((HT: CBSSports))Canadian billionaire Jim Balsillie ((pictured, thanks Fred Lum/GlobeSports)) wants the U.S. Bankruptcy Court to allow him to probe the rationale behind the NHL owners' overwhelming rejection of him as a potential owner of the Phoenix Coyotes.
The Canadian, in a court filing on Monday, also contends that Judge Redfield T. Baum has the authority under bankruptcy law to award the bid to Balsillie despite the actions by NHL owners.
The filing by PSE Sports & Entertainment, the company Balsillie formed to pursue the Coyotes, comes after the NHL said he was rejected as an owner by a 26-0 vote with three abstentions and one absentee, because he was perceived to be untrustworthy.
Balsillie has offered $212.5 million to buy the Coyotes, contingent on moving them to Hamilton, Ontario. The NHL is fighting that attempt and wants to keep the team in Glendale.
Meanwhile, Erin Zlomek of the Arizona Republic discovers that business owners in Glendale are, understandably, wary about the whole "voluntary" tax district idea.
Leaked Bankruptcy Court documents indicate that one proposal to keep the financially troubled Phoenix Coyotes hockey team in Glendale could involve charging local businesses or their patrons an extra fee on retail sales.
Glendale officials have not responded to the proposal, which was made by a potential Coyotes buyer.
But the mere suggestion has raised eyebrows among retailers, many of whom say they are already facing a tough sales environment and would hurt worse if the final cost of their goods increased.
The retailers' concerns foreshadow the backlash Glendale might face should the city offer incentives to a Coyotes' buyer at the expense of local businesses during the recession.
"I'm open to anything that keeps the Coyotes around but does not put an undue burden on others," said "SPAWN" comic book creator Todd McFarlane, who owns a toy store at Westgate City Center near the Coyotes' home rink at Jobing.Com Arena.
Chicago sports mogul and team bidder Jerry Reinsdorf asked Glendale officials during private negotiations to create a special taxing district around the arena in order to collect a "voluntary" surcharge on retail sales, according to confidential documents leaked last week.
Notable shopping destinations in the area include Westgate stores, outdoor sporting goods retailer Cabela's, an AMC Theatre and several restaurants.
Reinsdorf is one of a few potential buyers willing to keep the team local, and the proposed surcharge would help him pay off debt after purchasing the team.
The documents estimate that the charge could generate $23 million in revenue next fiscal year, nearly quadrupling the city's 2008 sales tax collection for the same area. But it is unclear how the charge would be administered, how it would be voluntary or where the special taxing district's boundaries would end.
Reinsdorf's attorney was not available for comment on the matter.
The leaked documents detailing Reinsdorf's request were posted to a U.S. Bankruptcy Court Web site by attorneys for current Coyotes owner Jerry Moyes.
Reinsdorf called the breach a ploy by Moyes to undermine his bid. Moyes stands to lose $104 million if the team goes to Reinsdorf.
A spokesman for Moyes told The Republic on Monday that the leak was "completely inadvertent and accidental."
Glendale's hired legal spokesman Gary Husk made it clear that the proposal originated with Reinsdorf.
"The city has not rejected or accepted or commented on (the proposal) . . . any action on it would be required to go through the City Council," Husk said.
No council meeting has been scheduled to approve such a deal.
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