More Groups Line Up For Coyotes

((HT: TSN))

And the line starts in New York with the Bettman...

Current Toronto Argonauts co-owners Howard Sokolowski and David Cynamon ((pictured, thanks David Cheung/Globe and Mail)) plan to meet with Glendale city officials next week with an eye toward putting a bid together for the Coyotes.

Sokolowski and Cynamon were part of the Ice Edge Holdings group that pursued the club when owner Jerry Moyes filed for bankruptcy in the summer. But Cynamon confirmed to the Globe and Mail they are longer part of that group and sources tell the newspaper they have put together their own collection of about 12 investors.

They're also reportedly fed up with the idea of losing money over the Argonauts and not being warmly embraced on their revenue ideas for the future of the CFL itself.

The report indicates an Arizona bankruptcy court is expected to grant approval to the NHL's $140 million US bid to buy the Coyotes from Moyes on Monday, the same day Sokolowski is planning to meet with Glendale officials.

Should Sokolowski and Cynamon put together a bid, it would have to include a new lease for the Jobing.com arena in Glendale.

Keith McCullough of Ice Edge Holdings appeared on the Business New Network on Thursday and said their group is prepared to bid on the Coyotes as well.

Remember...??? The whole 5 games in Saskatoon thing...

Watch the McCullough interview here...the fun starts at the 6:30 mark
Thanks to our friends at the Business News Network...

None of this is really a surprise...those of us at OSG HQ figured everyone would wait until the bankruptcy process was concluded in court before jumping back in...

So, They Are Thinking About Moving Them After All...???

((HT: GlobeSports/Naylor))

Here's the hook from the Naylor article:

“By acquiring the team at this time, the NHL will be able to salvage the team’s 2009-10 season and can establish a more constructive timetable in which to solicit acceptable offers from qualified parties, including, if a potential buyer wishing to keep the team in Glendale cannot be found, conducting an organized process to relocate the franchise in another territory,” the league states in its bid put before the Arizona bankruptcy court.

The NHL ((Commissioner Gary Bettman is pictured, thanks Harry How/Getty)) bid mentions nothing about a commitment or desire to keep the team in Phoenix and casts further doubt on the team’s viability in Phoenix by stating: “Despite the continuous efforts to facilitate the sale of the Phoenix hockey club to a qualified owner committed to keeping the team in Glendale, the NHL has reluctantly concluded that it is necessary to submit this bid for the NHL to acquire and operate the team.”

In its offer, the NHL bids $140-million (all currency U.S.) for the team, plus up to 20 per cent of whatever profit (not to exceed $20-million) the league might earn by reselling the team within two years of the closing date of its purchase from the bankruptcy court.

Since the NHL states in its bid that it “does not anticipate there would be a net profit upon a resale of the team to a Glendale buyer”, its own interests, and those of the creditors, would likely be best served by relocating the team to a market where its value could be maximized beyond $140-million.

The league’s apparent openness to relocating the Coyotes flies in the face of its commitment to Glendale, dating back to when the team’s troubles first surfaced last season and throughout the league’s four-month fight with Canadian billionaire Jim Balsillie, the co-chief executive officer of Research In Motion who wants to relocate the team to Hamilton.

Last June, the NHL presented a sworn statement that there were several buyers willing to purchase the team and operate it in Glendale.

Two of those names were the current owners of the Toronto Argonauts, David Cynamon and Howard Sokolowski. They have needed assistance from BC Lions owner David Braley to keep things afloat on occasion a few years ago.

They have since remained below ground and given no public interest or indication of chasing the Coyotes.

By the way, Ice Edge dropped a $10-million deposit on their bid when they submitted their paperwork.

So, now and only now the NHL- under their own terms- decided that the Coyotes might be moved if the situation warrants. A stance that the Balsillie camp has maintained since Day One, but a stance ignored since Commissioner Gary Bettman wouldn't pee on Balsillie if he were on fire right in front of him.

Judge Redfield T. Baum now has a decision on September 2nd: Two bids, one $70-million less than the other ((and the lesser bid is from the league itself)), can address the situation. A by-product of the issue would be the relocation of the franchise.

The third bid, Ice Edge, has maintained they can keep the franchise in Glendale- with their field trips to Saskatoon for the regular season and playoffs. But it's already contingent on the idea they can agree on a new lease at Jobing.com Arena.

So, isn't that already "moving"...???

So, does more money answer a problem for a change IN BANKRUPTCY COURT...???
Or will a league get things their own way- again...???

Coyotes Lost $60-Million Since 2006

((HT: GlobeSports/Waldie))

With bids for the Phoenix Coyotes due in an Arizona bankruptcy court today, the club has revealed it lost more than $60-million (all currency U.S.) last season.

Documents filed in court show the club's hockey operations posted a $27.1-million loss for the year ended June 30. Hockey revenue, which came largely from ticket sales, totalled $58.3-million, about $7-million less than the club expected.

The net loss, which included interest payments and other costs, was $67.1-million, according to the filing.

The hockey operations have lost well over $20-million annually in each of the last three NHL seasons, according to documents filed in court.

The Coyotes filed for Chapter 11 protection in May and an auction for bidders who will keep the team in Phoenix is slated for Aug. 5.

Bids for that auction are due today and so far only one proposal has been filed, an offer worth up to $148-million from Jerry Reinsdorf, owner of the Chicago Bulls and Chicago White Sox.

Another group led by Daryl Jones, of Research Edge LLC in New Haven, Conn., has indicated that it is planning to make a bid.

If the Aug. 5 auction fails to deliver a decent offer, the bankruptcy court will hold another auction on Sept. 10 to relocate the club. Jim Balsillie has offered $212.5-million to move the Coyotes to Hamilton.

The NHL had indicated in court filings that four groups were interested in buying the club and keeping it in Phoenix. They consisted of Reinsdorf; Howard Sokolowski and David Cynamon ((pictured, thanks GlobeSports file)), owners of the CFL's Toronto Argonauts; John Breslow, a current Coyotes co-owner; and another unidentified Phoenix businessman.

Sources familiar with the auction say the Argo co-owners have not participated in negotiations to buy the club and that Breslow plans to join one of the other bidding groups. The unnamed Phoenix businessman is also believed to be interested only in investing about $20-million with another bid.

Reinsdorf's proposal carries several conditions, including a new arena lease and concessions from creditors. “He doesn't want to pay a whole lot for this team. He's not going to get into any sort of bidding war,” said a source close to the auction.

Yesterday NHL deputy commissioner Bill Daly expressed confidence that the auction will result in a new owner who will keep the club in Phoenix. “We always have felt that way,” he said in an e-mail. “It continues to be our feeling. But we're not in total control of the process.”

It is not clear what will happen to Wayne Gretzky, the Coyotes' coach and co-owner. In an interview last week, Jones said his group is eager to work with Gretzky, but it's not clear what that would involve. A source familiar with the auction said Reinsdorf has not been clear about his intentions toward Gretzky, who has declined to comment on the sale process.

New Bidder In Coyotes Game...?

((HT: GlobeSports/Waldie))

The NHL has been approached by another potential bidder for the Phoenix Coyotes who wants to keep the club in Arizona.

The NHL disclosed the new bid in a court filing yesterday but did not provide any details.

“The League has been informed that this bidder will submit an application for transfer of ownership, but does not know whether the prospective purchaser will submit a definitive bid by July 24,” the NHL said in the filing in the Arizona bankruptcy court.

The Coyotes filed for Chapter 11 protection on May 5, and the bankruptcy court is holding an auction on Aug. 5 for bidders who will not relocate the club.

Potential offers were due on June 26 and so far the only bid has come from Jerry Reinsdorf, owner of the Chicago White Sox and Chicago Bulls. He has proposed buying the club for up to $148-million (U.S.), but his offer carries several conditions, including negotiating a new lease with the city of Glendale, the Phoenix suburb that owns the arena where the team plays. In its filing, the NHL said Reinsdorf is working “diligently” with the city and other creditors to finalize his offer.

The NHL did not explain why the new bidder did not meet the June 26 deadline. The league said the bidder “has requested access to, and spent time in, the due diligence data room” in order to put together an offer.

In earlier court filings, the NHL has suggested that other bids could come from Toronto Argonauts owners Howard Sokolowski and David Cynamon, as well as Coyotes minority owner John Breslow.

The NHL filed the motion to block a request from lawyers representing current majority owner Jerry Moyes. They want the court to force the league to disclose detailed information about Reinsdorf’s bid. Moyes’s group also wants to question commissioner Gary Bettman and several other league officials about the offer and other potential bids. Glendale has made a similar request to examine Moyes and other Coyotes officials – including part owner Wayne Gretzky ((pictured, thanks GlobeSports file)).

The NHL has argued that whatever information Moyes wants will be available when Reinsdorf submits his final bid, which is due on July 24.

If the court determines on Aug. 5 that the auction did not result in a sufficient offer to cover creditors, a second auction will be held in September for bidders who want to relocate the club. So far only Canadian businessman Jim Balsillie has made an offer, worth $212.5-million, to move the Coyotes to Hamilton.

Who Owns The Argos...?

((HT: GlobeSports/Naylor-Sekeres))

David Braley, owner of the B.C. Lions ((pictured thanks GlobeSports file)), secretly put up half of the $2-million franchise fee when David Cynamon and Howard Sokolowski purchased the Toronto Argonauts out of bankruptcy in the fall of 2003, and continued to lend money to the CFL club, The Globe and Mail has learned.

His role in brokering the Argos deal occurred without the knowledge of then-CFL commissioner Tom Wright, and the role Braley has since played is unknown to current commissioner Mark Cohon.

The Globe was told Braley has covered half the Toronto club’s annual operating losses. On the flip side, he pocketed half the profits from the 2007 Grey Cup game staged at the Rogers Centre.

When asked yesterday if Braley had an ownership interest in the Argos, Sokolowski vehemently denied it.

“Absolutely not, David Cynamon and myself are the owners,” he said. “There are no formal financial records whatsoever in terms of him being an owner.”

When asked whether there were any financial arrangements between the Argos and Braley, Sokolowski replied: “[Braley] is not an owner. He has never been an owner. It’s a private company. That’s it.”

Said Braley: “I don’t have any ownership interest at all with the Toronto Argonauts and I never have. … There is no paperwork and there’s nothing to be able to prove that.”

Braley said he has made loans occasionally to CFL owners, citing an Ottawa Rough Riders group of the early 1990s, two groups in Hamilton during the 1990s, and former Argos boss Sherwood Schwarz, whose ownership ended in the 2003 bankruptcy.

“From time to time, I help financially and I always get paid back,” Braley said. Asked if owners receiving his financial assistance included Cynamon and Sokolowski, he refused comment.

Though Braley is not registered with the league as a Toronto owner, he has often acted around the Argonauts as someone who would hold an interest in the club.

Braley acknowledged reviewing the Argos’ books at the end of last season, at the invitation of Cynamon and Sokolowski. He sat with their executives and accountants to inspect financial records and make budget suggestions.

“It’s a small league and it’s different and we’ve had some problems [historically] with the Eastern teams,” Braley said.

During the Argonauts’ final home game of 2008, Braley spent at least part of the match standing on the Toronto sideline, a position usually reserved for team executives. Braley said he attended that game as a guest of Cynamon and Sokolowski, and was invited to join them on the sideline.

When the Argonauts were searching for a head coach in the off-season, Braley made calls to people within the league soliciting names of suitable candidates, according to sources.

The Argos offered the job to Lions defensive co-ordinator Mike Benevides before later hiring Bart Andrus as their new head coach. Benevides, who rejected the Toronto job for family reasons after interviewing last December, said he spoke to Braley about the opportunity only once, at a Christmas party.

“[Braley] and Wally [Buono, the Lions’ general manager and coach] were both supportive, but they were arm’s length,” Benevides said. “I think they were very cautious of not trying to lead me one way or the other and let me make my own decision.”

Braley does not consider it unreasonable for one owner in the CFL to hold ownership in another team.

“I don’t have [an ownership in the Argos] but it wouldn’t be unusual,” he said. “The only thing you have to worry about is that football operations are transparent.”

No one interviewed for this story could discern any instance when Braley’s interest in both teams affected decisions pertaining to football.

Cohon declined to comment for this story. A league spokesman said the CFL commissioner is unaware of any sharing of interests in the Argonauts among Braley, Cynamon and Sokolowski, and has been assured by all three that none exists.

The purchase of the Argos involving Cynamon and Sokolowski was put together during the desperate days of the 2003 season, during which both the Argonauts and the Hamilton Tiger-Cats were in bankruptcy.

While Braley headed the search for ownership in Hamilton, Wright took the lead in Toronto and brought Cynamon and Sokolowski together. Braley, acting as a representative for the CFL board of governors, helped broker the deal that brought Cynamon and Sokolowski into the league.

Wright said he had no knowledge of any financial arrangement among Braley, Cynamon and Sokolowski. He said the deal to bring Cynamon and Sokolowski into the CFL was brokered by him acting as commissioner and Braley acting on behalf of the board.

“I can tell you that both David Braley and I were active on both sides of this ownership transaction,” Wright said.

CFL Commish Mark Cohon addressed the matter in a statement along with Cynamon and Sokolowski and Braley.

Hamilton TiCats GM Bob O'Billovich was on the Landry and Stellick Morning Show

Cohon was also a guest of Bob McCown on "Prime Time Sports"

Both, thanks to our friends at the Fan590 in Toronto

Brunt: Don't Take Coyotes Bids At Face Value

((HT: GlobeSports-Stephen Brunt))

If David Cynamon and Howard Sokolowski are indeed interested in buying the Phoenix Coyotes and keeping them alive in Arizona – as suggested in an affidavit sworn by NHL commissioner Gary Bettman – it would come as a huge surprise to many who know them.

That’s because the owners of the CFL’s Toronto Argonauts have been actively pursuing a very different agenda: Landing an NHL team that could be uprooted and relocated to a new arena in the Greater Toronto Area.

Cynamon and Sokolowski have been quietly fleshing out that plan for months now, and have discussed it, at least informally, with both the owners of the Toronto Maple Leafs and with the NHL commissioner.

As recently as March, Sokolowski met with Bettman at the NHL’s New York offices.

And the two Toronto businessmen have met with potential investors and sketched out the design for an NHL-ready arena as part of a larger development on the federally-owned lands at Downsview in the city’s north end, dubbed “Hockeyland.”

They have also recently explored the possibility of purchasing at least one other struggling, portable NHL franchise.

Now, according to Bettman’s sworn statement, Cynamon and Sokolowski have experienced a remarkable epiphany and are ready to bid for the chance to own and operate a franchise thousands of kilometres from home which has lost in the neighbourhood of $100-million (U.S.) over the last four seasons.

Asked about that this past weekend, Sokolowski refused to comment. “Out of respect for the process, we are referring all questions to the league,” he said.

Well, perhaps it’s possible. Perhaps the Argos owners suddenly see possibilities in Phoenix that are invisible to just about everyone else – including Paul Kelly, the head of the NHL Players’ Association, who opined this past week that it was time to “pull the plug” on the Coyotes.

But there is also a far more plausible explanation: Cynamon and Sokolowski believe that by allowing their names to be placed before the bankruptcy court among those who “have indicated an interest in operating the franchise in Phoenix,” they can curry favour with the league and gain the inside track on a second Toronto team, whether it’s the Coyotes, another ailing club or an expansion franchise.

If that’s the true story, Bettman is being at the very least misleading, if not disingenuous, by suggesting Cynamon and Sokolowski have any real interest in operating in Phoenix – beyond perhaps swallowing losses for a season or two before being granted permission to move to Ontario.

And there’s no mistaking what Bettman is saying in his affidavit, which reads, in part: “These local expressions of interest in owning the Coyotes, as well as the passion of the community fan base as evidenced by the ‘Save the Coyotes’ campaign and the City of Glendale’s willingness to participate in enhanced partnership initiatives designed to improve the team’s performance in the state-of-the-art Jobing.com Arena, all indicate that relocation may well be unnecessary and is certainly premature for the 2009-10 season.”

So let’s get this straight: The NHL believes wholeheartedly that the Coyotes can survive in Glendale and is absolutely opposed to the team being sold and relocated to Southern Ontario, but is now open to offers for the team from individuals who the commissioner knows have been planning to do exactly that.

Makes you wonder about the reality of the three other “bids” mentioned in Bettman’s affidavit from Chicago White Sox and Chicago Bulls owner Jerry Reinsdorf, Coyotes minority partner John Breslow, and an unnamed “Phoenix businessman.”

How legitimate are they, and what’s the real long-term strategy behind them?

Makes you wonder about the NHL’s actual commitment to the Phoenix market and those loyal fans Bettman loves to talk about. It certainly seems as though that might be lip service, to be abandoned just as soon as they win the current court battle.

Makes you wonder just how desperate Bettman and the league have become to stop Canadian tycoon Jim Balsillie from doing on his terms what they seem willing to allow someone else to do on theirs (though the Maple Leafs might have other ideas).

The plot thickens.

Four Bid To Keep Coyotes In Phoenix

((HT: CP))

Toronto Argonauts owners Howard Sokolowski and David Cynamon are among four potential buyers to express an interest in purchasing the bankrupt Coyotes and keeping them in Phoenix, NHL commissioner Gary Bettman said in a court filing.

The four parties submitted preliminary background applications this week seeking league approval to buy the troubled club, which Canadian billionaire Jim Balsillie is trying to buy out of Chapter 11 protection for US$212.5 million and move to Hamilton over NHL objections.

Two of the applicants had already linked to the club -- Chicago White Sox and Bulls owner Jerry Reinsdorf, who'll partner with John Kaites; and Coyotes minority owner John Breslow -- but the interest of Sokolowski and Cynamon came out of left field.

The fourth applicant is a Phoenix businessman who requested anonymity pending the NHL's due diligence, and there was no further detail offered on any of the bids.

Should attempts to find an owner to operate the team in Phoenix fail, the NHL added, it would then look to move the club.

The revelations came as part of the filing briefs submitted ahead of a midnight Friday deadline set by Judge Redfield T. Baum, who will hear arguments on whether Balsillie can move Coyotes in an Arizona bankruptcy court Tuesday.

The Argonauts did not offer any comment Saturday and Sokolowski and Cynamon did not immediately reply to email requests sent by The Canadian Press.

The documents draw out the case each side will make in the bitter fight for control of the Coyotes, who according to current owner Jerry Moyes have never made a profit in the 13 years since moving from Winnipeg and lost more than US$316 million.

The NHL cites the four potential buyers in arguing that maintaining the league's consent rights in a sale would not adversely affect creditors, and Bettman says in his declaration that he expects more bidders willing to keep the team in Phoenix to follow.

The league also argues that efforts to find a new owner for the Coyotes were "cut short by the debtors' (Moyes') precipitous and unnecessary rush into Chapter 11" and that if no ownership is willing to keep the club in Phoenix, "the league will find a purchaser for another location in co-operation with this court, and in accordance with the league's transfer and relocation rules and procedures, that will maximize the recovery for creditors."

The brief also goes on to defend its claims that Moyes didn't have the right to sell the team conditionally based on a move to Hamilton and that only the league can approve the relocation of its member clubs.

The Balsillie camp's brief hammers away at those arguments, underlining the view that the Coyotes aren't viable in Phoenix and breaking down any notions of veto power, territorial rights and compensation held by or owed to Toronto Maple Leafs.

By brushing aside Balsillie's bid, the brief states, the NHL is acting "to the detriment of all creditors," and that the best way to protect the creditors is by allowing them to move.

"The Coyotes hockey team is worth considerably more if relocated than if kept in Glendale, Arizona, and would enable a substantially greater recovery to the debtors' creditors," the brief said.

The Balsillie camp also argues that it has met all criteria under NHL bylaws for both purchase and relocation, and suggest that "emotions and personalities have clouded the objectivity of the league's decision-making process."

Also clouding the league's judgment is the NHL's desire "to protect the Toronto Maple Leafs and to leave the Hamilton geographic franchise opportunity open for the league to seize later."