Saturday, May 16, 2009

Moyes: NHL Acted Fraudulently To Take Coyotes Over

((HT: GlobeSports/Waldie))

The National Hockey League has acted fraudulently in its bid to try and take control of the Phoenix Coyotes, the club's majority owner said in a court filing.

"The NHL's current position proves the fraudulent inducement claim," Jerry Moyes alleges in a court filing.

The NHL has contended in court filings that Moyes ((pictured, thanks GlobeSports)) had no authority to put the club into Chapter 11 protection on May 5 and arrange a sale to Canadian businessman Jim Balsillie.

The league claims Moyes handed over control to the NHL last November in return for financing, and that a team of league officials has been running day to day operations ever since.

In his filings, Moyes said the league never had control of the team and in fact did not want control.

He says by taking a different position now the league is trying to fraudulently take the club away from him.

Moyes argues the league officials made it clear last November, after the financing was arranged, that they did not plan to operate the club and that the arrangment "didn't change anything" in terms of how the club was run.

The league did not have day to day control, he added, but merely received weekly financial updates.

He said the league never publicly said it was in charge and in fact Deputy Commissioner Billy Daly was quoted in January as saying Moyes' group was "making day to day business decisions".

"Since November 2008 the same poeple have continued running the hockey club in the same ways. The NHL did not hire or fire employees, bring in a team of people to occupy desks" he alleged.

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