Updated 1:146 PM
Read more here -- http://www.theglobeandmail.com/sports/judge-rejects-both-bids-for-coyotes/article1307436/
And here -- http://www.thestar.com/sports/article/703440
From page 25 of the ruling -- This conclusion effectively is the end of the efforts of PSE, Balsillie, Moyes and The Coyotes to force a sale and relocation of the hockey team.
The good news? NHL is in control of what happens next and Balsillie bid is for all intents and pruposes dead.
The bad news? More indecision.
Wednesday, September 30, 2009
Tuesday, September 29, 2009
The Team, The Team -- A 2009-10 Coyotes Preview
While much of the news surrounding the Coyotes has been about off-ice happenings this year, there is still a roster to assemble and a season to play.
GMDM has worked under extraordinary circumstances this summer. Give Maloney much credit for getting ANYONE to agree to come to Phoenix with all the uncertainty surrounding the team. In fact, he's managed to bring in some nice pieces.
And the Coyotes need all the nice pieces they can get. A playoff contending team is a necessity to get the town thinking about hockey again. It's tough to be a win-now team with a (close to) minimum budget.
The Coyotes success this season will start (and hopefully not stop) with their goaltending. Specifically Ilya Bryzgalov, the team's top goaltender must, must have a good season for the Coyotes to compete for a playoff spot. It's an imperative -- there's really no viable fallback position.
Last year, Ilya's play was wildly inconsistent. Catch him on a good night and the team had a chance to win. But on what turned out to be way too many bad nights, he was just awful. So awful that hockey's nicest man, Wayne Gretzky, publicly called out his goaltender. The Coyotes simply can't afford awful this year; their margin for error is too small.
I've never been sold on Bryz and in fact suggested last spring that the Coyotes might consider moving him and looking for a replacement. So far, his career has been built on two very good hot streaks -- through the end of the regular season and the playoffs for the 2006 Almighty Ducks (why did they ever drop that great name?) and a great run when he first joined the Coyotes in 2007. One of those streaks would be nice right now. What would be even nicer is a consistent season that delivers very good play over the long haul.
The alternatives in goal are not compelling. Jason LaBarbera was a curious free agent signing who has had a checkered career. Al Montoya's regular season in San Antonio was spotty last year but he was impressive in a late-season call up and training camp. His reward was a trip to San Antonio but if he plays well and others falter, he could be back in Phoenix quickly.
What will help is a more mobile and talented defense. Arguably, the team's two best off season acquisitions were backliners Adrian Aucoin and Jim Vandermeer. Aucoin is a minutes eater who will give the team excellent puck movement and an offensive threat to go with Ed Jovanoski. Vandemeer is oh, so slow but he plays with an edge and makes the backliner tougher. Sami Lepisto, a draft day acquisition from Washington, is another mobile player. Combined with returnees Jovanoski, Zbynek Michalek, Keith Yandle and Kurt Sauer, it's a deep and talented group.
It will need to be because the Coyotes will having trouble scoring goals. Shane Doan, who has scored 20+ goals 9 straight years, will continue to be the linchpin of the offense. But other than Doaner, no player has sever scored 20 or more twice in their carrer and only 4 (Vrbata, Lombardi, Mueller, Prucha) have even done it once.
Much of the hope for improved scoring will come from a return to rookie season form by Mueller and rapid improvement from last years first draft pick, Mikkel Boedker. The Coyotes also hope that late season acquisitions Matthew Lombardi and Scottie Upshall continue to benefit from increased ice time and raise their offensive production. They are also hoping that Radim Vrbata can repeat his lighting in a bottle season from 2007-08. About the only thing that is certain is that there's a lot of hope going on here.
Update 11:45 AM -- The Coyotes have helped their offense today. Pending a physical, the Coyotes have signed veteran NHL center (and 7 time 20 goal scorer) Robert Lang. Details forthcoming. Interesting move. Lang, 38, was 18-21-39 in 50 games for Montreal last year before suffering a torn Achilles tendon. Assuming he's healthy, it will be interesting to see what he has left in the tank. Could be an excellent signing.
Dave Tippett has a good group of accomplished checkers and defensive players available to form quality checking and penalty killing units. Newcomers Vernon Fiddler and Lauri Korpikoski are accomplished penalty killers and both have some offensive upside. They will join Marty Hanzal to give the team good defensive options. Tippett's work is cut out for him, the Coyotes were 29th in the league in penalty killing last year. Improvement here and on the power play are absolutely necessary for the team to be more competitive this year.
Perhaps what's as important are players who are no longer here. Derek Morris was listless and disinterested in his last Phoenix season. Olli Jokinen was disappointing on the ice and an apparent problem in the locker room. And David Hale and Todd Fedoruk were little more than bottom of the roster players. None will be missed.
The Coyotes should be sturdier on defense, better on special teams and faster than last years edition. They also have a well stocked farm team in San Antonio with numerous players motivated to get back to Phoenix. It should help keep roster players motivated knowing that reinforcements are only a phone call away.
For the 2009-10 Coyotes, it's all going to come down to goaltending and the ability to score goals. There are going to be a lot of tight games this year. There's not a lot of margin for error.
Oh, and some off ice clarity wouldn't hurt. It would allow the team to keep their focus where it most definitely needs to be -- on the ice.
GMDM has worked under extraordinary circumstances this summer. Give Maloney much credit for getting ANYONE to agree to come to Phoenix with all the uncertainty surrounding the team. In fact, he's managed to bring in some nice pieces.
And the Coyotes need all the nice pieces they can get. A playoff contending team is a necessity to get the town thinking about hockey again. It's tough to be a win-now team with a (close to) minimum budget.
The Coyotes success this season will start (and hopefully not stop) with their goaltending. Specifically Ilya Bryzgalov, the team's top goaltender must, must have a good season for the Coyotes to compete for a playoff spot. It's an imperative -- there's really no viable fallback position.
Last year, Ilya's play was wildly inconsistent. Catch him on a good night and the team had a chance to win. But on what turned out to be way too many bad nights, he was just awful. So awful that hockey's nicest man, Wayne Gretzky, publicly called out his goaltender. The Coyotes simply can't afford awful this year; their margin for error is too small.
I've never been sold on Bryz and in fact suggested last spring that the Coyotes might consider moving him and looking for a replacement. So far, his career has been built on two very good hot streaks -- through the end of the regular season and the playoffs for the 2006 Almighty Ducks (why did they ever drop that great name?) and a great run when he first joined the Coyotes in 2007. One of those streaks would be nice right now. What would be even nicer is a consistent season that delivers very good play over the long haul.
The alternatives in goal are not compelling. Jason LaBarbera was a curious free agent signing who has had a checkered career. Al Montoya's regular season in San Antonio was spotty last year but he was impressive in a late-season call up and training camp. His reward was a trip to San Antonio but if he plays well and others falter, he could be back in Phoenix quickly.
What will help is a more mobile and talented defense. Arguably, the team's two best off season acquisitions were backliners Adrian Aucoin and Jim Vandermeer. Aucoin is a minutes eater who will give the team excellent puck movement and an offensive threat to go with Ed Jovanoski. Vandemeer is oh, so slow but he plays with an edge and makes the backliner tougher. Sami Lepisto, a draft day acquisition from Washington, is another mobile player. Combined with returnees Jovanoski, Zbynek Michalek, Keith Yandle and Kurt Sauer, it's a deep and talented group.
It will need to be because the Coyotes will having trouble scoring goals. Shane Doan, who has scored 20+ goals 9 straight years, will continue to be the linchpin of the offense. But other than Doaner, no player has sever scored 20 or more twice in their carrer and only 4 (Vrbata, Lombardi, Mueller, Prucha) have even done it once.
Much of the hope for improved scoring will come from a return to rookie season form by Mueller and rapid improvement from last years first draft pick, Mikkel Boedker. The Coyotes also hope that late season acquisitions Matthew Lombardi and Scottie Upshall continue to benefit from increased ice time and raise their offensive production. They are also hoping that Radim Vrbata can repeat his lighting in a bottle season from 2007-08. About the only thing that is certain is that there's a lot of hope going on here.
Update 11:45 AM -- The Coyotes have helped their offense today. Pending a physical, the Coyotes have signed veteran NHL center (and 7 time 20 goal scorer) Robert Lang. Details forthcoming. Interesting move. Lang, 38, was 18-21-39 in 50 games for Montreal last year before suffering a torn Achilles tendon. Assuming he's healthy, it will be interesting to see what he has left in the tank. Could be an excellent signing.
Dave Tippett has a good group of accomplished checkers and defensive players available to form quality checking and penalty killing units. Newcomers Vernon Fiddler and Lauri Korpikoski are accomplished penalty killers and both have some offensive upside. They will join Marty Hanzal to give the team good defensive options. Tippett's work is cut out for him, the Coyotes were 29th in the league in penalty killing last year. Improvement here and on the power play are absolutely necessary for the team to be more competitive this year.
Perhaps what's as important are players who are no longer here. Derek Morris was listless and disinterested in his last Phoenix season. Olli Jokinen was disappointing on the ice and an apparent problem in the locker room. And David Hale and Todd Fedoruk were little more than bottom of the roster players. None will be missed.
The Coyotes should be sturdier on defense, better on special teams and faster than last years edition. They also have a well stocked farm team in San Antonio with numerous players motivated to get back to Phoenix. It should help keep roster players motivated knowing that reinforcements are only a phone call away.
For the 2009-10 Coyotes, it's all going to come down to goaltending and the ability to score goals. There are going to be a lot of tight games this year. There's not a lot of margin for error.
Oh, and some off ice clarity wouldn't hurt. It would allow the team to keep their focus where it most definitely needs to be -- on the ice.
Monday, September 28, 2009
While (Judge) Tom Slept...
It's been 17 days since bids were tendered in the Coyotes bankruptcy and 5 days since an "emergency" hearing was held to hear the Moyes/Balsillie plea for mediation. A lot has happened in those 17 days.
The Coyotes have cut their training camp to 23 skaters. Surprises? Turris, MacLean, Tikhonov all head to San Antonio while Porter, Lepisto and Winnik make the big club. Management was sending out signals all summer that Turris needed AHL seasoning but it was surprising seeing Tikhonov go down. Turris doesn't have an NHL body right now and there's got to be concern within the organization that he may never become the impact player the team envisioned with the third overall pick. While Tikhonov was clearly rushed last year, his responsible defensive play and NHL size made this reassignment a surprise.
On the plus side, Porter has been noticeable at almost every practice and game I've seen. His play has clearly improved from a year ago. Lepisto is a mobile option on defense who has a nice feel for the game. He also is benefiting from 2 years of AHL seasoning (not a bad idea, eh?)in the Washington system. Vandemeer is oh so slow but he adds grit and experience and Vernon Fiddler is a carbon copy of the player he replaced, Steven Rupprecht.
The downside? Goals are going to be at a premium. It's hard to see this team scoring much more than last year. Unless the offense finds new life, this team will need every ounce of Dave Tippett's coaching skill to keep the goals allowed down and keep the team in games.
Tippett is the Coyotes new head coach. If you haven't heard already, this is the best news the franchise has had all year. Tippett is an accomplished coach who knows how to mold a responsible team. In 6 seasons in Dallas, his teams made the playoffs 5times and the 6th season was wrecked by injuries. His special teams are typically among the best in the league and his attention to team defense is exemplary. And he'll need every ounce of that coaching acumen to bring this team into the playoffs.
The Coyotes also came up with an inventive way of filling the arena on opening night by slashing ticket prices and calling for a the first white-out ever at Jobing.com arena. It appears to be working -- late word from Glendale is that under 2,000 tickets remain for the opener.
While much has happened over the last 17 days, what has not happened is any movement in the team's bankruptcy case.
While The Judge mulls over the case, much still remains unresolved. Opening night notwithstanding, ticket sales still have much ground to make up. A quick check of the dasher boards at an exhibition game showed at least 8 primary sponsor slots still available. Understandably but unfortunately, front office staffers have been jumping ship at an alarming rate.
If Judge Tom was truly committed to enhancing the value of the asset, he would have made the call on this case long ago. Every day that passes is a ticket that goes unsold, a marketing opportunity lost and a further degradation of the value of the asset. While the law needs to be adjudicated properly, this delay isn't helping the asset survive.
The Judge must understand by now that the two sides are not going to work this out. Meditation isn't going to solve the problem. You need two parties that want to settle for mediation to work. The NHL won't settle this case without anything less than a total and complete victory. They not only want to beat Jim Balsillie, they want to crush him. He's cost the league millions of dollars, plenty of bad publicity and much time and energy that could have been better spent elsewhere. Those transgressions will not be dismissed lightly. Or mediated away.
Judge Baum's decision will be appealed by either the NHL or Moyes or Glendale (or all three depending on what he comes back with) so it makes sense that it needs to be legally sound. That said, much of what he decides and writes will come directly out of his June 15th decision. So we'll wait, not very patiently, for the Judge to come in.
But we'll continue to caution him as well as anyone else who is listening that each day lost works directly against what he is supposed to prevent from happening.
The Coyotes have cut their training camp to 23 skaters. Surprises? Turris, MacLean, Tikhonov all head to San Antonio while Porter, Lepisto and Winnik make the big club. Management was sending out signals all summer that Turris needed AHL seasoning but it was surprising seeing Tikhonov go down. Turris doesn't have an NHL body right now and there's got to be concern within the organization that he may never become the impact player the team envisioned with the third overall pick. While Tikhonov was clearly rushed last year, his responsible defensive play and NHL size made this reassignment a surprise.
On the plus side, Porter has been noticeable at almost every practice and game I've seen. His play has clearly improved from a year ago. Lepisto is a mobile option on defense who has a nice feel for the game. He also is benefiting from 2 years of AHL seasoning (not a bad idea, eh?)in the Washington system. Vandemeer is oh so slow but he adds grit and experience and Vernon Fiddler is a carbon copy of the player he replaced, Steven Rupprecht.
The downside? Goals are going to be at a premium. It's hard to see this team scoring much more than last year. Unless the offense finds new life, this team will need every ounce of Dave Tippett's coaching skill to keep the goals allowed down and keep the team in games.
Tippett is the Coyotes new head coach. If you haven't heard already, this is the best news the franchise has had all year. Tippett is an accomplished coach who knows how to mold a responsible team. In 6 seasons in Dallas, his teams made the playoffs 5times and the 6th season was wrecked by injuries. His special teams are typically among the best in the league and his attention to team defense is exemplary. And he'll need every ounce of that coaching acumen to bring this team into the playoffs.
The Coyotes also came up with an inventive way of filling the arena on opening night by slashing ticket prices and calling for a the first white-out ever at Jobing.com arena. It appears to be working -- late word from Glendale is that under 2,000 tickets remain for the opener.
While much has happened over the last 17 days, what has not happened is any movement in the team's bankruptcy case.
While The Judge mulls over the case, much still remains unresolved. Opening night notwithstanding, ticket sales still have much ground to make up. A quick check of the dasher boards at an exhibition game showed at least 8 primary sponsor slots still available. Understandably but unfortunately, front office staffers have been jumping ship at an alarming rate.
If Judge Tom was truly committed to enhancing the value of the asset, he would have made the call on this case long ago. Every day that passes is a ticket that goes unsold, a marketing opportunity lost and a further degradation of the value of the asset. While the law needs to be adjudicated properly, this delay isn't helping the asset survive.
The Judge must understand by now that the two sides are not going to work this out. Meditation isn't going to solve the problem. You need two parties that want to settle for mediation to work. The NHL won't settle this case without anything less than a total and complete victory. They not only want to beat Jim Balsillie, they want to crush him. He's cost the league millions of dollars, plenty of bad publicity and much time and energy that could have been better spent elsewhere. Those transgressions will not be dismissed lightly. Or mediated away.
Judge Baum's decision will be appealed by either the NHL or Moyes or Glendale (or all three depending on what he comes back with) so it makes sense that it needs to be legally sound. That said, much of what he decides and writes will come directly out of his June 15th decision. So we'll wait, not very patiently, for the Judge to come in.
But we'll continue to caution him as well as anyone else who is listening that each day lost works directly against what he is supposed to prevent from happening.
Tuesday, September 22, 2009
Wayne's World Officially Closes
The announcement was not unexpected when it came today. Wayne Gretzky has resigned as the coach of the Phoenix Coyotes.
While it was inevitable and in the eyes of most fans, a desired outcome, it's a terrible tragedy that the game's living legend gets hauled out to the curb like yesterday's trash. The shabby treatment that Gretzky has received throughout this bankruptcy procedure is simply inappropriate given his contributions to the game and standing in the sport. It will take some time for these scars to heal. Living legends deserve better.
And today Dave Tippett was named as the Coyotes new coach.
That's amazing news. Amazing good in that Tippett is a highly qualified and respected bench boss. One of the best in the NHL. A coach who can positively impact the fortunes of this team. Once Tom Renney was off the board, Tippett was my first and only choice for the job. Amazing in another way -- hard to believe that Tippett is taking the Phoenix job when other plum positions in the NHL (did someone say Philadelphia?) may be open in the next few weeks. Will be very interesting to see what kind of contract length he gets.
Let's not sell short our good fortune here. This is a great move for the Coyotes. Tippett's presence should make this team a playoff contender. He's that good.
Tippett also played with Ulf Samuelsson, Doug Sulliman and Don Maloney in Hartford. That familiarity will certainly help bring the staff together and probably went a long way towards bringing him here.
And given the swiftness in how today's news is developing it's obvious that this move has been under discussion for several weeks.
Ulf Samuelsson has been the acting coach of the Coyotes. By most accounts he's done a good job preparing the team for the season. He has a future as an NHL coach, just not right now.
Earlier this week, the Coyotes made a couple of other very positive coaching moves. In light of today's news, one can assume these changes were all coordinated by GMDM.
Sean Burke takes over as the goaltender coach for the NHL club. Incumbent Grant Fuhr has been kicked upstairs and will work with the team's prospects as well as scout goaltenders for the franchise. We speculated earlier that Burke would and should join the coaching staff if Samuelsson took over as head coach. Didn't quite work out that way but we're sure Burke will add a lot to the team. It's a good and necessary move.
Improved goaltending is the number one priority for the Coyotes this year., Ilya Bryzgalov has been horribly inconsistent since he joined the team two years ago. In 2007-08 he came to Phoenix mid-season and authored a tremendous hot streak before tailing off at the end of the year. Last year he was good some nights and awful on others. While the Coyotes have a lot of holes to address on their roster, it all starts with goaltending. If Bryz doesn't play consistently well this year, nothing else will really matter.
Fuhr, a Hall of Fame goaltender and by most accounts a great guy, didn't seem to be impacting Bryzgalov's play either mentally or otherwise. Burke is a strong personality and is physically similar to Bryzgalov.
And Dave King has joined the team as an assistant coach. King is an experienced NHL bench boss (at Calgary and Columbus) and has a long reputation as one of the great teaching coaches in hockey. He was in charge of the Canadian national program for many years and has coached at all levels of hockey. While King is not a big name or high profile coach, he is deeply respected within the hockey world and admired as a coach and leader. He's seasoned, a renowned technician and has a great reputation for developing young players. He may turn out to be the biggest addition to the team this off-season.
With all that has gone on this summer, the Coyotes have been at the lowest point this or any franchise can experience. Making a smart and impactful move like this is the first step on what could be a very nice climb back to respectability.
While it was inevitable and in the eyes of most fans, a desired outcome, it's a terrible tragedy that the game's living legend gets hauled out to the curb like yesterday's trash. The shabby treatment that Gretzky has received throughout this bankruptcy procedure is simply inappropriate given his contributions to the game and standing in the sport. It will take some time for these scars to heal. Living legends deserve better.
And today Dave Tippett was named as the Coyotes new coach.
That's amazing news. Amazing good in that Tippett is a highly qualified and respected bench boss. One of the best in the NHL. A coach who can positively impact the fortunes of this team. Once Tom Renney was off the board, Tippett was my first and only choice for the job. Amazing in another way -- hard to believe that Tippett is taking the Phoenix job when other plum positions in the NHL (did someone say Philadelphia?) may be open in the next few weeks. Will be very interesting to see what kind of contract length he gets.
Let's not sell short our good fortune here. This is a great move for the Coyotes. Tippett's presence should make this team a playoff contender. He's that good.
Tippett also played with Ulf Samuelsson, Doug Sulliman and Don Maloney in Hartford. That familiarity will certainly help bring the staff together and probably went a long way towards bringing him here.
And given the swiftness in how today's news is developing it's obvious that this move has been under discussion for several weeks.
Ulf Samuelsson has been the acting coach of the Coyotes. By most accounts he's done a good job preparing the team for the season. He has a future as an NHL coach, just not right now.
Earlier this week, the Coyotes made a couple of other very positive coaching moves. In light of today's news, one can assume these changes were all coordinated by GMDM.
Sean Burke takes over as the goaltender coach for the NHL club. Incumbent Grant Fuhr has been kicked upstairs and will work with the team's prospects as well as scout goaltenders for the franchise. We speculated earlier that Burke would and should join the coaching staff if Samuelsson took over as head coach. Didn't quite work out that way but we're sure Burke will add a lot to the team. It's a good and necessary move.
Improved goaltending is the number one priority for the Coyotes this year., Ilya Bryzgalov has been horribly inconsistent since he joined the team two years ago. In 2007-08 he came to Phoenix mid-season and authored a tremendous hot streak before tailing off at the end of the year. Last year he was good some nights and awful on others. While the Coyotes have a lot of holes to address on their roster, it all starts with goaltending. If Bryz doesn't play consistently well this year, nothing else will really matter.
Fuhr, a Hall of Fame goaltender and by most accounts a great guy, didn't seem to be impacting Bryzgalov's play either mentally or otherwise. Burke is a strong personality and is physically similar to Bryzgalov.
And Dave King has joined the team as an assistant coach. King is an experienced NHL bench boss (at Calgary and Columbus) and has a long reputation as one of the great teaching coaches in hockey. He was in charge of the Canadian national program for many years and has coached at all levels of hockey. While King is not a big name or high profile coach, he is deeply respected within the hockey world and admired as a coach and leader. He's seasoned, a renowned technician and has a great reputation for developing young players. He may turn out to be the biggest addition to the team this off-season.
With all that has gone on this summer, the Coyotes have been at the lowest point this or any franchise can experience. Making a smart and impactful move like this is the first step on what could be a very nice climb back to respectability.
Thursday, September 17, 2009
Tick, Tick, Tick
The clock is ticking on the Phoenix Coyotes.
23 days until opening night and we still need to learn much about this team.
For starters, who will own the team and where will they play this season?
I am still certain opening night will be in Glendale, the team will play here all season and the NHL will control the franchise either as the (congratulations, it's a mess!) new owner, debtors in possession or interim managers while any award to Jim Balsillie is appealed.
The first two scenarios will give a measure of stability to the team. It will also give fans reason to start investing emotionally in the team. Right now both are absent and both are necessary. The third option? Don't ask.
I can't imagine a bankruptcy court handing over the team to Balsillie knowing that the ensuing legal turmoil will run the asset into the ground. It would also create significant new legal precedent and start years of continuing court cases. Just doesn't seem like Judge Tom's (yawn) style. But as I have been warned by my legal experts, surprises do happen in court. Until the ruling is published, we'll just have to be patient.
And then there is the question of who will coach the team.
Wayne Gretzky is still (officially) the coach of the Coyotes. At least in name. Once Judge Tom wakes up from his nap and makes his ruling, the NHL will control the franchise either by outright purchase through bankruptcy, no sale (debtor in possession) or staying any award of the team to Jim Balsillie. If the NHL wants to make a deal with Gretzky, they need to do so within 24 hours. No more time to ponder. Its now or never.
And if The Great One is not going to coach the team, Ulf Samuelsson immediately needs to be named head coach. He's running the team right now. He's the voice of authority players have been listening to through camp. And frankly, there's little available in the way of alternatives given the time and the tenuous state of the franchise. Let's hope that Ulf doesn't get the dreaded "interim" label. Everything with the Coyotes is day to day right now. There's no need for further reinforcement. Ulf is competent and the best choice under very difficult circumstances.
Who will be on the team?
Mostly the usual suspects. Very few roster spots are up for grabs. We'll have more on this after Friday's game.
And finally will anyone come to the games?
An opening week road trip to Los Angeles, Buffalo and Pittsburgh is not exactly the recipe to get the season off to a fast start. This year, it is fortunate for the Coyotes. A nice trip (3 points?) some exposure (at a minimum, the Penguin game will be on NHL Network)could help take the focus off this summer of turmoil and put it back where it needs to be, on the ice. It is far preferable to a first game at home with no build up in advance of the game.
So how can this mess be fixed?
Fixing will take time. Short and long term decisions need to be made that look at the situation frankly and decisively.
I've lived in Phoenix for almost two years now and followed the Coyotes for the last four. As a hockey fan, I've never been excited by the promotion of the team. As a career marketing executive, I've been appalled by the lack of imagination and clarity in the team's message. Some of the team's marketing messages are just not appropriate for an emerging hockey market. How we got to "Pierre the Fanatical Snowman" and "Be Coyotes Cool" (running concurrently) is beyond me.
No single marketing campaign or program is going to fix the Coyotes. Good marketing can create awareness and interest. Winning teams create desire and action.
But let's be frank here -- there is not a lot of interest after what has happened this summer. There's a lot of work to do.
Here are a couple of random ideas. In coming days I'll have a few more suggestions.
There's an exhibition game on Saturday September 26th vs. San Jose. Unless Judge Tom has passed away and I missed it, his decision will have come down by then. And as such, we'll begin to have some clarity for the teams and fans. I'd suggest that whoever is in charge throw the doors open for $5 a head to get some people in the building, expose the players to the fans and generate some energy. Pre-season games aren't going to draw big crowds under the best of circumstances. This isn't the best of circumstances. Sacrifice the gate (ahem) and get some people in the building.
Something similar, albeit not as dramatic might be in order for opening night. Buy everyone a hot dog and a beer to thank them for bearing with what went on this summer.
The Coyotes need to build a message that speaks directly to what has happened this summer. "We Play For You", the contemplated 2009-10 advertising theme is cliched and uninspiring. A slogan like this might work in an established market but it does not communicate what needs to be said here.
Hockey fans in Arizona, casual or hard core, need a pointed message that builds on what happened this summer. The Coyotes got more publicity than ever this summer, although most of it was not positive. Nevertheless, publicity of any kind can be good. I'm not the first person to say that, P.T. Barnum was.
When the NHL sent a lettered to the fans this summer, it was pointed. We know the NHL can succeed in Arizona, but we need your support now. There are ways to tie the urgency of the situation into the promotion of the hockey team without belaboring the points. If done in a clever and imaginative way, it can set up the market for success. Of course, a winning team is a necessary ingredient in this equation but you got to start somewhere. The key is developing a message and a theme that incorporates the issues with the team but builds on them rather than belaboring them.
And finally, the Coyotes need to ask for help. The advertising business sucks right now. Radio and TV stations have more time than ever available to do cross promotions. In fact, this is pretty close to a once in a lifetime opportunity in the Phoenix market. Why not ask each media outlet in town to take one night, make it their own and build a promotion to create publicity and enthusiasm? The Coyotes have plenty of inventory they can offer for now. So do TV and radio stations. There's a deal to be made here. Misery does love comnpany, you know.
More on the team, promotion and Gretzky coming this weekend.
Tomorrow, I'll get my first look at the 2009-10 Yotes. Stop by and say Hi. I'll be the guy wearing the New York Don Maloney jersey. I'm afraid I'll be easy to find.
23 days until opening night and we still need to learn much about this team.
For starters, who will own the team and where will they play this season?
I am still certain opening night will be in Glendale, the team will play here all season and the NHL will control the franchise either as the (congratulations, it's a mess!) new owner, debtors in possession or interim managers while any award to Jim Balsillie is appealed.
The first two scenarios will give a measure of stability to the team. It will also give fans reason to start investing emotionally in the team. Right now both are absent and both are necessary. The third option? Don't ask.
I can't imagine a bankruptcy court handing over the team to Balsillie knowing that the ensuing legal turmoil will run the asset into the ground. It would also create significant new legal precedent and start years of continuing court cases. Just doesn't seem like Judge Tom's (yawn) style. But as I have been warned by my legal experts, surprises do happen in court. Until the ruling is published, we'll just have to be patient.
And then there is the question of who will coach the team.
Wayne Gretzky is still (officially) the coach of the Coyotes. At least in name. Once Judge Tom wakes up from his nap and makes his ruling, the NHL will control the franchise either by outright purchase through bankruptcy, no sale (debtor in possession) or staying any award of the team to Jim Balsillie. If the NHL wants to make a deal with Gretzky, they need to do so within 24 hours. No more time to ponder. Its now or never.
And if The Great One is not going to coach the team, Ulf Samuelsson immediately needs to be named head coach. He's running the team right now. He's the voice of authority players have been listening to through camp. And frankly, there's little available in the way of alternatives given the time and the tenuous state of the franchise. Let's hope that Ulf doesn't get the dreaded "interim" label. Everything with the Coyotes is day to day right now. There's no need for further reinforcement. Ulf is competent and the best choice under very difficult circumstances.
Who will be on the team?
Mostly the usual suspects. Very few roster spots are up for grabs. We'll have more on this after Friday's game.
And finally will anyone come to the games?
An opening week road trip to Los Angeles, Buffalo and Pittsburgh is not exactly the recipe to get the season off to a fast start. This year, it is fortunate for the Coyotes. A nice trip (3 points?) some exposure (at a minimum, the Penguin game will be on NHL Network)could help take the focus off this summer of turmoil and put it back where it needs to be, on the ice. It is far preferable to a first game at home with no build up in advance of the game.
So how can this mess be fixed?
Fixing will take time. Short and long term decisions need to be made that look at the situation frankly and decisively.
I've lived in Phoenix for almost two years now and followed the Coyotes for the last four. As a hockey fan, I've never been excited by the promotion of the team. As a career marketing executive, I've been appalled by the lack of imagination and clarity in the team's message. Some of the team's marketing messages are just not appropriate for an emerging hockey market. How we got to "Pierre the Fanatical Snowman" and "Be Coyotes Cool" (running concurrently) is beyond me.
No single marketing campaign or program is going to fix the Coyotes. Good marketing can create awareness and interest. Winning teams create desire and action.
But let's be frank here -- there is not a lot of interest after what has happened this summer. There's a lot of work to do.
Here are a couple of random ideas. In coming days I'll have a few more suggestions.
There's an exhibition game on Saturday September 26th vs. San Jose. Unless Judge Tom has passed away and I missed it, his decision will have come down by then. And as such, we'll begin to have some clarity for the teams and fans. I'd suggest that whoever is in charge throw the doors open for $5 a head to get some people in the building, expose the players to the fans and generate some energy. Pre-season games aren't going to draw big crowds under the best of circumstances. This isn't the best of circumstances. Sacrifice the gate (ahem) and get some people in the building.
Something similar, albeit not as dramatic might be in order for opening night. Buy everyone a hot dog and a beer to thank them for bearing with what went on this summer.
The Coyotes need to build a message that speaks directly to what has happened this summer. "We Play For You", the contemplated 2009-10 advertising theme is cliched and uninspiring. A slogan like this might work in an established market but it does not communicate what needs to be said here.
Hockey fans in Arizona, casual or hard core, need a pointed message that builds on what happened this summer. The Coyotes got more publicity than ever this summer, although most of it was not positive. Nevertheless, publicity of any kind can be good. I'm not the first person to say that, P.T. Barnum was.
When the NHL sent a lettered to the fans this summer, it was pointed. We know the NHL can succeed in Arizona, but we need your support now. There are ways to tie the urgency of the situation into the promotion of the hockey team without belaboring the points. If done in a clever and imaginative way, it can set up the market for success. Of course, a winning team is a necessary ingredient in this equation but you got to start somewhere. The key is developing a message and a theme that incorporates the issues with the team but builds on them rather than belaboring them.
And finally, the Coyotes need to ask for help. The advertising business sucks right now. Radio and TV stations have more time than ever available to do cross promotions. In fact, this is pretty close to a once in a lifetime opportunity in the Phoenix market. Why not ask each media outlet in town to take one night, make it their own and build a promotion to create publicity and enthusiasm? The Coyotes have plenty of inventory they can offer for now. So do TV and radio stations. There's a deal to be made here. Misery does love comnpany, you know.
More on the team, promotion and Gretzky coming this weekend.
Tomorrow, I'll get my first look at the 2009-10 Yotes. Stop by and say Hi. I'll be the guy wearing the New York Don Maloney jersey. I'm afraid I'll be easy to find.
Monday, September 14, 2009
Second Hand Coyote Chatter
Jim Cerny is the NHL.com reporter for the New York Rangers and also has a fine blog named "Rink Rap". Jim recently published this piece about the Coyotes, through Ranger broadcaster Dave Maloney (brother of GMDM)
While I don't agree with Jim's conclusion, I do agree with all of the other points. we can only imagine how hard it has been on Maloney this summer.
In a posting here on Rink Rap a couple of weeks ago, I wrote about the difficult position Don Maloney is in as GM of the Phoenix Coyotes. Of course, things only got worse on the hockey front when training camp started and head coach Wayne Gretzky was a no-show.
I saw Don's brother Dave---the Rangers former captain and current radio analyst---at Rangers camp the other day and asked him how his younger brother is holding up. Dave told me that that Don is doing his best, but that the situation "is just brutal".
And that is just on the hockey operations side of the business. As for selling tickets, forget about it. Not shockingly, it has been nearly impossible to sell any form of season tickets this season in Phoenix, since the fans have no confidence in the future viability of their team.
No matter the outcome of the bankruptcy court ruling, the business is dead in Phoenix. It was dying already---hence the bankruptcy in the first place. But this whole dance between the league and Jim Balsillie, and perhaps the club moving to Hamilton during the season, or being sold and moved next year, has driven a final stake into the Coyotes' survival in Phoenix---er, Glendale.
While I don't agree with Jim's conclusion, I do agree with all of the other points. we can only imagine how hard it has been on Maloney this summer.
Saturday, September 12, 2009
So I Guess I've Got To Write Something
The court hearings are over. Mercifully. We now wait for Judge Tom to return his decision.
I am sorry but I am past the point of being worked up about this process. It sucks. It sucks for the fans, it sucks for the players, it sucks for the Coyotes staff members that have not yet bailed out and it sucks for anyone remotely connected with the Coyotes.
As I remember it, only one person (Jerry Moyes) had any interest in having Jim Balsillie stick his ample nose and bald head into our mess. Nothing would make me happier than to see Mr. Balsillie get run out of town by Judge Tom, followed closely by the moving van carrying Jerry Moyes' furniture. And nothing will make me happier than not seeing one more stock photo of Balsillie wrapped up in a Canadian flag.
Most of the people who attended the hearing this week have reported that Judge Baum has dropped several hints that he sees no precedent in bankruptcy law anything close to what Jim Balsillie is proposing.
As I pointed out earlier this week, reading his June 15th decision make it clear he understands and respects legal precedent. His prior judgement quoted a number of legal decisions relating not only to bankruptcy code but also to franchise law. The Judge, if not quick to pull the trigger, does seem to be thorough before making any call.
Let me expound a little on the bankruptcy code. Bankruptcy laws were overhauled in 1978 and the bankruptcy code is the same across the country. There is no different treatment from one state to another. Accordingly, there is a 31 year history of bankruptcy rulings that form the precedent that Judge Tom will lean on to make his decision. Something you may not know is that the legal community that handles bankruptcies is relatively small. It is a legal specialty. While even ambulance chasers like Lerner and Rowe will do a bankruptcy filing for you, most people who go this route rely on the lawyers who practice bankruptcy law extensively. And with a relatively small number of judges and attorneys, it is a close knit community that knows what is and is not good bankruptcy law.
There's also another large body of law at work here called franchise law. While franchise law does vary from state to state, there is much common ground in the franchisee/franchisor relationship and the legal covenants and commitments that come with this process. Having spent much of my professional career in franchising, I saw very clear indications from Baum's June 15th ruling that he understands franchise law and how that works to protects all franchisees of a company or association. He understands that you just can pull up the McDonald's in El Dorado and move it to Times Square.
There are 5MM people in the Toronto metropolitan area. For the uneducated, Hamilton is part of that market. This is not Phoenix and Tucson. If a business considers an area to be under served, their first step is to talk to the existing franchisee about expanding their service or modifying their agreements to allow additional franchisees. There is no law or precedent that allows another franchisee to buy a bankrupt business and drop it into a protected territory.
As a Phoenix hockey fan, I really could care less whether Southern Ontario is over or under served by the NHL. That is not my problem. What I do care about is that if the Coyotes moved to Hamilton, Kansas City or anywhere else, Phoenix and the surrounding area would become the second largest television market in the United States without professional hockey. Oh and did I mention that Phoenix, even during tough times, is still the fastest growing major market in the US and projected to be the 4th largest metropolitan area int he country in the next 25 years.
So given all of the precedent, hundreds of pages of filings and what seems like weeks of testimony and posturing, where do we end up?
There seem to be three possible scenarios;
First is the award of the team to Balsillie, direction to the NHL to approve Jimberry as an owner and the move to Hamilton and an all purpose screwing of the City of Glendale, hockey fans in Arizona and the National Hockey League. Chances of happening? Highly unlikely. My bankruptcy expert tells me that there is simply not enough precedent nor latitude within existing laws for this to happen. That also seems to be the consensus of many who have covered the recent hearings.
The backside of this ruling would be that Glendale and the NHL will both be in the 9th District Court immediately to get stays. Then the long drawn lawsuits will commence. How long could this drag on? I know of one complicated bankruptcy that is in its' 6th year of court action. No kidding. And once a decision gets stayed, payments to creditors get frozen. That's another complication that Judge Tom wants to avoid.
The second option is to send Balsillie on his way and award the team to the NHL. Certainly the cleanest outcome for the franchise and Phoenix hockey fans. If there is any hope of hockey pulling a dramatic revival in Arizona, a clear path to new ownership is necessary as quickly as possible. NHL control, which by no means makes everything perfect, will help move the focus back on the ice and give the league the latitude to make the necessary deals with new owners the City of Glendale and other creditors. All of which need to happen quickly.
And finally, there a chance that Judge Tom will rule no sale to any party. That of course leaves the NHL in control of the franchise as debtor in possession and likely sets off another legal battle as the league officially repossesses the franchise from Moyes. Not sure of all the ramifications here but it is essentially NHL ownership without clarity. That doesn't sound too promising to me.
No matter what happens, grievous damage has been done to the short term prospects of the Coyotes. We don't know who the coach is, players face uncertainty over what is really important -- their families -- and ticket sales are so far behind, there's no telling when they may catch up. One can only pray that the team has a good road trip before the home opener. A lousy start by the Suns (who by the way have season ticket renewal problems of their own) wouldn't hurt either.
Oh, I can add one additional thing. If Jim Balsillie doesn't win this legal battle, he is dead forever as a potential NHL owner. After the costs the NHL has incurred over this mess and the resulting damage to the Coyotes franchise, he'll never get into the league. Ever.
Of course, that may prove to be a pyhrric victory for those of us following this mess.
I am sorry but I am past the point of being worked up about this process. It sucks. It sucks for the fans, it sucks for the players, it sucks for the Coyotes staff members that have not yet bailed out and it sucks for anyone remotely connected with the Coyotes.
As I remember it, only one person (Jerry Moyes) had any interest in having Jim Balsillie stick his ample nose and bald head into our mess. Nothing would make me happier than to see Mr. Balsillie get run out of town by Judge Tom, followed closely by the moving van carrying Jerry Moyes' furniture. And nothing will make me happier than not seeing one more stock photo of Balsillie wrapped up in a Canadian flag.
Most of the people who attended the hearing this week have reported that Judge Baum has dropped several hints that he sees no precedent in bankruptcy law anything close to what Jim Balsillie is proposing.
As I pointed out earlier this week, reading his June 15th decision make it clear he understands and respects legal precedent. His prior judgement quoted a number of legal decisions relating not only to bankruptcy code but also to franchise law. The Judge, if not quick to pull the trigger, does seem to be thorough before making any call.
Let me expound a little on the bankruptcy code. Bankruptcy laws were overhauled in 1978 and the bankruptcy code is the same across the country. There is no different treatment from one state to another. Accordingly, there is a 31 year history of bankruptcy rulings that form the precedent that Judge Tom will lean on to make his decision. Something you may not know is that the legal community that handles bankruptcies is relatively small. It is a legal specialty. While even ambulance chasers like Lerner and Rowe will do a bankruptcy filing for you, most people who go this route rely on the lawyers who practice bankruptcy law extensively. And with a relatively small number of judges and attorneys, it is a close knit community that knows what is and is not good bankruptcy law.
There's also another large body of law at work here called franchise law. While franchise law does vary from state to state, there is much common ground in the franchisee/franchisor relationship and the legal covenants and commitments that come with this process. Having spent much of my professional career in franchising, I saw very clear indications from Baum's June 15th ruling that he understands franchise law and how that works to protects all franchisees of a company or association. He understands that you just can pull up the McDonald's in El Dorado and move it to Times Square.
There are 5MM people in the Toronto metropolitan area. For the uneducated, Hamilton is part of that market. This is not Phoenix and Tucson. If a business considers an area to be under served, their first step is to talk to the existing franchisee about expanding their service or modifying their agreements to allow additional franchisees. There is no law or precedent that allows another franchisee to buy a bankrupt business and drop it into a protected territory.
As a Phoenix hockey fan, I really could care less whether Southern Ontario is over or under served by the NHL. That is not my problem. What I do care about is that if the Coyotes moved to Hamilton, Kansas City or anywhere else, Phoenix and the surrounding area would become the second largest television market in the United States without professional hockey. Oh and did I mention that Phoenix, even during tough times, is still the fastest growing major market in the US and projected to be the 4th largest metropolitan area int he country in the next 25 years.
So given all of the precedent, hundreds of pages of filings and what seems like weeks of testimony and posturing, where do we end up?
There seem to be three possible scenarios;
First is the award of the team to Balsillie, direction to the NHL to approve Jimberry as an owner and the move to Hamilton and an all purpose screwing of the City of Glendale, hockey fans in Arizona and the National Hockey League. Chances of happening? Highly unlikely. My bankruptcy expert tells me that there is simply not enough precedent nor latitude within existing laws for this to happen. That also seems to be the consensus of many who have covered the recent hearings.
The backside of this ruling would be that Glendale and the NHL will both be in the 9th District Court immediately to get stays. Then the long drawn lawsuits will commence. How long could this drag on? I know of one complicated bankruptcy that is in its' 6th year of court action. No kidding. And once a decision gets stayed, payments to creditors get frozen. That's another complication that Judge Tom wants to avoid.
The second option is to send Balsillie on his way and award the team to the NHL. Certainly the cleanest outcome for the franchise and Phoenix hockey fans. If there is any hope of hockey pulling a dramatic revival in Arizona, a clear path to new ownership is necessary as quickly as possible. NHL control, which by no means makes everything perfect, will help move the focus back on the ice and give the league the latitude to make the necessary deals with new owners the City of Glendale and other creditors. All of which need to happen quickly.
And finally, there a chance that Judge Tom will rule no sale to any party. That of course leaves the NHL in control of the franchise as debtor in possession and likely sets off another legal battle as the league officially repossesses the franchise from Moyes. Not sure of all the ramifications here but it is essentially NHL ownership without clarity. That doesn't sound too promising to me.
No matter what happens, grievous damage has been done to the short term prospects of the Coyotes. We don't know who the coach is, players face uncertainty over what is really important -- their families -- and ticket sales are so far behind, there's no telling when they may catch up. One can only pray that the team has a good road trip before the home opener. A lousy start by the Suns (who by the way have season ticket renewal problems of their own) wouldn't hurt either.
Oh, I can add one additional thing. If Jim Balsillie doesn't win this legal battle, he is dead forever as a potential NHL owner. After the costs the NHL has incurred over this mess and the resulting damage to the Coyotes franchise, he'll never get into the league. Ever.
Of course, that may prove to be a pyhrric victory for those of us following this mess.
Thursday, September 10, 2009
No Sale???
I couldn't add much to everything that has been written about the hearings and eventual auction that is going on today in Federal Court. I am sure that many of you are following the tweets from brahmresnick, TheYotesDiva, HKYFN, cbctom, kmcgran and others.
The biggest news this morning came from Judge Tom, who raised the possibility that he may not accept any of the bids. I spoke to my bankruptcy expert and he told me that he is not exactly sure what the Judge is trying to accomplish. He suggested that Baum likely wouldn't kick the case out of bankruptcy completely or force a Chapter 7 dissolution of the franchise. Perhaps this is consistent with Baum's strategy of forcing more negotiation and a possible compromise. Of course, Judge Tom hasn't gotten to know Gary Bettman very well.
I'll speculate that if the Judge does not accept any of the bids, it effectively takes Balsillie out of the game. The NHL will then begin legal manuevering to reposess the franchise, operate it as debtor in possession and find a new owner.
Or so we hope.
The biggest news this morning came from Judge Tom, who raised the possibility that he may not accept any of the bids. I spoke to my bankruptcy expert and he told me that he is not exactly sure what the Judge is trying to accomplish. He suggested that Baum likely wouldn't kick the case out of bankruptcy completely or force a Chapter 7 dissolution of the franchise. Perhaps this is consistent with Baum's strategy of forcing more negotiation and a possible compromise. Of course, Judge Tom hasn't gotten to know Gary Bettman very well.
I'll speculate that if the Judge does not accept any of the bids, it effectively takes Balsillie out of the game. The NHL will then begin legal manuevering to reposess the franchise, operate it as debtor in possession and find a new owner.
Or so we hope.
Monday, September 7, 2009
The Coyote Saga Drags On
As much as things change in Coyotes Ugly, they really stay remarkably the same. Here are my takes on the last few days developments...
What are we to make of Judge Tom's court?
Not a lot new here.
When a bankruptcy is contentious, a judge will often send the competing interests a signal that they should negotiate among themselves by dragging his/her feet. This one is a mess. And Judge Tom is making it uncomfortable for everyone by reserving judgement, reading and researching and generally taking his sweet old time before issuing any judgements in the Coyotes case.
This type of behavior is common by judges in major bankruptcy proceedings. The Judge wants the sides to work things out. By keeping all options on the table, he increases pressure on all sides to make a deal.
Sooner or later, the Judge is going to have to make a decision. Someone will lose leverage and all hell is going to break loose. If Judge Tom allows Balsillie to bid in the auction, the NHL will immediately ask for a stay in the 9th District Court of Appeals to stop the auction. I spoke with a bankruptcy attorney yesterday who told me there is no mechanism for an accelerated hearing under these circumstances so any stay could delay the auction for a long time. And if Balsillie is booted from the auction, he doesn't have much of a legal leg to stand on but Moyes does. How aggressive and quickly he would act is certainly something to watch. Keep in mind he has lost a lot of money and stands to lose a lot more.
Brahm Resnick reported that Gary Bettman and Earl Scudder (Moyes Attorney) had a hallway conversation outside of Judge Tom's court. It would also make sense that there have been other back channel conversations. The prolonged bankruptcy action has sucked an awful lot of air out of the franchise and it is in everyone's best interests to end this circus soon.
Looking back on Judge Tom's ruling from June, it's clear to me he has a healthy respect for franchise law. I just can't imagine he is going to throw the rules of franchising and all professional sports leagues out on their collective ear. And I think that judgement is probably being waived in Earl Scudder's face by the NHL right now as an incentive to negotiate with the league.
The NHL is standing on principle. The Moyes/Balsillie bid is based on money. In these cases money is often more easily compromised than principle.
Meanwhile Balsillie sweetens the pot.
Late yesterday we learned that Balsillie is trying to negotiate a release with the City of Glendale that would give the COG (up to) a $50MM payment to release the Coyotes from any lease obligations. Breaking the offer down, it's an increase of $30MM to his base $212.5MM offer -- with the additional $20MM coming directly out of and money that would be paid to Jerry Moyes. And $10MM of the offer is contingent on the NHL relocation fee (if we ever got that far)being below $15MM -- something that is never going to happen.
So the real offer is $232.5MM with the likelihood of $40MM going to COG.
This was inevitable. Balsillie wants to negotiate everything. By putting a price on the offer, he is trying to goad Glendale into a negotiation. Let's say that they come back to him and say, "OK, we'll release you from the lease for $120MM". His next step? Offer a compromise at $95MM.
This is how the guy operates.
The real risk with Balsillie is that once you agree to put a price on something, he will pay it. He has (close to) unlimited funds. That is why the NHL has been so slow to talk about a relocation or indemnification fee. Give him a firm price and it is game over.
Unless the Glendale City Council wants to take the money and fold their hand, this dog won't hunt.
So?
Consider this. Under Balsillie's new offer, Moyes is down to a possible $60MM recovery. Perhaps the NHL will strengthen their offer by $5-10MM. See the gap narrowing?
See the negotiation ongoing.
How About Some Hockey Stuff? The Coyotes Sign Taylor Pyatt.
Nice role player who has never played to his size or potential. Another GMDM value signing. Given the Coyotes internal budget, probably the last addition to the team unless there's a trade that sends salary back the other way.
Pyatt suffered a horrific personal tragedy last spring when his fiance was killed in an automobile accident. He came back and played for the 'Nucks in the playoffs but was not signed to a new contract.
He'll give the team experience and stability on the left side.
Oh, and by the way, who is going to coach the Coyotes this year?
This question hasn't changed since I left town. It's either Wayne of Ulf.
One of my spies told me that the team website briefly posted a story that announced Ulf Samuelsson as the team's new coach. It was quickly pulled.
Now this could have been a web site party crasher at work or a just in case story (sort of like an obituary) that is prepared in anticipation of an event happening. On the other hand, it may be fact.
If it ain't Wayne, it's almost certainly going to be Ulf. Be prepared. The Coyotes PR team certainly is. And if Samuelsson is named as the team's coach, the biggest intrigue will be whether it is an interim or permanent appointment.
What are we to make of Judge Tom's court?
Not a lot new here.
When a bankruptcy is contentious, a judge will often send the competing interests a signal that they should negotiate among themselves by dragging his/her feet. This one is a mess. And Judge Tom is making it uncomfortable for everyone by reserving judgement, reading and researching and generally taking his sweet old time before issuing any judgements in the Coyotes case.
This type of behavior is common by judges in major bankruptcy proceedings. The Judge wants the sides to work things out. By keeping all options on the table, he increases pressure on all sides to make a deal.
Sooner or later, the Judge is going to have to make a decision. Someone will lose leverage and all hell is going to break loose. If Judge Tom allows Balsillie to bid in the auction, the NHL will immediately ask for a stay in the 9th District Court of Appeals to stop the auction. I spoke with a bankruptcy attorney yesterday who told me there is no mechanism for an accelerated hearing under these circumstances so any stay could delay the auction for a long time. And if Balsillie is booted from the auction, he doesn't have much of a legal leg to stand on but Moyes does. How aggressive and quickly he would act is certainly something to watch. Keep in mind he has lost a lot of money and stands to lose a lot more.
Brahm Resnick reported that Gary Bettman and Earl Scudder (Moyes Attorney) had a hallway conversation outside of Judge Tom's court. It would also make sense that there have been other back channel conversations. The prolonged bankruptcy action has sucked an awful lot of air out of the franchise and it is in everyone's best interests to end this circus soon.
Looking back on Judge Tom's ruling from June, it's clear to me he has a healthy respect for franchise law. I just can't imagine he is going to throw the rules of franchising and all professional sports leagues out on their collective ear. And I think that judgement is probably being waived in Earl Scudder's face by the NHL right now as an incentive to negotiate with the league.
The NHL is standing on principle. The Moyes/Balsillie bid is based on money. In these cases money is often more easily compromised than principle.
Meanwhile Balsillie sweetens the pot.
Late yesterday we learned that Balsillie is trying to negotiate a release with the City of Glendale that would give the COG (up to) a $50MM payment to release the Coyotes from any lease obligations. Breaking the offer down, it's an increase of $30MM to his base $212.5MM offer -- with the additional $20MM coming directly out of and money that would be paid to Jerry Moyes. And $10MM of the offer is contingent on the NHL relocation fee (if we ever got that far)being below $15MM -- something that is never going to happen.
So the real offer is $232.5MM with the likelihood of $40MM going to COG.
This was inevitable. Balsillie wants to negotiate everything. By putting a price on the offer, he is trying to goad Glendale into a negotiation. Let's say that they come back to him and say, "OK, we'll release you from the lease for $120MM". His next step? Offer a compromise at $95MM.
This is how the guy operates.
The real risk with Balsillie is that once you agree to put a price on something, he will pay it. He has (close to) unlimited funds. That is why the NHL has been so slow to talk about a relocation or indemnification fee. Give him a firm price and it is game over.
Unless the Glendale City Council wants to take the money and fold their hand, this dog won't hunt.
So?
Consider this. Under Balsillie's new offer, Moyes is down to a possible $60MM recovery. Perhaps the NHL will strengthen their offer by $5-10MM. See the gap narrowing?
See the negotiation ongoing.
How About Some Hockey Stuff? The Coyotes Sign Taylor Pyatt.
Nice role player who has never played to his size or potential. Another GMDM value signing. Given the Coyotes internal budget, probably the last addition to the team unless there's a trade that sends salary back the other way.
Pyatt suffered a horrific personal tragedy last spring when his fiance was killed in an automobile accident. He came back and played for the 'Nucks in the playoffs but was not signed to a new contract.
He'll give the team experience and stability on the left side.
Oh, and by the way, who is going to coach the Coyotes this year?
This question hasn't changed since I left town. It's either Wayne of Ulf.
One of my spies told me that the team website briefly posted a story that announced Ulf Samuelsson as the team's new coach. It was quickly pulled.
Now this could have been a web site party crasher at work or a just in case story (sort of like an obituary) that is prepared in anticipation of an event happening. On the other hand, it may be fact.
If it ain't Wayne, it's almost certainly going to be Ulf. Be prepared. The Coyotes PR team certainly is. And if Samuelsson is named as the team's coach, the biggest intrigue will be whether it is an interim or permanent appointment.
Tuesday, September 1, 2009
Some Random Notes Before A Short Vacation
Time for me to disappear for a few days. Need to recharge the batteries before training camp starts. So here's some of the things I am going to miss this week...
The cage match in Judge Tom's court tomorrow
Lots of juicy items to be decided but the big one is whether Jim Balsillie will be allowed to bid in the bankruptcy auction on September 10th. The NHL says "no", he's already been rejected as a potential owner. Jerry Moyes will counter that Balsillie's bid is his best (and only) chance to recover any money on this deal.
Prediction? I think the court will not disqualify Balsillie at this time. Money talks in bankruptcy court. Balsillie has money. I think the Judge is perfectly willing to let other courts sort out this mess. I believe he will follow the money trail and keep the auction open to Balsillie.
And then what? I expect the NHL will immediately appeal his decision to the 9th District Court of Appeals and seek injunctive relief to stop the September 10th auction. This is a strike issue for the NHL. They will not stand by idly and tolerate any process that could deliver the team to Balsillie. This will almost certainly push the auction back past Balsillie's September 14th deadline to complete the purchase. He won't be going away but it will then take the court battle in a new, different and very expensive direction.
And if I'm wrong? And Balsillie gets thrown out on his ear? Then it will be Moyes suing the NHL. Unfortunately he has far less legal grounds than the league does to pull off an appeal and without Balsillie's checkbook and bank of lawyers it may be time for him to fold his hand.
Don Maloney's (rescheduled) press availability
Maloney is almost always available, by e-mail, phone or other means to answer questions. He's been quiet lately and with the pot boiling on so many fronts, it makes sense for him to be keeping a low media profile.
Suspicion? The league told him it would be better to keep his mouth shut rather than deal with tough questions. Like how is this mess affecting the team and who exactly is going to be the coach when training camp opens.
Which leads to another question...
Who is going to coach the Coyotes this year
Rookie camp opens on Saturday. Veterans are due in next Thursday. Sooner or later someone has got to take the reins of the Coyotes.
Prediction? Wayne Gretzky.
Really? Yes. Gretzky has been in an awful position this summer. His contract has been outed and there's no way he will be working for the $8.5MM this year.
But...The NHL doesn't kick icons to the curb. Ice Edge is still a player in the auction process and they want Wayne's World to stay open. I don't see any way Balsillie could ever get control of the team before this season so I anticipate the Coyotes will stay and Wayne will work on a one year contract at a greatly reduced rate. No matter what you think of Wayne as a coach, he's got a lot of sweat invested in this team and he desperately wants to finish the rebuilding job here. This may not be the most popular move with the hard core fan base but it's likely to be perceived positively by the casual hockey fan.
And if I'm wrong? No highly credentialed coach is going to take over this team without some job security. Forget Dave Tippett or Peter Laviolette coming here. If it isn't Wayne, I expect that Ulf Samuelsson (or perhaps someone else within the organization) will be promoted and Sean Burke will slide in as an assistant to help behind the bench.
Have a good week. We'll check in when we can and we'll be actively staying in touch to see how things start to shake out.
The cage match in Judge Tom's court tomorrow
Lots of juicy items to be decided but the big one is whether Jim Balsillie will be allowed to bid in the bankruptcy auction on September 10th. The NHL says "no", he's already been rejected as a potential owner. Jerry Moyes will counter that Balsillie's bid is his best (and only) chance to recover any money on this deal.
Prediction? I think the court will not disqualify Balsillie at this time. Money talks in bankruptcy court. Balsillie has money. I think the Judge is perfectly willing to let other courts sort out this mess. I believe he will follow the money trail and keep the auction open to Balsillie.
And then what? I expect the NHL will immediately appeal his decision to the 9th District Court of Appeals and seek injunctive relief to stop the September 10th auction. This is a strike issue for the NHL. They will not stand by idly and tolerate any process that could deliver the team to Balsillie. This will almost certainly push the auction back past Balsillie's September 14th deadline to complete the purchase. He won't be going away but it will then take the court battle in a new, different and very expensive direction.
And if I'm wrong? And Balsillie gets thrown out on his ear? Then it will be Moyes suing the NHL. Unfortunately he has far less legal grounds than the league does to pull off an appeal and without Balsillie's checkbook and bank of lawyers it may be time for him to fold his hand.
Don Maloney's (rescheduled) press availability
Maloney is almost always available, by e-mail, phone or other means to answer questions. He's been quiet lately and with the pot boiling on so many fronts, it makes sense for him to be keeping a low media profile.
Suspicion? The league told him it would be better to keep his mouth shut rather than deal with tough questions. Like how is this mess affecting the team and who exactly is going to be the coach when training camp opens.
Which leads to another question...
Who is going to coach the Coyotes this year
Rookie camp opens on Saturday. Veterans are due in next Thursday. Sooner or later someone has got to take the reins of the Coyotes.
Prediction? Wayne Gretzky.
Really? Yes. Gretzky has been in an awful position this summer. His contract has been outed and there's no way he will be working for the $8.5MM this year.
But...The NHL doesn't kick icons to the curb. Ice Edge is still a player in the auction process and they want Wayne's World to stay open. I don't see any way Balsillie could ever get control of the team before this season so I anticipate the Coyotes will stay and Wayne will work on a one year contract at a greatly reduced rate. No matter what you think of Wayne as a coach, he's got a lot of sweat invested in this team and he desperately wants to finish the rebuilding job here. This may not be the most popular move with the hard core fan base but it's likely to be perceived positively by the casual hockey fan.
And if I'm wrong? No highly credentialed coach is going to take over this team without some job security. Forget Dave Tippett or Peter Laviolette coming here. If it isn't Wayne, I expect that Ulf Samuelsson (or perhaps someone else within the organization) will be promoted and Sean Burke will slide in as an assistant to help behind the bench.
Have a good week. We'll check in when we can and we'll be actively staying in touch to see how things start to shake out.
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