Thursday, June 25, 2009

Coyotes Auction August 5

((HT: Arizona Republic/Watters))

Buyers interested in keeping the Coyotes in Glendale will get first dibs at an Aug. 5 auction.

Should no offer satisfy the court, U.S. Bankruptcy Judge Redfield T. Baum said Monday that a second auction open to bidders who want to relocate the team would be Sept. 10.

Attorneys for Jim Balsillie, who offered $212.5 million if he can move the team to Canada, are hopeful a move would be possible for the 2009-10 season. The National Hockey League maintains no move could happen until the 2010-11 season.

But the league is not focused on relocation. "We don't think we'll get there. We think we're going to find a successful buyer in Glendale," NHL attorney Tony Clark said.

An attorney for Chicago White Sox owner Jerry Reinsdorf and Valley attorney John Kaites told the court they would submit a bid to keep the team in place.

Kaites, who formed Glendale Hockey, LLC, with Reinsdorf, said an application would be submitted on Friday and a formal bid would follow by July 24, the deadline established for bids in the first auction.

Meanwhile, Kaites said "we intend to see what arrangements could be made to satisfy unsecured creditors."

Attorney Paul Sala, who represents unsecured creditors, has supported bids for relocation, saying that provides the most money for creditors.

In bankruptcy, secured creditors have first priority and what's left is shared among unsecured creditors.

"This is a troubled franchise," the judge said. "This court has to try to get the best deal for creditors."

Drama enveloped the Coyotes six weeks ago when Jerry Moyes placed the team he owns into bankruptcy.

Tom Salerno, representing Moyes, said there would be an "audible gasp" when bids to keep the team in Arizona are unveiled and come in far lower than Balsillie's offer

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