Monthly Archives: September 2009

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

The title of this article is the case Judge Baum is likely building against the NHL…..It may be his reason to support the bid that he has intended to support from the beginning of this case……He has structured his court and the evidence allowed to do just that…

I can’t stop thinking, and I can’t stop writing.

And thanks to my friend, Patrick Romanoski, he feeds more ammunition of extreme interest and value so often, he likely knows I can’t resist either. We often have the conversation, “Do you want this one (article), cause I would love to write on that!” I guess I’m lucky, because Patrick likes to ensure his pieces have well thought out arguments. Me, I just rap it off and hope it makes sense. Much like I’m doing now. I just can’t help it, it’s juicy!

 Patrick has done it again. He popped out a National Post article on the savvy, smart, and well respected Judge Baum.

I’d have to say when they picked Baum for this case, they were likely thinking they should give it to a judge that will be so thorough and commanding that an appeal is rather unlikely to succeed.

If you can help write law for another country’s bankruptcy code, and have written several books on the matter, then you are no doubt well respected in Arizona legal circles, wouldn’t you agree?:

Does anyone really still think Judge Baum is 'afraid to make a ruling against the NHL'?

Along the way, the 61-year-old has had a hand in writing the Czech Republic’s bankruptcy code and authored several books, including one on Arizona collection law and another on Arizona civil remedies. He has also penned multiple articles for legal journals and given speeches all across the American southwest on an array of topics, from commercial law to litigation to foreclosures.

Judge Baum was listed among the top 10 outstanding bankruptcy judges by Turnarounds & Workouts, a respected bankruptcy publication, which described his experience this way: “Excellent practical experience in large cases; consensus builder, but makes tough rulings to break deadlocks; great rapport with practitioners.”

Yesterday’s  article  (‘Coming Full Circle’) was about something that hit me also. As mentioned before, I have a web stats service that logs who visits, when, where they go, etc. If you are into websites you know what I am talking about.

Well, the case has been a long one, and when I went back to the original article on the U.S. bankruptcy trustee coming into the case, I read the article and put it away.

It wasn’t until yesterday some of the site hits were making sense.

A visit from the U.S. Department of Justice came I’d say about a month or more ago. “Why?”, I thought.

I had not pieced together the fact that the U.S. Trustee for bankruptcy office is part of the U.S. Department of Justice. Bingo! That was it!

It then occured to me that this case was under investigation.

I want to clarify yesterday’s article some more in light of this National Post article, because it backs up further the fact that the NHL never got beyond satisfying the judge on the issue of “trying to control the outcome of this case”.

Let’s call it legal manipulation. Let’s call it disrespect for the court.

What is interesting is Gary Bettman himself finally saying he would have respect for the judge’s decision. That comment came at the near end of the case, and I have to tell you, that is the first time I had heard him say that. It was a moment that was as odd as the procedings in this case seemed to have been. So strange being normal, perhaps I shouldn’t have been surprised.

So, during the case, we had lawyers for both sides trying to convince Judge Baum that he should buy their story. They were looking to win a battle. The press would then jump on the slightest ruling, and make the bold statement that it didn’t look good for Jim Balsillie, or some other comment based on a completely isolated event.

As Richard Rodier, Jim Balsillie’s lawyer had said, it is better to stay calm, and not let the twists and turns bother you. Some days will seem good, and some bad.

Well, we can all relate to not knowing why anything was coming off in the court and the case the way it was. It was an emotional rollercoaster.

“Hey, why didn’t they put Richard Peddie on the stand?”, we might have said. I know I did. No deposition for Peddie, when us folks in Hamilton wanted to prove that the MLSE and the Leafs had a veto right, and we wanted them to admit it.

Why did Bettman and Daly get to be deposed, but not Peddie? And, why Craig Leipold? Peddie would have been better for some reasons. If you give us Leipold, why not Peddie? How frustrating it all seemed.

Well the thinking from yesterday was more confirmed by this National Post article on Judge Baum.

Did he indeed have his mind made up early? Well, an early decision seems to be supported in this thinking:

Oliver Wendell Holmes Jr., the distinguished American legal thinker, long-time Supreme Court Justice and prolific author of legal opinions that continue to be cited long after his passing in 1935, spent a lot of time thinking about judges.

Justice Holmes understood that those on the bench were human beings, above all. And he believed judges invariably decided a case within the first 15 minutes of starting it and spent the rest of a trial arming themselves with facts supporting their initial view.

Bingo again!

Remember at the very outset? Judge Baum asked the NHL to show the bidders because the only bid he saw was that of PSE’s?

Well, in the last days in court, Judge Baum argued with the NHL that the other bidders were “just hanging around”, and that they were not serious.

So, did Judge Baum know that the NHL was just trying to make it look like there were other bidders, and knowing full well the only good faith bid was that of PSE? I would have to say yes.

The U.S. bankruptcy trustee came, and seemingly disappeared. But the visit to my site some time into this case would suggest she was around, just not to be seen. Working hand in hand with Judge Baum perhaps?

We all forgot about her (Ilene Lashinsky), didn’t we?

There was a case alright.

How about Craig Leipold’s testimony that Judge Baum was so interested in, and questioned the mistakes Leipold made. Baum wanted to see full depositions for study.

Baum also questioned the NHL constitution. Baum asked why wasn’t article 4.3 removed? We have Leipold in one document telling Balsillie he thought there was a veto power, and in another in deposition, Leipold claims that he never said that. The failed Nashville deal was critical in the NHL’s character assasination of Balsillie. They failed to convince the judge the vote was based on true facts.

The point is, Judge Baum was filling in the pockets. He was solidifying his own case. The case he knew the outcome at the early stages, but needed his own reason to give the court.

Would we be surprised to learn that the U.S. Bankruptcy department and the Department of Justice has been assisting in this matter? Not at all.

Would I suspect that to be the case? Yes, based on the evidence.

And, I’ll go one step further.

I didn’t disclose other ‘authorities’ that have visited my site over the past months.

But a word of warning.

This case may not just affect the ruling of a hockey team, who owns it, and where it will play.

The other friends of Glendale involved in this case had better ensure they are ‘legally clean’ too.

The four months this has been going on could include multiple investigations on multiple fronts.

The civil case that Jerry Moyes would have against some colluding partners in Glendale is only one aspect.

The other would be even more worrisome.

Perhaps some people better join those already in the ‘bushes’.

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

It would appear obvious at this point that the case never got beyond the suspicion of the NHL….what happened from that point, was an investigation into the collusion in Glendale, the NHL, and others

Further to the last article suggesting Jerry Moyes should not panic, I had occasion to go back to the beginning.

It’s only fitting, since at the final two days in court, the merry-go-round was coming around again. We were back to the original arguments, and it seemed we had gotten nowhere in the case.

But, that would be because we were all tired, and looking to make sense of the confusion that seemed to make no decision by judge Baum the innevitable outcome. The judge even suggested that was a possible outcome. No sale at all.

Lots of smoke to blur the vision. That is, until I read this article again!

The case against the NHL is the case in this setting.

As explained by Larry Watson, the lawyer for Ilene Lashinsky (U.S. Trustee):

“Without full disclosure, the integrity of the bankruptcy system is lost,” Watson wrote to the judge overseeing the Coyotes’ bankruptcy. “Who were these prospective bidders? Did these parties have a legitimate intent to purchase the team? Why did these local bidders step away from the sale process? Were they encouraged by the NHL to do so?”

I also remember a visit to my site from the U.S. Department of Justice. At that point I cried for them for help. Boy, now I realize that was dumb. They were already helping. That hit me as I read this section:

The U.S. Trustee is an arm of the U.S. Department of Justice tasked with monitoring all corporate bankruptcies. In this case, the U.S. Trustee for Arizona urged Baum to allow parties involved in the bankruptcy to collect documents and other information from the NHL.

So, how did the NHL do in satisfying the U.S. Department of Justice? My guess is not so good.

The case that Judge Baum has been building has been a case against the collusion of the NHL, the City of Glendale, and other parties, the friends of Glendale.

The judge has known the issue from day 1, and has been directing his courtroom to fill in the necessary pockets of information.

It is starting to make full sense to me now, more than ever. The solidification of the theory that Baum has suspected and worked with the assumption of collusion now backed up by information that was presented at the outset of the case.

Why Baum has not gone down slippery slopes much to the confusion of some lawyers in the case. He simply didn’t have to. It wasn’t necessary in ‘his case’ against the NHL.

As far as the continuing collusion strategy:

• Is it any wonder the NHL never truly supported the Ice Edge bid? Ice Edge never really approved as owners?
• Is it a coincidence that Gary Bettman mentions the fact that Jerry Reinsdorf may come out of the bushes to assume the team outside of bankruptcy court?
• Is it any coincidence the City of Glendale does not have the time of day for Jerry Moyes, and won’t let him discuss the $50 million offer with the council members?

To all of the above, not at all.

It has simply solidified the case of Judge Baum.

And, SOF Investments is supporting the NHL offer too? Shocking, isn’t it.

What is ironic is the reason SOF cites; because there is less future legal issues.

Well, let me make this suggestion to SOF. You might have bigger issues in civil court if you don’t lend support to Jerry Moyes at this stage. Nobody has forgotten the ‘friends of Glendale’ of which you are a major player. Got it?

Collusion continues to be the issue.

It has been the issue from day 1, and in hindsight, it is now a lot easier to see the case that Judge Baum has been building.

As “Ic Arus” from Make it Seven has recently posted:

If you really think Baum will just default to the NHL’s bid your NUTS! If you actually TRY to look at things impartially; you’d see that the longer Baum takes, the more this falls for J.B One of the NHL’s main arguments is that J.B is of bad character – they have pretty much put all their eggs in that basket – the Judge has been through enough of these to know whether that’s simply a scam. I think he KNOWS IT IS! I think Baum is ubiquitous over all the major and minor points that bind this case – many have stereotyped him as ignorant… in some areas… to their detriment! As far as CofG he (Baum) advised them to seriously consider the $50M…. why? BECAUSE he knew (knows) they may end up with a whole lot less in the future. The Judge doesn’t need to set a precedent that would anger sports leagues…all he needs to do is point out that in THIS extraordinary case, the NHL was not dealing in good faith. THATS IT! Deal in good faith, follow your own rules and you have CONTROL of your business…. otherwise I (the Judge) will decide. Just keep in mind that the longer Judge B takes to make a decision….the more it looks good for J.B….in the interim I sure hope E.M keeps giving interviews. The guy basically said last night that if J.B had followed the ol’boys club unwritten rules he might be in by now……but in Winnipeg of course………lol He was very ambiguous at times…. yet he let enough slip to be used in a possible antitrust case. I also though I heard something about a right to his territory (50 miles) sounds like a veto to me. BTW…..under 4K for the 1st Coyote game of the year is PROOF enough – NO EXCUSES PLEASE!
Ic arus | Waterdown | Sep 18, 07:35am

Thanks ‘Ic’, the way you say it summarizes this nicely.

Just think too…. I should add the fact that I am not fully disclosing other ‘authorities’ identities that have visited my site related to this matter. Suffice it to say it would add a very interesting dimension to what we already know.

Why would this case take four months in bankruptcy court to see it’s conclusion? Hmmmm. Good question, eh?

Could it be because there was an underlying investigation against some parties to this mess?

Could the court have been used as a vehicle to gather evidence?

To that end, stop scratching your head. It might explain why Gary Bettman and Bill Daly were authorized to give depositions, but not Richard Peddie.

Is it a coincidence the Canadian Competion Bureau (CCB) starts the PR engine, and let’s us know they are on “stand by”?

Could the Canadian authorities have had a tip and a few shared words with their American neighbours?

I’d say, good chance indeed. And I was worried Judge Baum wouldn’t find that out. Sheesh, what a dummy I am.

That would explain the “hurry up and stop wasting the court’s time” attitude of Baum when the PSE lawyers wanted to set up a future anti-trust case. It wasn’t necessary; the CCB is ready to squish those fellas in a hurry. No case required.

Judge Baum knew that aspect was already covered. Wow!

Sorry NHL, it would seem you never really did fool anybody.

It’ll be pretty hard to formulate an appeal against a ruling that has you guilty of violating law, now won’t it  NHL?

 And as for Glendale, I hope the taxpayers don’t forget the city officials’ roles in losing out on a really good and generous offer.

When is that next election, anyhow? Eh, on second thought, that may not matter.

I think Judge Baum is going to fix you all pretty good this time.

Yep, I believe the fate train may finally be nearing the station.

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

Whatever became of the issue of collusion in the Moyes case anyhow? Don’t worry, the judge has a good memory to go with his plan of attack, and he’s not too worried about the creditors’ siding with the NHL.

Everyone is supporting the NHL’s bid in the auction to sell the Phoenix Coyotes.As a result, Jerry Moyes’ attempted to get in on the council meeting that was to address the $50 million offer from Jim Balsillie to the city. Moyes could not get a phone call returned by either Ed Beasley, the city manager, or Elaine Scruggs, the mayor in the days leading up to the meeting.

As Moyes sat in attendance, he attempted to request permission to speak. Instead, he was told that since he was not on the agenda 24 hours in advance, he could not, by law, speak. It just was not possible.

Well, Moyes had some key information the city of Glendale did not want to hear. 

And,that begs the question, why not?

We only have to go on the big picture leading into the auction for the answer.As we already know, Jerry Moyes was the victim of a squeeze play to strip him of wealth, and to have the team taken over by the friends in place in Glendale.

But, having it look like all creditors are against the Balsillie bid, I suppose it would make one a little leary. And, in fact Jerry Moyes has filed to request mediation to clarify the issues as a result of nobody wanting to listen.

I suppose Moyes has reason to feel the frustration of the situation. But having said that, it is my belief that although things don’t look good from an outside point of view, Moyes must look at the big picture and give judge Baum some much deserved credit.

Let me explain.

We have written articles in the past while that suggest that judge Baum is looking to set a precedent despite the odds, and nothing was better done than Patrick Romanoski’s article on the legal roadmap.

But despite it all, if you were to ask most people, they would say that based on what they see, it looks like the NHL will win, especially since they have all creditors on their side.

Of course it ‘looks’ that way! That’s what they want everyone to believe.

The taking advantage of Jerry Moyes has always had the surface look of innocence.

It’s only when you dig deeper that you see the seediness of the truth.

Would we have originally known that Moyes was being squeezed without digging deeper? No.

Well, let’s piece a few more revelations together to see if there are unanswered questions that seem to have disappeared. Well, they may have gone, but there is a judge that has not soon forgotten.

For example, and this is big.

Where did the U.S. bankruptcy trustee go? Remember her? Ilene Lashinsky came, and apparently, poof, vanished. No longer had any questions? Yeah, right. Do you really think a bankruptcy trustee is brought in to investigate, and then goes away fully satisfied that easily? Please.

And here is the bigger question. Who asked her to come in anyway? Oops! Could it have been the ever ‘keep your cards close to your chest’ Judge Baum? Sneeky guy! Might explain a man looking to build his own case that is taking a long time to put on paper. Why would that be we have asked? Giving it to the NHL would be easy. Where is that rubber stamp, anyhow? No, there is more going on here than meets the eye. You just need to think a little.

What’s that smile on your face judge? Are you enjoying your work?

In the final days in court, the NHL lawyers tried to bring up the fact that Moyes and company were painting ‘them’ in collusion.

What was the reaction of judge Baum?

He downplayed the whole thing. No way, he didn’t think the bids and bidders were serious. They were just hanging around.

Sorry judge, caught ya! We both know better now don’t we?

The U.S. bankruptcy trustee who seemingly came and vanished gave you something of value that, like everything else, you weren’t about to disclose to the court.

In fact, the judge in this case was leading his own case, and directing the parties in his own way. Stop the antitrust vein. Don’t go there that Reinsdorf was committed. Many may have missed it, but not all.

Why do I mention these things?

Well, if you were judge Baum, and you initially suspected favoritism in the NHL and the ‘friends of Glendale’ why on earth would you accuse anybody in court? What would be smarter?

It would make more sense to get the evidence you, as a judge would require to keep in the back of your mind as you formulate the ‘plan of attack’.

If this were the run of the mill bankruptcy, as Patrick Romanoski would say, then the fact that the creditors all side with the NHL would be an issue. But since we have a situation of collusion and manipulation on the part of the secured creditor and the city of Glendale, then that changes things. A lot!

Jerry Moyes was the victim of a conspiracy, a collusion, or whatever you want to call it.

The judge got the evidence he needed, and nobody was the wiser.

His decision will reflect everything but the admission of collusion because he has always made sure this case stayed the course. It could have taken major turns at any of the major issues so Baum was wise in his approach.

I don’t think we have a judge that plays his cards too easily. He probably is a good snooker player too, when he put that cue ball behind the blue ball, and forced that one auction.

Smart man.

So, the moral of this story is a message to Jerry Moyes. The real issue of anti-trust is a lack of trust in the judge.

Don’t panic Jerry. You can run around and worry, and try to force the hands of those that have conspired against you.

Or, you can have faith you got a wise judge to hear your story.

I’d have faith.

This wise judge has taken the Beast by the Horns

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

Whatever became of the issue of collusion in the Moyes case anyhow? Don’t worry, the judge has a good memory to go with his plan of attack, and he’s not too worried about the creditors’ siding with the NHL.

Everyone is supporting the NHL’s bid in the auction to sell the Phoenix Coyotes.As a result, Jerry Moyes’ attempted to get in on the council meeting that was to address the $50 million offer from Jim Balsillie to the city. Moyes could not get a phone call returned by either Ed Beasley, the city manager, or Elaine Scruggs, the mayor in the days leading up to the meeting.

As Moyes sat in attendance, he attempted to request permission to speak. Instead, he was told that since he was not on the agenda 24 hours in advance, he could not, by law, speak. It just was not possible.

Well, Moyes had some key information the city of Glendale did not want to hear. 

And,that begs the question, why not?

We only have to go on the big picture leading into the auction for the answer.As we already know, Jerry Moyes was the victim of a squeeze play to strip him of wealth, and to have the team taken over by the friends in place in Glendale.

But, having it look like all creditors are against the Balsillie bid, I suppose it would make one a little leary. And, in fact Jerry Moyes has filed to request mediation to clarify the issues as a result of nobody wanting to listen.

I suppose Moyes has reason to feel the frustration of the situation. But having said that, it is my belief that although things don’t look good from an outside point of view, Moyes must look at the big picture and give judge Baum some much deserved credit.

Let me explain.

We have written articles in the past while that suggest that judge Baum is looking to set a precedent despite the odds, and nothing was better done than Patrick Romanoski’s article on the legal roadmap.

But despite it all, if you were to ask most people, they would say that based on what they see, it looks like the NHL will win, especially since they have all creditors on their side.

Of course it ‘looks’ that way! That’s what they want everyone to believe.

The taking advantage of Jerry Moyes has always had the surface look of innocence.

It’s only when you dig deeper that you see the seediness of the truth.

Would we have originally known that Moyes was being squeezed without digging deeper? No.

Well, let’s piece a few more revelations together to see if there are unanswered questions that seem to have disappeared. Well, they may have gone, but there is a judge that has not soon forgotten.

For example, and this is big.

Where did the U.S. bankruptcy trustee go? Remember her? Ilene Lashinsky came, and apparently, poof, vanished. No longer had any questions? Yeah, right. Do you really think a bankruptcy trustee is brought in to investigate, and then goes away fully satisfied that easily? Please.

And here is the bigger question. Who asked her to come in anyway? Oops! Could it have been the ever ‘keep your cards close to your chest’ Judge Baum? Sneeky guy! Might explain a man looking to build his own case that is taking a long time to put on paper. Why would that be we have asked? Giving it to the NHL would be easy. Where is that rubber stamp, anyhow? No, there is more going on here than meets the eye. You just need to think a little.

What’s that smile on your face judge? Are you enjoying your work?

In the final days in court, the NHL lawyers tried to bring up the fact that Moyes and company were painting ‘them’ in collusion.

What was the reaction of judge Baum?

He downplayed the whole thing. No way, he didn’t think the bids and bidders were serious. They were just hanging around.

Sorry judge, caught ya! We both know better now don’t we?

The U.S. bankruptcy trustee who seemingly came and vanished gave you something of value that, like everything else, you weren’t about to disclose to the court.

In fact, the judge in this case was leading his own case, and directing the parties in his own way. Stop the antitrust vein. Don’t go there that Reinsdorf was committed. Many may have missed it, but not all.

Why do I mention these things?

Well, if you were judge Baum, and you initially suspected favoritism in the NHL and the ‘friends of Glendale’ why on earth would you accuse anybody in court? What would be smarter?

It would make more sense to get the evidence you, as a judge would require to keep in the back of your mind as you formulate the ‘plan of attack’.

If this were the run of the mill bankruptcy, as Patrick Romanoski would say, then the fact that the creditors all side with the NHL would be an issue. But since we have a situation of collusion and manipulation on the part of the secured creditor and the city of Glendale, then that changes things. A lot!

Jerry Moyes was the victim of a conspiracy, a collusion, or whatever you want to call it.

The judge got the evidence he needed, and nobody was the wiser.

His decision will reflect everything but the admission of collusion because he has always made sure this case stayed the course. It could have taken major turns at any of the major issues so Baum was wise in his approach.

I don’t think we have a judge that plays his cards too easily. He probably is a good snooker player too, when he put that cue ball behind the blue ball, and forced that one auction.

Smart man.

So, the moral of this story is a message to Jerry Moyes. The real issue of anti-trust is a lack of trust in the judge.

Don’t panic Jerry. You can run around and worry, and try to force the hands of those that have conspired against you.

Or, you can have faith you got a wise judge to hear your story.

I’d have faith.

This wise judge has taken the Beast by the Horns

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

Jerry Moyes was not allowed to speak at the City Hall Council meeting in Glendale, AZ, regarding the $50 million PSE offer to the City. Here are his points he wanted to cover. He also did not have his phone calls returned from Ed Beasley (City Manager), or the mayor. They said he needed to get on the agenda 24 hours before the meeting, but once again the City ignored him!:

1. Coyotes sold 465,000 tickets in 2008-09 and owe Glendale (at $2.70) $1.26 million

2. Coyotes patrons paid Glendale $450,000 (at 2.2 percent sales tax) during 44 homes games.

3. Non-hockey patrons paid Glendale $419,000 during 50-plus non-hockey events.

4. Coyotes share of $525,000 annual rent approximates $243,000.

5. Westgate activity is slower during hockey, rather than non-hockey events.

6. Westgate businesses are estimated to pay Glendale $175,000 during 44 home games.

7. Glendale’s lost revenue from team relocation is estimated at $2.12 million per year.

8. Glendale should recover all or most lost revenue from additional non-hockey events.

9. $50 million invested in a 5-percent annuity would pay Glendale $3.5 million per year for 25 years.

10. An NHL purchase is likely to result in relocation following 2009-10 season.

11. Glendale team location will require a $20 million to $23 million annual subsidy by the City.

12. Multiple buyers confirmed the need for financial support to retain Glendale location.

13. Legal restrictions will prevent Glendale from providing the needed subsidy.

14. Glendale voters and the Arizona Cardinals will oppose a special taxing district.

15. NHL’s rejection of a Glendale lease will cap Glendale’s unsecured claim at $5 million to $7 million.

16. Refusing to support PSE’s bid would forfeit PSE’s $50 million guaranteed payment.

17. Refusing to support NHL’s bid costs Glendale nothing – it will try to find a Glendale buyer.

18. If PSE pays Glendale a payment pending appeal of a decision, it will defray appeal costs.

19. Glendale voters will be damaged if a $50 million payment is forgone for no City gain.

20. The Glendale City Council should enthusiastically support PSE’s bid.

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

When a fan on Make it Seven tweeted Brahm Resnik, a reporter in Phoenix covering the Coyotes’ case, and asked him about a recent article, Resnik wasn’t sure what point the writer was trying to make regarding the arena bond details……..He said, ‘What’s the point?’ I think it was obvious. Let’s look though at some simpler math instead, related to the team losses……..

It’s okay, let’s ignore Mr. Moyes’ time. After all, time is money. And, it’s not our money, it’s his.

Let’s make sure the clock runs out on the $100 million he would stand to come away with should he sell the team and relocate it to Hamilton. We can’t have that. The money is better lost in Glendale.

Don't give Jerry Moyes five minutes! Who is he, anyway?

Since the Coyotes lost an estimated $60 million dollars last year, let’s see how much that is per second, per minute, and per hour.

Well, $60,000,000 divided by 365 is $164,383.56.

So, every day that Jerry Moyes owned the Coyotes it cost him about $164,400.

Let’s figure out the per second cost.

There are 60 seconds in an minute; 60 minutes in an hour; 24 hours in a day; and 365 days in a year.

So, 60x60x24x365=31,536,000 seconds in a year.

So, if the Coyotes lost that $60,000,000 last year, that means they lost approximately $1.90 per second. Similar to watching the national debt clock I can no longer seem to find on Senator of Arizona, John McCain’s site. Strange. Maybe he saw the irony of the situation in Glendale and Arizona and decided to remove it.

Anyway, if you want to waste 10 seconds of Mr. Moyes’ time, that’ll be $19.00 please.

How would you like to lose money at a rate of $.63 to $1.90 per SECOND?

Want 10 minutes? That’ll cost you $114 per minute x 60 minutes =$1,141.00

At the annual loss of $60 million dollars, Jerry Moyes lost $1141 every 10 minutes.

But, some say that number is not right. Some argue, if the cards are played well, and if expenses are cut, the true losses are closer to $20 million per year.

Okay, let’s give them the benefit of the doubt. Let’s call it $20 million.

You want 10 minutes of Jerry Moyes’ time? That’ll be $380 please.

Jerry Moyes showed up at the city council meeting to ask for a few minutes of the council’s time. They said he was not on the agenda. I guess Jerry Moyes was not important enough. After all, his time is only worth between $380 to $1141 every 10 minutes, or $2280 to $6,846 per hour. Who is he?

Oh, that’s right, he’s the man that is expendable, and not worth allowing to cut his losses. He’s the guy that doesn’t deserve about $100 million of the $400 million he put into the hockey team.

Why give Jerry Moyes any time? He isn’t important anymore.

It is much more important to have hockey for the few hundred to few thousand fans that show up now to see the Coyotes play hockey.

And, if we look at the season as being about 50 home games with exhibition matches thrown in, the $20 million in losses amounts to $400,000 per home game. At $60 million, that figure rises to $1.2 million per home game.

But hey, the few thousand fans that will show up are worth it.

If there were indeed 4000 fans in attendance at the last exhibition game, that would mean each fan cost Mr. Moyes between $100 and $300. I hope they all thanked Mr. Moyes for the expense on the way in or out.

But, if there were only 1000 fans as reported, that would have increased the loss per fan to $400 to $1200 per game. Sounding more like the ticket prices at the Air Canada Centre to see the Leafs.

And, since we can no longer blame Jerry Moyes for the current problems, why not turn fan anger to the lack of publicity now (yeah, that’s it, there’s no advertising):

Some of the few fans who showed up at Tuesday night’s preseason opener against the Los Angeles Kings blamed lack of attendance and support on the local news media.

And we thought tickets only cost $10. What were we thinking? The tickets cost the fan $10, but cost Jerry Moyes much, much more.

Did anybody give Moyes a thank you?

The fans of Glendale will have spent Mr. Moyes’ potential $100 million in about another 608 days. Just under two years. Who cares? Not their money.

But, the NHL will likely move the team in one year if they are awarded it and can sucker the City of Glendale into that deal, so that would mean Mr. Moyes will be paying some other city’s fans to watch hockey there. What part of that do ya gotta love?

Time is money, that’s for sure.

We know the City council of Glendale didn’t show any respect for Jerry Moyes’ time or money.

Should we bother to ask what that $50 million could have meant to the City per second? Do they care about the impact on the taxpayer? Chances are they have little respect for the people of Glendale too, judging by their treatment of a very generous resident.

But hey, who are we, anyway? We are just bloggers whose articles are not credible to “publish”. And what’s the sense of trying to show some math the so called professional reporters seem to ignore?

Because there isn’t anybody out there that would like to know the details of the bond, and why the City of Glendale claims they would lose $500 million. That’s not worth digging to get to the bottom of, is it?

And, after all, ‘What’s the point?’  Eh Brahm?

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

When a fan on Make it Seven tweeted Brahm Resnik, a reporter in Phoenix covering the Coyotes’ case, and asked him about a recent article, Resnik wasn’t sure what point the writer was trying to make regarding the arena bond details……..He said, ‘What’s the point?’ I think it was obvious. Let’s look though at some simpler math instead, related to the team losses……..

It’s okay, let’s ignore Mr. Moyes’ time. After all, time is money. And, it’s not our money, it’s his.

Let’s make sure the clock runs out on the $100 million he would stand to come away with should he sell the team and relocate it to Hamilton. We can’t have that. The money is better lost in Glendale.

Don't give Jerry Moyes five minutes! Who is he, anyway?

Since the Coyotes lost an estimated $60 million dollars last year, let’s see how much that is per second, per minute, and per hour.

Well, $60,000,000 divided by 365 is $164,383.56.

So, every day that Jerry Moyes owned the Coyotes it cost him about $164,400.

Let’s figure out the per second cost.

There are 60 seconds in an minute; 60 minutes in an hour; 24 hours in a day; and 365 days in a year.

So, 60x60x24x365=31,536,000 seconds in a year.

So, if the Coyotes lost that $60,000,000 last year, that means they lost approximately $1.90 per second. Similar to watching the national debt clock I can no longer seem to find on Senator of Arizona, John McCain’s site. Strange. Maybe he saw the irony of the situation in Glendale and Arizona and decided to remove it.

Anyway, if you want to waste 10 seconds of Mr. Moyes’ time, that’ll be $19.00 please.

How would you like to lose money at a rate of $.63 to $1.90 per SECOND?

Want 10 minutes? That’ll cost you $114 per minute x 60 minutes =$1,141.00

At the annual loss of $60 million dollars, Jerry Moyes lost $1141 every 10 minutes.

But, some say that number is not right. Some argue, if the cards are played well, and if expenses are cut, the true losses are closer to $20 million per year.

Okay, let’s give them the benefit of the doubt. Let’s call it $20 million.

You want 10 minutes of Jerry Moyes’ time? That’ll be $380 please.

Jerry Moyes showed up at the city council meeting to ask for a few minutes of the council’s time. They said he was not on the agenda. I guess Jerry Moyes was not important enough. After all, his time is only worth between $380 to $1141 every 10 minutes, or $2280 to $6,846 per hour. Who is he?

Oh, that’s right, he’s the man that is expendable, and not worth allowing to cut his losses. He’s the guy that doesn’t deserve about $100 million of the $400 million he put into the hockey team.

Why give Jerry Moyes any time? He isn’t important anymore.

It is much more important to have hockey for the few hundred to few thousand fans that show up now to see the Coyotes play hockey.

And, if we look at the season as being about 50 home games with exhibition matches thrown in, the $20 million in losses amounts to $400,000 per home game. At $60 million, that figure rises to $1.2 million per home game.

But hey, the few thousand fans that will show up are worth it.

If there were indeed 4000 fans in attendance at the last exhibition game, that would mean each fan cost Mr. Moyes between $100 and $300. I hope they all thanked Mr. Moyes for the expense on the way in or out.

But, if there were only 1000 fans as reported, that would have increased the loss per fan to $400 to $1200 per game. Sounding more like the ticket prices at the Air Canada Centre to see the Leafs.

And, since we can no longer blame Jerry Moyes for the current problems, why not turn fan anger to the lack of publicity now (yeah, that’s it, there’s no advertising):

Some of the few fans who showed up at Tuesday night’s preseason opener against the Los Angeles Kings blamed lack of attendance and support on the local news media.

And we thought tickets only cost $10. What were we thinking? The tickets cost the fan $10, but cost Jerry Moyes much, much more.

Did anybody give Moyes a thank you?

The fans of Glendale will have spent Mr. Moyes’ potential $100 million in about another 608 days. Just under two years. Who cares? Not their money.

But, the NHL will likely move the team in one year if they are awarded it and can sucker the City of Glendale into that deal, so that would mean Mr. Moyes will be paying some other city’s fans to watch hockey there. What part of that do ya gotta love?

Time is money, that’s for sure.

We know the City council of Glendale didn’t show any respect for Jerry Moyes’ time or money.

Should we bother to ask what that $50 million could have meant to the City per second? Do they care about the impact on the taxpayer? Chances are they have little respect for the people of Glendale too, judging by their treatment of a very generous resident.

But hey, who are we, anyway? We are just bloggers whose articles are not credible to “publish”. And what’s the sense of trying to show some math the so called professional reporters seem to ignore?

Because there isn’t anybody out there that would like to know the details of the bond, and why the City of Glendale claims they would lose $500 million. That’s not worth digging to get to the bottom of, is it?

And, after all, ‘What’s the point?’  Eh Brahm?

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

Please note: This is our featured article….please scroll below or use the calendar for the current, or articles of other dates. This entire site is dedicated to the quest to Make it Seven in Hamilton, and Make it eight, eh in Winnipeg!

By: Patrick Romanoski

 Glendale City Council decided not to vote on the issue as it might create anger among the fans…..but what will the taxpayers say when the City loses a chance at years of bond payments?

City Council of Glendale: The final move in 'going for broke'

Phil Lieberman: The only council member with 'common sense'?

Glendale city Councilman Phil Lieberman had it right when he said:

“I would like to keep the team in Glendale. I am not sure that is what the NHL will do in the long run. . . . I believe the time is now to take the $50 million and put up with the fact that we will have to continue the debt service on (the arena). . .

He understands. He has seen the writing on the wall and knows that the NHL promises ring hollow. He knows that at least the $50 million offer is a safe ‘bird in the hand’ that will save his taxpayers tens of millions of dollars. No need to speculate on the alternative, it could leave the city in a massive hole.

This all started when Mayor Elaine Scruggs says she and other members of the city council and staff met “Mystery Man,” Steve Ellman March 12, 2001. At that meeting, the topic of discussion was how to tear down and rebuild a blighted shopping centre at 59th and Northern avenues.

Thirty days later (quite a salesman), Scruggs said, the council met and approved five memorandums of agreement to do business with Ellman and redevelop Manistee Town Center. Nov. 27, 2001, council approved five final development agreements that included the Glendale Arena construction and massive mixed-use around the arena.

What kind of marketing studies did the city do to prove an expenditure of this size was warranted? Did they do any studies to prove hockey had a large enough fan base to support a team in Glendale? Likely not, they were blinded by the flashy salesman who was turned down elsewhere. Hurry up and decide, going once, going twice … maybe he pointed out there were other boots in line for this deal? If any of this sounds like ‘city envy’ to you, you are not alone. A memorandum of agreement within 30 days?

To build the arena in 2003, Glendale issued revenue bonds backed by sales taxes as well as general obligation bonds for roads, sidewalks and other infrastructure around the Westgate area. The city issued $155 million of Series 2003 A and B sales tax bonds in July 2003 for the bulk of the financing under the name Glendale Municipal Property Corp. (the municipality put up $180 million of the $220 million price tag).

This is financing on a bubble, it assumes that the tax revenues will be forthcoming, a huge assumption over a 30 year period with an area that has no infrastructure. Consider also, that this was conceived & built during the much discussed real estate boom which recently burst causing massive financial upheaval. A bubble, built within a bubble. A sure recipe for disaster.

Not being in Glendale, online research can be limiting so I was not able to find out the amount or interest rates Glendale taxpayers are paying for the Series “B”bonds.

Some basic calculations using the known rate of Glendale Municipal Property Series A of 5.00% is fair. At least $670 million will be paid mainly out of taxpayer pockets. for over 30 years, one heck of a financial commitment. Do the taxpayers benefit? Sure they get an arena and a shopping district, places to spend their money, but was it worth it and who truly benefits? I think the answer is obvious – the usual suspects. The developers who have the work and the politicians who proclaim what a great deed they have accomplished. The two groups that never seem to be without each other, developers are well known to be among the largest contributors to election campaigns.

Could financing have been obtained that was less costly? And, it brings us back to the question of who holds the arena bonds? 

The city is banking on the sales-tax receipts generated from the arena and Westgate helping to pay the bonds from the arena but those taxes are decreasing. The arena lease is killing the franchise that they have counted on to draw people to the tax zone, a lease locked into paying for the bonds.

Added to that, the Coyotes, unlike most teams in the NHL, receive nothing from parking fees at the arena. Instead, they actually pay a surcharge of $2.70 per vehicle. That means instead of generating upwards of $10 million in revenue, they pay more than $2 million. In short, said one source, they are paying people to park at their building.

Steve Ellman: The promise of 'growth and prosperity'

This is what Steve Ellman realized as he found himself searching for funds to complete his plans for Westgate, it was dragging him down. Fortunately for him, he was able to unload his problem on Jerry Moyes. Moyes is a man more likely to do a deal on a handshake than on a stack of contracts to sign. To say that he understood what he was getting into would be a gross mischaracterization of events.

The promise of only one more year for the Coyotes franchise by the NHL means that the city should not be hanging its hopes on any revenues from the Coyotes at this point. They should be actively searching for a solution such as suggested by Jerry Moyes, more concert dates. Since the hockey franchise does not attract enough people, city inaction will only lead to failure and a deeper than necessary debt will result.

According to information from Jerry Moyes and Phil Lieberman (council member), Glendale’s lost revenue from team relocation is estimated at $2.12 million per year and this combined revenue is a major part of Glendale’s $12+ million in annual debt payments on money they borrowed to build Jobing.com arena. Lieberman, in an interview on the Fan 590 radio pointed out that Balsillie’s offer would cover off 4 1/2 years of debt payments.

Further, concert revenues could easily replace lost hockey operation revenues while attracting a more diverse cross-section of an audience. That audience would also be more likely to spend on a dinner and drinks before and after concerts, generating greater tax revenue & jobs.

The $50 million offered by PSE to buy out the lease obligation would go a long way to cushioning the blow to inevitably come. Not only would it allow the city to pay down some debt, it would buy the time needed to create the conditions to attract 40 more concert dates per year.

Concertgoers come from a much wider spectrum than hockey fans and would likely be willing to travel further to see a favourite artist. The likelihood is that they would generate more tax revenue than the hockey fans ever could. The present course of inaction by the city is likely to sink it deeper in debt.

Instead of facing up to their mistakes Glendale City Council hides from the truth by playing ostrich and burying their collective heads in the desert sands. They are all (save for one Phil Lieberman) in panic mode. Moving the team will expose them and could cause the municipal government to be on the hook for the taxes without a tenant, a 26 year anchor around their necks.

Rather than face facts they listen to the platitudes of the NHL that has plans for escape. A league whose leader is motivated not by keeping the team in Glendale, but by where he is not allowed to move it. A leader that has shown he will stop at nothing to achieve his goals.

Is he above misleading the gullible members on the city council and payroll? Or is there more to this than meets the eye? In the end only two scenarios can be conjured up here that make rational sense.

Rather than take the $50 million, superficially, it looks like they have been swayed to turn down the superior offer for a hope, a prayer, a snowballs chance in the desert. “Will the next snake oil salesman please stand up, have we got a customer for you. They won’t have a whole lot of money for a while, but they are accommodating.”

or….

Exactly, whose fingers are in this development pie? Are the NHL itself and unnamed others tied up in this land investment & development? Does that give certain councillors more confidence in the NHL bid? Perhaps, otherwise why would the city council not approve of both bids? What do they have to lose?

Or maybe both. You decide!

For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here. Click here to file your complaint about the Veto of the MLSE (Maple Leafs Sports and Entertainment) to the Canadian Competition Bureau (CCB).

Please note: This is our featured article….please scroll below or use the calendar for the current, or articles of other dates. This entire site is dedicated to the quest to Make it Seven in Hamilton, and Make it eight, eh in Winnipeg!

By: Patrick Romanoski

 Glendale City Council decided not to vote on the issue as it might create anger among the fans…..but what will the taxpayers say when the City loses a chance at years of bond payments?

City Council of Glendale: The final move in 'going for broke'

Phil Lieberman: The only council member with 'common sense'?

Glendale city Councilman Phil Lieberman had it right when he said:

“I would like to keep the team in Glendale. I am not sure that is what the NHL will do in the long run. . . . I believe the time is now to take the $50 million and put up with the fact that we will have to continue the debt service on (the arena). . .

He understands. He has seen the writing on the wall and knows that the NHL promises ring hollow. He knows that at least the $50 million offer is a safe ‘bird in the hand’ that will save his taxpayers tens of millions of dollars. No need to speculate on the alternative, it could leave the city in a massive hole.

This all started when Mayor Elaine Scruggs says she and other members of the city council and staff met “Mystery Man,” Steve Ellman March 12, 2001. At that meeting, the topic of discussion was how to tear down and rebuild a blighted shopping centre at 59th and Northern avenues.

Thirty days later (quite a salesman), Scruggs said, the council met and approved five memorandums of agreement to do business with Ellman and redevelop Manistee Town Center. Nov. 27, 2001, council approved five final development agreements that included the Glendale Arena construction and massive mixed-use around the arena.

What kind of marketing studies did the city do to prove an expenditure of this size was warranted? Did they do any studies to prove hockey had a large enough fan base to support a team in Glendale? Likely not, they were blinded by the flashy salesman who was turned down elsewhere. Hurry up and decide, going once, going twice … maybe he pointed out there were other boots in line for this deal? If any of this sounds like ‘city envy’ to you, you are not alone. A memorandum of agreement within 30 days?

To build the arena in 2003, Glendale issued revenue bonds backed by sales taxes as well as general obligation bonds for roads, sidewalks and other infrastructure around the Westgate area. The city issued $155 million of Series 2003 A and B sales tax bonds in July 2003 for the bulk of the financing under the name Glendale Municipal Property Corp. (the municipality put up $180 million of the $220 million price tag).

This is financing on a bubble, it assumes that the tax revenues will be forthcoming, a huge assumption over a 30 year period with an area that has no infrastructure. Consider also, that this was conceived & built during the much discussed real estate boom which recently burst causing massive financial upheaval. A bubble, built within a bubble. A sure recipe for disaster.

Not being in Glendale, online research can be limiting so I was not able to find out the amount or interest rates Glendale taxpayers are paying for the Series “B”bonds.

Some basic calculations using the known rate of Glendale Municipal Property Series A of 5.00% is fair. At least $670 million will be paid mainly out of taxpayer pockets. for over 30 years, one heck of a financial commitment. Do the taxpayers benefit? Sure they get an arena and a shopping district, places to spend their money, but was it worth it and who truly benefits? I think the answer is obvious – the usual suspects. The developers who have the work and the politicians who proclaim what a great deed they have accomplished. The two groups that never seem to be without each other, developers are well known to be among the largest contributors to election campaigns.

Could financing have been obtained that was less costly? And, it brings us back to the question of who holds the arena bonds? 

The city is banking on the sales-tax receipts generated from the arena and Westgate helping to pay the bonds from the arena but those taxes are decreasing. The arena lease is killing the franchise that they have counted on to draw people to the tax zone, a lease locked into paying for the bonds.

Added to that, the Coyotes, unlike most teams in the NHL, receive nothing from parking fees at the arena. Instead, they actually pay a surcharge of $2.70 per vehicle. That means instead of generating upwards of $10 million in revenue, they pay more than $2 million. In short, said one source, they are paying people to park at their building.

Steve Ellman: The promise of 'growth and prosperity'

This is what Steve Ellman realized as he found himself searching for funds to complete his plans for Westgate, it was dragging him down. Fortunately for him, he was able to unload his problem on Jerry Moyes. Moyes is a man more likely to do a deal on a handshake than on a stack of contracts to sign. To say that he understood what he was getting into would be a gross mischaracterization of events.

The promise of only one more year for the Coyotes franchise by the NHL means that the city should not be hanging its hopes on any revenues from the Coyotes at this point. They should be actively searching for a solution such as suggested by Jerry Moyes, more concert dates. Since the hockey franchise does not attract enough people, city inaction will only lead to failure and a deeper than necessary debt will result.

According to information from Jerry Moyes and Phil Lieberman (council member), Glendale’s lost revenue from team relocation is estimated at $2.12 million per year and this combined revenue is a major part of Glendale’s $12+ million in annual debt payments on money they borrowed to build Jobing.com arena. Lieberman, in an interview on the Fan 590 radio pointed out that Balsillie’s offer would cover off 4 1/2 years of debt payments.

Further, concert revenues could easily replace lost hockey operation revenues while attracting a more diverse cross-section of an audience. That audience would also be more likely to spend on a dinner and drinks before and after concerts, generating greater tax revenue & jobs.

The $50 million offered by PSE to buy out the lease obligation would go a long way to cushioning the blow to inevitably come. Not only would it allow the city to pay down some debt, it would buy the time needed to create the conditions to attract 40 more concert dates per year.

Concertgoers come from a much wider spectrum than hockey fans and would likely be willing to travel further to see a favourite artist. The likelihood is that they would generate more tax revenue than the hockey fans ever could. The present course of inaction by the city is likely to sink it deeper in debt.

Instead of facing up to their mistakes Glendale City Council hides from the truth by playing ostrich and burying their collective heads in the desert sands. They are all (save for one Phil Lieberman) in panic mode. Moving the team will expose them and could cause the municipal government to be on the hook for the taxes without a tenant, a 26 year anchor around their necks.

Rather than face facts they listen to the platitudes of the NHL that has plans for escape. A league whose leader is motivated not by keeping the team in Glendale, but by where he is not allowed to move it. A leader that has shown he will stop at nothing to achieve his goals.

Is he above misleading the gullible members on the city council and payroll? Or is there more to this than meets the eye? In the end only two scenarios can be conjured up here that make rational sense.

Rather than take the $50 million, superficially, it looks like they have been swayed to turn down the superior offer for a hope, a prayer, a snowballs chance in the desert. “Will the next snake oil salesman please stand up, have we got a customer for you. They won’t have a whole lot of money for a while, but they are accommodating.”

or….

Exactly, whose fingers are in this development pie? Are the NHL itself and unnamed others tied up in this land investment & development? Does that give certain councillors more confidence in the NHL bid? Perhaps, otherwise why would the city council not approve of both bids? What do they have to lose?

Or maybe both. You decide!