NHL, Maple Leafs Disagree On Relocation Veto Power

((HT: GlobeSports/Naylor))

In a letter dated Nov. 29, 2006 – filed in U.S. Bankruptcy Court in Arizona by Balsillie's lawyers last Friday – the Toronto franchise states it does not share the NHL's interpretation of its constitution.

“The Toronto Maple Leafs do not agree that a relocation of another club into their home territory would be subject to a majority vote [of the league board],” said the letter to league commissioner Gary Bettman. “They continue to believe that a unanimous vote would be required before a team could relocate into their home territory.”

The letter was in response to a decision made at an NHL board of governors' meeting in September of 2006 to tell the Canadian Competition Bureau that approval for franchise relocation was determined by a majority vote. The Leafs did not attend the portion of the meeting where that was decided, and later voiced their objections.

“The statement in the minutes that none of the [NHL] board members objected to the statement about relocation into home territories does not represent the Toronto Maple Leafs' position,” the letter said. “The Maple Leafs … reserve all rights to take whatever actions are necessary to protect their exclusive rights to their home territory.”

NHL deputy commissioner Bill Daly said the league stands by its position – even if the league's most prominent and wealthiest franchise does not.

“It doesn't really matter how one of 30 teams may interpret league rules,” Daly said. “It's the league's interpretation that matters. And the league has interpreted its rules to require only a majority vote in these circumstances since at least 1993. The league's interpretation has been enforced and communicated to the clubs consistently since Gary Bettman was elected commissioner.”

On Wednesday, Balsillie is expected to argue that the NHL's opposition to his participating in the auction for the Coyotes is to protect the Leafs' stated right to keep NHL competition out of their territory. The hearing is to determine whether Balsillie's $212.5-million (U.S.) bid will be allowed at the auction on Sept. 10, despite his being denied approval as a potential owner by the NHL this summer.

The Leafs' 2006 letter makes clear the NHL's public position on relocation runs contrary to the wishes of the Toronto franchise and its owner, Maple Leafs Sports and Entertainment. And it suggests if the NHL was to deny the Leafs access to their veto, the league could expect a significant legal fight over the issue.

Gee, just what we figured... more legal battles should things not go one party's way or another...

What is it we say about the idea of the "ruler...?"

Remember, now that the National Hockey League has stated in its public filings that they may not be able to keep the Phoenix Coyotes in the desert, those of us at OSG HQ think they're eyeing the Hamilton area as well. Trying to set the idea in motion of a team at Copps Coliseum ((pictured, thanks CP file))- regardless of the owner Balsillie, the league, or the league's designee.

If The Bettman has to take on MLSE to get it done, apparently, he is resigned to that fate.

If Balsillie's Going Down, He's Taking Everyone With Him

((HT: GlobeSports/Shoalts))

Who is the one guy ((and the one organization)) that you really don't want to piss off in a proceeding where you're trying to become a member of a very exclusive club...???

If you answered Maple Leaf Sports & Entertainment's Richard Peddie ((pictured, with Leafs GM Brian Burke, thanks Getty Images file)) and the Toronto Maple Leafs, you get a gold star.

Those are the two groups that Research in Motion's Jim Balsillie is trying to throw in his list for deposition as we get closer to the September 2nd viability hearing for Balsillie's bid for the Phoenix Coyotes in US Bankruptcy Court.

From the David Shoalts' article...

"His lawyers’ request said Balsillie “believes that, notwithstanding the NHL’s pretextual arguments, the Maple Leafs are trying to block [Balsillie’s] purchase of the Coyotes in order to prevent a Hamilton relocation and competition with the Maple Leafs in Southern Ontario.”

Lawyers for Balsillie and Moyes want to grill Peddie about the Leafs’ motives. They also want to question Bettman, Daly, Boston Bruins owner Jeremy Jacobs and Minnesota Wild owner Craig Leipold.

Balsillie’s legal team also demanded a series of NHL documents. The team wants documents concerning all franchise transfers, expansions and relocation fees since 1990, gate receipts for all teams located relatively close to one another, hockey-related revenue statements since 2005, and all documents relating to the possibility of another team coming to Southern Ontario."

The NHL has agreed to having Gary Bettman deposed in addition to deputy commish Bill Daly and two owners to be named later. Balsillie wants Bettman, Daly, Peddie, the Wild's Craig Leipold and the Bruins' Jeremy Jacobs.

Leipold's inclusion would be to set the basis for the Balsillie-Predators partnership that fizzled and to address Leipold's amount of pissdom after Balsillie went ahead and atttached the Predators logo to some Hamilton, Ontario ideas to gauge season ticket interest.

There is an inherent belief, in the Balsillie camp, that Peddie and MLSE are behind a "veto" idea of bringing another franchise into southern Ontario.

The NHL wants to depose Balsillie, his attorney Richard Rodier, Jerry Moyes, Moyes' lawayer Earl Scudder, and Coyotes CEO Doug Moss. Those of us at OSG HQ are not thinking that Scudder and Rodier will get questioned because of attorney-client privilege. Moss gets to discuss the state of the franchise when Moyes wanted to declare bankruptcy.

All this to get in to the club...???
And in the end, you have to ask if it's really worth it in the end...
Or, as some close to OSG HQ have declared:

"Why don't they just get a ruler out and get it over with...???"