NHL: Moyes Acted Dishonestly

((HT: Toronto Star/Kevin McGran))

The NHL accused Coyotes owner Jerry Moyes ((pictured, thanks Gary Franklin/AP)) of acting in a "duplicitous" manner and secretly altering documents in papers filed overnight in bankruptcy court.

Outlining why it believes it has control over the Phoenix Coyotes and not Moyes, the league gave its reasons in documents filed just before a deadline imposed by a U.S. federal bankruptcy court judge.

In a file that uses words like "duplicitous" and "bad faith" when referring to Moyes, and mentions secretly altered documents, the league began its arguments with a sense of humour.

"For all the sound and fury (and paper) surrounding this case, the NHL's motion raises a simple question: did the NHL exercise legitimate governance rights in taking control of Coyotes?" reads the motion filed close to a midnight deadline in Phoenix (3 a.m. Eastern).

The NHL believes it did, through a proxy signed by Moyes on Nov. 14, 2008, in exchange for a financial bailout of the troubled team.

But the NHL goes further, accusing Moyes of "secretly" altering documents to make it appear he was in control of the team in order to work out an arrangement with billionaire Jim Balsillie to arrange a deal to sell the team through bankruptcy proceedings.

"The NHL's fundamental interest in taking control of the Coyotes is to preserve the viability, good will and success of the NHL as a major professional sports league rather to protect any creditor interest," said the NHL's arguments.

"Mr. Moyes' transparent attempt to keep himself as 'Managing Member' of the Club by unilaterally and secretly altering the Club's organizational document should be rejected."

Moyes' legal team has until tomorrow to respond to the NHL's arguments, as well as arguments put forward last night by the city of Glendale, Ariz., that moving the team would amount to breaking the law.

The Moyes camp has argued the proxy only gave the NHL certain voting rights, and taking the team into bankruptcy is not a voting matter. They've also argued the NHL was late in exercising the proxy and is violating bankruptcy proceedings by trying to take control of the team from Moyes.

The NHL argues Moyes secretly altered documents in April to make it seem he was still in control and had no right to take the team into bankruptcy because he lacked the authority to do so.

"Even Mr. Moyes' tortured reading of the November proxy agreements concedes that he does not have the right to 'vote' his membership interests," reads the NHL argument.

"In any event, even assuming that Mr. Moyes' conduct was technically permissible, it smacks of bad faith and duplicitous dealing. The Court should not condone such inequitable conduct."