Balsillie Makes Offer To Purchase Phoenix Coyotes

[pencilneckgeek2]

Press Release from CNW Group May 5, 2009


Jim Balsillie tabled an offer today to purchase
the Phoenix Coyotes, following the team's bankruptcy filing. The offer to
purchase the team for $212.5 million (U.S.) is conditional on relocation to
Southern Ontario, to become the seventh NHL franchise in Canada.
"The current team ownership asked that I table an offer to purchase the
Coyotes and significant discussions resulted in an offer that is in the best
interests of the franchise, the NHL, and the great hockey fans of Canada and
Southern Ontario," Mr. Balsillie said.
"I am excited to move closer to bringing an NHL franchise to what I
believe is one of the best un-served hockey markets in the world, Southern
Ontario. A market with devoted hockey fans, a rich hockey history, a growing
and diversified economy and a population of more than 7 million people," he
said.

At the request of the Coyotes franchise owner, Mr. Balsillie has also
agreed to post debtor-in-possession (DIP) financing of $17 million (U.S.).
Debtor in possession financing is bridge financing provided when a company is
in an insolvency proceeding which allows the company to continue to operate
through the proceeding in advance of a restructuring or sale.
Prior to a final decision being reached on the proposed sale, he called
for Canadian fans who want to see a seventh NHL franchise in Canada to make
their voices heard.
"It's particularly important for Canadian fans to demonstrate the kind of
hockey market we have and the passion we share for this game. We want those
Canadian voices who want a seventh NHL team in Canada to be heard throughout
the North American NHL market. Canadian fans can log on to www.makeitseven.ca
to add their voices to the call for an NHL team in Southern Ontario" Mr.
Balsillie said.

 

[shack]

Two questions.

1)Can Bettman do something definitive (aside from the league outbidding JB) to prevent him from acquiring the team through the bankruptcy proceeding?

2)If he does get the franchise, can Bettman stop him from moving the team to southern Ontario? I'm thinking Al Davis.

 

[pencilneckgeek2]

According to reports on HNIC tonight, someone will have to outbid this offer by $5 million in order for the bankruptcy court to look at the other offer.

I think the Board of Governors are going to put some pressure on the tiny Commissioner to allow the move to southern Ontario. If the team is located in Toronto, or Hamilton, territorial rights will probably be owed both the Leafs and Sabres. If the team is located in Kitchener/Cambridge area or further west, it will lay outside the territorial limits of both teams.

Here's my query.

I put a deposit down when Nashville was the team in question. I wonder if they've kept that email list and if those people will have priority for season ticket purchase?

 

[maurice93]

Two questions.

1)Can Bettman do something definitive (aside from the league outbidding JB) to prevent him from acquiring the team through the bankruptcy proceeding?

2)If he does get the franchise, can Bettman stop him from moving the team to southern Ontario? I'm thinking Al Davis.

I'm sure there are territorial rights as per the NHL franchise charter (or equivalent).. I think I have heard 75 miles. Whether there are other ambigous terms in there that might give the Leafs or Sabres further territorial rights, I'm not sure.

The board of governors would never approve a team until one of its members is approrpirately compensated for the infrngement of its territorial rights, and such team approves the move.

 

[maurice93]

If the team is located in Toronto, or Hamilton, territorial rights will probably be owed both the Leafs and Sabres.

If the team is located in Kitchener/Cambridge area or further west, it will lay outside the territorial limits of both teams.

I think your right.... although as I alluded to in my prior post does the NHL franchise charter contain some ambigous language that might extend these territorial rights into KW....

 

[foxwilly]

Bettman is as slimey as a used car salesman.
He will do his utmost to not lose face with his sunbelt protctionism.

This should be entertaining!!!!

Go Jim

 

[Lapper]

I'm sure there are territorial rights as per the NHL franchise charter (or equivalent).. I think I have heard 75 miles. Whether there are other ambigous terms in there that might give the Leafs or Sabres further territorial rights, I'm not sure.

The board of governors would never approve a team until one of its members is approrpirately compensated for the infrngement of its territorial rights, and such team approves the move.

i don't believe that..........

anaheim is 75 miles from los angeles.

long island is 75 miles from manhattan.

here's a solution......... the new team goes to k-w or barrie. then the only team that needs to be compensated for the 75 mile limit is toronto. the compensation is that the maple leafs take all the talented young phoenix players and the new k-w / barrie team get the leafs' players. lol

 

[brocko]

It would be great if this came about yet I really doubt if Bettman gives a flying fuck about Canada. On the other hand Strachan was on the tube tonight saying no way and with his track record it could work lol.

 

[maurice93]

i don't believe that..........

anaheim is 75 miles from los angeles.

long island is 75 miles from manhattan.

here's a solution......... the new team goes to k-w or barrie. then the only team that needs to be compensated for the 75 mile limit is toronto. the compensation is that the maple leafs take all the talented young phoenix players and the new k-w / barrie team get the leafs' players. lol

http://en.wikipedia.org/wiki/New_York_Islanders The Islanders had to pay the Rangers $4 million in 1972.

http://en.wikipedia.org/wiki/New_Jersey_Devils The Devils had to compensate the Islanders, Rangers and Philadelphia Flyers for "invading" New Jersey Duhatschek, Eric et al. (2001). Hockey Chronicles. New York City: Checkmark Books. ISBN 0816046972

Couldn't find anything about Anaheim.

 

[Brandon123]

Hamilton or Tri city area (Kitchener/Waterloo/Cambridge)? Touch decision, they are similar in population however, I think Hamilton deserves it more. Plus, what a rivalry, Toronto, Hamilton, Buffalo.

 

[Lapper]

so what would the penalty be??? say it's $50 million. balsillie would be paying $262.5 million for a talented young exciting hockey club who will likely make the playoffs in the next year or two. according to forbes, the leafs are worth almost $450 million and may not have any playoff revenue for years to come. for comparison, the bruins are ranked 7th in nhl value at $263 million.

to top it off, the chosen city will likely get a new gretzky's restaurant. lol

 

[DistantVoyeur]

Last time he tried to get a Hamilton location for a franchise he would have had to compensate the Leafs for the Oakville/Mississauga market and the Sabres for the Fort Erie/Port Colborne market (wow, huge ).

That is what the media reported IIRC.

 

[mac]

i hope southern ontario gets another team but i think that a Hamilton based team would kill Buffalo. The Leafs won't suffer at all but a large percent of the Buffalo fan base comes from the Ontario side of the tracks. Buffalo tickets are dirt cheap, they were bankrupt a few years ago, another hit like a franchise next door could be enough to send it over the edge.

 

[BallzDeep]

So many teams in the states are in trouble, at some point the little fella has to realize this. I like Balsillie, he's loaded and he'll pay whatever it takes, I think the other owners are going to put pressure on junior to solve this problem in Pheonix, Balsillie might be the only answer.

You just can't sell hockey in Pheonix, a few american teams have to almost give tickets away, Florida has a ticket for 17$ which includes parking and food, how do you make money on that? Wong has lost 300 mil in new york and is ready to give up. People in the states have seen their house values decline and jobs disappear, hockey is the last thing on their mind.

 

[lawyerman]

If this acutally comes to fruition, I think you will have a few people turning against the Leafs since winning has been to hard to come by. I'm not saying everyone but you'll have some. There are many people in Southern Ontario that can stand the Leafs and their are a fair share of that don't like crossing the border to see a game. There are new generations of hockey fans that might jump on board with the new team (if it happens) even if they live in the GTA. TV ratings for Leafs games have declined recently (no surprise) and the ticket prices are ludicrous and this is for a team that hasn't made the playoffs since 2004 . I think that it's about time that a new team come in here and gives the Leafs a challenge and a new rivalry.

 

[lawyerman]

I talked to somebody who lived in Ottawa and old fans 35 to 40 plus may cheer Senators but their heart is still with either Toronto or more Montreal ..

Absolutely. People will have different tastes and preferences when it comes to their sports teams regardless of where they live.

BTW, I am nearing that age buddy so who are you calling old?

 

[Kitwat]

The only way a franchise comes to Canada is if the bankruptcy judge forces it down the NHL's throat. Or, another way would be for Ballsillie to pay a pretty heavy fee to the other owners. The American teams don't want any more Cdn. teams especially for TV reasons. Kitchener, Hamilton or whatever would not draw in Dallas, LA or any other American market.
There seems to be an assumption that a team in SW Ont. would make money. I'm not so sure. The NHL failed in Quebec City and in Winnipeg. Ottawa has often been on the brink too.
Another issue is if they build a 20,000 plus arena in KW or vicinity what are they going to do to to fill it the 323 days a year when there are no hockey games. The rink would be a sure loser.

 

[SkyRider]

so what would the penalty be??? say it's $50 million. balsillie would be paying $262.5 million for a talented young exciting hockey club

Sorry, I'm a latecomer to this thread. Where is the $262.5 million coming from? That is a lot of dough. Is Balsillie using his own money or RIM money?

 

[SkyRider]

212.50 million offer to the Coyetes and 50 going to the Leafs ( that is extremely low figure ) ..

Yes, that is where the money is going but where is Mr. Balsillie getting the money from? Does he actually have $262 million lying around?

 

[21pro]

this team, if it could be moved to the GTA, from my group's estimates, could be worth over $500million in 3 years! The NHL has gotta take the idea seriously as things are getting worse in Phoenix.