They need more time... ((HT: Toronto Star/Kevin McGran))
All sides agreed the key motion that needs to be resolved is what Coyotes lawyer Thomas Salerno called "the Alexander Haig" issue of "who's in charge."
As far as the NHL is concerned, deputy commissioner Bill Daly has been installed as the team's chief executive officer. The league contends it has the legal right to remove owner Jerry Moyes from all positions of authority after he went behind their back to put the team in bankruptcy and get an offer from Balsillie to buy the team for $212.5 million on the premise he will move the team to Hamilton.
The league says Moyes had no right to sell Hamilton as a market. Moyes believes he's still in control of the team.
The court gave both sides time next week to determine who is in charge. The NHL will make its case May 13. Moyes will make his argument on May 15, and a final hearing will be held May 19.
Other matters were being discussed as the afternoon continued.
Other matters were being discussed as the afternoon continued.
The NHL issued a statement Tuesday night saying it removed Moyes from power shortly after Moyes filed for Chapter 11 bankruptcy and mused Moyes did not have the power to place the team in bankruptcy. They did so about an hour after Moyes announced that BlackBerry billionaire Jim Balsillie ((0pictured, thanks hockeynation.com)) had a firm $212.5 million offer to buy the team and move it to Hamilton.
"The Debtors (Moyes) dispute the NHL's contentions that Mr. Moyes has been removed from his position of authority to act on behalf of the Debtors, that the NHL owns the Coyotes, or that these Cases were not commenced by a valid representative of the Debtors," said the motion filed Thursday morning. "In addition, the Debtors dispute any contention of the NHL that Mr. Moyes lacked the authority to execute an asset purchase agreement on behalf of the Debtors for the sale of their assets."
It's also clear from the court filings earlier in the week that Balsillie and Moyes intend to fight tooth and nail — using every legal avenue possible — to complete the sale and move the franchise north where it would most likely play the 2009-10 season in Copps Coliseum.
The NHL is doing what it can to stop the sale, and prevent Balsillie from completing his long-awaited dream of bringing a seventh NHL franchise to Canada, one close to his home in Waterloo, headquarters of RIM.
Moyes put his team in Chapter 11 bankruptcy protection. The club has never made a profit in the time that it moved from Winnipeg in 1996.
The judge is being asked to put the team up for auction, with the process to be complete before June 26 — the day of the NHL draft. Balsillie would have to right to counterbid should another suitor come forward and beat his baseline offer.
The filings anticipate that the NHL and the Toronto Maple Leafs would try to block the Coyotes' proposed move to Hamilton, encroaching on marketing territory the Leafs believe belongs to them.
The court documents argue such a move "unreasonably restrains competition in violation of the antitrust laws."
The filings also argue the denial of moving the team to Hamilton would result in "significant anticompetitive effects... Because there are no other viable purchasers or other investors for the Phoenix Coyotes."
The NHL may take issue with that statement, with it now widely believed that White Sox owner Jerry Reinsdorf was ready to step in and keep the Coyotes in Phoenix.
The documents say that ticket revenue — which is 50 per cent of total revenues for a typical NHL team — was hovering between 40 per cent and 43 per cent over the last three years for the Coyotes, "which suggests that the tickets are currently underpriced or the number sold is inadequate. The average ticket price for the Phoenix Coyotes was $37.45, which is $12.21 below the NHL average."
The Coyotes generated $54 million in revenue and $76 million in expenses for the 2005-06 fiscal year, a loss of nearly $22 million. They generated $59 million in 06-07, but ran expenses of $89 million, a loss of $30 million.
In 07-08, the team generated $56.5 million, spent $85.3 million, losing of $21.7 million.
The documents argue a team in Hamilton would be "pro" competition in that it would compete with the Sabres and Leafs for broadcast rights, media contracts, team merchandise and fan support "all of which would lower prices for such goods and services and directly and indirectly benefit consumers. Higher prices and lower output — the direct result of what is likely to be sought by the NHL — are the hallmarks of anticompetitive behaviour."
The documents argue a team in Hamilton would be "pro" competition in that it would compete with the Sabres and Leafs for broadcast rights, media contracts, team merchandise and fan support "all of which would lower prices for such goods and services and directly and indirectly benefit consumers. Higher prices and lower output — the direct result of what is likely to be sought by the NHL — are the hallmarks of anticompetitive behaviour."
The Globe and Mail's Eric Duhatschek and James Mirtle discuss the whole proceeding in black...
No comments:
Post a Comment