And for the next Christmas present, the Ice Edge boys were the last on the mat to pin this one down! A succesful tag-team victory to save face for the American economy and the Canadian, er sorry, American game!
As Michael Moore asked a banker in his latest movie to explain what a ‘derivative’ is, the complicated reasoning for any entity to want to take on the financially troubled Phoenix Coyotes is equally head scratching.
The darlings at Research Edge/Ice Edge have connections past or present with Onex, MSD Capital, the Carlyle Group, and dare we say Mubadala. Would this suggest they are a sheer coincidence as the found solution for Glendale and the National Hockey League? Not likely. As suspected, it suggests who you know that is ‘safe’ has been and always will be the solution when industry is tied to government, on levels of municipal, state, and country.
To hypothesize based on the facts presented so far could only lead us to one logical conclusion – there is a business reason and equally important a “damage control” reason to come forward as the new Coyotes’ owners. This notion makes Ice Edge’s Daryl Jones’ comment from the past truer than ever, and now understandable.
A business reason? Yes, and it is not just some nice Canadian/American company doing the people (fans) of Phoenix a favor. The Phoenix Coyotes have always represented a financial challenge that transcended hockey and most certainly the National Hockey League. We have learned that there could be several issues at play, making the issue of who offered the most money to Jerry Moyes seem at this stage almost ‘silly’. For that, I would have to argue with Gary Bettman who remember said that this team was never in jeopardy, and the notion of which was, well, you know, “silly”. Bettman also told us this was not an issue of Balsillie against Bettman, or anyone else. I would at this stage also agree with Gary Bettman.
We had Abu Dhabi investment, specifically Mubadala visit our site on numerous occasions, and it became clear they were likely not hockey fans just checking out how the team was doing. No, more than likely Mubadala had or has major interest financially in either the arena bonds, or other aspects of investment in the Glendale area. Moving the hockey team would likely not sit well with Mubadala if they were the bondholders expecting city growth, and sales tax revenues related to that growth. CityNorth in Phoenix, as we keep coming back to is the sample point. Sales tax growth is what the revenue streams are based on, and that is why that expensive ($480,000) parking spot is being used as an example. We could have the same level of expectation from Mubadala on the Jobing.com (nee Westgate arena) bonds.
Mubadala is also the common denominator as is Michael Dell of MSD Capital/SOF Investment. We also learned that Michael Reinsdorf is a player in the development of Glendale area sports, and the band of merry men including Alan Leventhal came into play as Beacon Sports assessed Jobing.com for Glendale at Reinsdorf’s calling. As the Phoenix New Times refreshingly pointed out in their unlike-mainstream reporting, the $48,000 charge from Beacon did not have to be reported, suggesting there is more than a little palm greasing going on at City Hall in Glendale, and God knows where else.
The sad reality is that the lawyers for Glendale that seemed silly in their arguments could have saved a lot of legal fees had we just listened to them.
The lawyers defended and fought an issue so entrenched and hopeless that padding their bank accounts is like the Wall Street bailout. A big difference I would support is that the lawyers working this case actually made it seem like Jim Balsillie was going to stand a chance – and for that they deserve every penny earned. We even must unfortunately question the abrupt ‘cease fire’ attitude of Judge Baum, who had spent plenty of time in reflection of this case, and no doubt was giving it due diligence. Either a deal was worked out or politics played a great role. We may never know, but in fairness and hope for us in Canada, Jim Balsillie went away equally as quickly. Two men (judge and financial vigilante) going outside of character and abruptly walking away.
That didn’t make sense adding to the situation. When Balsillie said that Canada is that much closer to getting a Canadian team, my money is that we can take that as a sign of a potential deal. What we witnessed in court was what I would call a ‘silent deal’, where a few truths were made known to back off the dogs, and what we are seeing now is the playing out of the plan that has been arranged. Canada might just get another team, just not one so entrenched in International politics that includes Arabian investment in America in land, banks, military spending, etc. No those people you don’t get upset at you, wink, wink, nudge, nudge.
Why the case took so long to come to its conclusion is a mystery however. That is unless more Canadians learned how America’s economy “really works”, and it took us Canucks a little while to clue in.
Some of us (me at the top of the list) learned a lot of the issues of America, a cause that I have continued to look into, and I would suggest we all do the same – from the current wars, to the economy, to the Federal Reserve, to the Bilderberg Group, to the Carlisle Group, to Obama’s front men from Wall Street occupying the Treasury seats, etc, etc. I was never much for politics, but the case for hockey in Canada has made me learn that the National Hockey League is an entrenched part of the financial issues that the entire United States suffers from, and taking a piece of that pie to Canada was not likely to happen.
So, if you are wondering why we in Canada could not simply bid the highest amount of money, helping Jerry Moyes recoup some of his sustained losses, this is the wake up call. What will happen in the coming months and years will not only affect hockey, but will have an effect on the rights and other privileges we in Canada have today.
Back to Ice Edge – how might they fit?
See Keith McCullough in video explaining perceived upturn in the housing market: from CNNMoney.com . McCullough as you will note was the ‘hedge’ expert at the Carlyle Group that Mubadala and the Bush family have great interest in. Terrific coincidence or closer to the reason this group was standing when the dust has settled, and as the municipalities’ and hockey team dilemma is worked through?
McCullough supports a low dollar? Let’s not get into the Ben Bernanke dilemma and the fact the Fed does not want to disclose where the money goes, and has not had an audit since it’s inception over 90 years ago. With the way things are going, how about a “collapsed” dollar? How would that help the U.S. and the world? We digress, back to the issue at hand..
Let’s look at the possibilities for a business solution (partnership) that would work for Ice Edge, the City of Glendale, and the arena bondholder (Mubadala?).
Let’s say the economy continues to go south, and more Arizonans continue to struggle financially, losing their homes, not being able to pay property taxes, etc. We would have the City of Glendale’s operating deficit rising to continued nightmarish proportions. Just throwing this thinking out to you.
So, the brilliant young men at Research Edge would come in and either import Canadians as LeBlanc alluded to or perhaps they would find investors to otherwise buy tax paper to bail out Glendale on property tax collection, or more likely a combination of the two.
Research Edge if they do this will stand to gain large! The National Hockey League will pale in comparison in bad times. As the rink continues to empty in proportion to the homeowners and property tax payments taking a dive, the Edge boys can effect the “business reason”, and help the City of Glendale out in the tax department. Should the economy improve, disposable income will come back, and hopefully the good folks of Phoenix will start to have more disposable income.
But, the likely next couple of years will be a down economy, and Research Edge will kick in the plan with the City of Glendale, and the Phoenix Coyotes will be a tax write off for the parent company. Hedging the bet with a derivative of sorts – that counters the economy and hockey ticket sales. Brilliant really! Michael Moore may be calling to find out how that one works too.
Mubadala, if they are indeed the bondholders will reap their share of revenues as prescribed because the City will look to reducing or eliminating the budget crisis with the aid of the only boys capable of helping and everyone wins. Well, everyone except the struggling taxpaying voters in Arizona that have been sold down the river by the Wall Street driven Federal Reserve, the Bilderberg Group, and the state and municipal politicians. We had better keep a close eye on this group in Canada or our economy may go into the gutter too.
But that is another story isn’t it? When we in Canada question why we couldn’t just get another hockey team, we should start to look at the bigger picture – the much, much bigger picture!
More on Bilderberg Group and Canada:
Past articles related on Ice Edge: