, or it could be a group consisting Chicago White Sox and Bulls' owner Jerry Reinsdorf, or perhaps even a third party may enter the fray. If a bidder can't be found, the league would probably seize the franchise and run its operations for the immediate future, guaranteeing payroll is met and paychecks do not bounce.
If anything, this discrepancy with Moyes and Balsillie and the NHL will wind up in the courts for quite a while. But most people in the sport want to see something occur that is solely in the best interest of the franchise, and that appears to be selling the club to Balsillie and most likely moving them to Southern Ontario. This might not be the league's desired choice of action given the circumstances, but there the Jets/Coyotes franchise can certainly be more stable financially in a better fan-supported city and no longer require revenue sharing from wealthier teams or monetary assistance from the league to prop up a team that now seems to be as financially drained as a desert cactus.
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