New Player Emerges For Coyotes, Ice Edge Out...?

((HT: Phoenix Business Journal/Sunnucks via Howard Bloom))

A "mystery buyer" has stepped up to pick up the Phoenix Coyotes...

Details of the new ownership group are very limited ((thus, the "mystery" in "mystery buyer," right...?)), but some kind of announcement could be forthcoming fairly soon.

((Insert positive-sounding cliche here...))

The ownership group has asked for the city and league to keep negotiations private. The new buyer would keep the Coyotes in Glendale... for now, anyway...

Ice Edge Holdings LLC, the original front runner, is no longer that and seem to be more interested in bringing an ECHL franchise to Thunder Bay, Ontario. The ECHL franchise has been part of their plan all along- Coyotes inclusion or not.

Ice Edge CEO Keith McCullough said Monday that Ice Edge could still have "some" involvement with the Coyotes- whatever that means...

From Sunnucks:

“We understand another party that we have become acquainted with is in advanced negotiations with Glendale and an announcement could happen soon. If this occurs, we expect to continue to be involved with the Coyotes as an adviser for the foreseeable future,” McCullough said.

The mystery buyer is not Jerry Reinsdorf, and the City of Glendale is ((as always)) not commenting...

The NHL has set an end of the year deadline for the Coyotes to be sold to new owners who would keep the team in Glendale. If that deadline passes, the NHL would look for the True North group to step up and spirit the franchise to, probably, Winnipeg once and for all...

More when we know more...

Glendale Looking Around Again...?

Multiple outlets are reporting that the City of Glendale and Ice Edge Holdings, the Canadian-American business group given the okey-dokey to buy the Phoenix Coyotes from the National Hockey League, haven't swapped the proper documentation to assuage the city's fears on their financing.

Oh, "assuage?" Look it up...

James Mirtle, from the Globe and Mail, had this in a recent article...

"One source told me last week that Ice Edge's bid had been "dead" for weeks and that commissioner Gary Bettman has brought Reinsdorf – long the NHL's choice in this mess – back into the mix."

Remember, Reinsdorf's bid was the other one shot down. He wanted his bid heavily leveraged with city help with an outclause. Ice Edge's has been traditionally shaky. Word has constantly been that once Ice Edge got the bid, then the financing would materialize.

Apparently, it hasn't... at least to city of Glendale satisfaction...

John Shannon of Rogers Sportsnet, relayed the following in a recent article...
"...a City representative did say they stood by comments made last week that Ice Edge was having difficulty proving they had enough financial backing to purchase the club.

On a related topic, another source close to the team said that only 1,800 season tickets have been sold for the 2010-11 season. A disappointing number considering the team's on-ice performance last season."

Rebekah Sanders, from the Arizona Republic, caught up with new team president Mike Nealy on the issue:"There are others out there that are viable... but they like to stay quieter."

Looks like Ice Edge is in trouble... again...

1,800 season tickets...???
Yikes... Coyotes spokesperson Sergey Kocharov disputed the number to Sanders...

But all this dies lend itself to the question... again...

With the Goldwater Instititute hanging over the City of Glendale government, is thee city still going to chase after the idea of biting that $25-million price tag for the one year, or succumb to Reinsdorf after all...???

The HQ's money is still on heading to Winnipeg with True North, who has been their normally-silent selves in all of this...

More when we know more...

Reinsdorf Withdraws From Coyotes Process

A group headed Jerry Reinsdorf has withdrawn from purchasing the Phoenix Coyotes. That now leaves Ice Edge Holdings as the only potential buyer that would keep the NHL team in Arizona.

Reinsdorf, owner of the Chicago White Sox and Chicago Bulls, issued a statement Monday night saying "it was time to move on."

The Glendale city council is set to vote Tuesday night on a memorandum of understanding ((MOU)) that gives Ice Edge exclusive negotiating rights for 60 days. Another group could break that clause by giving Glendale the US$25 million outright to cover the money the city has pledged to the NHL to cover the team's losses next season if a sale is not worked out.

A new lease for the Coyotes to play at Jobing.com Arena is a necessary step before Ice Edge can proceed to try to purchase the team from the NHL.

In the statement, the Reinsdorf group, known as Glendale Hockey, called the decision to pull out "a difficult one because of our respect for the mayor, the council and management of the city."

"Ultimately we came to the conclusion it was time to move on," Reinsdorf said. "We were happy to serve a critical role for the City to keep the team in Glendale and we look forward to assisting the city in the future on other projects both as a company and individually."

The statement concluded with the Reinsdorf group wishing "Glendale, its citizens and the fans of the Coyotes the best."

The city council already had approved an MOU with Reinsdorf while rejecting one with Ice Edge. However, city officials later went to Ice Edge hat-in-hand asking it to come back to the bargaining table.

Ice Edge's Daryl Jones has a Tweet from the 4th: Ice Edge will confirm they are back at the table with COG on an exclusive basis. No MOU has been approved or agreed upon thus far.

More after the meeting tonight in Glendale...

Balsillie Fires Back At NHL Over "Sham" Comment

((HT: GlobeSports/CP))

Jim Balsillie has fired back at the NHL and its claim that his attempt to buy the Phoenix Coyotes is a "sham."

The Canadian billionaire says whatever the league's legal arguments are over who actually controls the team right now — as far as he's concerned, the Coyotes remain bankrupt.

"Who owns or controls the team is a distinction without a difference," Balsillie said in a statement Thursday. "The team itself is still bankrupt, voluntarily or not. The owner of the team has a fiduciary obligation towards the creditors."

On Wednesday night, the NHL filed motions in an Arizona bankruptcy court claiming that Balsillie's attempt to purchase the Coyotes out of Chapter 11 bankruptcy and move the team to southern Ontario is a "sham."

The NHL claims that Coyotes majority owner Jerry Moyes gave up the right to place the team into bankruptcy when he received financing from the league last year. The league also contends that Moyes has no right to complete a sale conditional on a move to Southern Ontario because that territory belongs to the league.

"Any bid for the sale of the Phoenix Coyotes solely for relocation to Ontario is a sham and should be rejected by this court," the league said in a motion.

Among the other claims the NHL makes in court documents are that Moyes has not complied with all of the rules and procedures he agreed to when he purchased the Coyotes and that there isn't enough time for the franchise to be moved before next season.

The parties will be in a Phoenix courtroom for a bankruptcy hearing next Tuesday.

Balsillie, the co-CEO of Research in Motion, has offered US$212.5 million to purchase the Coyotes. On Thursday, he said that his offer — which is conditional on moving the team to souther Ontario — goes the furthest in "satisfying creditors' claims."

He has twice tried and failed to buy an NHL team (Pittsburgh and Nashville) and move it to southern Ontario. Balsillie reiterated Thursday why he remains motivated to try again.

"At the end of the day, this is about the passion Canadians feel for the game of hockey and a chance to provide those fans with the opportunity to support a seventh NHL team," said Balsillie.

"That's what this is all about, great hockey fans in a great hockey market."

Coverage from CHCH-TV in Hamilton is in black...

Natalie Marconi and Al Sweeney are in the field for this round...

GlobeSports Coverage continues with Eric Duhatschek and Jeff Blair

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.

NHL Not Revealing Reinsdorf Details

((HT: Globesports/Waldie and Naylor))

The NHL is refusing to provide details about an offer from Chicago businessman Jerry Reinsdorf, which the league says would keep the Coyotes in Phoenix.

The league has said it was pursuing a possible deal with Reinsdorf, who owns baseball's Chicago White Sox and basketball's Chicago Bulls, days before Coyotes majority owner Jerry Moyes ((pictured with NHL Commissioner Gary Bettman, thanks East Valley Tribune)) put the NHL club into Chapter 11 bankruptcy and announced a proposed sale to Canadian businessman Jim Balsillie. The NHL has objected to the U.S. court protection filing and the planned sale to Balsillie, who wants to move the team to Hamilton.

Moyes has insisted he knew nothing about the Reinsdorf bid, and this week his lawyers asked the Arizona judge overseeing the Chapter 11 process to compel the league to produce details about the Reinsdorf bid and any others.

The NHL has refused, arguing in a court filing that “premature disclosure of any expressions of interest in the team could be harmful.”

Buying a sports franchise is complicated, the league argued, and providing information about offers to other bidders, such as Balsillie, could disrupt the “value maximizing process.”

“The NHL has demonstrated its commitment to the success and welfare of the Phoenix Coyotes by providing additional financing to support the venture. Once the NHL determines that a legitimate and worthwhile exchange of confidential information with bidders may be productive, it will do so.”

In other court filings, the league has said it informed Moyes's lawyers about the Reinsdorf proposal on May 1, and was told “Moyes was not able to come up with anything better.” Four days later, Moyes put the club into court protection and announced the Balsillie offer.

Corporate records show Balsillie is making his bid, worth $212.5-million (U.S.), through a company he incorporated in Delaware three years ago, when he tried to buy the Pittsburgh Penguins. In 2006, the company was called Pittsburgh Sports & Entertainment. When that bid failed, Balsillie went after the Nashville Predators and renamed the company Predators Sports & Entertainment. He change the name again last month, after striking a preliminary deal with Moyes. It's now called PSE Sports & Entertainment.

While Moyes and Balsillie are hoping for a quick sale, some creditors have filed objections to the process, including SOF Investments LP – a private equity fund linked to computer magnate Michael Dell – which is owed roughly $80-million.

Another potential stumbling block could be the Coyotes' lease for the Jobing.com Arena with the City of Glendale. The Coyotes operate the arena, and pay annual fees to the city, through a separate business called Arena Management Group. That company lost $20.2-million in three years, according to court filings.

Legal experts say Glendale is most likely to end up as an unsecured creditor in the event Balsillie wins the right to buy the team and move it to Southern Ontario. His offer does not include buying Arena Management.

“If you can terminate a union-negotiated collective bargaining agreement in bankruptcy, you can certainly terminate a lease,” University of Indiana sports law professor Gary Roberts said.

The NHL has argued that a precedent was set in 1998, when a bankruptcy court refused to discharge the lease and would not allow the Penguins to seek owners or venues outside their current home.

But those in the bankruptcy field say Glendale's claim would be limited to three years of rent, despite an existing 30-year lease, and would have no claim to keep the team from seeking a new home.

“The whole aspect of limiting relocation is not really a bankruptcy question,” University of Illinois professor and bankruptcy scholar Charles Tabb said. “The Coyotes would have no greater or less a right to relocate to Canada in or outside of bankruptcy.”

NHL Responds To Moyes Motion

((HT: Globesports/Waldie))

The National Hockey League is trying to block an attempt by Coyotes controlling owner Jerry Moyes ((pictured, thanks CP)) to force it to disclose details about a rival bid for the club.

Moyes wants a bankruptcy court judge in Phoenix to force the NHL to provide information about its discussions with Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls. The league has argued that it was close to a deal with Reinsdorf just before Moyes put the club into Chapter 11 protection on May 5 and announced a proposed sale to Canadian businessman Jim Balsillie for $212.5-million (U.S.). However, the NHL has not provided details about a possible deal with Reinsdorf.

On Monday, lawyers representing Moyes filed a motion seeking to compel the NHL to provide information about the discussions so that he could “examine the content of those discussions and the potential offer outstanding by Mr. Reinsdorf”.

This morning the NHL shot back, arguing in a court filing that there was “no justification for the efforts of [Coyote's] former principal Jerry Moyes to harass the league” with such a request.

The NHL argues that the court has to first determine who controls the Coyotes –- the NHL or Moyes – before dealing with this kind of request. It also argues that disclosing “any expressions of interest in the team could be harmful”.

“Forcing the early disclosure of information relative to such an investment, especially if it may be given to a competing “bidder” like Mr. Balsillie, could disrupt a value maximizing process,” the NHL argued. “The NHL has demonstrated its commitment to the success and welfare of the Phoenix Coyotes by providing additional financing to support the venture.”

A judge has yet to rule on the issue...

Darren Dreger from TSN adds the following:

In court documents obtained by TSN, the NHL charges the motion submitted on Monday by Moyes' legal team is ''premature'' and should be ''denied.''

"Pending the determination of who is in rightful control of the Debtors, there is no justification for the efforts of the Debtors' former principal, Jerry Moyes, to harass the league with such discovery that may prove wholly unnecessary. Premature disclosure of confidential discussions will jeopardize value for the league and all of its member teams, including the Phoenix Coyotes, as well as the team's creditors."

On Monday, Moyes filed the motion amid continued NHL speculation there are other groups interested in buying the Coyotes.

''The National Hockey League purports to have entered into discussions with, among others, Jerry Reinsdorf regarding his interest in potentially purchasing the Phoenix Coyotes club. Moreover, the National Hockey League has publicly announced it has been involved in discussions with groups, entities, or individuals other than Mr. Reinsdorf regarding the potential sale of the Phoenix Coyotes. The purpose of the production is to examine the content of those discussions and the potential offer outstanding by Mr. Reinsdorf related to these purported interests.''

At this point, the judge in this bankruptcy case has not granted the motion, but could do so at some point today.

If the Moyes motion is granted, the NHL will have to produce the content of discussions with Reinsdorf, and perhaps any other interested purchase groups.

Glendale Courted Reinsdorf For Coyotes

((HT: Arizona Republic/Harris and Watters))

Hours before Jerry Moyes put the Phoenix Coyotes into bankruptcy court Tuesday and agreed to sell the team to a Canadian millionaire, Glendale was working on a deal to have Chicago sports executive Jerry Reinsdorf, along with other investors, take over the hockey franchise.

"The city of Glendale is working with interested parties and one of those parties we had a conversation with was Mr. Reinsdorf," Ed Beasley, Glendale city manager, said Wednesday. "We are working with the (NHL) league and will aggressively work to keep this team in Glendale and the state of Arizona."

Beasley declined to provide additional details on negotiations with Reinsdorf, a part-time Paradise Valley resident who, through a spokesman, declined to comment. Reinsdorf is majority owner of the NBA's Chicago Bulls and baseball's Chicago White Sox, who this year moved their spring training facility from Tucson to Camelback Ranch, which Glendale built.

Phoenix attorney John Kaites said that he began putting together a team of investors and approached the city and team six months ago about taking over and keeping the Coyotes in Glendale.

Kaites, who represents the White Sox among other sports teams, declined to say who or how many investors were involved.

"It's a robust group, and that is what it's going to take to save the team," he said.

Kaites said he met with National Hockey League Commissioner Gary Bettman in Phoenix on Tuesday.

For weeks, Reinsdorf had been courted to run the Coyotes, and the NHL was working with Glendale to broker a deal. The city had hoped Reinsdorf's extensive experience in running championship sports teams would resurrect the Coyotes, who have made the playoffs just once since Moyes became an investor.

Although Kaites has a long history with Reinsdorf, the attorney would not say if Reinsdorf was part of the group. Kaites said each partner would contribute equally, and each had an extensive background in sports.

"There's a really big desire on the part of our group to be involved in Glendale," Kaites said.

He would not say whether the investment group would need concessions from the city, but he did say it would take a "huge effort from this entire community to make this work."

Kaites said he and others in the investment group would "do what is necessary and reasonable," but would not engage in a bidding war for the team.

"We just sit back now and wait for it to be resolved between the team, the city and Jerry Moyes," Kaites said.

Here's how the Balsillie salvo was reported on "After 40 Minutes" on CBC's "Hockey Night in Canada" Tuesday night.
((HT: CBC/NHL))