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.
Showing posts with label jobing.com arena. Show all posts
Showing posts with label jobing.com arena. Show all posts
Monday, September 28, 2009
Saturday, August 29, 2009
A Rock > Glendale < A Hard Place
You can't blame the Glendale City Council for talking tough. An article last week in The Repulsive featured numerous quotes from Glendale officials...
"We have a contract and we want our contract fulfilled", Councilwoman Yvonne Knaack said. "We're going to hold hard on those issues."
"We're willing to work with whoever's there" said Vice Mayor Manny Martinez who added; "We want to do what's best for the city. We don't want to give any money away"
Councilman Phil Lieberman also chimed in; "How in the world can we come up with millions, no matter who wants it?" he said.
And so it goes.
Well yes, Glendale officials wants the arena contract fulfilled. And no, the City is not in a position to bail out the Coyotes and Jobing.com arena. We understand. Municipalities everywhere are having a pretty rough time balancing their checkbooks right now. And above all else, we're taxpayers first here at the X.
But this is sounding more and more like a football game. Talk is cheap. Very cheap. And much like on the gridiron, who talks the best game may not necessarily be the winning side.
Glendale leaders are desperately looking for bankruptcy Judge Tom Baum to uphold the lease as if it was a secured debt. The walkaway cost to any buyer breaking the lease without bankruptcy relief is north of $500,000,000. In the eyes of The City, that would be a fair pay off to cover the mortgage and replace the anticipated lost tax revenue.
But there's trouble on all fronts. The Moyes/Balsillie axis wants the court to throw out the lease and stiff The City. The low key folks at Ice Edge are talking to Glendale but there's no report whether they have made any progress. The Reinsdorf's have already taken their puck and stick and gone home. And now the NHL has bid for the bankrupt team and they have also made it clear that no team can continue to operate under the current lease. In fact their offer to purchase the Coyotes specifically excludes assumption of the current lease.
The bottom line is that no group is willing to take on the building and the lease as it stands now. And eventually Glendale is going to have to come to grips with that reality or face the prospect of an empty building anchoring their crown jewel development.
As incredible as it seems, Glendale's best short term hope right now may be for Jim Balsillie to win the right to bid on the team. If Balsillie survives on Wednesday, the NHL will immediately appeal Baum's decision and almost certainly delay the September 10th auction. That will push off the day of reckoning and once and for all kill any chance of the team moving this year.
If Judge Tom throws out the Balsillie bid, then it's the NHL and Ice Edge still standing, both of whom want the original lease reworked. And if The Ice Edge group doesn't have concessions agreed to by September 10th, then the NHL may win the auction by default.
Best case, Glendale's got time. Worst case, they've got one year. The NHL isn't taking over this team to operate it indefinitely. It will be sold again quickly. With or without help from Glendale. And without help from The City, it is headed out of town.
Ultimately, The City will have to come to grips with making financial concessions to the new owners in the form of a reworked business arrangement.
Now financial concessions can come in a lot of different sizes and shapes.
During the Reinsdorf negotiation with Glendale (ever think that would be remembered as the Golden Era of this mess) a document was leaked by the Moyes legal team that included some of the demands the Reinsdorf group wanted Glendale to consider. Very few people ever saw the complete document and what made the newspaper was the sexy stuff -- an 11.5% tax on the surrounding retail area, parking charges and penalty payments if the team was still losing money in 5 years. We suspect there was much more than that discussed. But at the end of the day, there was no deal made.
And to hear Glendale officials talk, there is no deal on the table. Yes, we will talk but no we can't give you a whole lot right now. We're a little short ourselves. But that is going to have to change if the Coyotes are going to stay. Glendale is going to have to figure out a way to channel more money to team and the arena. And they probably have to assume some risk that after a period of time if it doesn't work, The Coyotes are going to go away.
Want a bizarre suggestion? Perhaps the Indian Casino that is proposed for the Glendale area might like to pick up some of the tab in return for having the City welcome them rather than suing the group and forcing them to find another west side location. Far-fetched? Not really. In Pittsburgh, casinos that won the license to operate in the area are paying the majority of costs for the Penguins' new arena.
Glendale officials would be smart to cut their losses and make a deal sooner rather than later. If the NHL takes possession of the team under their bid, the team will be on a death watch until a lease concession is granted. No one is going to buy the team without a new lease. And the NHL has made it clear that bailing out the team is now a limited time offer.
Smart business people know when to cut their losses. The city fathers and mothers have a pretty clear picture of the economic impact of the Coyotes staying or going. They can only count on the bankruptcy court to hold off judgement day for so long. They are going to have to make a deal or face the consequences.
Experience tell us that the sooner you make the deal the better off you will be. Glendale's got a lot of skin in this game. They need to swallow hard, cut a deal and start this franchise towards a recovery. The alternatives are not tasteful. Not tasteful at all.
"We have a contract and we want our contract fulfilled", Councilwoman Yvonne Knaack said. "We're going to hold hard on those issues."
"We're willing to work with whoever's there" said Vice Mayor Manny Martinez who added; "We want to do what's best for the city. We don't want to give any money away"
Councilman Phil Lieberman also chimed in; "How in the world can we come up with millions, no matter who wants it?" he said.
And so it goes.
Well yes, Glendale officials wants the arena contract fulfilled. And no, the City is not in a position to bail out the Coyotes and Jobing.com arena. We understand. Municipalities everywhere are having a pretty rough time balancing their checkbooks right now. And above all else, we're taxpayers first here at the X.
But this is sounding more and more like a football game. Talk is cheap. Very cheap. And much like on the gridiron, who talks the best game may not necessarily be the winning side.
Glendale leaders are desperately looking for bankruptcy Judge Tom Baum to uphold the lease as if it was a secured debt. The walkaway cost to any buyer breaking the lease without bankruptcy relief is north of $500,000,000. In the eyes of The City, that would be a fair pay off to cover the mortgage and replace the anticipated lost tax revenue.
But there's trouble on all fronts. The Moyes/Balsillie axis wants the court to throw out the lease and stiff The City. The low key folks at Ice Edge are talking to Glendale but there's no report whether they have made any progress. The Reinsdorf's have already taken their puck and stick and gone home. And now the NHL has bid for the bankrupt team and they have also made it clear that no team can continue to operate under the current lease. In fact their offer to purchase the Coyotes specifically excludes assumption of the current lease.
The bottom line is that no group is willing to take on the building and the lease as it stands now. And eventually Glendale is going to have to come to grips with that reality or face the prospect of an empty building anchoring their crown jewel development.
As incredible as it seems, Glendale's best short term hope right now may be for Jim Balsillie to win the right to bid on the team. If Balsillie survives on Wednesday, the NHL will immediately appeal Baum's decision and almost certainly delay the September 10th auction. That will push off the day of reckoning and once and for all kill any chance of the team moving this year.
If Judge Tom throws out the Balsillie bid, then it's the NHL and Ice Edge still standing, both of whom want the original lease reworked. And if The Ice Edge group doesn't have concessions agreed to by September 10th, then the NHL may win the auction by default.
Best case, Glendale's got time. Worst case, they've got one year. The NHL isn't taking over this team to operate it indefinitely. It will be sold again quickly. With or without help from Glendale. And without help from The City, it is headed out of town.
Ultimately, The City will have to come to grips with making financial concessions to the new owners in the form of a reworked business arrangement.
Now financial concessions can come in a lot of different sizes and shapes.
During the Reinsdorf negotiation with Glendale (ever think that would be remembered as the Golden Era of this mess) a document was leaked by the Moyes legal team that included some of the demands the Reinsdorf group wanted Glendale to consider. Very few people ever saw the complete document and what made the newspaper was the sexy stuff -- an 11.5% tax on the surrounding retail area, parking charges and penalty payments if the team was still losing money in 5 years. We suspect there was much more than that discussed. But at the end of the day, there was no deal made.
And to hear Glendale officials talk, there is no deal on the table. Yes, we will talk but no we can't give you a whole lot right now. We're a little short ourselves. But that is going to have to change if the Coyotes are going to stay. Glendale is going to have to figure out a way to channel more money to team and the arena. And they probably have to assume some risk that after a period of time if it doesn't work, The Coyotes are going to go away.
Want a bizarre suggestion? Perhaps the Indian Casino that is proposed for the Glendale area might like to pick up some of the tab in return for having the City welcome them rather than suing the group and forcing them to find another west side location. Far-fetched? Not really. In Pittsburgh, casinos that won the license to operate in the area are paying the majority of costs for the Penguins' new arena.
Glendale officials would be smart to cut their losses and make a deal sooner rather than later. If the NHL takes possession of the team under their bid, the team will be on a death watch until a lease concession is granted. No one is going to buy the team without a new lease. And the NHL has made it clear that bailing out the team is now a limited time offer.
Smart business people know when to cut their losses. The city fathers and mothers have a pretty clear picture of the economic impact of the Coyotes staying or going. They can only count on the bankruptcy court to hold off judgement day for so long. They are going to have to make a deal or face the consequences.
Experience tell us that the sooner you make the deal the better off you will be. Glendale's got a lot of skin in this game. They need to swallow hard, cut a deal and start this franchise towards a recovery. The alternatives are not tasteful. Not tasteful at all.
Monday, July 27, 2009
Catching Up
Been away for a few days at a family wedding so it's time to catch up on the headlines...
The Reinsdorf-Kaites-Tavares Bid is in and among other things it details the assumption of 170 contracts of player and hockey management (as well as sponsorships and suite holders) but not Wayne Gretzky. Given that the bankruptcy bid does not give Gretzky a dime of the money he is owed, it's not like they are trying to make nice with hockey's living legend. Discussion boards and forums like this will be rife with "who will coach the Coyotes" posts shortly. It's sad to see Wayne go under such uncomfortable circumstances but he's not been a success as a coach or marketing ambassador for the franchise. You just think that legends who happen to be nice people deserve better.
It also looks like the management side of the organization will be completely gutted. Our great friend Doug Moss, CFO Mike Nealy and Arena Manager Jim Foss all have contracts that will not be assumed by the new owners. Broadcasters Dave Strader, Bob Heethuis and Tyson Nash are also on the "no thanks" list although new contracts could be arranged with some or all. And keep in mind that several executives who do not have contracts were probably working the old fashioned way; on handshakes. There are going to be a lot of employment at will conversations going on in Glendale if the R-K-T bid is accepted.
There are some good people losing out here. Doug Moss is a great guy and experienced leader, Strader is the best television announcer in the game and Heethuis is an excellent and under appreciated radio announcer.
That, my friends, is the dark side of bankruptcy.
Much of this speaks to the Glendale report that says the organization could be streamlined and run at a significantly lower cost. We agree. Our friends at the Suns have told us that even before the NBA team and the US Airways Arena started contracting their organization, they were still staffed leaner than the Coyotes/Jobing.com Arena group. This was an accident waiting to happen. Now the Reinsdorf-Kaites-Tavaers group can come in, start with a fresh slate and put toggether a lean, effective organization.
On the other hand. The potential bid from Ice Edge raises a bunch of questions. To quote Brahm Resnick, it is "very edgy" to say the least. Two big ahas; they want to give Gretzky a contract to coach and be a franchise ambassador. with a lucrative playoff bonus and play at least 5 home games in a Canadian city. Oh, and right now it's a letter of intent, not a real bid. That supposedly is coming in the next few days.
The Ice Edge group includes Coyotes minority owner John Breslow among its investors. One of the key figures is Anthony LeBlanc, a former Research in Motion executive.
This bid is good news in many ways for the NHL. It is a weaker presentation that dimensionalizes the R-K-T bid as much better for Glendale. It answers the question of what happened to the John Breslow group that was bidding on the team. And it creates at least the impression of competition that the judge was hoping to encourage.
It is also dead on arrival. Neither the NHL nor the NHLPA is likely to approve of a split city concept. Saskatoon, one of the cities mentioned as a possible occasional home for the Yotes, was laughed away by the NHL when St. Louis tried to move there 20 years ago. It hasn't exactly boomed since then.
The Ice Edge group is meeting with the NHL executive board on Wednesday. It could be the beginning or the end of the bid process for that group.
Derek Morris to Boston...The Bruins needed a puck moving defenseman in the worst way. In Morris, they get a player who last year was a puck moving defenseman in the worst way. Terrible enough in Phoenix that Don Maloney opted instead to go with Adrian Aucoin as his right handed defensive signing rather than bringing Morris back. A little better in New York but still relegated to third pair status during the playoffs. We're happy for Derek who by all accounts is a good guy but this seems like an ill advised move for the Bruins. It's a one year contract which means Morris steps right back into a contract year.
And finally a couple of new contracts -- Dan Winnik gets $600K in arbitration with the Yotes and Enver Lisin signs a one year deal with the New York Rangers for $790,000.
More to come later today...
The Reinsdorf-Kaites-Tavares Bid is in and among other things it details the assumption of 170 contracts of player and hockey management (as well as sponsorships and suite holders) but not Wayne Gretzky. Given that the bankruptcy bid does not give Gretzky a dime of the money he is owed, it's not like they are trying to make nice with hockey's living legend. Discussion boards and forums like this will be rife with "who will coach the Coyotes" posts shortly. It's sad to see Wayne go under such uncomfortable circumstances but he's not been a success as a coach or marketing ambassador for the franchise. You just think that legends who happen to be nice people deserve better.
It also looks like the management side of the organization will be completely gutted. Our great friend Doug Moss, CFO Mike Nealy and Arena Manager Jim Foss all have contracts that will not be assumed by the new owners. Broadcasters Dave Strader, Bob Heethuis and Tyson Nash are also on the "no thanks" list although new contracts could be arranged with some or all. And keep in mind that several executives who do not have contracts were probably working the old fashioned way; on handshakes. There are going to be a lot of employment at will conversations going on in Glendale if the R-K-T bid is accepted.
There are some good people losing out here. Doug Moss is a great guy and experienced leader, Strader is the best television announcer in the game and Heethuis is an excellent and under appreciated radio announcer.
That, my friends, is the dark side of bankruptcy.
Much of this speaks to the Glendale report that says the organization could be streamlined and run at a significantly lower cost. We agree. Our friends at the Suns have told us that even before the NBA team and the US Airways Arena started contracting their organization, they were still staffed leaner than the Coyotes/Jobing.com Arena group. This was an accident waiting to happen. Now the Reinsdorf-Kaites-Tavaers group can come in, start with a fresh slate and put toggether a lean, effective organization.
On the other hand. The potential bid from Ice Edge raises a bunch of questions. To quote Brahm Resnick, it is "very edgy" to say the least. Two big ahas; they want to give Gretzky a contract to coach and be a franchise ambassador. with a lucrative playoff bonus and play at least 5 home games in a Canadian city. Oh, and right now it's a letter of intent, not a real bid. That supposedly is coming in the next few days.
The Ice Edge group includes Coyotes minority owner John Breslow among its investors. One of the key figures is Anthony LeBlanc, a former Research in Motion executive.
This bid is good news in many ways for the NHL. It is a weaker presentation that dimensionalizes the R-K-T bid as much better for Glendale. It answers the question of what happened to the John Breslow group that was bidding on the team. And it creates at least the impression of competition that the judge was hoping to encourage.
It is also dead on arrival. Neither the NHL nor the NHLPA is likely to approve of a split city concept. Saskatoon, one of the cities mentioned as a possible occasional home for the Yotes, was laughed away by the NHL when St. Louis tried to move there 20 years ago. It hasn't exactly boomed since then.
The Ice Edge group is meeting with the NHL executive board on Wednesday. It could be the beginning or the end of the bid process for that group.
Derek Morris to Boston...The Bruins needed a puck moving defenseman in the worst way. In Morris, they get a player who last year was a puck moving defenseman in the worst way. Terrible enough in Phoenix that Don Maloney opted instead to go with Adrian Aucoin as his right handed defensive signing rather than bringing Morris back. A little better in New York but still relegated to third pair status during the playoffs. We're happy for Derek who by all accounts is a good guy but this seems like an ill advised move for the Bruins. It's a one year contract which means Morris steps right back into a contract year.
And finally a couple of new contracts -- Dan Winnik gets $600K in arbitration with the Yotes and Enver Lisin signs a one year deal with the New York Rangers for $790,000.
More to come later today...
Sunday, June 28, 2009
The Draft, 3 Trades and Where Next?
Draft weekend is a fun time in the NHL. It’s the official start of off-season player movement and one of the key events in building a team for the coming season.
When it comes to the amateur draft, I always take the position of trusting the scouts. Keith Gretzky and his team has done a good job identifying players to draft in the last few years. The Coyotes have lots of good talent already in the NHL, more players on the way and a few unsigned draft choices who could end up being impact players. I get a kick out of the message board experts who really want this player or think that guy can turn around a franchise after watching a few YouTube highlights and reading what so-called draft experts say.
I always appreciate how TSN hockey analyst Bob McKenzie positions himself. McKenzie, who seems to have an direct pipeline to many teams, predicts the draft based on what he hears and what he is told, not what he thinks of the players. A few years ago he predicted the Coyotes were going to go “off the grid” with the 5th pick and they proceeded to pick the much lower rated Blake Wheeler. Think he has sources?
That said, the selection of Ekman-Larsson over Cowen was a bit of a surprise to me. Cowen is a physical, shutdown defensive type unlike anyone the Coyotes have in their organization. Ekman-Larsson shot up draft boards in the last few months and those type of players always scare me a little. Nevertheless, I’ll trust the scouts here and hope they have pegged a very good young player.
General Manager Don Maloney took an innovative route to improving the team by trading a couple of late round draft choices for players who finished last season in the American Hockey League. I did suspect that Maloney would consider trading draft picks for restricted free agents, but frankly I expected the action to be at the top of the Coyotes draft board and not at the bottom.
The Coyotes traded their 5th round pick to the Washington Capitals for the rights to RFA defenseman Sami Lepisto. The Finnish defenseman was stuck behind a number of young defensemen in the Caps system. Lepisto was a 3rd round draft choice in 2004 and has scored 45 and 42 points in his two full AHL seasons. Lepisto has also played 14 NHL games with the Caps. He missed Hershey’s AHL championship run after injuring his spleen in the last week of the regular season.
Maloney then shipped the Yotes’ 7th round pick to the Vancouver Canucks for defenseman Shaun Heshka. A junior teammate of Peter Mueller, Heshka has spent the last three years with the AHL Manitoba Moose, scoring 14 goals and 62 total points in 211 games. The Moose lost to the Bears in the AHL championship series this year.
Both Lepisto and Heshka have completed his entry level contracts. They will need to be qualified by 5 PM Monday or else they will become an unrestricted free agents. Much like Enver Lisin, Maloney is likely to want a fair two-way contract in place for both players. They may or may not agree leaving the possibility that they will have to be qualified (with a one way contract) or become free agents. One can assume the latter option is unlikely either by prior agreement or qualification.
While trading for restricted free agents is a solid strategy, Maloney is clearly shopping in the bargain aisle. He decided not get in on the action for high profile RFAs like Phil Kessel. One assumes the Coyotes have scouted these players extensively and had enough confidence to swap low draft choices for a shot at these players.
More curious was the trade of Brandon Prust to the Calgary Flames for veteran defenseman Jim Vandermeer.
Prust projected as little more than a 4th line energy player for the Yotes but he was cheap -- $500K. Vandermeer has a bigger price tag. Much bigger. He has two years left on his contract at an annual hit of $2.3MM.
The trade is curious in two ways. Vandemeer is a defensive minded player who lacks mobility. He is a 5th or 6th defenseman on a good team. He is not the offensive minded defenseman that the Coyotes desperately need. And at $2.3MM he takes a big bite out of the $5-6MM that we know Maloney has to spend to get to the salary cap floor. Maloney wants to add veteran leadership and Vandermeer will help in that area but he is at best a modest talent.
One wonders if this trade might have been a second act to the Jokinen trade. It just seems to be very out of character for GMDM.
What is missing right now is the element of excitement to the Coyotes off-season. So far, the biggest fireworks have come in the courtroom. . Taken alone, each of these moves can be explained as reasonable hockey judgement. Collectively, they will not excite the fan base. This franchise badly needs some juice. The Coyotes need to sell tickets, They need to win now. As flawed as the Olli Jokinen trade turned out last year, it did give the franchise a shot of energy. Unfortunately that energy didn’t pay off in a productive season or a playoff berth.
There will be more changes in the next few days and hopefully there will be some exciting hockey news for Coyote fans. As we approach the Monday 5PM deadline for qualifying restricted free agents, more players may become available. And on Wednesday over 100 unrestricted free agents hit the market. The Coyotes will not be players for the available big names but I expect GMDM to be shopping the bargain aisle for useful players. The frenzy of free agent activity will also put shake some players loose in trades and that’s where I expect the Coyotes to have their best chance and giving the franchise a real energy boost.
And a shot of excitement, along with investment by the new owners and lots of hard work are all parts of pumping new life into the franchise. I’m getting sick of the Coyotes being the butt of hockey jokes. (Did you hear Montreal fans chanting “Hamilton” when the Coyotes drafted?) It’s time for this franchise to show up, make a few bold moves and show the community that getting to the playoffs is not only a good talking point, but a real possibility. Bold moves can come in business at any time but if you are building a hockey roster, this is the week to be bold.
Monday, June 22, 2009
Coyotes Auction August 5th. Only Local Owners Need Apply
The news is good for Coyotes fans tonight.
For starters, the NHL announced in a court filing and later confirmed in court that the Jerry Reinsdorf-John Kaites (-Tony Tavares?) group would be filing a bid to buy the team by the Friday deadline.
Then Judge Tom dropped a Baum-shell on Jim Balsillie’s bid to move the team to Canada by setting an August 5th auction date for owners who want to operate the team in Arizona. The Judge indicated that he likes the ease of selling the team locally, noting that there would be multiple legal complications to any offer that would move the team, especially if it was against the will of the NHL. Should no local owner be selected or qualified on the August 5th, a second auction would be held on September 10th that could potentially open the team to relocation. Think of this date as “if necessary” and hope that the game is never played.
The NHL has long held that a bid to purchase the team and keep it in Arizona was forthcoming and the news that the bid is imminent is good. Additionally, minority owner John Breslow has talked of offering a bid and there are still others who may be lurking. It remains to be seen if Breslow will enter the bidding by Friday’s deadline but one possibility is that he may join the Reinsdorf- Kaites (-Tavares?) group.
Negotiations with the City of Glendale will be following. The City expressed concern that August 5th was an aggressive deadline. After looking at the alternatives, that will seem like an eternity for them to close a deal.
Still to be revealed are the other members of the bidding group. There has been speculation that Hollywood producer (and aspiring NHL owner) Jerry Bruckheimer may be part of the action. We believe that Arte Moreno, the owner of baseball’s Los Angeles Angels and a Phoenix resident may also be a potential investor.
So now that the Reinsdorf- Kaites (-Tavares?) group is officially out of the water, many questions emerge. There was much speculation early on that Wayne Gretzky would not be retained in his current role if the ownership went in this direction. We’ll find out soon if that is the case. It’s unlikely that the iconic and ever-gracious Gretzky would simply be dismissed but he may be asked to take a lesser and lower paying role in the management of the team.
The player budget floor 2009-10 is also on the table. If Gary Bettman is directing Don Maloney with the understanding that NHL money was paying the bills, you can bet the Coyotes would be close to the floor minimum. With new money and ownership was coming to the table, that could mean a bigger player budget for next year. And with shopping season right around the corner, it’s fair to assume that this issue has already been vetted with the R-K-(T?) group.
And finally, changes in the off-ice management of the team may be on the table. If Tony Tavares is an active participant, that will likely signal some realignment of the front office. One can assume that based on the reports of high administrative expenses, Tony would be a tiger in holding down costs. Tavares has a reputation for being a hardnosed operator but his experience and marketing background could be a large asset to the franchise.
We’ll know a lot more later this week. For now, we’ll take solace in knowing that the cavalry is on the way, they are bringing a checkbook and they seem willing to dig in a make this franchise a success. And they are doing all of these things without dragging the team off to Hamilton.
For starters, the NHL announced in a court filing and later confirmed in court that the Jerry Reinsdorf-John Kaites (-Tony Tavares?) group would be filing a bid to buy the team by the Friday deadline.
Then Judge Tom dropped a Baum-shell on Jim Balsillie’s bid to move the team to Canada by setting an August 5th auction date for owners who want to operate the team in Arizona. The Judge indicated that he likes the ease of selling the team locally, noting that there would be multiple legal complications to any offer that would move the team, especially if it was against the will of the NHL. Should no local owner be selected or qualified on the August 5th, a second auction would be held on September 10th that could potentially open the team to relocation. Think of this date as “if necessary” and hope that the game is never played.
The NHL has long held that a bid to purchase the team and keep it in Arizona was forthcoming and the news that the bid is imminent is good. Additionally, minority owner John Breslow has talked of offering a bid and there are still others who may be lurking. It remains to be seen if Breslow will enter the bidding by Friday’s deadline but one possibility is that he may join the Reinsdorf- Kaites (-Tavares?) group.
Negotiations with the City of Glendale will be following. The City expressed concern that August 5th was an aggressive deadline. After looking at the alternatives, that will seem like an eternity for them to close a deal.
Still to be revealed are the other members of the bidding group. There has been speculation that Hollywood producer (and aspiring NHL owner) Jerry Bruckheimer may be part of the action. We believe that Arte Moreno, the owner of baseball’s Los Angeles Angels and a Phoenix resident may also be a potential investor.
So now that the Reinsdorf- Kaites (-Tavares?) group is officially out of the water, many questions emerge. There was much speculation early on that Wayne Gretzky would not be retained in his current role if the ownership went in this direction. We’ll find out soon if that is the case. It’s unlikely that the iconic and ever-gracious Gretzky would simply be dismissed but he may be asked to take a lesser and lower paying role in the management of the team.
The player budget floor 2009-10 is also on the table. If Gary Bettman is directing Don Maloney with the understanding that NHL money was paying the bills, you can bet the Coyotes would be close to the floor minimum. With new money and ownership was coming to the table, that could mean a bigger player budget for next year. And with shopping season right around the corner, it’s fair to assume that this issue has already been vetted with the R-K-(T?) group.
And finally, changes in the off-ice management of the team may be on the table. If Tony Tavares is an active participant, that will likely signal some realignment of the front office. One can assume that based on the reports of high administrative expenses, Tony would be a tiger in holding down costs. Tavares has a reputation for being a hardnosed operator but his experience and marketing background could be a large asset to the franchise.
We’ll know a lot more later this week. For now, we’ll take solace in knowing that the cavalry is on the way, they are bringing a checkbook and they seem willing to dig in a make this franchise a success. And they are doing all of these things without dragging the team off to Hamilton.
Friday, June 19, 2009
Prucha Re-ups for 2 Years
The Coyotes have signed left wing Petr Prucha to a 2 year contract. Prucha played for $1..6 million last year and likely would not have been qualified at that amount. It's expected he will receive less money in exchange for a two year commitment.
Prucha, who will turn 27 in September, had 2 goals and 8 assists in 19 games after joining the Coyotes at the trade deadline in the Derek Morris trade. In his four year NHL career, he has scored 65 goals including 30 in his rookie season in New York. Prucha is a quick energetic player who could be an nice asset for the Yotes if he can regain his goal scoring touch.
Importantly, this signing shows that GM Don Maloney has some latitude to sign players for more than one season. That's a promising sign.
Update: According to TSN, Prucha's contract is for $1.1 miilion per year.
Prucha, who will turn 27 in September, had 2 goals and 8 assists in 19 games after joining the Coyotes at the trade deadline in the Derek Morris trade. In his four year NHL career, he has scored 65 goals including 30 in his rookie season in New York. Prucha is a quick energetic player who could be an nice asset for the Yotes if he can regain his goal scoring touch.
Importantly, this signing shows that GM Don Maloney has some latitude to sign players for more than one season. That's a promising sign.
Update: According to TSN, Prucha's contract is for $1.1 miilion per year.
Reinprecht Traded to Florida
Steve Reinprecht will not be back with the Coyotes next year. Facing a situation where the team felt they could not resign the player, the Yotes have swapped his rights to the Florida Panthers in exchange for 23-year-old left wing Stefan Myers. We’re checking with our AHL contracts and will have a scouting report on Myers shortly.
Myers was drafted in the second round (#55 overall) by the Panthers in 2003. He has spent the last four seasons with the American League Rochester Americans scoring 64 goals and 130 points in 266 games. He made his NHL debut with the Panthers last year going scoreless in 4 games. Meyer stands 6’ 2” and weighs 194. He is a restricted free agent.
Upon completion of the trade, Reinprecht signed a three year contract with the Panthers averaging just a little over $2 million per season. Since coming to Phoenix in a deadline deal with Calgary in 2005, he had been a useful player who provided leadership and versatility. The 33-year-old went 14-27-41 last year despite missing a month with a shoulder injury. It’s worth noting that his absence from the lineup coincided with the Coyotes February swoon that cost the team any chance at a playoff spot.
Update: Our AHL correspondent (who happens to be in Rochester) tells us that Myers is a good team guy, but only a little above average player for the AHL level. He questions whether Myers can ever be a full time NHLer. Myers has been in Rochester a long time and might've gotten a little stale. Even so, he's still young and maybe with a change of scene and another year older, he might be ready to take another step up.
Myers was drafted in the second round (#55 overall) by the Panthers in 2003. He has spent the last four seasons with the American League Rochester Americans scoring 64 goals and 130 points in 266 games. He made his NHL debut with the Panthers last year going scoreless in 4 games. Meyer stands 6’ 2” and weighs 194. He is a restricted free agent.
Upon completion of the trade, Reinprecht signed a three year contract with the Panthers averaging just a little over $2 million per season. Since coming to Phoenix in a deadline deal with Calgary in 2005, he had been a useful player who provided leadership and versatility. The 33-year-old went 14-27-41 last year despite missing a month with a shoulder injury. It’s worth noting that his absence from the lineup coincided with the Coyotes February swoon that cost the team any chance at a playoff spot.
Update: Our AHL correspondent (who happens to be in Rochester) tells us that Myers is a good team guy, but only a little above average player for the AHL level. He questions whether Myers can ever be a full time NHLer. Myers has been in Rochester a long time and might've gotten a little stale. Even so, he's still young and maybe with a change of scene and another year older, he might be ready to take another step up.
Thursday, June 18, 2009
Win. Now.
Yes, the Coyotes have committed to youth. Yes, they have traded veteran chips for younger assets in each of the last two seasons. And yes, they have not only loaded up on youngsters, they’ve played the kids and allowed them to get valuable NHL experience.
In fact, last year the Coyotes routinely played a minimum of 10 players with 2 or less years experience in the league. Phoenix iced the second youngest team in the league last season.
But now the team is in a quandary. Like it or not, this is a win now team. New owners, old owners or for that matter any owners cannot stand another $30 million dollar bloodbath. The only way to fix the financial condition of the team is to win. Now. Until the team on the ice turns the corner, the turnout in the stands will not materialize. No uptick in fan support and we’ll see more summers of wondering whether this team is here for the long haul.
Oh and by the way Don Maloney, you can spend to the salary cap floor. And be sure and get league approval before you make any long term contract commitments.
Gee, thanks.
If you read yesterday’s entry, you know that Maloney has somewhere in the neighborhood of $5-6million to get the two things the Coyotes really need – a high end goal scorer and a top 4 defenseman.
Oy.
So how do they do it?
Well, for starters this is not business as usual. It’s great that the Coyotes have the #6 and #36 pick in this draft. It’s great that they have Calgary’s #1 next year. And Philadelphia’s #2 the year after. Because they will need every one of those assets.
And free agency may or may not help. The uncertainty surrounding the team and the questions about whether there will be long term commitments available may make this a tougher sell. Derek Morris is the most obvious candidate but whether or not he will be affordable is a question.
The Coyotes brain trust needs to think outside of the box. Way outside of the box. Picking the best player available is a nice, safe strategy. It may set the next management team up for success.
So how do the Coyotes stay true to their (current) principles and win now?
Here are a few suggestions…
1. Trade assets, including draft picks for restricted free agents. There’s an interesting dynamic at play in the NHL right now. With so many teams bumping up against the cap, some very good young players may not be affordable to their current teams. Two very capable assets that are rumored to be available are 21 year-old (and 36 goal scorer) Phil Kessel of the Boston Bruins and 23-year-old defenseman Cam Barker of the Chicago Blackhawks.
Both players would fill glaring needs for the Yotes. Kessel is a dynamic goal scorer. Barker hasn’t been all that was hoped for when he was picked 3rd in the draft a few years ago but he contributes on offense (49 points) can run a power play and still has plenty of development time to round out his game.
Both of these players will come with a big ticket. Kessel will want a contract close to $4 million and Barker likely will be in the $2-2.5 million range. Their current teams will also extract a heavy cost in assets, likely draft choices and possibly some current roster players. Prospects like Maxim Goncharov and Chris Summers could also be in play.
Normally trading draft choices is verboten for a rebuilding team. But this is a win now team. Let's say you trade your 1st round pick for Kessel. You’ve added a proven young asset. You can only hope the draft pick turns out as good. That’s one way to be on strategy by continuing to build with youth but it would also dramatically help your chances of winning now.
There’s a lucky strike extra here too. The off-ice buzz this kind of dramatic move would generate could only help the franchise sell tickets.
2. Move Ed Jovanoski. Well, not so fast. Even though he’s doesn’t play up to his paycheck ($6.5 million) he’s still a quality top pair defenseman in the league. He would have to be replaced with a similar caliber player that carries a lower ticket. He could potentially be packaged in one of two ways.
Let’s say that a team below the Coyotes covets a certain player in the draft. Oh, for instance the Toronto Maple Leafs. Picking at 7th, the Leafs could swap picks and defensemen with the Yotes. Jovo goes to Toronto and Tomas Kaberle comes to the desert. It’s pretty much a talent wash but the Coyotes would get about $2 million in salary relief.
Or a team like the Philadelphia Flyers could come into play here. The Flyers desperately need a top pair defenseman and they want to move salary. They may target Florida’s UFA Jay Bouwmeester. If that fails perhaps they would be interested in moving some salary (the oft rumored Joffrey Lupul) and a talented defenseman (Matt Carle?) for Jovo. The Flyers get the top pair defenseman they want and move salary in the process. The Coyotes get two quality players for the cost of one and a half.
Of course, Jovo has a no-trade agreement that will have to be waived. Considering he is really the only bad contract the Coyotes own, I wouldn’t be surprised if Don Maloney hasn’t already visited with him and his representation about this possibility.
3. Take salary AND get assets in a trade. Give is your contracted, your rich, your huddled masses…
A few years ago, the San Jose Sharks obtained a 1st draft choice from the New Jersey Devils to take players off their hands so that the Devils could get under the cap. That could happen again this year. It’s possible that teams may approach the Coyotes and offer players and sweeten the pot with “future considerations” if they would take a bad contract. The problem with this route is that the contracts offered may be really long and really bad. This will be an option but don’t get too excited. There won’t be much value here.
4. And finally, there’s good old fashioned trading. Assert for asset. Most likely the reverse of last year’s Keith Ballard-Olli Jokinen trade with the Coyotes seeking help on defense in exchange for a forward.
Maloney's former employer, the New York Rangers, have long been one of Maloney's favorite trading partners. That pattern could continue this off season. One of the Coyotes biggest needs is are right handed shooting defensemen. The Rangers have 6 on their NHL roster and could be interested in moving one to fill some of their glaring holes on the wing.
If we are talking a talent for talent swap here, something along the lines of a Viktor Tikhonov for Bobby Sanguinetti trade could be possible. The Rangers need good young forwards. Sanguinetti was a former first round choice of Maloney's in New York, who is considered to be NHL ready after an impressive rookie season in the American Hockey League. Both teams fill a real need with players drafted in similar positions and each one year into their entry level contract.
It’s a real challenging problem. Stay true to youth. Build a franchise foundation. And, oh yes, win now! It will challenge Don Maloney in ways he never imagined when he took this job. And as the Coyotes face the most important summer ever, his work will go a long way to determining whether the team will succeed next year on and off the ice.
In fact, last year the Coyotes routinely played a minimum of 10 players with 2 or less years experience in the league. Phoenix iced the second youngest team in the league last season.
But now the team is in a quandary. Like it or not, this is a win now team. New owners, old owners or for that matter any owners cannot stand another $30 million dollar bloodbath. The only way to fix the financial condition of the team is to win. Now. Until the team on the ice turns the corner, the turnout in the stands will not materialize. No uptick in fan support and we’ll see more summers of wondering whether this team is here for the long haul.
Oh and by the way Don Maloney, you can spend to the salary cap floor. And be sure and get league approval before you make any long term contract commitments.
Gee, thanks.
If you read yesterday’s entry, you know that Maloney has somewhere in the neighborhood of $5-6million to get the two things the Coyotes really need – a high end goal scorer and a top 4 defenseman.
Oy.
So how do they do it?
Well, for starters this is not business as usual. It’s great that the Coyotes have the #6 and #36 pick in this draft. It’s great that they have Calgary’s #1 next year. And Philadelphia’s #2 the year after. Because they will need every one of those assets.
And free agency may or may not help. The uncertainty surrounding the team and the questions about whether there will be long term commitments available may make this a tougher sell. Derek Morris is the most obvious candidate but whether or not he will be affordable is a question.
The Coyotes brain trust needs to think outside of the box. Way outside of the box. Picking the best player available is a nice, safe strategy. It may set the next management team up for success.
So how do the Coyotes stay true to their (current) principles and win now?
Here are a few suggestions…
1. Trade assets, including draft picks for restricted free agents. There’s an interesting dynamic at play in the NHL right now. With so many teams bumping up against the cap, some very good young players may not be affordable to their current teams. Two very capable assets that are rumored to be available are 21 year-old (and 36 goal scorer) Phil Kessel of the Boston Bruins and 23-year-old defenseman Cam Barker of the Chicago Blackhawks.
Both players would fill glaring needs for the Yotes. Kessel is a dynamic goal scorer. Barker hasn’t been all that was hoped for when he was picked 3rd in the draft a few years ago but he contributes on offense (49 points) can run a power play and still has plenty of development time to round out his game.
Both of these players will come with a big ticket. Kessel will want a contract close to $4 million and Barker likely will be in the $2-2.5 million range. Their current teams will also extract a heavy cost in assets, likely draft choices and possibly some current roster players. Prospects like Maxim Goncharov and Chris Summers could also be in play.
Normally trading draft choices is verboten for a rebuilding team. But this is a win now team. Let's say you trade your 1st round pick for Kessel. You’ve added a proven young asset. You can only hope the draft pick turns out as good. That’s one way to be on strategy by continuing to build with youth but it would also dramatically help your chances of winning now.
There’s a lucky strike extra here too. The off-ice buzz this kind of dramatic move would generate could only help the franchise sell tickets.
2. Move Ed Jovanoski. Well, not so fast. Even though he’s doesn’t play up to his paycheck ($6.5 million) he’s still a quality top pair defenseman in the league. He would have to be replaced with a similar caliber player that carries a lower ticket. He could potentially be packaged in one of two ways.
Let’s say that a team below the Coyotes covets a certain player in the draft. Oh, for instance the Toronto Maple Leafs. Picking at 7th, the Leafs could swap picks and defensemen with the Yotes. Jovo goes to Toronto and Tomas Kaberle comes to the desert. It’s pretty much a talent wash but the Coyotes would get about $2 million in salary relief.
Or a team like the Philadelphia Flyers could come into play here. The Flyers desperately need a top pair defenseman and they want to move salary. They may target Florida’s UFA Jay Bouwmeester. If that fails perhaps they would be interested in moving some salary (the oft rumored Joffrey Lupul) and a talented defenseman (Matt Carle?) for Jovo. The Flyers get the top pair defenseman they want and move salary in the process. The Coyotes get two quality players for the cost of one and a half.
Of course, Jovo has a no-trade agreement that will have to be waived. Considering he is really the only bad contract the Coyotes own, I wouldn’t be surprised if Don Maloney hasn’t already visited with him and his representation about this possibility.
3. Take salary AND get assets in a trade. Give is your contracted, your rich, your huddled masses…
A few years ago, the San Jose Sharks obtained a 1st draft choice from the New Jersey Devils to take players off their hands so that the Devils could get under the cap. That could happen again this year. It’s possible that teams may approach the Coyotes and offer players and sweeten the pot with “future considerations” if they would take a bad contract. The problem with this route is that the contracts offered may be really long and really bad. This will be an option but don’t get too excited. There won’t be much value here.
4. And finally, there’s good old fashioned trading. Assert for asset. Most likely the reverse of last year’s Keith Ballard-Olli Jokinen trade with the Coyotes seeking help on defense in exchange for a forward.
Maloney's former employer, the New York Rangers, have long been one of Maloney's favorite trading partners. That pattern could continue this off season. One of the Coyotes biggest needs is are right handed shooting defensemen. The Rangers have 6 on their NHL roster and could be interested in moving one to fill some of their glaring holes on the wing.
If we are talking a talent for talent swap here, something along the lines of a Viktor Tikhonov for Bobby Sanguinetti trade could be possible. The Rangers need good young forwards. Sanguinetti was a former first round choice of Maloney's in New York, who is considered to be NHL ready after an impressive rookie season in the American Hockey League. Both teams fill a real need with players drafted in similar positions and each one year into their entry level contract.
It’s a real challenging problem. Stay true to youth. Build a franchise foundation. And, oh yes, win now! It will challenge Don Maloney in ways he never imagined when he took this job. And as the Coyotes face the most important summer ever, his work will go a long way to determining whether the team will succeed next year on and off the ice.
Wednesday, June 17, 2009
I'd Rather Be Talking About Hockey
Isn’t it a pleasure to spend some time talking about hockey?
As the Coyotes get ready for the NHL draft and free agency, I thought a good place to start would be a review of the Coyotes salary cap situation and the internal decisions they will need to make over the next few weeks. Since the Coyotes are still technically bankrupt, they are controlled by agreement between the NHL and the Moyes camp. Of course, the NHL is footing the bills but a player budget will have to be agreed upon by both sides. One can probably assume that until a new owner is in place, the team will be spending at or near the salary cap floor. While the NHL has stood firm for Phoenix, there is a definite limit to their largesse.
The NHL salary structure capped all teams at a $56.7 Million payroll in 2008-09. The amount is unlikely to change in 2009-10 and it will likely slide backwards in 2010-11. The cap structure also requires teams to spend to a salary cap floor, which was $40.7 million in 2008-09.
At the trading deadline, Coyote GM Don Maloney made a number of moves that changed the makeup, culture and payroll of the Coyotes. Maloney’s efforts did not go unnoticed. Toronto Maple Leafs GM Brian Burke called Maloney “the first star” of the trading deadline. According to Burke, Maloney gave himself “tremendous salary cap flexibility” that could turn out to be an asset in the trading activity that surrounds the draft.
The Coyotes have 16 players who played all or most of the season in the NHL under contract for 2009-2010. That group accounts for a base salary cap hit of $29.4 Million Dollars. In addition, the Yotes are still carrying a $700K annual buyout payment to former player Dave Scatchard.
Here are the players under contract…
6 players have the potential to earn an additional $3.9 million in entry level contract bonuses. This money includes signing, games played and performance bonuses. For the purposes of the salary cap, only signing bonuses and games played bonuses (when reached) can be counted against the cap. So if you are building an annual budget, it makes sense to start at the base cap salaries.
The Yotes have 8 restricted free agents on their roster – Keith Yandle, Scott Upshall, Enver Lisin, Nigel Dawes, Petr Prucha, Josh Tordjman, Dan Winnik, Joakim Lindstrom and Brian McGrattan.
Yandle and Upshall will definitely be qualified and should expect contracts in the $1.6-1.7 range. Don Maloney has stated he wants to sign Lisin to a 2-way contract but he is also expected to have an offer from a Russian KHL team. Best case – about an $800K NHL salary. Prucha won’t be qualified but he may be willing to sign for less than the $1.6MM he made last year. He could also end up in the KHL with fellow Czech and former New York Ranger teammate Jaromir Jagr. Dawes and Lindstrom may or may not be qualified. They are inexpensive assets but both are little more than depth players. McGrattan won’t be back and Winnik will at best get a 2-way contract.
So with Yandle and Upshall in for $3.5MM total and either Prucha or Lisin at $800K-$1 Million, that brings the payout for 19 players to about $33.8 million. That leaves about $7 million for free agents.
Steven Reinprecht was a team leader last year and a reliable player. $2 million is probably too pricey for a return engagement but he may be willing to sign for less money. Let’s say $1.5MM. Ken Klee was an excellent pickup and mentor on defense for $625K. He could be back at the same money. Dimitri Kalinin is unlikely to return.
Soooo…if you agree to this point, the Coyotes would have spent approx. $36 million on 21 players. That leaves approx $5.7 million and some large holes to fill. Tomorrow, I’ll look at some of the Coyotes options to fill out their roster with free agents, trades and draft day maneuvering.
As the Coyotes get ready for the NHL draft and free agency, I thought a good place to start would be a review of the Coyotes salary cap situation and the internal decisions they will need to make over the next few weeks. Since the Coyotes are still technically bankrupt, they are controlled by agreement between the NHL and the Moyes camp. Of course, the NHL is footing the bills but a player budget will have to be agreed upon by both sides. One can probably assume that until a new owner is in place, the team will be spending at or near the salary cap floor. While the NHL has stood firm for Phoenix, there is a definite limit to their largesse.
The NHL salary structure capped all teams at a $56.7 Million payroll in 2008-09. The amount is unlikely to change in 2009-10 and it will likely slide backwards in 2010-11. The cap structure also requires teams to spend to a salary cap floor, which was $40.7 million in 2008-09.
At the trading deadline, Coyote GM Don Maloney made a number of moves that changed the makeup, culture and payroll of the Coyotes. Maloney’s efforts did not go unnoticed. Toronto Maple Leafs GM Brian Burke called Maloney “the first star” of the trading deadline. According to Burke, Maloney gave himself “tremendous salary cap flexibility” that could turn out to be an asset in the trading activity that surrounds the draft.
The Coyotes have 16 players who played all or most of the season in the NHL under contract for 2009-2010. That group accounts for a base salary cap hit of $29.4 Million Dollars. In addition, the Yotes are still carrying a $700K annual buyout payment to former player Dave Scatchard.
Here are the players under contract…
6 players have the potential to earn an additional $3.9 million in entry level contract bonuses. This money includes signing, games played and performance bonuses. For the purposes of the salary cap, only signing bonuses and games played bonuses (when reached) can be counted against the cap. So if you are building an annual budget, it makes sense to start at the base cap salaries.The Yotes have 8 restricted free agents on their roster – Keith Yandle, Scott Upshall, Enver Lisin, Nigel Dawes, Petr Prucha, Josh Tordjman, Dan Winnik, Joakim Lindstrom and Brian McGrattan.
Yandle and Upshall will definitely be qualified and should expect contracts in the $1.6-1.7 range. Don Maloney has stated he wants to sign Lisin to a 2-way contract but he is also expected to have an offer from a Russian KHL team. Best case – about an $800K NHL salary. Prucha won’t be qualified but he may be willing to sign for less than the $1.6MM he made last year. He could also end up in the KHL with fellow Czech and former New York Ranger teammate Jaromir Jagr. Dawes and Lindstrom may or may not be qualified. They are inexpensive assets but both are little more than depth players. McGrattan won’t be back and Winnik will at best get a 2-way contract.
So with Yandle and Upshall in for $3.5MM total and either Prucha or Lisin at $800K-$1 Million, that brings the payout for 19 players to about $33.8 million. That leaves about $7 million for free agents.
Steven Reinprecht was a team leader last year and a reliable player. $2 million is probably too pricey for a return engagement but he may be willing to sign for less money. Let’s say $1.5MM. Ken Klee was an excellent pickup and mentor on defense for $625K. He could be back at the same money. Dimitri Kalinin is unlikely to return.
Soooo…if you agree to this point, the Coyotes would have spent approx. $36 million on 21 players. That leaves approx $5.7 million and some large holes to fill. Tomorrow, I’ll look at some of the Coyotes options to fill out their roster with free agents, trades and draft day maneuvering.
Tuesday, June 16, 2009
A Sigh of Relief
The news today is good. Judge Redfield “Tom” Baum ruled against the Moyes/Balsillie motion that would have forced the bankrupt team to auction next Monday. The team will remain in Phoenix for the near term and under the agreement between Moyes and the NHL, it will likely be auctioned sometime in September. An auction that the NHL hopes will bring new local ownership that will stabilize the franchise for years to come.
The ruling is a big win for the NHL and Phoenix hockey fans. The league argued that the bid was an attempt to circumvent the league rules on where teams play and franchise ownership. The court clearly sided with the NHL on franchise relocation. “Simply put, the court disagrees with the assertions by the Debtors and PSE that the relocation requirement can be excised from the contract”, said the Judge. It did not address the franchise ownership issue directly but implied that the league has the right to approve ownership groups.
So for now, Mr. Balsillie can consider the side door closed. Slammed in his face might be a better description.
And pardon us if we enjoy a laugh at some of the self serving spin coming out of Canada today. “A setback, not a defeat” according to Team Balsillie. As Shane Doan might say (in those annoying Desert School commercials) “Really”?
The entire decision goes into much richer detail. And it refutes the Moyes/Balsillie contentions at most every point. You can read it here...
http://multimedia.thestar.com/acrobat/58/ef/9fa676434959a4de525fe6a8a7c3.pdf
Judge Tom did throw Jim Balsillie a bone by saying that since he was already approved by the league as an owner in 2007 (and unless things had dramatically changed) it would be no less than good faith to assume that he would be approved today. “Absent… material changes in PSE’s conditions since 2006, it appears to the court that the NHL cannot object or withhold its’ consent to PSE becoming the controlling owner of the Phoenix Coyotes.”, he said. I wonder if challenging the league in court and trying to circumvent league rules might constitute a change in circumstances.
Woven through Judge Tom’s bankruptcy decision was plenty of homespun advice to all parties.
For Jerry Moyes, there was a very pointed message. You signed up to be a member of the NHL. You agreed to play by these rules. And your filings were late, in some cases incomplete and did not comply with league rules.
For the NHL, it was a message that while today’s ruling pretty much guaranteed that the Coyotes will stay this season in Phoenix, the future of the franchise is still murky. The team will be auctioned off in the future. And the Judge also made it clear that moving a franchise has not “wreaked havoc” on professional sports leagues. That argument won’t work here.
And Glendale, the big winner in yesterday’s ruling can take some solace in the judges’ words. “It is proper for the court to refuse to authorize rejection of an executor contract where the party whose contract is to be rejected would be damaged disproportionately to any benefit to be derived by the general creditors.” The judge, however, went on to chastise Glendale for a less than complete accounting of the general creditors. Nevertheless, he made his point loud and clear. Breaking this contract will take a lot. That’s probably the best news for the long term prospects of the franchise.
So today, the Coyotes live. It’s hardly a clean bill of health but for it sure beats the alternatives. Like most big wins in the hockey, the franchise needs to build on this win. Simply getting a stay of execution is not enough. The organization needs to make big changes in the on-ice product, off-ice marketing and slash organizational expenses to make certain that hockey grows its’ appeal in Phoenix. It’s good to get one win under your belt. Now the organization and the NHL need to think about closing out the series.
Always keeping in mind that the last win of any series is always the hardest.
The ruling is a big win for the NHL and Phoenix hockey fans. The league argued that the bid was an attempt to circumvent the league rules on where teams play and franchise ownership. The court clearly sided with the NHL on franchise relocation. “Simply put, the court disagrees with the assertions by the Debtors and PSE that the relocation requirement can be excised from the contract”, said the Judge. It did not address the franchise ownership issue directly but implied that the league has the right to approve ownership groups.
So for now, Mr. Balsillie can consider the side door closed. Slammed in his face might be a better description.
And pardon us if we enjoy a laugh at some of the self serving spin coming out of Canada today. “A setback, not a defeat” according to Team Balsillie. As Shane Doan might say (in those annoying Desert School commercials) “Really”?
The entire decision goes into much richer detail. And it refutes the Moyes/Balsillie contentions at most every point. You can read it here...
http://multimedia.thestar.com/acrobat/58/ef/9fa676434959a4de525fe6a8a7c3.pdf
Judge Tom did throw Jim Balsillie a bone by saying that since he was already approved by the league as an owner in 2007 (and unless things had dramatically changed) it would be no less than good faith to assume that he would be approved today. “Absent… material changes in PSE’s conditions since 2006, it appears to the court that the NHL cannot object or withhold its’ consent to PSE becoming the controlling owner of the Phoenix Coyotes.”, he said. I wonder if challenging the league in court and trying to circumvent league rules might constitute a change in circumstances.
Woven through Judge Tom’s bankruptcy decision was plenty of homespun advice to all parties.
For Jerry Moyes, there was a very pointed message. You signed up to be a member of the NHL. You agreed to play by these rules. And your filings were late, in some cases incomplete and did not comply with league rules.
For the NHL, it was a message that while today’s ruling pretty much guaranteed that the Coyotes will stay this season in Phoenix, the future of the franchise is still murky. The team will be auctioned off in the future. And the Judge also made it clear that moving a franchise has not “wreaked havoc” on professional sports leagues. That argument won’t work here.
And Glendale, the big winner in yesterday’s ruling can take some solace in the judges’ words. “It is proper for the court to refuse to authorize rejection of an executor contract where the party whose contract is to be rejected would be damaged disproportionately to any benefit to be derived by the general creditors.” The judge, however, went on to chastise Glendale for a less than complete accounting of the general creditors. Nevertheless, he made his point loud and clear. Breaking this contract will take a lot. That’s probably the best news for the long term prospects of the franchise.
So today, the Coyotes live. It’s hardly a clean bill of health but for it sure beats the alternatives. Like most big wins in the hockey, the franchise needs to build on this win. Simply getting a stay of execution is not enough. The organization needs to make big changes in the on-ice product, off-ice marketing and slash organizational expenses to make certain that hockey grows its’ appeal in Phoenix. It’s good to get one win under your belt. Now the organization and the NHL need to think about closing out the series.
Always keeping in mind that the last win of any series is always the hardest.
Sunday, June 14, 2009
Tick, Tick, Tick
The earliest we will be hearing from Judge Tom is Monday June 15th. If he were to rule in favor of the Moyes-Balsillie arguments in the Coyotes bankruptcy hearing, the team would be auctioned off on Monday June 22nd.
Of course, that assumes nothing gets in the way of the bankruptcy decision and the auction. And "nothing" is not a likely outcome.
If Judge Tom (and we now have confirmed that's what he likes to be called) drops a Baumshell says the auction is on, then there will likely be two immediate appeals (the NHL and The City of Glendale) and the possibility of additional flanker lawsuits from involved parties like ARAMARK. In the cases of the NHL and Glendale, appeals to the 9th District Court of Appeals will almost surely ask for injunctions against the auction based on all of the the legal issues that have been catalogued here and elsewhere.
Which puts this entire debate squarely on the clock. The auction is scheduled in 7 days. The NHL draft is in 12 days. Free agency opens 5 days after the draft. And the NHL schedule is traditionally announced right after the 4th of July. (It is in fact completed) And Judge Tom is leaving on vacation a week from Tuesday.
So?
Well, I think that the good Judge has clearly helped the short term hand of the NHL by delaying the decision until at least Monday. He knows there will be appeals and injunctions. He knows that getting all issues cleared so that there can be an auction in 7 days is highly unlikely. And he knows that the Balsillie bid could expire, although no one really expects him to stop chasing the team. He also knows that the NHL has offered to fund the team until a September auction can be held.
And for all we know, he may have decided that the thought of having an auction on June 22nd simply isn't going to work.
Some Canadian reporters have speculated that the judge may be making time for the two sides to reach a negotiated settlement. That's highly unlikely. If there were talks underway, it would have been leaked to the Canadian press by now. And any negotiation that would move the team would still be subject to the full wrath of Glendale and their lawyers. No one is going to work a deal with them.
And he also knows that there are antitrust implications. The league would likely vote quickly to deny the franchise transfer. That would only set off more court battles and a less swift recovery for the creditors.
The logical explanation is that The Judge has decided to delay the auction to September. The Judge knows that the asset is not going to lose value. And he also knows the NHL will fund the team until a new owner is found. Whether or not he sides with Moyes/Balsillie or the NHL, he also knows that any decision to conduct the auction next Monday will be appealed and likely delayed by injunction.
Of course, any time a lay man (or in this case, a blogger) decides to interpret the law and predict what judges are going to do, it comes with no guarantee.
So for now, we wait. I would much rather be writing about the very interesting draft, free agent and trade market that will open later this week. Hopefully we can get on to that by the middle of the week.
Of course, that assumes nothing gets in the way of the bankruptcy decision and the auction. And "nothing" is not a likely outcome.
If Judge Tom (and we now have confirmed that's what he likes to be called) drops a Baumshell says the auction is on, then there will likely be two immediate appeals (the NHL and The City of Glendale) and the possibility of additional flanker lawsuits from involved parties like ARAMARK. In the cases of the NHL and Glendale, appeals to the 9th District Court of Appeals will almost surely ask for injunctions against the auction based on all of the the legal issues that have been catalogued here and elsewhere.
Which puts this entire debate squarely on the clock. The auction is scheduled in 7 days. The NHL draft is in 12 days. Free agency opens 5 days after the draft. And the NHL schedule is traditionally announced right after the 4th of July. (It is in fact completed) And Judge Tom is leaving on vacation a week from Tuesday.
So?
Well, I think that the good Judge has clearly helped the short term hand of the NHL by delaying the decision until at least Monday. He knows there will be appeals and injunctions. He knows that getting all issues cleared so that there can be an auction in 7 days is highly unlikely. And he knows that the Balsillie bid could expire, although no one really expects him to stop chasing the team. He also knows that the NHL has offered to fund the team until a September auction can be held.
And for all we know, he may have decided that the thought of having an auction on June 22nd simply isn't going to work.
Some Canadian reporters have speculated that the judge may be making time for the two sides to reach a negotiated settlement. That's highly unlikely. If there were talks underway, it would have been leaked to the Canadian press by now. And any negotiation that would move the team would still be subject to the full wrath of Glendale and their lawyers. No one is going to work a deal with them.
And he also knows that there are antitrust implications. The league would likely vote quickly to deny the franchise transfer. That would only set off more court battles and a less swift recovery for the creditors.
The logical explanation is that The Judge has decided to delay the auction to September. The Judge knows that the asset is not going to lose value. And he also knows the NHL will fund the team until a new owner is found. Whether or not he sides with Moyes/Balsillie or the NHL, he also knows that any decision to conduct the auction next Monday will be appealed and likely delayed by injunction.
Of course, any time a lay man (or in this case, a blogger) decides to interpret the law and predict what judges are going to do, it comes with no guarantee.
So for now, we wait. I would much rather be writing about the very interesting draft, free agent and trade market that will open later this week. Hopefully we can get on to that by the middle of the week.
Thursday, June 11, 2009
Remember, Glendale's Got (Skin In The) Game
Overshadowed by the discussion of a relocation fee was the arguments from the City of Glendale at Tuesday's hearing. From most available accounts, the attorneys representing the City made an impassioned and eloquent case why the arena lease should not be tossed out in bankruptcy.
Which leads us to an interesting place.
If Judge Baum (Tom to you and me) decides that the asset is mobile and he forces the parties to set a relocation fee, either by arbitration or negotiation, that in effect means that the franchise could be moved. And while it may or may not determine movement, it would indicate that the judge intends to set aside the Glendale lease. That set aside would come with some level of damages but the return to the city could be negligible.
So if the judge moves us to a "portable" phase, does that mean that Glendale has in effect lost their contention that the lease is ironclad and the franchise is not portable? And if that's the case. what's to keep the City from appealing the decision at that point?
I'm sure that the lawyers representing both the City and the NHL are working closely on this case. It would seem that Glendale may well use this decision as a jumping off point to start a legal appeal in the 9th District Court of Appeals. And probably seek an injunction to stop any sale that would move the asset out of Glendale.
Don't for a minute think Glendale is going to take this decision sitting down. They will independently and aggressively seek to have the lease enforced. The only question I see is timing. If Glendale sees the initial judgement as vacating the lease, I wonder why they would wait to start the appeals process.
Remember that Judge Tom is not available from June 23rd to July 5th. If the Coyotes auction is not settled by June 30th, the Balsillie offer expires. Running out the clock is more closely associated with basketball than hockey but hey, this is a game, isn't it?
And Tom, have a nice vacation. Be sure to write.
Which leads us to an interesting place.
If Judge Baum (Tom to you and me) decides that the asset is mobile and he forces the parties to set a relocation fee, either by arbitration or negotiation, that in effect means that the franchise could be moved. And while it may or may not determine movement, it would indicate that the judge intends to set aside the Glendale lease. That set aside would come with some level of damages but the return to the city could be negligible.
So if the judge moves us to a "portable" phase, does that mean that Glendale has in effect lost their contention that the lease is ironclad and the franchise is not portable? And if that's the case. what's to keep the City from appealing the decision at that point?
I'm sure that the lawyers representing both the City and the NHL are working closely on this case. It would seem that Glendale may well use this decision as a jumping off point to start a legal appeal in the 9th District Court of Appeals. And probably seek an injunction to stop any sale that would move the asset out of Glendale.
Don't for a minute think Glendale is going to take this decision sitting down. They will independently and aggressively seek to have the lease enforced. The only question I see is timing. If Glendale sees the initial judgement as vacating the lease, I wonder why they would wait to start the appeals process.
Remember that Judge Tom is not available from June 23rd to July 5th. If the Coyotes auction is not settled by June 30th, the Balsillie offer expires. Running out the clock is more closely associated with basketball than hockey but hey, this is a game, isn't it?
And Tom, have a nice vacation. Be sure to write.
Tuesday, June 9, 2009
Everybody Has Their Price
Yesterday I suggested that no one really knew what to expect at today’s bankruptcy hearing. You knew, just knew that there was something, somewhere buried in the legal avalanche that would spice up the proceedings.
Well that something came in the form of a “relocation fee” that the NHL indicated it would charge should the franchise be moved to a different market.
After losing their attempt to stop the Raiders 1985 move to Los Angeles the NFL got a pound of flesh from the Raiders by charging a relocation fee. The NHL followed their lead and included in their brief to Judge Baum their intention to charge this fee if the franchise were moved. The dollar figure was blacked out in the legal documents that were provided to the press but a Balsillie lawyer blurted it out while addressing the court.
$100 Million Dollars.
Oh, and that is apparently only an estimate. The Balsillie camp says that’s an estimate that can be negotiated down. I wouldn’t bet on that. Estimates can also be negotiated up.
The NHL put this in part to reduce the amount of money that would be returned to creditors if the Balsillie offer is accepted. Think of it this way – Balsillie offers an inflated price for the asset because he knows a Southern Ontario franchise is worth more than a Phoenix franchise. The NHL counters by saying we are going to add a relocation fee to flatten (or even tilt) the playing field. It takes away any advantage Balsillie had gained by offering to overpay for the asset.
Judge Tom Baum (his friends call him Tom and how many people do you know go by Redfield?) seemed fixated on the relocation fee. Put a number on it. Negotiate it. See if Jim Balsillie wants to open up his wallet for another $100 million or so. It was your idea, NHL, now let’s talk about it.
Put a number out in the stratosphere and even your garden variety billionaire might pick up his pucks and go home.
This could prove to be the turd in the punch bowl that spoils the Moyes-Balsillie party. The relocation fee would be charged by the NHL. As a secured creditor, they go to the front of the line. It would potentially reduce or even eliminate the amount of money that would be available to pay Jerry Moyes. All of a sudden that lowball offer from Jerry Reinsdorf may start looking pretty good.
Conversely, there’s a real risk when you put a price on something. A few years ago Microsoft wanted to license the song “Start Me Up” to introduce their Windows product. Yeah right, said Mick Jagger. How about $12 million dollars Mr. Gates? Well, sure…what’s $12 million when you’re worth $50 billion? It’s all relative, isn’t it?
The optimist in me says that the NHL , in addition to the relocation fee, will likely remind everyone that should not be confused with a territorial rights fee that will undoubtedly by demanded by the Toronto Maple Leafs and Buffalo Sabres. That will run the tab even higher.
Of course, there’s another darker way to view all of this. There seems to be just a little less steely resolve coming from the NHL right now. Maybe they are just a little less committed to keeping the Coyotes in Phoenix. Once there’s a price on relocating the team, it’s possible other potential owners and locales may surface, For instance, Jerry Bruckheimer in Las Vegas.
There used to be a wrestler who went around saying everyone has their price. Through his schemes and tricks he ultimately proved, everyone did have their price.
That’s an ominous thought right now. Because if the NHL has their price, someone may just, just be willing to pay it.
(Be back with more later including a POV on Glendale’s impassioned plea for the team)
Well that something came in the form of a “relocation fee” that the NHL indicated it would charge should the franchise be moved to a different market.
After losing their attempt to stop the Raiders 1985 move to Los Angeles the NFL got a pound of flesh from the Raiders by charging a relocation fee. The NHL followed their lead and included in their brief to Judge Baum their intention to charge this fee if the franchise were moved. The dollar figure was blacked out in the legal documents that were provided to the press but a Balsillie lawyer blurted it out while addressing the court.
$100 Million Dollars.
Oh, and that is apparently only an estimate. The Balsillie camp says that’s an estimate that can be negotiated down. I wouldn’t bet on that. Estimates can also be negotiated up.
The NHL put this in part to reduce the amount of money that would be returned to creditors if the Balsillie offer is accepted. Think of it this way – Balsillie offers an inflated price for the asset because he knows a Southern Ontario franchise is worth more than a Phoenix franchise. The NHL counters by saying we are going to add a relocation fee to flatten (or even tilt) the playing field. It takes away any advantage Balsillie had gained by offering to overpay for the asset.
Judge Tom Baum (his friends call him Tom and how many people do you know go by Redfield?) seemed fixated on the relocation fee. Put a number on it. Negotiate it. See if Jim Balsillie wants to open up his wallet for another $100 million or so. It was your idea, NHL, now let’s talk about it.
Put a number out in the stratosphere and even your garden variety billionaire might pick up his pucks and go home.
This could prove to be the turd in the punch bowl that spoils the Moyes-Balsillie party. The relocation fee would be charged by the NHL. As a secured creditor, they go to the front of the line. It would potentially reduce or even eliminate the amount of money that would be available to pay Jerry Moyes. All of a sudden that lowball offer from Jerry Reinsdorf may start looking pretty good.
Conversely, there’s a real risk when you put a price on something. A few years ago Microsoft wanted to license the song “Start Me Up” to introduce their Windows product. Yeah right, said Mick Jagger. How about $12 million dollars Mr. Gates? Well, sure…what’s $12 million when you’re worth $50 billion? It’s all relative, isn’t it?
The optimist in me says that the NHL , in addition to the relocation fee, will likely remind everyone that should not be confused with a territorial rights fee that will undoubtedly by demanded by the Toronto Maple Leafs and Buffalo Sabres. That will run the tab even higher.
Of course, there’s another darker way to view all of this. There seems to be just a little less steely resolve coming from the NHL right now. Maybe they are just a little less committed to keeping the Coyotes in Phoenix. Once there’s a price on relocating the team, it’s possible other potential owners and locales may surface, For instance, Jerry Bruckheimer in Las Vegas.
There used to be a wrestler who went around saying everyone has their price. Through his schemes and tricks he ultimately proved, everyone did have their price.
That’s an ominous thought right now. Because if the NHL has their price, someone may just, just be willing to pay it.
(Be back with more later including a POV on Glendale’s impassioned plea for the team)
Monday, June 8, 2009
Come Tuesday?
No one is really sure what to expect in tomorrow's bankruptcy court hearing.
The courts always look to past court decisions to see what precedent has been set in a specific type of court case. I remember asking one of my college professors (a long time ago in a land far, far away) exactly what happens when their is precedent supporting both sides of a court case. "That's when it gets interesting" he replied.
But in this case, it's not that easy. The NHL will cite the California Seals bankruptcy hearings from the early 1970s that sided with the NHL and the league constitution. The Moyes-Balsillie rebut will be what about the 1970 Seattle Pilots decision? The Moyes team is sure to invoke the Oakland-Los Angeles-Oakland Raiders journey through the courts. The NHL will counter with the aborted moves of the Ottawa Senators and St. Louis Blues, both of which were thwarted in the courts. And of course, the low profile player (with the most to lose here) Glendale, AZ will no doubt bring up the 1998 Pittsburgh Penguins bankruptcy where the arena lease was preserved much in the manner of a secured creditor.
The truth is that there is no absolute precedent so Judge Redfield T. Baum will be breaking new legal ground as he rules on the bankruptcy, probably later in the week.
There are many things to consider in advance of tomorrow's hearing. US Bankruptcy laws have undergone two major overhauls since the 1970s and the changes are so profound that older legal arguments may not be appropriate. All sports leagues revised their constitutions after the initial Raiders/NFL decision to close loopholes that might allow a team to move without league permission..
There are two key points that I expect will emerge as the focus of the hearing tomorrow.
The NHL constitution has all kinds of safeguards and legal remedies that the Coyotes ownership agreed to uphold as a member team. The constitution protects territorial rights, allows the league to control where teams play, seizes a team once the franchise is breached (as when the Coyotes were placed in bankruptcy) and gives the commissioner absolute power as the arbitrator of any disputes between member teams. If Judge Baum rules in favor of Moyes & Balsillie, he will essentially have to throw out the entire NHL Constitution. That's a lot to ask of a bankruptcy court and it will certainly trigger an appeal by the NHL that would be accompanied by injunctions against moving the franchise and appeals that would go on for months and possibly years. As Gary Bettman has been saying, "it's all about the rules".
And the second, less discussed key is the great city of Glendale, AZ. The city has brought in their own legal heavyweights to argue their position. They have quietly laid out a case that having the major tenant leave town would be a disaster for the arena, the city and the taxpayers. Don't forget the last point. Someone is going to foot a very large bill here if the Coyotes leave town. Judge Baum will get an earful about how local residents, his fellow Arizonans, will suffer if the Coyotes leave Phoenix. And he will be in the uncomfortable position of telling a lot of people that they will be suffering for a long time if he decides to maximize the return for the creditors.
On one hand, Judge Baum has said that the Moyes-Balsille deal is asking a lot (to throw out the structure of professional sports as we know it) of a bankruptcy judge. But he has also has noted that Balsillie is the only guy here who has showed up with real money.
When I first learned about casino gambling, I picked up a very important lesson. When given a choice, bet with the house,. not against the house. I think that taxpayers constitute the house here and I would bet that the NHL, with a very strong assist from Glendale prevails.
But I would also not be surprised in the least if the decision goes in favor of Moyes-Balsillie and legal process rocks on. And if that happens we'll be back to speculate some more.
Of course, with the draft 19 days away, we would prefer to turn our attention back to the rink.
The courts always look to past court decisions to see what precedent has been set in a specific type of court case. I remember asking one of my college professors (a long time ago in a land far, far away) exactly what happens when their is precedent supporting both sides of a court case. "That's when it gets interesting" he replied.
But in this case, it's not that easy. The NHL will cite the California Seals bankruptcy hearings from the early 1970s that sided with the NHL and the league constitution. The Moyes-Balsillie rebut will be what about the 1970 Seattle Pilots decision? The Moyes team is sure to invoke the Oakland-Los Angeles-Oakland Raiders journey through the courts. The NHL will counter with the aborted moves of the Ottawa Senators and St. Louis Blues, both of which were thwarted in the courts. And of course, the low profile player (with the most to lose here) Glendale, AZ will no doubt bring up the 1998 Pittsburgh Penguins bankruptcy where the arena lease was preserved much in the manner of a secured creditor.
The truth is that there is no absolute precedent so Judge Redfield T. Baum will be breaking new legal ground as he rules on the bankruptcy, probably later in the week.
There are many things to consider in advance of tomorrow's hearing. US Bankruptcy laws have undergone two major overhauls since the 1970s and the changes are so profound that older legal arguments may not be appropriate. All sports leagues revised their constitutions after the initial Raiders/NFL decision to close loopholes that might allow a team to move without league permission..
There are two key points that I expect will emerge as the focus of the hearing tomorrow.
The NHL constitution has all kinds of safeguards and legal remedies that the Coyotes ownership agreed to uphold as a member team. The constitution protects territorial rights, allows the league to control where teams play, seizes a team once the franchise is breached (as when the Coyotes were placed in bankruptcy) and gives the commissioner absolute power as the arbitrator of any disputes between member teams. If Judge Baum rules in favor of Moyes & Balsillie, he will essentially have to throw out the entire NHL Constitution. That's a lot to ask of a bankruptcy court and it will certainly trigger an appeal by the NHL that would be accompanied by injunctions against moving the franchise and appeals that would go on for months and possibly years. As Gary Bettman has been saying, "it's all about the rules".
And the second, less discussed key is the great city of Glendale, AZ. The city has brought in their own legal heavyweights to argue their position. They have quietly laid out a case that having the major tenant leave town would be a disaster for the arena, the city and the taxpayers. Don't forget the last point. Someone is going to foot a very large bill here if the Coyotes leave town. Judge Baum will get an earful about how local residents, his fellow Arizonans, will suffer if the Coyotes leave Phoenix. And he will be in the uncomfortable position of telling a lot of people that they will be suffering for a long time if he decides to maximize the return for the creditors.
On one hand, Judge Baum has said that the Moyes-Balsille deal is asking a lot (to throw out the structure of professional sports as we know it) of a bankruptcy judge. But he has also has noted that Balsillie is the only guy here who has showed up with real money.
When I first learned about casino gambling, I picked up a very important lesson. When given a choice, bet with the house,. not against the house. I think that taxpayers constitute the house here and I would bet that the NHL, with a very strong assist from Glendale prevails.
But I would also not be surprised in the least if the decision goes in favor of Moyes-Balsillie and legal process rocks on. And if that happens we'll be back to speculate some more.
Of course, with the draft 19 days away, we would prefer to turn our attention back to the rink.
Monday, June 1, 2009
The Dance
Gary Bettman and Jim Balsillie continue to posture. The Hockey Court of public opinion is open for business and the two primary protagonists in this battle for control of the Phoenix Coyotes (and the future of hockey in the desert) are using all of their public relation skills to build support for their positions.
Bettman has the bully pulpit of the commissioner to make sure that emotion and showmanship don't obscure the facts as he sees them. "From my standpoint, it's not personal," said Bettman in his state of the league speech before Saturday's Stanley Cup opener. "It's about league rules and it's about doing the right thing in terms of the stability of this game and this league."
"This is not just an NHL issue. This is not a Canada versus U.S. issue. This is not a Phoenix versus Hamilton issue."
The commissioner kept repeating that he had no personal problem with Jim Balsillie. It almost sound like that if he says it enough, even he might start believing it.
"The team was never in jeopardy," said Bettman. "It was literally 20 minutes away from being fixed in a way that we thought was going to work quite well. It's my view that the Coyotes should not be in bankruptcy."
Meanwhile, Balsillie continues his Obamaesque campaign to win the war of words. He's literally wrapped himself up in the Canadian flag as he touts the virtue of moving the Coyotes to Hamilton. Each day he has a new angle for the press to keep his name prominent in the news. From revamping the arena in Hamilton to filing a formal application to move the team to feeding the press more news about the issues in Phoenix, it's an impressive public relations campaign.
While Rim Jim has whipped up a lot of emotion in Canada, it's important to remember that the next decision in this case will be decided by an American judge in an Arizona courtroom. If the purpose of the Balsillie campaign is to pressure the NHL and its' member teams to soften their opposition, he's wasting his money. He may eventually get in the NHL door, but it is highly unlikely to be this door. A win for Jerry Moyes and Balsillie next week in bankruptcy court would only open the door for additional litigation that will drag on for years and years.
I'd love to see all of the energy and skilled manipulation of the press put to work in building hockey in Phoenix. If the team receives a reprise, then it's time for the city to show up and support the team. More than anything else, except perhaps a right handed defenseman, this team needs a cohesive and intelligent marketing and public relations campaign. You can fix problems. You cannot fix forever. Watching this dance is fun but after a while, it's going to get pretty old unless things start to change.
Bettman has the bully pulpit of the commissioner to make sure that emotion and showmanship don't obscure the facts as he sees them. "From my standpoint, it's not personal," said Bettman in his state of the league speech before Saturday's Stanley Cup opener. "It's about league rules and it's about doing the right thing in terms of the stability of this game and this league."
"This is not just an NHL issue. This is not a Canada versus U.S. issue. This is not a Phoenix versus Hamilton issue."
The commissioner kept repeating that he had no personal problem with Jim Balsillie. It almost sound like that if he says it enough, even he might start believing it.
"The team was never in jeopardy," said Bettman. "It was literally 20 minutes away from being fixed in a way that we thought was going to work quite well. It's my view that the Coyotes should not be in bankruptcy."
Meanwhile, Balsillie continues his Obamaesque campaign to win the war of words. He's literally wrapped himself up in the Canadian flag as he touts the virtue of moving the Coyotes to Hamilton. Each day he has a new angle for the press to keep his name prominent in the news. From revamping the arena in Hamilton to filing a formal application to move the team to feeding the press more news about the issues in Phoenix, it's an impressive public relations campaign.
While Rim Jim has whipped up a lot of emotion in Canada, it's important to remember that the next decision in this case will be decided by an American judge in an Arizona courtroom. If the purpose of the Balsillie campaign is to pressure the NHL and its' member teams to soften their opposition, he's wasting his money. He may eventually get in the NHL door, but it is highly unlikely to be this door. A win for Jerry Moyes and Balsillie next week in bankruptcy court would only open the door for additional litigation that will drag on for years and years.
I'd love to see all of the energy and skilled manipulation of the press put to work in building hockey in Phoenix. If the team receives a reprise, then it's time for the city to show up and support the team. More than anything else, except perhaps a right handed defenseman, this team needs a cohesive and intelligent marketing and public relations campaign. You can fix problems. You cannot fix forever. Watching this dance is fun but after a while, it's going to get pretty old unless things start to change.
Sunday, May 31, 2009
Stanley Gets A Sunday Night on NBC, And A New TV Home?
There's been a ton of spin on why there are back to back games in the Stanley Cup Finals for the first time in 54 years. And the correct answer has nothing to do with the sudden popularity of hockey, the sad state of affairs at NBC or Gary Bettman's suggestion that we (the NHL) thought we would try something new.
The correct answer is Conan O'Brien.
NBC told the NHL last fall that they would not schedule a weeknight NHL playoff game during Conan O'Brien's premiere week on The Tonight Show. The network wants a killer rating this week to generate a ton of publicity for Conan. And the Peacocks want to do as few weeknight games as possible during O'Brien's debut month to let other programming drive sampling to The new Tonight Show. With all of the talk about the value of franchises around here, remember this...The Tonight Show, now in it's 55th year on NBC is the most profitable franchise in the history of broadcasting. It is the crown jewel of NBC. There is no room this week for a triple overtime hockey game that pushes the Tonight Show back to 1AM.
So that created a problem for the NHL. To gain momentum, the league didn't want to bounce back and forth between NBC and Versus too many times during the finals. While the NBC arrangement is a profit sharing that currently returns about $3MM a year to the NHL, it is still crucial in giving the league mass exposure that Versus can only dream about. And while the NHL could not have envisioned the huge increase in viewing and interest it is experiencing this year, the leagued always views these things in a glass half full way.
The league had a couple of options -- start the finals on or after June 6th, shuffle games between NBC and Versus or play a back to back if they wanted two games in a row on NBC.
Well OK. Putting the Finals off until June 6th would have worked if the Conference Finals were compelling and drawn out. This year, they weren't.
So given the choice of a momentum killing 10 day intermission, the NHL decided that playing back to back on the first weekend of The Finals wasn't such a bad thing. Saturday is the worst night of the week for television viewing and NBC has made a habit of burying as many NHL Finals games there as possible. That's the bad news. The good news is that the league was able to get NBC to schedule Game 2 on Sunday night. Sunday is the highest viewing night of the week. The total audience is usually more than twice as large as an average Saturday. It also marked the first NHL Finals game on a Sunday night in many, many years (I can't find the last one but 54 or 55 years would be a good guess) The NHL also got an extra break when the NBA Lakers eliminated Denver on Friday giving the NHL a clean shot at the sports audience.
Don't underestimate how important a Sunday night game will be to the NHL. On Saturday night, the Red Wings & Penguins game did a 1.7 rating (Adults 18-49) and won the night. If the Sunday game holds form and does something north of a 3.0 it will be a huge win for hockey. Now the league goes back into the witness protection program for games 3 and 4 but the resulting buzz for hockey will be very good this year. If the Penguins and Wings stretch to 6 or 7 games, this series could be a seminal event for the NHL.
Why a seminal event? Because the NHL is talking with ESPN about returning the sport to the big tent of cable TV. ESPN wants to take a big leap by having a professional sports championship won on its' network. Every year, ESPN handles all sorts of sports events but when it comes time for the big one, another network, usually a broadcast network, gets the honors. The NHL would benefit greatly from the added exposure that ESPN could provide and my broadcasting friends tell me that the network is more ready to talk then they have been in the last few years. A great Finals this year with a solid Sunday night rating could push the ESPN negotiations over the top.
NBC would like to keep their hands on hockey for at least another year to cross promote the Vancouver Winter Olympics. Beyond that, NBC can take or leave hockey. The NHL would be wise, incredibly wise, to walk out that door and bring the Finals as well as other hockey programming to ESPN. The income to the teams would be better and the exposure would be immeasurably better.
And they will look back at that Sunday night in 2009 as a night when the league proved it could drive a great rating, create interest in the sport and maybe, just maybe, start reestablishing itself as the fourth major sport in the US.
Update Monday 2:45 PM -- The Sunday night game did good but not great ratings. The game averaged a 3.5 Household rating and a 2.0 (Adults 18-49) The game won the night for NBC and won 4 of 6 half hours, only trailing repeats of The Simpsons and Family Guy.
The correct answer is Conan O'Brien.
NBC told the NHL last fall that they would not schedule a weeknight NHL playoff game during Conan O'Brien's premiere week on The Tonight Show. The network wants a killer rating this week to generate a ton of publicity for Conan. And the Peacocks want to do as few weeknight games as possible during O'Brien's debut month to let other programming drive sampling to The new Tonight Show. With all of the talk about the value of franchises around here, remember this...The Tonight Show, now in it's 55th year on NBC is the most profitable franchise in the history of broadcasting. It is the crown jewel of NBC. There is no room this week for a triple overtime hockey game that pushes the Tonight Show back to 1AM.
So that created a problem for the NHL. To gain momentum, the league didn't want to bounce back and forth between NBC and Versus too many times during the finals. While the NBC arrangement is a profit sharing that currently returns about $3MM a year to the NHL, it is still crucial in giving the league mass exposure that Versus can only dream about. And while the NHL could not have envisioned the huge increase in viewing and interest it is experiencing this year, the leagued always views these things in a glass half full way.
The league had a couple of options -- start the finals on or after June 6th, shuffle games between NBC and Versus or play a back to back if they wanted two games in a row on NBC.
Well OK. Putting the Finals off until June 6th would have worked if the Conference Finals were compelling and drawn out. This year, they weren't.
So given the choice of a momentum killing 10 day intermission, the NHL decided that playing back to back on the first weekend of The Finals wasn't such a bad thing. Saturday is the worst night of the week for television viewing and NBC has made a habit of burying as many NHL Finals games there as possible. That's the bad news. The good news is that the league was able to get NBC to schedule Game 2 on Sunday night. Sunday is the highest viewing night of the week. The total audience is usually more than twice as large as an average Saturday. It also marked the first NHL Finals game on a Sunday night in many, many years (I can't find the last one but 54 or 55 years would be a good guess) The NHL also got an extra break when the NBA Lakers eliminated Denver on Friday giving the NHL a clean shot at the sports audience.
Don't underestimate how important a Sunday night game will be to the NHL. On Saturday night, the Red Wings & Penguins game did a 1.7 rating (Adults 18-49) and won the night. If the Sunday game holds form and does something north of a 3.0 it will be a huge win for hockey. Now the league goes back into the witness protection program for games 3 and 4 but the resulting buzz for hockey will be very good this year. If the Penguins and Wings stretch to 6 or 7 games, this series could be a seminal event for the NHL.
Why a seminal event? Because the NHL is talking with ESPN about returning the sport to the big tent of cable TV. ESPN wants to take a big leap by having a professional sports championship won on its' network. Every year, ESPN handles all sorts of sports events but when it comes time for the big one, another network, usually a broadcast network, gets the honors. The NHL would benefit greatly from the added exposure that ESPN could provide and my broadcasting friends tell me that the network is more ready to talk then they have been in the last few years. A great Finals this year with a solid Sunday night rating could push the ESPN negotiations over the top.
NBC would like to keep their hands on hockey for at least another year to cross promote the Vancouver Winter Olympics. Beyond that, NBC can take or leave hockey. The NHL would be wise, incredibly wise, to walk out that door and bring the Finals as well as other hockey programming to ESPN. The income to the teams would be better and the exposure would be immeasurably better.
And they will look back at that Sunday night in 2009 as a night when the league proved it could drive a great rating, create interest in the sport and maybe, just maybe, start reestablishing itself as the fourth major sport in the US.
Update Monday 2:45 PM -- The Sunday night game did good but not great ratings. The game averaged a 3.5 Household rating and a 2.0 (Adults 18-49) The game won the night for NBC and won 4 of 6 half hours, only trailing repeats of The Simpsons and Family Guy.
Wednesday, May 27, 2009
Cut To The Chase!
So what did we learn today? Well, we now know that Judge Redfield Baum can shake up the lines pretty well. By moving the hearing on the possible relocation of the team from June 22 to June 9, he surprised both sides, stripped away most of the other issues and set up a win or go home scenario for Jim Balsillie. Baum set earlier deadlines for the filing of briefs, moved the oral arguments up almost two weeks and promised that he would rule on the core issue of whether the team can be moved as part of the bankruptcy procedure shortly after the June 9th hearing.
For Balsillie to get control of the team and leave Phoenix behind, he'll need a favorable ruling from Judge Baum. If the judge rules that movement of the franchise cannot be considered as part of his bid to buy the team out of bankruptcy, it's game over for Balsillie. Thanks for playing Jim, drive home safely.
On the other hand, if he rules in favor of the Canadian, it will set off a series of court tests that could last for years and years. The NHL and the City of Glendale will appeal any ruling that does not give them what they want out of this deal. The NHL wants to preserve their constitution and bylaws that give the owners territorial protection and the right to pick their partners. The City of Glendale wants to keep their major tenant. Both the appeals and the injunctions that are certain to follow in rapid sequence would almost certainly keep the team in Arizona for at least the short term and would likely take years to resolve.
It's hard to get a line on Judge Baum. On one hand, he noted that Balsillie's offer is the only offer he's seen or heard of to this point. Conversely, he made it clear to Moyes' legal team that they will need some pretty strong arguments to overcome some of the bankruptcy issues that may not give Moyes a clear title to do what he pleases with the franchise. He would also be getting into an area -- franchise law -- where bankruptcy courts have long respected the contractual rights of the franchisor. That's why he makes semi-large judge bucks, I guess.
One of the issues settled today was the control of the team. Essentially the NHL and the Moyes group agreed to joint management of the asset and agreed to let the bankruptcy play out. With the team certain to be sold, there was less to gain by trying to establish control of the franchise. Interestingly, Toronto newspapers initially trumpeted this as a big win for Moyes and Balsillie but later pulled down those stories. The judge has made it clear that relocation, not control, is the primary issue. If anything, Balsillie lost a chance to be a part of the conversation because a mediator was not used and he was not invited to the control conversation.
Earlier today, the Arizona Republic broke major news that Sports Properties, a New York base investment firm was deep in negotiations with Glendale and the NHL to purchase the franchise when Moyes slipped the team into bankruptcy. Sports Properties has a blue chip leadership team that includes former Disney Sports CEO Tony Tavares, former New York Governor Mario Cuomo and baseball legend Hank Aaron. Sports Properties has been on the prowl to buy a major sport franchise after raising $215MM in a public offering last fall. Sports Properties will not be bidding Blackberry dollars for the franchise but assuming they are still interested, they offer the hope of stable, well financed ownership as well as manager (Tavares) with a strong arena management background.
June 9th will be a huge day for the future of hockey in Phoenix. The hearing, and the determination that follows will either help maintain a hockey presence in The Valley (hopefully for many years to come) or set off a legal war that will ultimately wind its' way to the United States Supreme Court. I'd love to bet on the good guys here but as I've often been told, there is no sure thing in the courts.
For Balsillie to get control of the team and leave Phoenix behind, he'll need a favorable ruling from Judge Baum. If the judge rules that movement of the franchise cannot be considered as part of his bid to buy the team out of bankruptcy, it's game over for Balsillie. Thanks for playing Jim, drive home safely.
On the other hand, if he rules in favor of the Canadian, it will set off a series of court tests that could last for years and years. The NHL and the City of Glendale will appeal any ruling that does not give them what they want out of this deal. The NHL wants to preserve their constitution and bylaws that give the owners territorial protection and the right to pick their partners. The City of Glendale wants to keep their major tenant. Both the appeals and the injunctions that are certain to follow in rapid sequence would almost certainly keep the team in Arizona for at least the short term and would likely take years to resolve.
It's hard to get a line on Judge Baum. On one hand, he noted that Balsillie's offer is the only offer he's seen or heard of to this point. Conversely, he made it clear to Moyes' legal team that they will need some pretty strong arguments to overcome some of the bankruptcy issues that may not give Moyes a clear title to do what he pleases with the franchise. He would also be getting into an area -- franchise law -- where bankruptcy courts have long respected the contractual rights of the franchisor. That's why he makes semi-large judge bucks, I guess.
One of the issues settled today was the control of the team. Essentially the NHL and the Moyes group agreed to joint management of the asset and agreed to let the bankruptcy play out. With the team certain to be sold, there was less to gain by trying to establish control of the franchise. Interestingly, Toronto newspapers initially trumpeted this as a big win for Moyes and Balsillie but later pulled down those stories. The judge has made it clear that relocation, not control, is the primary issue. If anything, Balsillie lost a chance to be a part of the conversation because a mediator was not used and he was not invited to the control conversation.
Earlier today, the Arizona Republic broke major news that Sports Properties, a New York base investment firm was deep in negotiations with Glendale and the NHL to purchase the franchise when Moyes slipped the team into bankruptcy. Sports Properties has a blue chip leadership team that includes former Disney Sports CEO Tony Tavares, former New York Governor Mario Cuomo and baseball legend Hank Aaron. Sports Properties has been on the prowl to buy a major sport franchise after raising $215MM in a public offering last fall. Sports Properties will not be bidding Blackberry dollars for the franchise but assuming they are still interested, they offer the hope of stable, well financed ownership as well as manager (Tavares) with a strong arena management background.
June 9th will be a huge day for the future of hockey in Phoenix. The hearing, and the determination that follows will either help maintain a hockey presence in The Valley (hopefully for many years to come) or set off a legal war that will ultimately wind its' way to the United States Supreme Court. I'd love to bet on the good guys here but as I've often been told, there is no sure thing in the courts.
Breaking News From Arizona Republic
The Arizona Republic is breaking an important piece of news concerning the sale of the Phoenix Coyotes this morning.
The Republic is reporting that Sports Properties Investment Corp., a New York investment firm put together for the express purpose of purchasing major league sports team(s) was working with Jerry Reinsdorf to buy the Coyotes prior to the team filing for bankruptcy protection.
Sports Properties has raised $215 million in capital markets to buy sports and leisure properties. Sports Properties had been rumored to be kicking the tires on the Coyotes prior to the Balsillie bid but had reportedly passed on the opportunity. The publicly traded firm was subsequently reported trying to acquire the NHL's Florida Panthers.
The Republic also reports that Tony Tavares, a former arena management and baseball executive who runs Sports Properties Acquisition Corp., signed an agreement May 4 with the city of Glendale, where the Coyotes play their home games at Jobing.com Arena.
The is great news for Coyotes fans. Tavares is a seasoned executive who served as the President and CEO of Disney Sports Enterprises, successfully launching and operating the Mighty Ducks of Anaheim. He also served as the CEO and President of SMG, a company manages stadiums, arenas, theaters and convention facilities worldwide. He has served as president of several Major League Baseball franchises, most recently the Montreal Expos and Washington Nationals.
And Sports Properties has money. Real money. They are sitting on a war chest of over $200MM raised through their public offering. They bring much needed cash, expertise and experience to the table. They also have arena management experience that can help stop the bleeding on that side of the ledger.
Here's the complete AZ Republic story...
http://www.azcentral.com/sports/coyotes/articles/2009/05/26/20090526spt-coyotes.html
The NHL and the Moyes legal team return to court today to tell the judge how they have agreed to run the team until the sale of the franchise is consummated. The judge had instructed both parties into mediation to resolve the issue of who controls the team. The Toronto Star is reporting that the NHL and the Moyes team have agree to run the team together until a sale is completed. The Star is reporting that Don Maloney will continue to run the hockey business, the NHL will foot the bills and any disagreements will be brought to the court for resolution.
Here is the complete story from the Toronto Star
http://www.thestar.com/sports/article/641093
The Republic is reporting that Sports Properties Investment Corp., a New York investment firm put together for the express purpose of purchasing major league sports team(s) was working with Jerry Reinsdorf to buy the Coyotes prior to the team filing for bankruptcy protection.
Sports Properties has raised $215 million in capital markets to buy sports and leisure properties. Sports Properties had been rumored to be kicking the tires on the Coyotes prior to the Balsillie bid but had reportedly passed on the opportunity. The publicly traded firm was subsequently reported trying to acquire the NHL's Florida Panthers.
The Republic also reports that Tony Tavares, a former arena management and baseball executive who runs Sports Properties Acquisition Corp., signed an agreement May 4 with the city of Glendale, where the Coyotes play their home games at Jobing.com Arena.
The is great news for Coyotes fans. Tavares is a seasoned executive who served as the President and CEO of Disney Sports Enterprises, successfully launching and operating the Mighty Ducks of Anaheim. He also served as the CEO and President of SMG, a company manages stadiums, arenas, theaters and convention facilities worldwide. He has served as president of several Major League Baseball franchises, most recently the Montreal Expos and Washington Nationals.
And Sports Properties has money. Real money. They are sitting on a war chest of over $200MM raised through their public offering. They bring much needed cash, expertise and experience to the table. They also have arena management experience that can help stop the bleeding on that side of the ledger.
Here's the complete AZ Republic story...
http://www.azcentral.com/sports/coyotes/articles/2009/05/26/20090526spt-coyotes.html
The NHL and the Moyes legal team return to court today to tell the judge how they have agreed to run the team until the sale of the franchise is consummated. The judge had instructed both parties into mediation to resolve the issue of who controls the team. The Toronto Star is reporting that the NHL and the Moyes team have agree to run the team together until a sale is completed. The Star is reporting that Don Maloney will continue to run the hockey business, the NHL will foot the bills and any disagreements will be brought to the court for resolution.
Here is the complete story from the Toronto Star
http://www.thestar.com/sports/article/641093
Monday, May 25, 2009
Next Coyotes Coach?
So if Wayne Gretzky is not part of the organization moving forward, who will coach the Coyotes?
This post isn't intended as a referendum on that issue. Any Gretzky decision will be made by the incoming owners of the team. Much has been speculated that he is in with some potential owners and out with others.
I'll be content to let others decide that. If he leaves the organization or accepts a reduced role, a new coach will need to be located. It's likely that Don Maloney will be making that decision and if he is called to do so, here are some of the options that he will be looking at.
The requisites for the job will be good with young players, proven winner and (likely) NHL experience. This is a team that needs to move from playoff contender to playoff participant. The margin for error here is very small. A relationship and history with Don Maloney probably wouldn't hurt either.
All signs point to one logical candidate -- Tom Renney. Renney coached the New York Rangers from 2004 until this spring and made the playoffs in each of his three full seasons with the Rangers. He's cerebral, very patient and worked closely with Maloney when both were with the Rangers.
Maloney is a prepared and measured manager. No doubt he has already thought about this possibility and built a short list of candidates that he feels can move the team forward. Much like general managers scout players, they are always looking at coaching talent along the way. Many of these names are likely on his list. So are others known only to him.
Coaching changes happen more often in hockey than any other major sport. This year. three of the four teams in the conference finals changed coaches during this season. The average life of an NHL bench boss is less than three years. Should Don Maloney have to change coaches this off-season it will no doubt be the most critical change he will make in the organization this summer and will have a profound impact on the future of the franchise. He is no doubt prepared and may get a chance to make the most important hire of his career.
Update Monday 12:05PM -- TSN is reporting that Pat Quinn has been named the new head coach of the Edmonton Oilers and Tom Renney will join him in Edmonton as associate head coach . While Renney could still be a candidate to be head coach in Phoenix, it is much less likely under this scenario.
This post isn't intended as a referendum on that issue. Any Gretzky decision will be made by the incoming owners of the team. Much has been speculated that he is in with some potential owners and out with others.
I'll be content to let others decide that. If he leaves the organization or accepts a reduced role, a new coach will need to be located. It's likely that Don Maloney will be making that decision and if he is called to do so, here are some of the options that he will be looking at.
The requisites for the job will be good with young players, proven winner and (likely) NHL experience. This is a team that needs to move from playoff contender to playoff participant. The margin for error here is very small. A relationship and history with Don Maloney probably wouldn't hurt either.
All signs point to one logical candidate -- Tom Renney. Renney coached the New York Rangers from 2004 until this spring and made the playoffs in each of his three full seasons with the Rangers. He's cerebral, very patient and worked closely with Maloney when both were with the Rangers.
Of course, Renney is also a prime candidate for other coaching vacancies. The Edmonton Oilers have reportedly asked for permission to interview him for their open position. By the time the Coyotes situation is clarified, his availability could be moot.
There are other potential NHL coaches who could be recycled in Phoenix. Peter Laviolette won a Stanley Cup three years ago in Carolina. He's an intense coach who may not be the best match for a young team. Bob Hartley also won a Stanley Cup with the Colorado Avalanche but struggled when he was hired to right the Atlanta Thrashers. Marc Crawford is another former Cup winner in Colorado but he couldn't get a young Los Angeles Kings team moving before he was dismissed after last season. Craig MacTavish spent eight years in Edmonton and had a great playoff run in 2006 but he could only get in the playoffs three times in eight years. The Coyotes need better than that.
One intriguing former NHL coach could be Pat Quinn. Quinn never has had a great reputation with young players but this year he addressed that issue head on by winning the World Junior Championship with Canada's best young talent. He's 66 but he also has a long history of building competitive teams. In 19 seasons as an NHL coach he has only missed the playoffs twice and some of those teams had no business making the playoffs. He's also colorful and could help raise the profile of the Coyotes.
With the success of Dan Bylsma in Pittsburgh and Bruce Boudreau in Washington, hiring coaches from the American Hockey League may prove to be a new vogue in the NHL. If Maloney chose to go with a proven minor league coach, two current and two former AHL coaches could emerge.
Manitoba Moose head coach Scott Arniel was the coach of the year in the A and has been mentioned as a possible candidate for the open Edmonton position. Kevin Dineen has coached the top prospects for both the Buffalo Sabres and Anaheim Ducks in Portland, ME and his name pops up whenever there is an NHL opening.
Two Former AHL coaches; Randy Cunneyworth and Don Lever also could merit consideration. Cunneyworth spent several years coaching the Rochester Americans before joining the Atlanta Thrashers as an assistant this year. He's been considered a prime NHL coaching prospect while developing many of the Sabres young players. Lever spent 10 years as Lindy Ruff's assistant in Buffalo and won a Calder Cup in Hamilton (delicious irony there!) with the Montreal Canadiens prospects. He just completed the season as an assistant to Guy Carbonneau and Bob Gainey for the Habs and is considered a head coaching candidate in Montreal. His age, 57, may work against him as a first time NHL coach.Maloney is a prepared and measured manager. No doubt he has already thought about this possibility and built a short list of candidates that he feels can move the team forward. Much like general managers scout players, they are always looking at coaching talent along the way. Many of these names are likely on his list. So are others known only to him.
Coaching changes happen more often in hockey than any other major sport. This year. three of the four teams in the conference finals changed coaches during this season. The average life of an NHL bench boss is less than three years. Should Don Maloney have to change coaches this off-season it will no doubt be the most critical change he will make in the organization this summer and will have a profound impact on the future of the franchise. He is no doubt prepared and may get a chance to make the most important hire of his career.
Update Monday 12:05PM -- TSN is reporting that Pat Quinn has been named the new head coach of the Edmonton Oilers and Tom Renney will join him in Edmonton as associate head coach . While Renney could still be a candidate to be head coach in Phoenix, it is much less likely under this scenario.
Don Maloney: "Business As Usual"
With all attention being focused on the Coyotes bankruptcy/sale/move/new ownership, the hockey side of the business has been operating in relative obscurity during the past month. I thought it would be fun and also a little cathartic to shine the spotlight back on the ice. I recently had a chance to visit with Don Maloney about some of the challenges he is facing in building the hockey team for the 2009-10 season.
Most importantly, Don made it clear directly and in his responses that the hockey side is conducting "business as usual" in approaching the upcoming draft, free agency and considering improvements to the team.
The Coyotes have the 6th and 36th picks in this years draft, but are unlikely get the additional 1st round draft choice that is coming from Calgary as part of the Olli Jokinen trade. "It looks like Calgary will take their pick in 2009 so we will have their 2010 pick" Maloney did however indicate that "I will consider trading this pick (Calgary's 1st in 2010) if a deal makes sense."
One possibility to watch for is Maloney combining his own 2009 2nd with the Calgary 1st to move into the lower half of the 2009 first round. The 2009 draft is considered to be a very deep and this becomes more likely if the Coyotes like a player who is sliding in the 1st round.
In assessing the Coyotes roster, Maloney cited the need for more scoring as his top off season concern. "We need to find more offensive production from our forward group which may result in adding a little more experience. This is not to suggest we are abandoning our young players, rather, I felt we were a little too young as a forward group last season to have success." Depending on the dollars Maloney has available, he will have a wide variety of players, both free agents and under contract to other teams that will be available to him.
Maloney also indicated that he is looking for help on the back end. "We could use a good defenseman, preferable someone who can play the right side". Numerous veterans, including former Coyote Derek Morris, will be available either by trade or free agency to fortify the defense. Young defensive prospect Nick Ross, who signed with the Coyotes last year, will turn pro after being the Yotes 1st round draft choice (30th overall) in 2007 and could contend for a position. Jonas Ahnelov could also figure in the mix. Ahenlov had a strong training camp last year before breaking his hand right at the end of camp.
A potential trading partner for the Coyotes could be the New York Rangers, who have six right handed defensemen on their roster.
Most importantly, Don made it clear directly and in his responses that the hockey side is conducting "business as usual" in approaching the upcoming draft, free agency and considering improvements to the team.
The Coyotes have the 6th and 36th picks in this years draft, but are unlikely get the additional 1st round draft choice that is coming from Calgary as part of the Olli Jokinen trade. "It looks like Calgary will take their pick in 2009 so we will have their 2010 pick" Maloney did however indicate that "I will consider trading this pick (Calgary's 1st in 2010) if a deal makes sense."
One possibility to watch for is Maloney combining his own 2009 2nd with the Calgary 1st to move into the lower half of the 2009 first round. The 2009 draft is considered to be a very deep and this becomes more likely if the Coyotes like a player who is sliding in the 1st round.
In assessing the Coyotes roster, Maloney cited the need for more scoring as his top off season concern. "We need to find more offensive production from our forward group which may result in adding a little more experience. This is not to suggest we are abandoning our young players, rather, I felt we were a little too young as a forward group last season to have success." Depending on the dollars Maloney has available, he will have a wide variety of players, both free agents and under contract to other teams that will be available to him.
Maloney also indicated that he is looking for help on the back end. "We could use a good defenseman, preferable someone who can play the right side". Numerous veterans, including former Coyote Derek Morris, will be available either by trade or free agency to fortify the defense. Young defensive prospect Nick Ross, who signed with the Coyotes last year, will turn pro after being the Yotes 1st round draft choice (30th overall) in 2007 and could contend for a position. Jonas Ahnelov could also figure in the mix. Ahenlov had a strong training camp last year before breaking his hand right at the end of camp.
A potential trading partner for the Coyotes could be the New York Rangers, who have six right handed defensemen on their roster.
One place defensive help will not be coming are the team's two outstanding defensive prospects, Chris Summer and Maxim Goncharov. "Chris Summers is returning to Michigan for his senior year." according to Maloney and "Maxim Goncharov has one year remaining on his Russian contract." Because of the lack of a transfer agreement with the Russian Hockey Federation, the Coyotes will retain Goncharov's rights. Goncharov in particular bears watching in the future. After a breakout performance in the World Junior Tournament this year, he was ranked as the 21st best prospect outside of the NHL by The Hockey News.
The Coyotes also have to deal with eight restricted free agents from last years team: Enver Lisin, Dan Winnik, Petr Prucha, Nigel Dawes, Joakim Lindstrom, Keith Yandle, Scottie Upshall and Josn Tordjman. Maloney is "not in any hurry" to sign his RFAs. Players in this category have to receive a qualifying offer by June 25th and Upshall and Yandle are the most likely to be qualified. Prucha may not be qualified at his $1.6MM 2009 salary but could resign with the Coyotes for a lower amount.
Tordjman has a breakout season for the AHL San Antonio Rampage this year and may be in the teams plans. Without mentioning him by name Maloney stated that"we will look hard at our backup goaltending position", which could mean bringing in a veteran to battle with Tordjman and Al Montoya for the backup job behind Ilya Bryzgalov.
The Coyotes have 16 players who finished this season with the big club under contract and the 6 players still on entry level contracts. That gives Maloney a lot of salary flexibility for summer retooling. Assuming that the team will stay close to the NHL salary floor, Maloney still has the flexibility to add a couple of veteran chips to strengthen the team.
In a future post, I'll take a look at the salary cap and floor implications of the current roster.
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