Just when things seemed to be sailing smoothly towards a definitive auction of the Coyotes next Wednesday, there's a turd in the punch bowl. The Toronto Star is reporting in their Friday editions that attorneys for Glendale and the NHL have asked the court to postpone next Wednesday's local bid auction, saying Reinsdorf and another potential bidder, Ice Edge Holdings of Canada, needed additional time to finalize their offers for the team.
The league's brief to the court also said that the Ice Edge group would make their bid public on Friday.
The report went on to say that the City of Glendale is "very close to a definitive agreement...that would allow the team, under new ownership, to continue to play at the Jobing.com Arena."
This news came hours after attorneys for Jerry Moyes ridiculed the Reinsdorf-Kaites-Tavares group offer of $148MM saying that the offer was not a legal offer under bankruptcy law. well, what did you expect them to do?
Update Friday 8:30 AM .. More complete reports of the NHL motions are now coming out. It appears that the NHL is taking the position that since the Balsillie has been denied as a potential owner, he is not eligible to bid in the second auction and as the only bidder interested in moving the team there is no need for a second auction. Of course, Moyes will continue to argue that Balsillie is the only person who has made a bona fide offer. And The Judge may still not look kindly on this bit of last minute chicanery.
Thursday, July 30, 2009
Oh Captain, My Captain...
Great article about Shane Doan from NHL.com. Read it here:
http://www.nhl.com/ice/news.htm?id=457901&cmpid=rss-mcgourty>
http://www.nhl.com/ice/news.htm?id=457901&cmpid=rss-mcgourty>
Scottie Upshall Signs
One year at $1.5MM.
A fair compromise. Upshall and his agents pointed to his 8 goals in 19 games as a taste of what will happen with the player getting top 6 ice time and opportunities. GMDM obviously took the position that Upshall's larger body of work (46 goals in 230 games over parts of 6 seasons) is more reflective of where his compensation should fall.
The sides agreed on a one year contract which still leaves Upshall one year short of unrestricted free agency. If he produces big this year, the Yotes will have a window to sign him to a longer term contract or trade him before he becomes a UFA.
We'll be interested to see how this works. Upshall was envisioned as a potential 30 goal scorer when he was drafted 6th by Nashville in 2002. He's not developed as a scorer but he is an honest two way player who is also valued as a team leader and locker room presence. Our sources in Philadelphia told us that when he was traded this spring, all of the air came out of the Flyers locker room.
Worst case, he's a valuable third line banger. Best case he's a late bloomer who finds his goalscoring touch and becomes a bona fide power forward. In either case, he's a Coyote for at least one more year.
The Yotes also signed organization goaltender Josh Tordjman to a one year contract.
A fair compromise. Upshall and his agents pointed to his 8 goals in 19 games as a taste of what will happen with the player getting top 6 ice time and opportunities. GMDM obviously took the position that Upshall's larger body of work (46 goals in 230 games over parts of 6 seasons) is more reflective of where his compensation should fall.
The sides agreed on a one year contract which still leaves Upshall one year short of unrestricted free agency. If he produces big this year, the Yotes will have a window to sign him to a longer term contract or trade him before he becomes a UFA.
We'll be interested to see how this works. Upshall was envisioned as a potential 30 goal scorer when he was drafted 6th by Nashville in 2002. He's not developed as a scorer but he is an honest two way player who is also valued as a team leader and locker room presence. Our sources in Philadelphia told us that when he was traded this spring, all of the air came out of the Flyers locker room.
Worst case, he's a valuable third line banger. Best case he's a late bloomer who finds his goalscoring touch and becomes a bona fide power forward. In either case, he's a Coyote for at least one more year.
The Yotes also signed organization goaltender Josh Tordjman to a one year contract.
Wednesday, July 29, 2009
Reinsdorf Bid Approved, Balsillie Shut Out
The National Hockey League Governors made it clear that the Reinsdorf-Kaites-Tavares group is welcome in their fraternity and approved to purchase the Coyotes. Similarly, they bounced Silly Jim out of the room. The Ice Edge Group got an incomplete (but favorable comments) on their presentation.
So.....The Reinsdorf Group is cleared to bid in the auction knowing that they will be approved by the league. The Balsillie's have no real leverage because no matter how good their bid is they have been unanimously denied membership in the NHL lodge. And the Ice Edge group has another 10 days to come up with a lot of money and a plan to put in front of Judge Tom next Friday.
Updates 4:55PM: "All that was considered was the suitability of owners", according to NHL Comissioner Gary Bettman. "This has nothing to do with the relocation issues", Bettman continued. So let's be very clear -- the NHL has rejected Jim Balsillie as a potential owner. While he was approved by the NHL five years ago as the perspective owner of the Pittsburgh Penguins the league Governors have now voted against him. Amazing what backing out of a purchase deal in Pittsburgh and trying to circumvent league rules can do for one's standing. Even though the Balsillie group is trying to put a positive spin on this, facts are facts. Jim Balsillie will not be approved as an owner in the National Hockey League. There may be more motions but the fact is that Judge Tom made it very clear that NHL owners had the right to approve perspective owners. It also means his bid to take over the Coyotes is worthless.
CHICAGO – National Hockey League Commissioner Gary Bettman issued the following statement following today’s Board of Governors meeting:
“The National Hockey League’s Board of Governors met this afternoon to review the ownership applications of three prospective ownership groups for the Phoenix Coyotes. The Board’s process today represents the League’s best efforts to comply with the League’s review procedures pursuant to NHL Constitution Article 3.5 and NHL By-Law 35 within the timetable imposed by the ongoing court process.
“There were three applicant groups that were interviewed by the Executive Committee and considered by the Board. One was Jim Balsillie’s. The second was a group headed by Anthony LeBlanc, involving Mr. LeBlanc, Keith McCullough, Todd Jordan and Daryl Jones. And the third group, headed by Jerry Reinsdorf, included as well Tony Tavares and John Kaites.
“After interviewing all of the applications, the Executive Committee brought forward recommendations to the full Board of Governors.
“Mr. Reinsdorf’s application was unanimously approved by all those Board members present and voting, subject to the League’s completion of its due diligence and review of the final transaction. In Mr. Balsillie’s case, it was the unanimous vote of all members present and voting that his application not be approved. With respect to the LeBlanc group, it was determined that, at this stage, since they’ve only recently begun the process, the application was incomplete and could not yet be acted on by the Board. However, the Executive Committee reported favorably on the LeBlanc group’s interview and endorsed the group’s continued efforts to complete a bid to purchase the franchise.
“We will so advise the Bankruptcy Court and we will move this process forward.”
So.....The Reinsdorf Group is cleared to bid in the auction knowing that they will be approved by the league. The Balsillie's have no real leverage because no matter how good their bid is they have been unanimously denied membership in the NHL lodge. And the Ice Edge group has another 10 days to come up with a lot of money and a plan to put in front of Judge Tom next Friday.
Updates 4:55PM: "All that was considered was the suitability of owners", according to NHL Comissioner Gary Bettman. "This has nothing to do with the relocation issues", Bettman continued. So let's be very clear -- the NHL has rejected Jim Balsillie as a potential owner. While he was approved by the NHL five years ago as the perspective owner of the Pittsburgh Penguins the league Governors have now voted against him. Amazing what backing out of a purchase deal in Pittsburgh and trying to circumvent league rules can do for one's standing. Even though the Balsillie group is trying to put a positive spin on this, facts are facts. Jim Balsillie will not be approved as an owner in the National Hockey League. There may be more motions but the fact is that Judge Tom made it very clear that NHL owners had the right to approve perspective owners. It also means his bid to take over the Coyotes is worthless.
Today In Chicago
The NHL Board of Governors is meeting in Chicago. Among the special guests are Jim Balsillie, he of the Hamilton Coyotes and the perspective Ice Edge ownership. Although it has not been publicized, it's also expected that some representatives of the Reinsdorf-Kaites-Tavares ownership group will be in attendance. Presumably the NHL Governors will be vetting all three bids for the Coyotes.
And even though there are three groups in the running the decision should be easy. Ice Edge still hasn't submitted a formal bid and one of the owners admitted on XTRA Sports that he still didn't have all of the necessary financing lined up. Balsillie will be grilled like he's never been grilled before. Why did you try to circumvent the league constitution? Why did you back out of the Penguins purchase? Why did you even bother coming today? The Governors may add a little juice to the proceedings by formally torpedoing any franchise move to Hamilton. No need to vote up or down on Balsillie because that would only add fuel to the legal fire.
Thanks for playing fellas and drive home safely.
For Jerry, John & Tony, this is a layup. They already have Gary Bettman's papal blessing. Show up, make nice to the other Governors -- many of whom you already know from the NBA and MLB, confirm your business plan and let everyone know how honored you are to be a part of saving hockey in Phoenix.
Hopefully we'll be hearing positive news leaking out of Chicago as soon as the first Governor has to run for a plane.
And even though there are three groups in the running the decision should be easy. Ice Edge still hasn't submitted a formal bid and one of the owners admitted on XTRA Sports that he still didn't have all of the necessary financing lined up. Balsillie will be grilled like he's never been grilled before. Why did you try to circumvent the league constitution? Why did you back out of the Penguins purchase? Why did you even bother coming today? The Governors may add a little juice to the proceedings by formally torpedoing any franchise move to Hamilton. No need to vote up or down on Balsillie because that would only add fuel to the legal fire.
Thanks for playing fellas and drive home safely.
For Jerry, John & Tony, this is a layup. They already have Gary Bettman's papal blessing. Show up, make nice to the other Governors -- many of whom you already know from the NBA and MLB, confirm your business plan and let everyone know how honored you are to be a part of saving hockey in Phoenix.
Hopefully we'll be hearing positive news leaking out of Chicago as soon as the first Governor has to run for a plane.
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