Gretzky Backs Reinsdorf Bid

((HT: Damien Cox/Toronto Star))

It was not a good day for Jim Balsillie's public relations offensive.

First, sources indicated yesterday that Wayne Gretzky ((pictured, thanks CBC))is "supportive" of the plan presented by Chicago sports czar Jerry Reinsdorf to buy the Phoenix Coyotes and keep them in Arizona. Gretzky would stay with the team as head coach under the ownership of a group of investors headed by Reinsdorf that would conditionally offer an estimated $130-million US for the troubled Phoenix club.

Second, despite North American economic conditions some suggest are the worst since the Great Depression, Balsillie is reportedly seeking more than $120-million Cdn in federal and provincial handouts to renovate Copps Coliseum if he can purchase the Coyotes out of bankruptcy and bring them north.

According to the Hamilton Spectator, Balsillie would pay the initial $30 million worth of upgrades to the arena, but then get the City of Hamilton to pursue the rest of the estimated $150 million renovation bill with federal and provincial politicians.

Neither Gretzky's support for Reinsdorf nor Balsillie's attempts to get taxpayers to help underwrite his National Hockey League dreams will necessarily have any impact on the Arizona bankruptcy hearings that will decide the fate of the Coyotes starting next week.

But Balsillie had already made it clear he planned to invite Gretzky to be part of the new Hamilton operation. Gretzky has so far declined to make any public comment on the future of the Coyotes.

Balsillie's requests for public money, meanwhile, contradict his image as a champion of free enterprise bent on smashing the "illegal cartel" he has alleged has prevented any other NHL franchises from joining the Toronto Maple Leafs in the lucrative southern Ontario market.

Until now, it was believed Balsillie would pay for the cost to bring Copps Coliseum up to NHL standards without government subsidies.

It's unclear whether Gretzky would retain an ownership stake under the Reinsdorf proposal, which would also include a request for public monies. That offer is conditional on arena concessions from the City of Glendale worth an estimated $15-20 million per season. It's believed Reinsdorf has already negotiated an agreement with Glendale politicians.

While the Reinsdorf bid is less than Balsillie's conditional $212.5-million US offer, it's important to understand Reinsdorf and Balsillie are really bidding on different commodities. Reinsdorf's offer would be for an NHL franchise in Phoenix, while Balsillie's is an offer for a team he could relocate to Hamilton.

Phoenix is not considered a top hockey market, while it's widely believed a franchise based in southern Ontario could be worth more than $400-million US.

The job of the Arizona bankruptcy judge, of course, is to satisfy creditors, not to worry about which offer Gretzky may support or whether public financing is required for any bids.

Next Tuesday, the court will hear submissions on whether the NHL or trucking magnate Jerry Moyes controls the Coyotes.

Balsillie, meanwhile, clearly considers the battle for the hearts and minds of Canadians a priority, which is why he launched a website designed to illustrate support for the concept of a seventh NHL team in Canada.

The RIM executive also offered a series of exclusive interviews to hand-picked media outlets in a bid to get his point of view out to the public. None of the interviews detailed his interest in securing taxpayer dollars to support his venture.

Hamilton city council might consider a lease deal with Balsille tonight. City officials have said they want an arrangement that would keep the relocated Coyotes in Hamilton permanently, not temporarily until Balsillie builds an arena elsewhere.

The league, meanwhile, has steadfastedly maintained it controls the fate of the Coyotes through "irrevocable proxies" negotiated with Moyes in exchange for league financial assistance, and that the team should never have been in Chapter 11 in the first place.

Soon, a bankruptcy judge will have his say on the matter. But Gretzky's support for a plan that would keep the Coyotes in the desert and Balsillie's grab for public money may change the way Canadians view the billionaire's audacious NHL ambitions.