Category Archives: Antitrust

To Russia, with Love!

Posted on October 3, 2009 | 1 Comment

For the bullet summary, please go here.

According to the Globe and Mail, Jerry Moyes will not necessarily get money from the Coyotes in bankruptcy. The Globe and Mail feels the NHL will not have to up the $140 million bid. And for this, the owners in the league salute Gary Bettman? Disgusting. The owners in this league will get what they deserve, but they won’t see a penny from me!

To Russia, with Love!

When Canadian hockey players won't stand up for their country, why not bring in Europeans to teach them all a lesson or two. (Action from a KHL game)

When Canadian hockey players won't stand up for their country, why not bring in Europeans to teach them all a lesson or two. (Action from a KHL game)

I hear the KHL is stealing players away from the NHL. Wow! I’d pay big to see more of that! And, I have a feeling there are many others in this fine city that would too. 

The NHL is powerless to stop the KHL from attracting it’s restricted free agents. My, would a team in Hamilton be the transfer ground for disgruntled NHL players to exercise some control or what?

 

 

“Make a deal, or I speak to Hamilton”, a player might say! Has a nice ring to it, don’t you think?

And, that way, the NHL player could jump leagues, and not leave North America, keeping his family intact. Interesting.

Jim Basillie, if he wanted hockey and a means to send further shock waves through the NHL could likely be accepted as a KHL owner. What’s that, did I just hear Jim’s phone ring? Long distance?

Jim Balsillie was ready to spend $240 million on what? A corrupt hockey league? A league where the Canadian team owners teamed up and are now saluting Gary Bettman for his efforts. Raise the glass of champagne?

They ( the NHL, it’s and it’s owners) are all disgusting! Even the so called Canadian ones.

Let’s say Jim Balsillie wanted to buy a Tim Horton franchise, and Tim’s organization was run like the NHL.

The other owners of Tim stores would gang up on Balsillie and say he was not ‘Horton owner material’,or other gibberish.

Because perhaps those coffee stores were making a lot of money and enjoyed the monopoly. Let’s say you couldn’t get a better coffee in town, and well, the people became addicted to their coffee fix.

The only thing that would tick off the owners in that kind of monopoly would be competition. Competition that the consumers were going to side with out of spite to begin with.What company wouldn’t want that kind of “differential advantage”in marketing it’s brand? Oh, boy!

Richard Rodier had, in an interview with Bob McCown on the Fan 590, the analogy of a hamburger restaurant chain. It doesn’t matter what product we are speaking of here, what does matter is the principle of monopoly power.

And let’s face it, the glitz and glamour of the once respected NHL is long, long gone. It’s ripe for a makeover that only competition could bring.

It also brings us back to the old days of the World Hockey Association (WHA). First looked at as a joke, it quickly became a threat, and well, the rest as we know is history. Rumour has it the best player that ever played in the NHL first played in the WHA. So, as far as crazy, there is no reason to support that idea. In fact, the time is now for a lot of reasons.

And with players in the NHLPA no doubt sharing disgust for the management and ownership, there may be a lot of interest moving forward (see the list of ex-NHL’ers to have made their way to the KHL already).

The Moscow Dynamo have been around a long time, and play great hockey....imagine going to Copps to see them play!

The Moscow Dynamo have been around a long time, and play great hockey....imagine going to Copps to see them play!

Imagine entertaining the Moscow Dynamo at Copps Colliseum. A reality that could come true with a little vision. Having Canadians embrace an international hockey battle on a regular basis may just be the ticket! It was always a huge draw in the past.

From a marketing perspective, I would easily say that Jim Balsillie has millions of angry hockey fans ready to stand behind his next move.

But what should that move be.

Antitrust? I don’t know. The Canadian Competition Bureau has shown collectively why they get paid to appease the people, rather than enforcing the law. So, in my opinion now, they are useless. They are out.

However, this is where it could get interesting.

Alexander Frolov in 2004-05 with Dynamo

Alexander Frolov in 2004-05 with Dynamo

There has been much talk about another league. Even experts have agreed that starting another professional hockey league would be just the ticket to have the fans in the GTA, and all of southern Ontario, perhaps Canada rally behind Balsillie to make it work.

I would even go as far as to say some fans in Montreal, Ottawa, Vancouver, Calgary, Edmonton, and, yes, even Toronto would support Jim Balsillie out of sheer frustration as to the shunning of more Canadian teams, and because fans, especially in the GTA, cannot see NHL hockey at any price.

In short, from a marketing perspective, it would be like a bunch of Tim Horton customers suddenly finding out something terrible about Tim’s, and how a monopoly existed, and how much those coffee nuts would make a point of supporting any alternative that wasn’t them!

Well, we have that marketing opportunity now.

We have millions and millions and millions. Did I say millions? Yes, millions of fans in Canada, not just Hamilton and area that would welcome an alternative.

We, as fans would welcome an alternative that would fly in the face of the smug (insert expletive deletive here!) at the NHL, and the owners. I, for one, will never watch another NHL hockey game until they have a change of heart, come back on their knees, and beg Jim Balsillie to buy a franchise, and put it in Copps Colliseum. I, and many others are boycotting this league for as long as that takes.

Jim Balsillie, in my opinion, and the opinion is shared by many, is a man who has exposed the NHL and it’s partners for the seedy business people that they are.

I don’t follow wrestling, but in the old days, my dad would tell me to come on over, and sit down, after all it was Saturday afternoon, and Hockey Night in Canada wasn’t on yet. Come watch the wrestling. As my dad said time and again with a slick smile, “It’s all fixed you know, it’s a put on”.

“Yes dad, I know”.

And we’d sit there and laugh, and marvel at “how real” the wrestlers made it all seem. How their “acting” was hokey but entertaining. But it just wasn’t real. It was phony.

Well, the NHL has become phony to me.

I disagree with Jim Balsillie for once. If an NHL team came to Hamilton at this point, and Jim Balsillie wasn’t the owner, I don’t believe I would be in line to buy tickets. The NHL would have won. I would remember back to the “we are gods” attitude of Bill Daly, when he said:

Not so fast, smug ones. I would love to see a little competition come your way!

Not so fast, smug ones. I would love to see a little competition come your way!

“We admire and respect their passion for the sport and maybe at some point in the future they will have their own franchise.”

 

 

 

 

I’m with my friends on this one. That is simply not good enough.

Did I tell you there were millions of people in Hamilton area, let alone all over southern Ontario unhappy?

Well, let’s get back to Jim Balsillie.

Somewhere in a bank account, Jim has $240 million dollars.

The money was earmarked to do some good for the City of Hamilton and it’s people.

It was designated to stimulate the city he loves, and provide hockey to the hungry fans.

Well, if you are of my generation, you would remember the ’72 Summit series. Hockey so good, that they brought black and white televisions in the school gyms so the kids could all support Canada. What would we do to see more of that kind of hockey? That would make the NHL look run of the mill, like it should look.

That would make the Maple Leafs look like slugs.

That would make those at MLSE cringe.

And remember, a state of the art facility would attract the real money. The concerts and other events that would make 40 spots of hockey look trivial.

The argument in Glendale, AZ could be made here. A state of the art entertainment facility would bring so much revenue and interest to Hamilton that it could not help but stimulate the economy.

And if Jim Balsillie would stand to get a piece of that pie, who cares. I’d support that.

And, if Jim Balsillie were to put together a “select” professional team, that played a schedule of games against european elite teams, I would definitely help pack the new, state of the art arena, and several million (did I say million?) of the hungry hockey fans would add revenues to the ultimate goal of perhaps springing up another team in, say Winnipeg, Quebec City, Saskatoon, out east, and on and on.

Pretty soon, we might be able to break away or enhance the european influence, but if it is so good why bother.

We could create a hockey experience that makes the NHL pale in comparison.

And why?

It’s very simple. The iron is hot. The NHL doesn’t deserve our money, nor that of anyone else.

MLSE deserves to sweat, and not just over hockey.

No, MLSE deserves to have plenty of competition as the years to come will be filled with a society of kids that don’t consider hockey the number one choice. MLSE and the Leafs will have reached the abyss of being able to charge ridiculous hockey rates. It will and could soon be over for them.

So, if Mr. Jim Balsille were to take his $240 million and build a complex so elaborate that the world would take notice, it would increase the stature of Hamilton, and he could throw a hockey team in there that would make the NHL drool.

$240 million could do a lot. And to break the monopoly of the MLSE and give people a reason to vote with their wallets would be priceless.

I wouldn’t line up to pay the crooks in the NHL a chance to watch their product.

But I would support a team Jim Balsillie would put there.

Balsillie is a visionary too good for the hokey hockey league known as the NHL.

Another WHA may be in order here.

And to start with building a state of the art arena and entertainment complex may not be so crazy. That is one idea of Gary Bettman’s we can agree on. At least in Canada, if you build it, they will come.

Maybe our thinking was all wrong. Perhaps it’s time to Make it one! A vision for a new league!

More reading: How it all went wrong : Globe and Mail

Bettman, Daly the toast: Globe and Mail

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Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes

Hamilton, Winnipeg, or a shuffle off to Saskatoon?

Posted on October 2, 2009 | 1 Comment

For the bullet summary, please go here.

One way or the other, Canada, the land of the shunned is yet again destined to bail out the NHL’s ‘derrieres’………put another way, send us your turkeys, they are cleared at Customs!

Ice Edge Holdings is interested again in the Phoenix Coyotes?

Might as well ship some of the turkeys to Canada, as there aren't that many viable hockey markets you know

Might as well ship some of the turkeys to Canada, as there aren't that many viable hockey markets you know

Yes, okay, but are they interested in the albatross lease?  That is the bigger question.

And, this may be a little bit premature, because it would seem the ruling passed down in the case of a ‘no sale’, has asked the NHL to pony up an amount (undisclosed) to bring Gretzky and Moyes in equal creditor status.

That has left some speculating that the amount could be as high as an additional $100 million, or an amount equivalent to mirroring the PSE offer.

The NHL, in its shallow victory didn’t exactly seem ready to spring the champagne corks, as they simply chose to comment on their happiness that the court sees their right to pick who owns the teams, and where they are located.

Speaking of location, the NHL has talked a good game, but now they have an opportunity to walk the talk.

Are there really buyers ready to take a long term commitment in Phoenix?

Let’s not  forget the “deep pocket” requirement that goes along with owning a fat turkey in the U.S. South, known as an NHL franchise.

All you have to do is ask Tony Tavares if his money was any good. Personally, I’d trade places with Tavares in the equity department, but apparently he doesn’t have a ‘personal enough’ equity stake to satisfy the “we want to tap you dry” requirement of the NHL. (Note: “personal enough” as in we ‘tap you for all you’ve got’).

You just have to remember Gary Bettman saying he believes Jerry Moyes was in equity position not creditor, when he said they owed him nothing. Note to all owners in the NHL, start giving “loans’ to your teams! No more equity!

Only problem is, the judge in the case, Redfield Baum, has agreed with Moyes and Gretzky, that they are “owed money”.

So, there is a precedent after all!

Yes, the NHL sure knows how to tap owners dry. And without repeating myself too much, perhaps again Jerry Moyes could take comfort in knowing that he wasn’t as alone as he might have thought. Although his friends may not have been in Glendale, he has men of equal stature getting tapped in Florida, and surprise, they are being told they had better “walk away” from their turkeys too.

But, then there is the young, strapping new fellas at Ice Edge.

With vim and vigour they are heading down to Glendale again to discuss ways to work  a deal on the team.

Well, just a thought.

Make sure the deal is “just about hockey”, won’t ya fellas?

After all, all the foreclosures in Glendale could have you drooling to ship in some Canadian content, and import hockey fans.

Maybe that’s the new take?

Sell the foreclosures to Canadians. If you can’t take hockey from the desert, perhaps we can bring Canadians to hockey.

Then, if they are wealthy, they can buy up the corporate boxes at a feverish clip, solving that problem.

Maybe not so crazy after all.

Well, Daryl Jones and Ice Edge, it’s not quite post-bankruptcy yet.

What’s the angle?

Could it be get the Coyotes and the City to break the lease, a la the NHL gets the deal, and you benefit? Could it be five games in Saskatoon is a precursor for 40?

Or do you truly want to take on the albatross known as the lease?

Remember, it isn’t the lease payments, considering $4 million in $100 million in losses is only four percent.

It’s when you realize you can’t make money, and you have no money pit to trough from, and you are stuck with the turkey in the desert, that’s what is going to hurt.

So could Saskatoon be the ultimate plan, or is the aspects of foreclosures, and investing in real estate and back taxes the bigger draw?

Well, according to just about everybody, it would appear the Coyotes are destined to pack and leave.

This from Reuters:

If the NHL buys the team, analysts said its losses would force a move because Glendale was unlikely to offer the team a deal that would make staying there worthwhile.

It is generally not expected that the NHL would retain ownership of the team for more than a year or two, which could be enough time to find an owner willing to keep it in Arizona.

“One year is a very long time,” said David Carter, executive director with the USC Sports Business Institute. “So much could happen in the course of next year.”

Many analysts expect the NHL to allow a relocation to protect the value of the franchise.

“There aren’t as many markets as you might think,” Ganis said.

There is something yet again strange with the Ice Edge “pick me, pick me” excitement, yet the NHL, as in bankruptcy just doesn’t seem to share the enthusiasm. Bill Daly speaking with the National Post seemed to say they are keeping their options open, and are not going to make a quick decision.

Okay folks, red light!

What’s up?

Jim Balsillie walked away a little too quickly and easily, out of character for him, for sure.

He’s getting a deal now, or when another turkey comes up for sale. At the high priced turkey seasons of Thanksgiving or Christmas no doubt. Could Hamilton see a team sooner than later.

There are teams to be moved. What about Winnipeg.

There aren’t that many markets as we now hear.

Canada is looking better all the time.

And Ice Edge, perhaps you are approaching this all wrong.

Don’t try to import hockey fans and sell them the foreclosures in Arizona, just cut your losses, and ask to ship a turkey to Saskatoon.

→ 1 Comment

Posted in Antitrust, bankruptcy, National Hockey League, NHL, Phoenix Coyotes, Sports

Are you ready to "expand" NHL? What's the deal?

Posted on October 1, 2009 | 2 Comments

For the bullet summary, please go here.

We, the hockey fans that came a long way deserve a better fate than what appears on the surface. We the fans have been heard, we just don’t know it yet. The impact we have had on the NHL has been far-reaching, and now the league needs to come up with a ‘creative way’ to save face. Oh, how to do it? Well, what you are about to read is a theory of the ending, explained by the entire picture, and what must have been discovered…..read on my friends……

  

The ties that ‘bond’

Questions – there are so many.

The decision that came down in court yesterday was so strange, that the only thing stranger was the reaction from the parties involved. Did anybody catch this too?

The case that took five months to settle, that jokingly could have been ruled in a week (based on the result), ended abruptly. Or, did it?

People on this site might consider me the eternal optimist and write off what I’m about to say. Well, give me a chance. Read, and let it absorb for a while, and then piece the puzzle together before you judge my theory.

Hamilton may be closer to getting an NHL team than you may know, and there may be a deal closer than we might think.

There are several ‘out of character’ comments that strike the ‘strange cord’ from the fallout of the ruling from yesterday. The good news, and a big issue here, is it appears the NHL might have to mirror the Balsillie bid in money, and that would mean Jerry Moyes would get what he would have gotten with a PSE victory. That, of course, will be up to the NHL to determine if they are willing to fulfill the court’s requirements, but there is strong reason to believe they will.

So, the bankruptcy case will have solved Jerry Moyes’ issue, and that’s huge. But did it also do something significant for Jim Balsillie?

Let’s start by looking at the facts, from the ‘reaction’ front to try to figure this out.

Amongst the very strange comments made after the decision, here are the strangest in my opinion:

  • Jim Balsillie commenting that it’s over. He will not seek appeal. This is out of character for a persistent man that looked like he was building an anti-trust case during the trial. So, now, it’s over?
  • The NHL’s only comment yesterday, was that it was pleased that the court ruled in it’s favor, and that the league has the right to choose who owns the franchises.
  • Jim Balsillie saying hockey is closer than ever for Hamilton? Wait a minute Jim just lost, remember?
  • Jim Balsillie saying he will be first in line to buy tickets? (Sell them you mean, don’t you Jim?)
  • Tom Harrington reporting on the case in the one breath telling us Balsillie lost, and in another stating that Jim Balsillie could be considered for an expansion team (see video)?

Out of character indeed. Strange? Absolutely.

Jim Balsillie has been a pitbull in his attack of the NHL, it’s processes, and it’s good boy’s club.

Suddenly Jim,’ the pitbull’, puts his tail between his legs and goes home? No, no, no. Sorry, not buying it.

What I can “buy” is the fact that there were many months the Balsillie legal team was looking into the workings of the NHL, and without telling you all I know (it would go against something I promised someone), I can tell you this much.

As mentioned on several occasions, there are things I see from a site owner perspective to give a good indication of things that might not be seen otherwise. That is how the initial investigation started at the outset, and fittingly, how it has ended. Patrick Romanoski is the only other person I have shared my information with, and we are, well, sworn to keep it to ourselves.

But, at the same time, I feel the need to share it with the people of Canada, because we have all been in this together, fighting along with Jim, and now suddenly, it’s lunch bag letdown time. No, I am here to tell you the facts speak a different language. The ruling of ‘no sale’ was likely by design.

How it began is how it ended

A strange ‘hit’ to the site many months ago that got the ball rolling, and a few recent ones might have effectively ended it.

The situation in Glendale began years ago as a case of a city needing growth. The city as we know is Glendale.

They decided to bite the bullet and attack sports facilities as a means to attract residents, build the tax base, and otherwise thrive.

Glendale had quickly become the location of choice for the Arizona Cardinals and the Phoenix Coyotes. The common denominator – Michael Reinsdorf and International Facilities Group (IFG).

While IFG was quick to tell us that they constructed the Cardinals’ stadium, they also were responsible for the construction of the now Jobing.com arena.

While IFG was responsible for aspects of consulting on the Cardinals’ stadium, they strangely backed off dealings on Jobing.com arena, and instead brought in Beacon Sports to assess and give advice to the City of Glendale. That, in itself seemed a little strange. That is, unless the company needed to have a non-arms length relationship with Jobing.com and the city.

Michael Reinsdorf, as I pointed out, professes to be an expert in lease negotiations. So why didn’t he get involved with the lease between Jerry Moyes and the City of Glendale?

It never really made sense, and we, as the public know who several key creditors have been in this bankruptcy, but let’s ask the obvious question. How come we do not know who the bondholder is?

Well, I suppose the bondholder is once removed from the situation. That is, the bond is a deal between the City of Glendale and the bondholder. It is only the lease that is the issue between the hockey team and the City, and only that forms part of the financial obligations in this case. So, who holds the bond, although huge, is not directly a party to the bankruptcy.

But, as mentioned several times, the ‘ah ha’ moment would be to know who holds the bonds?

Why?

Glendale has sold out to private investment money to fund infrastructure growth. They built Jobing.com arena with no money down, but with a huge promise to come through with sales tax, to fulfill the bond terms. The only way to generate sales tax, is if you have tenants to bring the people in.

In this case, the hockey team is a condition of the bond terms, and revenue from sales tax the agreement.

We on Make it Seven have recently surmized that the NHL may have been involved with the arranging (convincing) of the City to take on the loan structure, and in effect the NHL may have been a party to being on the hook to meet the bond’s obligations.

Now, in the judge’s ruling of yesterday, is it clear that the NHL actually got the one-year out clause it was looking for?Again, I don’t believe it was clear at all. And, in fact, a lease concession of that huge a magnitude is simply a concession that I do not believe the City of Glendale is at liberty to allow. The Goldwater Group would see to that.

So, if indeed the NHL, by assuming this team would be on the hook for the close to $800 million lease liability, why would they take the deal? Unless they too are bound by it.

Remember again, the NHL philosophy is first you need a state of the art arena, and then a team, and then the fans will come (they hope).

Well, as we know in Glendale, we have a location where it is inconvenient for so many people to make it on time for a game, that many have likely elected to forget it. The location for the state of the art facility was wrong. But, the NHL, and the hockey team have been held accountable for it.

So, we have Jim Balsillie.

For Jim, all guns were ablazing for several months, and his desire to obtain an NHL franchise flew in the face of the NHL itself. But, at some point, would this strategy fail?

The answer is yes.

The court has proven it.

Why would Jim back down now? Why not antitrust? He could continue to make the life of the NHL and it’s executives a living nightmare for years to come. God only knows he has the financial wherewithall to do it. So why back off? Good question.

Here’s where the theory comes in. What if the PSE legal team found out something so juicy, it would make everybody stand up and take notice. A lot like the NHL, the City of Glendale, and a developer all coming to this site one day, when I pinned the tail on the donkey, and determined Jerry Moyes was taken for a ride. Bingo.

Well, I think there was a second ‘Bingo’ moment, and I believe that PSE found out a very important fact.

The fact: Who holds the Jobing.com arena bonds?

If PSE and it’s team of lawyers were able to find out who holds the bonds, and it ties in with the suspicion of collusion nicely in this case, as the basketball announcer would say, “Get out the salami and cheese mama, this game is over”.

Well, I have reason to support the idea that in the last little while a break occured in this case, and PSE was able to do just that. I believe they found out who holds the bonds, and the situation, even to PSE became clear.

Jim Balsillie, not being the bad guy he was painted to be probably realized the significance of the finding, and also realized that it would not be good for certain parties to this bankruptcy. After all, we are all human, and who would have known it would come to this?

So, having information of significant magnitude, a deal could have been made. A deal that would work for everybody.

Instead of the prolonging of the facade of “character assasination” of Jim Balsillie, the game could now end.

The judge could look like the bad guy. The league, if it comes back to a ‘given up’ Jim Balsillie, a good guy.

Jim Balsillie was never going to get into this league by continuing to make the NHL and it’s people eat crow.

At some point he would have to back down. But, he may have enough clout now to have harboured a deal.

To put the finishing touch on this idea, let’s remember how badly the NHL wants to get this team out of bankruptcy.

Remember Ice Edge? The comment form Daryl Jones being they would only have an opportunity to buy the team “post bankruptcy”?

Why post-bankruptcy? Why not during bankruptcy?

Well, in bankruptcy, Jerry Moyes knew that the league would not be able to change loan terms, specifically bond terms.

But, if one of the parties to the collusion were to also be the bondholder, then out of bankruptcy, the bond payment terms could be made a lot easier on the City of Glendale, and maybe, just maybe the financial situation of the Coyotes in Glendale might have a chance.

The issue is this.

If the NHL is bound to remain in Glendale legally for the remainder of the lease, then they need to do all they can to find an owner. The bondholder would be motivated to ensure the stream of payments is maintained.

Judge Baum, appearing as the indecisive judge, cared less about his reputation, and in the end more about Jerry Moyes than we might appreciate. After all, Jerry Moyes will get his money here.

The Coyotes might stay in Glendale.

The NHL will still have one heck of a rough ride.

And, Jim Balsillie will have found out enough information to keep quiet, that when he goes to buy those tickets for hockey in Hamilton, he might actually turn around and sell them.

That’s right, he just might be made an offer that comes from a very generous league. A league that will look like good guys for having a change of heart.

A league that might offer Jim Balsillie an expansion franchise, as suggested oddly by Tom Harrington. What is striking about the comments by Harrington, is that the league was very “low key”, and that they cited Hamilton as the 5th best market in potential. Harrington said there may be opportunity for Hamilton, “and Jim Balsillie.” Now is that strange or what, especially coming off a bitterly contested battle? This is certainly not in keeping with previous atttitude or demeanor of both sides – the NHL or Jim Balsillie.

As Philip Mastronardi said so well:

…..something isnt right, I dont know what it is but i get the feeling things are far from over.
Phillip Mastronardi | | Oct 01, 12:52pm

Others are also getting the “feeling” this is not in keeping with the tone or the situation. “Something just isn’t right” alright, so what is it?

Well, I am here to say that information is power, and I believe there are secrets best kept secret in the NHL. And, keeping things quiet might just be worth a lot.

So, what’s not right?

We all know Jim Balsillie never, ever gives up! So why is he giving up now?

I think this tweet I found last night summarizes the bond albatross situation with a light heart:

RT @MichelleKenneth : Holy crap! RT @TheYotesDiva It would’ve cost Jim $794,663,034.00 to break that lease with the City of Glendale. 15 hours ago

 Perhaps the reality of being ‘stuck’ with the albatross lease is playing into the thinking of the NHL, yet again, as Bill Daly had this to say:

“We are pleased that the Bankruptcy Court has confirmed the League’s rights to select its owners and the location of its franchises. We are reviewing the opinion and considering how we can best address the Court’s concerns regarding our offer to purchase the Coyotes. It remains our goal to secure the long-term stability of the Coyotes in Glendale.”

Yep, the ‘bond’ that ties likely is better tying someone else up, right Jim?

 

→ 2 Comments

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

Are you ready to “expand” NHL? What’s the deal?

Posted on October 1, 2009 | 2 Comments

For the bullet summary, please go here.

We, the hockey fans that came a long way deserve a better fate than what appears on the surface. We the fans have been heard, we just don’t know it yet. The impact we have had on the NHL has been far-reaching, and now the league needs to come up with a ‘creative way’ to save face. Oh, how to do it? Well, what you are about to read is a theory of the ending, explained by the entire picture, and what must have been discovered…..read on my friends……

  

The ties that ‘bond’

Questions – there are so many.

The decision that came down in court yesterday was so strange, that the only thing stranger was the reaction from the parties involved. Did anybody catch this too?

The case that took five months to settle, that jokingly could have been ruled in a week (based on the result), ended abruptly. Or, did it?

People on this site might consider me the eternal optimist and write off what I’m about to say. Well, give me a chance. Read, and let it absorb for a while, and then piece the puzzle together before you judge my theory.

Hamilton may be closer to getting an NHL team than you may know, and there may be a deal closer than we might think.

There are several ‘out of character’ comments that strike the ‘strange cord’ from the fallout of the ruling from yesterday. The good news, and a big issue here, is it appears the NHL might have to mirror the Balsillie bid in money, and that would mean Jerry Moyes would get what he would have gotten with a PSE victory. That, of course, will be up to the NHL to determine if they are willing to fulfill the court’s requirements, but there is strong reason to believe they will.

So, the bankruptcy case will have solved Jerry Moyes’ issue, and that’s huge. But did it also do something significant for Jim Balsillie?

Let’s start by looking at the facts, from the ‘reaction’ front to try to figure this out.

Amongst the very strange comments made after the decision, here are the strangest in my opinion:

  • Jim Balsillie commenting that it’s over. He will not seek appeal. This is out of character for a persistent man that looked like he was building an anti-trust case during the trial. So, now, it’s over?
  • The NHL’s only comment yesterday, was that it was pleased that the court ruled in it’s favor, and that the league has the right to choose who owns the franchises.
  • Jim Balsillie saying hockey is closer than ever for Hamilton? Wait a minute Jim just lost, remember?
  • Jim Balsillie saying he will be first in line to buy tickets? (Sell them you mean, don’t you Jim?)
  • Tom Harrington reporting on the case in the one breath telling us Balsillie lost, and in another stating that Jim Balsillie could be considered for an expansion team (see video)?

Out of character indeed. Strange? Absolutely.

Jim Balsillie has been a pitbull in his attack of the NHL, it’s processes, and it’s good boy’s club.

Suddenly Jim,’ the pitbull’, puts his tail between his legs and goes home? No, no, no. Sorry, not buying it.

What I can “buy” is the fact that there were many months the Balsillie legal team was looking into the workings of the NHL, and without telling you all I know (it would go against something I promised someone), I can tell you this much.

As mentioned on several occasions, there are things I see from a site owner perspective to give a good indication of things that might not be seen otherwise. That is how the initial investigation started at the outset, and fittingly, how it has ended. Patrick Romanoski is the only other person I have shared my information with, and we are, well, sworn to keep it to ourselves.

But, at the same time, I feel the need to share it with the people of Canada, because we have all been in this together, fighting along with Jim, and now suddenly, it’s lunch bag letdown time. No, I am here to tell you the facts speak a different language. The ruling of ‘no sale’ was likely by design.

How it began is how it ended

A strange ‘hit’ to the site many months ago that got the ball rolling, and a few recent ones might have effectively ended it.

The situation in Glendale began years ago as a case of a city needing growth. The city as we know is Glendale.

They decided to bite the bullet and attack sports facilities as a means to attract residents, build the tax base, and otherwise thrive.

Glendale had quickly become the location of choice for the Arizona Cardinals and the Phoenix Coyotes. The common denominator – Michael Reinsdorf and International Facilities Group (IFG).

While IFG was quick to tell us that they constructed the Cardinals’ stadium, they also were responsible for the construction of the now Jobing.com arena.

While IFG was responsible for aspects of consulting on the Cardinals’ stadium, they strangely backed off dealings on Jobing.com arena, and instead brought in Beacon Sports to assess and give advice to the City of Glendale. That, in itself seemed a little strange. That is, unless the company needed to have a non-arms length relationship with Jobing.com and the city.

Michael Reinsdorf, as I pointed out, professes to be an expert in lease negotiations. So why didn’t he get involved with the lease between Jerry Moyes and the City of Glendale?

It never really made sense, and we, as the public know who several key creditors have been in this bankruptcy, but let’s ask the obvious question. How come we do not know who the bondholder is?

Well, I suppose the bondholder is once removed from the situation. That is, the bond is a deal between the City of Glendale and the bondholder. It is only the lease that is the issue between the hockey team and the City, and only that forms part of the financial obligations in this case. So, who holds the bond, although huge, is not directly a party to the bankruptcy.

But, as mentioned several times, the ‘ah ha’ moment would be to know who holds the bonds?

Why?

Glendale has sold out to private investment money to fund infrastructure growth. They built Jobing.com arena with no money down, but with a huge promise to come through with sales tax, to fulfill the bond terms. The only way to generate sales tax, is if you have tenants to bring the people in.

In this case, the hockey team is a condition of the bond terms, and revenue from sales tax the agreement.

We on Make it Seven have recently surmized that the NHL may have been involved with the arranging (convincing) of the City to take on the loan structure, and in effect the NHL may have been a party to being on the hook to meet the bond’s obligations.

Now, in the judge’s ruling of yesterday, is it clear that the NHL actually got the one-year out clause it was looking for?Again, I don’t believe it was clear at all. And, in fact, a lease concession of that huge a magnitude is simply a concession that I do not believe the City of Glendale is at liberty to allow. The Goldwater Group would see to that.

So, if indeed the NHL, by assuming this team would be on the hook for the close to $800 million lease liability, why would they take the deal? Unless they too are bound by it.

Remember again, the NHL philosophy is first you need a state of the art arena, and then a team, and then the fans will come (they hope).

Well, as we know in Glendale, we have a location where it is inconvenient for so many people to make it on time for a game, that many have likely elected to forget it. The location for the state of the art facility was wrong. But, the NHL, and the hockey team have been held accountable for it.

So, we have Jim Balsillie.

For Jim, all guns were ablazing for several months, and his desire to obtain an NHL franchise flew in the face of the NHL itself. But, at some point, would this strategy fail?

The answer is yes.

The court has proven it.

Why would Jim back down now? Why not antitrust? He could continue to make the life of the NHL and it’s executives a living nightmare for years to come. God only knows he has the financial wherewithall to do it. So why back off? Good question.

Here’s where the theory comes in. What if the PSE legal team found out something so juicy, it would make everybody stand up and take notice. A lot like the NHL, the City of Glendale, and a developer all coming to this site one day, when I pinned the tail on the donkey, and determined Jerry Moyes was taken for a ride. Bingo.

Well, I think there was a second ‘Bingo’ moment, and I believe that PSE found out a very important fact.

The fact: Who holds the Jobing.com arena bonds?

If PSE and it’s team of lawyers were able to find out who holds the bonds, and it ties in with the suspicion of collusion nicely in this case, as the basketball announcer would say, “Get out the salami and cheese mama, this game is over”.

Well, I have reason to support the idea that in the last little while a break occured in this case, and PSE was able to do just that. I believe they found out who holds the bonds, and the situation, even to PSE became clear.

Jim Balsillie, not being the bad guy he was painted to be probably realized the significance of the finding, and also realized that it would not be good for certain parties to this bankruptcy. After all, we are all human, and who would have known it would come to this?

So, having information of significant magnitude, a deal could have been made. A deal that would work for everybody.

Instead of the prolonging of the facade of “character assasination” of Jim Balsillie, the game could now end.

The judge could look like the bad guy. The league, if it comes back to a ‘given up’ Jim Balsillie, a good guy.

Jim Balsillie was never going to get into this league by continuing to make the NHL and it’s people eat crow.

At some point he would have to back down. But, he may have enough clout now to have harboured a deal.

To put the finishing touch on this idea, let’s remember how badly the NHL wants to get this team out of bankruptcy.

Remember Ice Edge? The comment form Daryl Jones being they would only have an opportunity to buy the team “post bankruptcy”?

Why post-bankruptcy? Why not during bankruptcy?

Well, in bankruptcy, Jerry Moyes knew that the league would not be able to change loan terms, specifically bond terms.

But, if one of the parties to the collusion were to also be the bondholder, then out of bankruptcy, the bond payment terms could be made a lot easier on the City of Glendale, and maybe, just maybe the financial situation of the Coyotes in Glendale might have a chance.

The issue is this.

If the NHL is bound to remain in Glendale legally for the remainder of the lease, then they need to do all they can to find an owner. The bondholder would be motivated to ensure the stream of payments is maintained.

Judge Baum, appearing as the indecisive judge, cared less about his reputation, and in the end more about Jerry Moyes than we might appreciate. After all, Jerry Moyes will get his money here.

The Coyotes might stay in Glendale.

The NHL will still have one heck of a rough ride.

And, Jim Balsillie will have found out enough information to keep quiet, that when he goes to buy those tickets for hockey in Hamilton, he might actually turn around and sell them.

That’s right, he just might be made an offer that comes from a very generous league. A league that will look like good guys for having a change of heart.

A league that might offer Jim Balsillie an expansion franchise, as suggested oddly by Tom Harrington. What is striking about the comments by Harrington, is that the league was very “low key”, and that they cited Hamilton as the 5th best market in potential. Harrington said there may be opportunity for Hamilton, “and Jim Balsillie.” Now is that strange or what, especially coming off a bitterly contested battle? This is certainly not in keeping with previous atttitude or demeanor of both sides – the NHL or Jim Balsillie.

As Philip Mastronardi said so well:

…..something isnt right, I dont know what it is but i get the feeling things are far from over.
Phillip Mastronardi | | Oct 01, 12:52pm

Others are also getting the “feeling” this is not in keeping with the tone or the situation. “Something just isn’t right” alright, so what is it?

Well, I am here to say that information is power, and I believe there are secrets best kept secret in the NHL. And, keeping things quiet might just be worth a lot.

So, what’s not right?

We all know Jim Balsillie never, ever gives up! So why is he giving up now?

I think this tweet I found last night summarizes the bond albatross situation with a light heart:

RT @MichelleKenneth : Holy crap! RT @TheYotesDiva It would’ve cost Jim $794,663,034.00 to break that lease with the City of Glendale. 15 hours ago

 Perhaps the reality of being ‘stuck’ with the albatross lease is playing into the thinking of the NHL, yet again, as Bill Daly had this to say:

“We are pleased that the Bankruptcy Court has confirmed the League’s rights to select its owners and the location of its franchises. We are reviewing the opinion and considering how we can best address the Court’s concerns regarding our offer to purchase the Coyotes. It remains our goal to secure the long-term stability of the Coyotes in Glendale.”

Yep, the ‘bond’ that ties likely is better tying someone else up, right Jim?

 

→ 2 Comments

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

How much to "rent a turkey" in 'Garyworld'?

Posted on September 30, 2009 | 2 Comments

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).

In Gary Bettman’s NHL, the ‘league rules’ are a fancy expression for “you ain’t gettin’ nothin’ for the franchise when you leave”. Just look at the cases beyond Jerry Moyes’, and you will find a pattern. Jerry Reinsdorf wasn’t about to buy the turkey in the typical way!

Turkeys for sale…..only 50 cents!

Garyworld turkeys: You can play with them as long as you can afford to keep them in the league approved pens. But don't take it to a new pen, and don't try to sell it off.....it won't be worth anything then!

Garyworld turkeys: You can play with them as long as you can afford to keep them in the league approved pens. Don't sell them to a new owner with a new pen though!

Nashville, Atlanta and Dallas are all experiencing financial problems. Tampa Bay and Columbus are right behind them, all feeling the pinch of heavy debt loads, difficult economic conditions and operating in markets where professional hockey ranks behind figure skating and kennel shows in terms of viewer interest.

If the NHL controls the franchises, like Bettman says, then why would you put one in a location that has neither an appetite for the product nor owners with the financial clout to carry the team through good times and bad?

What does the commenter above know? After all, he’s only a professor of Business and Finance at the University of Toronto, by the name of Richard C. Powers.

I remember having a conversation or two about buying a Tim Horton’s franchise. My friend and I marvelling at ‘the what if’ idea that we could afford to buy a Tim’s . “A licence to print money” they are. If you can get your hands on one of these stores, you had it pretty much made. The underlying company being well managed, was able to determine the demographic viability of the location of choice. I wonder if there was some sort of guarantee on profit? And, I also wonder that if the store didn’t make money, what would the corporation do for the owner as far as buying back the franchise, etc.? In other words, was there a safety net to sustaining unnecessary losses if the location didn’t pan out?

To me, it’s ironic that Tim Hortons and its franchises is what Gary Bettman used in the Ron McLean interview that we keep referring back to. Ironic in the sense that Tim Horton was an NHL hockey player that came up with a winner. A winning franchise idea - not in hockey, but in an unrelated industry. At the root of buying a franchise opportunity is the promise of making money.

But what are the requirements of franchise  ownership in Gary Bettman’s NHL?

When Gary Bettman explained in that interview with Ron McLean, that when an owner buys a franchise, he is buying that franchise in the location determined by the league.  He is really saying it’s not the league’s problem if the franchise loses money.

Sports Properties Acquisition Corp., owned by Tony Tavares, was not able to negotiate a deal with purchasing the Florida Panthers  because, according to Gary Bettman, a corporation is not an individual owner with deep pockets enough to sustain losses:

Meanwhile, Florida Panthers owner Alan Cohen has been attempting to sell the team to a investment firm, but the bid has been rejected by the NHL on the grounds that Sports Properties Acquisitions Corp. would not have a single member with a large equity stake. Sports Properties’ president and CEO is Washington Nationals president Tony Tavares, and the firm’s directors include Hall of Fame baseball player Hank Aaron and former New York Gov. Mario Cuomo.

Another irony.

Tony Tavares as we know, was part of the robust group that John Kaites said would be required to save the  Phoenix Coyotes franchise. Tavares owns Sports Properties Acquisition for a reason –  to acquire failing franchises and to move them to other places. Ask Montreal Expos fans what they know of Tony Tavares’ moving skills. They will tell ya.

In Kaites’ own blog (which I am surprised has not been removed or altered as so many other sites have been), this is mentioned:

Phoenix attorney John Kaites said that he began putting together a team of investors and approached the city and team six months ago about taking over and keeping the Coyotes in Glendale.

Kaites, who represents the White Sox among other sports teams, declined to say who or how many investors were involved.

“It’s a robust group, and that is what it’s going to take to save the team,” he said.

Well we all now know how robust the group was. It was simply a ‘bust’. Perhaps this is why Tavares is now being shunned by the NHL? Perhaps Bettman realized, as he did in his court deposition, that he doesn’t have as many friends as he thought? Better check that personal agenda, for sure!

Tavares might now know what Jim Balsillie feels. You’re only as good to Gary Bettman as when you play by his rules. Maybe when the Reinsdorf deal fell through to buy the Coyotes, Tavares lost favor with the commissioner. Never know. ‘League rules’ seem to change with mood, as does how the NHL Constitution is ‘interpreted’.

Which brings us to the franchise valuation question. How much is any franchise worth, and what protection is there for the owner by the underlying corporation selling the franchise?

When Reinsdorf wanted to buy the Phoenix Coyotes, he came in with no money down, and an expectation that the City of Glendale would be on the hook for any losses.

So, doing the math, Reinsdorf valued the Phoenix Coyotes at $0. Nothing, nada, zilch.

In fact, if it were not also for a guarantee that the City would cover losses over the years, I am sure Reinsdorf would need to get money from the league to compensate for those future losses.

Reinsdorf could not get that deal from the City of Glendale or the league. But it brings the important point of an owner wanting guarantees that if the league wants to sell a turkey, then there had better be rights and protections in place to protect the investor.

So further in the Washington Post article, referring to the Coyotes, Bettman continued:

“We’re fighting to protect our rules,” Bettman said Saturday during an appearance at the Capitals’ fan convention. “It has nothing to do with Southern Ontario or another team in Canada. This has to with being a league that sticks by its fans, sticks by its markets and enforces its rules. Because without that, you can’t have a sports league.”

Well, that’s all nice in theory. I guess in a perfect ‘Garyworld’, that would be a noble idea. How nice indeed. The only flaw in the logic in this ideal is if the fans don’t come out and actually buy enough tickets at high enough prices, and don’t pay for the concessions they consume, then how will the owners of the teams afford to keep subsidizing those fans that are number one?

Jerry Reinsdorf was a smart man with lots of sports ownership experience under his belt. He was asked by the league to come in to bail them out.

No doubt Reinsdorf must have thought they were joking when he looked at the business model.

In short, an owner must have deep pockets to sustain losses (sorry Sports Properties Acquisition (holding company)), and have no rights except to hand the team back to the league at the end of the run, when there is no money left to sustain further losses. Good deal or what? Where do we sign?

So, when the owners in Florida are looking at each other and saying, ‘do you want this turkey?‘, they are likely both going to come up with the realization that a loser is a loser is a loser.‘ What on earth has the league sold us, but a licence to lose money!’

So the Panthers owners are stopped by ‘ league rules’ to come out with any amount of their losses returned, and in Tampa we have this scenario:

Owners of the Tampa Bay Lightning are involved in a similar buyout feud, with the NHL laying out a set of deadlines for the disagreement to be resolved. Part owner Len Barrie was given a 60-day window to buy out fellow owner Oren Koules, but that deadline passed last week. Koules now has until Nov. 23 to reach a deal to buy out Barrie.

In short, who can afford to keep ‘the turkey’ a while longer? But the bigger question is why?

Which leads us to the final point.

How do they actually determine the franchise value for an NHL team?

  • If all you are buying is liablility, and you need deep pockets to fund a loser, what would you pay to lose money?
  • The NHL trademark must be worth something, but what if you cannot capitalize on it?
  • If not able to sell the franchise off to the highest bidder when disposing of a team, how does this affect the investment value?

It would seem very clear, that in Garyworld, a franchise owner is only good if he has lots of wealth to sustain innevitable losses over prolonged periods of time. Like Jerry Moyes, the owners for the Florida Panthers and Tampa Bay Lightning are seeing the fallout of the value of the turkeys they were sold.

The ‘league rules’ are designed to, in effect, strip owners of any right except to lose money if the team is in a losing market.

So, in the failing markets where Bettman is thinking the market will turn around, as a prospective new owner you are really just buying a “Rent-a-turkey” franchise. Yes, you can play with it for as long as you can afford to, but turn it back over to us (NHL).

Perhaps Tony Tavares saw an opportunity to bi-pass expansion fees too? Now that wouldn’t sit right in the commissioner’s agenda, would it?

No way! If you are buying an NHL Rent-a-turkey franchise, then if the turkey farm gets moved, it will not be you as the “renting owner” that will profit. It’s better to strip any remaining wealth from you, so the NHL can reap rewards in every conceivable way.

It is obvious Gary Bettman will continue to be on a hunt to replace one deep pocket with another.

The problem is Bettman seems to be running short of new friends to want to buy (sorry, “rent”)  his turkeys.

When Gary Bettman says that the sale of the Phoenix Coyotes could extend beyond December 31st, he likely will have missed the window of opportunity.

No matter how you slice it, a turkey is a turkey, is a turkey (Click here to see the Sun article, Bettman's vision has failed)

No matter how you slice it, a turkey is a turkey, is a turkey (Click here to see the Sun article, Bettman's vision has failed)

After all, don’t turkeys have the greatest value at Christmas?

You can probably sell them a little easier and a for a higher price when in demand.

Maybe not in Garyworld, but in the real world, things are looked at a little differently.

A turkey is a turkey, is a turkey, is a turkey – no matter how you slice it.

As a postscript, it is long overdue to honour one of our own, great minds on Make it Seven. Jennifer brings it home with this comment:

Excellent articles on the links you guys are sending out. Thanks I really appreciate them. And of course Charles on Makeiteighteh.com! Excellent work. Okay I must say I feel it everyone! Our passion for this bid and Jerry Moyes are making things happen for the good. Our enthusiastic minds are attracting what we want most. A seventh team in Canada! We all should be proud to be apart of this historical occassion. Our voices are being heard! Jim Balsillie you have my deepest respect. I feel frustrated when I read negative press about how you’ve handled this quest. I have yet to clearly hear what you you’ve done wrong, besides make a business deal with a man who’s lost millions and spent 2 years searching for a potential owner. AFTER the NHL turned their backs on Mr Moyes. So what did Jim do wrong? NOTHING. It seems society would rather allow the bully (NHL) to keep on bullying. Do as they say, don’t step on their toes! But you Mr Balsillie are intelligent and assertive. A citizen that should be held to the highest regard for your efforts in this fight. I know you will be a very successful, passionate and respected contribution to the NHL. The Coyotes need you, the NHL needs you and everyone who wants a 7th team in canada THANKS YOU!! Hamilton awaits your team!!
jennifer zarull | hamilton | Sep 29, 11:18pm

→ 2 Comments

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

How much to “rent a turkey” in ‘Garyworld’?

Posted on September 30, 2009 | 9 Comments

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).

In Gary Bettman’s NHL, the ‘league rules’ are a fancy expression for “you ain’t gettin’ nothin’ for the franchise when you leave”. Just look at the cases beyond Jerry Moyes’, and you will find a pattern. Jerry Reinsdorf wasn’t about to buy the turkey in the typical way!

Turkeys for sale…..only 50 cents!

Garyworld turkeys: You can play with them as long as you can afford to keep them in the league approved pens. But don't take it to a new pen, and don't try to sell it off.....it won't be worth anything then!

Garyworld turkeys: You can play with them as long as you can afford to keep them in the league approved pens. Don't sell them to a new owner with a new pen though!

Nashville, Atlanta and Dallas are all experiencing financial problems. Tampa Bay and Columbus are right behind them, all feeling the pinch of heavy debt loads, difficult economic conditions and operating in markets where professional hockey ranks behind figure skating and kennel shows in terms of viewer interest.

If the NHL controls the franchises, like Bettman says, then why would you put one in a location that has neither an appetite for the product nor owners with the financial clout to carry the team through good times and bad?

What does the commenter above know? After all, he’s only a professor of Business and Finance at the University of Toronto, by the name of Richard C. Powers.

I remember having a conversation or two about buying a Tim Horton’s franchise. My friend and I marvelling at ‘the what if’ idea that we could afford to buy a Tim’s . “A licence to print money” they are. If you can get your hands on one of these stores, you had it pretty much made. The underlying company being well managed, was able to determine the demographic viability of the location of choice. I wonder if there was some sort of guarantee on profit? And, I also wonder that if the store didn’t make money, what would the corporation do for the owner as far as buying back the franchise, etc.? In other words, was there a safety net to sustaining unnecessary losses if the location didn’t pan out?

To me, it’s ironic that Tim Hortons and its franchises is what Gary Bettman used in the Ron McLean interview that we keep referring back to. Ironic in the sense that Tim Horton was an NHL hockey player that came up with a winner. A winning franchise idea - not in hockey, but in an unrelated industry. At the root of buying a franchise opportunity is the promise of making money.

But what are the requirements of franchise  ownership in Gary Bettman’s NHL?

When Gary Bettman explained in that interview with Ron McLean, that when an owner buys a franchise, he is buying that franchise in the location determined by the league.  He is really saying it’s not the league’s problem if the franchise loses money.

Sports Properties Acquisition Corp., owned by Tony Tavares, was not able to negotiate a deal with purchasing the Florida Panthers  because, according to Gary Bettman, a corporation is not an individual owner with deep pockets enough to sustain losses:

Meanwhile, Florida Panthers owner Alan Cohen has been attempting to sell the team to a investment firm, but the bid has been rejected by the NHL on the grounds that Sports Properties Acquisitions Corp. would not have a single member with a large equity stake. Sports Properties’ president and CEO is Washington Nationals president Tony Tavares, and the firm’s directors include Hall of Fame baseball player Hank Aaron and former New York Gov. Mario Cuomo.

Another irony.

Tony Tavares as we know, was part of the robust group that John Kaites said would be required to save the  Phoenix Coyotes franchise. Tavares owns Sports Properties Acquisition for a reason –  to acquire failing franchises and to move them to other places. Ask Montreal Expos fans what they know of Tony Tavares’ moving skills. They will tell ya.

In Kaites’ own blog (which I am surprised has not been removed or altered as so many other sites have been), this is mentioned:

Phoenix attorney John Kaites said that he began putting together a team of investors and approached the city and team six months ago about taking over and keeping the Coyotes in Glendale.

Kaites, who represents the White Sox among other sports teams, declined to say who or how many investors were involved.

“It’s a robust group, and that is what it’s going to take to save the team,” he said.

Well we all now know how robust the group was. It was simply a ‘bust’. Perhaps this is why Tavares is now being shunned by the NHL? Perhaps Bettman realized, as he did in his court deposition, that he doesn’t have as many friends as he thought? Better check that personal agenda, for sure!

Tavares might now know what Jim Balsillie feels. You’re only as good to Gary Bettman as when you play by his rules. Maybe when the Reinsdorf deal fell through to buy the Coyotes, Tavares lost favor with the commissioner. Never know. ‘League rules’ seem to change with mood, as does how the NHL Constitution is ‘interpreted’.

Which brings us to the franchise valuation question. How much is any franchise worth, and what protection is there for the owner by the underlying corporation selling the franchise?

When Reinsdorf wanted to buy the Phoenix Coyotes, he came in with no money down, and an expectation that the City of Glendale would be on the hook for any losses.

So, doing the math, Reinsdorf valued the Phoenix Coyotes at $0. Nothing, nada, zilch.

In fact, if it were not also for a guarantee that the City would cover losses over the years, I am sure Reinsdorf would need to get money from the league to compensate for those future losses.

Reinsdorf could not get that deal from the City of Glendale or the league. But it brings the important point of an owner wanting guarantees that if the league wants to sell a turkey, then there had better be rights and protections in place to protect the investor.

So further in the Washington Post article, referring to the Coyotes, Bettman continued:

“We’re fighting to protect our rules,” Bettman said Saturday during an appearance at the Capitals’ fan convention. “It has nothing to do with Southern Ontario or another team in Canada. This has to with being a league that sticks by its fans, sticks by its markets and enforces its rules. Because without that, you can’t have a sports league.”

Well, that’s all nice in theory. I guess in a perfect ‘Garyworld’, that would be a noble idea. How nice indeed. The only flaw in the logic in this ideal is if the fans don’t come out and actually buy enough tickets at high enough prices, and don’t pay for the concessions they consume, then how will the owners of the teams afford to keep subsidizing those fans that are number one?

Jerry Reinsdorf was a smart man with lots of sports ownership experience under his belt. He was asked by the league to come in to bail them out.

No doubt Reinsdorf must have thought they were joking when he looked at the business model.

In short, an owner must have deep pockets to sustain losses (sorry Sports Properties Acquisition (holding company)), and have no rights except to hand the team back to the league at the end of the run, when there is no money left to sustain further losses. Good deal or what? Where do we sign?

So, when the owners in Florida are looking at each other and saying, ‘do you want this turkey?‘, they are likely both going to come up with the realization that a loser is a loser is a loser.‘ What on earth has the league sold us, but a licence to lose money!’

So the Panthers owners are stopped by ‘ league rules’ to come out with any amount of their losses returned, and in Tampa we have this scenario:

Owners of the Tampa Bay Lightning are involved in a similar buyout feud, with the NHL laying out a set of deadlines for the disagreement to be resolved. Part owner Len Barrie was given a 60-day window to buy out fellow owner Oren Koules, but that deadline passed last week. Koules now has until Nov. 23 to reach a deal to buy out Barrie.

In short, who can afford to keep ‘the turkey’ a while longer? But the bigger question is why?

Which leads us to the final point.

How do they actually determine the franchise value for an NHL team?

  • If all you are buying is liablility, and you need deep pockets to fund a loser, what would you pay to lose money?
  • The NHL trademark must be worth something, but what if you cannot capitalize on it?
  • If not able to sell the franchise off to the highest bidder when disposing of a team, how does this affect the investment value?

It would seem very clear, that in Garyworld, a franchise owner is only good if he has lots of wealth to sustain innevitable losses over prolonged periods of time. Like Jerry Moyes, the owners for the Florida Panthers and Tampa Bay Lightning are seeing the fallout of the value of the turkeys they were sold.

The ‘league rules’ are designed to, in effect, strip owners of any right except to lose money if the team is in a losing market.

So, in the failing markets where Bettman is thinking the market will turn around, as a prospective new owner you are really just buying a “Rent-a-turkey” franchise. Yes, you can play with it for as long as you can afford to, but turn it back over to us (NHL).

Perhaps Tony Tavares saw an opportunity to bi-pass expansion fees too? Now that wouldn’t sit right in the commissioner’s agenda, would it?

No way! If you are buying an NHL Rent-a-turkey franchise, then if the turkey farm gets moved, it will not be you as the “renting owner” that will profit. It’s better to strip any remaining wealth from you, so the NHL can reap rewards in every conceivable way.

It is obvious Gary Bettman will continue to be on a hunt to replace one deep pocket with another.

The problem is Bettman seems to be running short of new friends to want to buy (sorry, “rent”)  his turkeys.

When Gary Bettman says that the sale of the Phoenix Coyotes could extend beyond December 31st, he likely will have missed the window of opportunity.

No matter how you slice it, a turkey is a turkey, is a turkey (Click here to see the Sun article, Bettman's vision has failed)

No matter how you slice it, a turkey is a turkey, is a turkey (Click here to see the Sun article, Bettman's vision has failed)

After all, don’t turkeys have the greatest value at Christmas?

You can probably sell them a little easier and a for a higher price when in demand.

Maybe not in Garyworld, but in the real world, things are looked at a little differently.

A turkey is a turkey, is a turkey, is a turkey – no matter how you slice it.

As a postscript, it is long overdue to honour one of our own, great minds on Make it Seven. Jennifer brings it home with this comment:

Excellent articles on the links you guys are sending out. Thanks I really appreciate them. And of course Charles on Makeiteighteh.com! Excellent work. Okay I must say I feel it everyone! Our passion for this bid and Jerry Moyes are making things happen for the good. Our enthusiastic minds are attracting what we want most. A seventh team in Canada! We all should be proud to be apart of this historical occassion. Our voices are being heard! Jim Balsillie you have my deepest respect. I feel frustrated when I read negative press about how you’ve handled this quest. I have yet to clearly hear what you you’ve done wrong, besides make a business deal with a man who’s lost millions and spent 2 years searching for a potential owner. AFTER the NHL turned their backs on Mr Moyes. So what did Jim do wrong? NOTHING. It seems society would rather allow the bully (NHL) to keep on bullying. Do as they say, don’t step on their toes! But you Mr Balsillie are intelligent and assertive. A citizen that should be held to the highest regard for your efforts in this fight. I know you will be a very successful, passionate and respected contribution to the NHL. The Coyotes need you, the NHL needs you and everyone who wants a 7th team in canada THANKS YOU!! Hamilton awaits your team!!
jennifer zarull | hamilton | Sep 29, 11:18pm

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Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

Judge, I’m Tellin’ The Truth………….Honest!

Posted on September 29, 2009 | 2 Comments

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).

Editor’s Note: This was mentioned on the Coyotes’ fan site, Five for Howling:

MYTH: This is never going to work.

FACT: Nothing is ever certain in life. Ice Edge may not be able to save the Coyotes despite their best efforts. But their odds of succeeding are far, far greater than anyone seems to be giving them credit for at this juncture. And for fans of the Phoenix Coyotes, hope is a currency far more valuable than gold.

Just a note to the fans of Phoenix: You will find that Jerry Moyes was your only friend. Nobody gave as much to this failing franchise, and nobody will again.

 

In Charles Sandor’s second instalment, we learn just how ethical the NHL has been in court. To lie or not to lie…. was it ever a question?

By: Charles Sandor

Judge, I’m Tellin’ The Truth………….Honest!

The NHL has made outright misrepresentations to the judge and he is very aware of it.

"Do you 'really' swear to tell the truth, the whole truth, and nothing but the truth so help you God?"

"Do you 'really' swear to tell the truth, the whole truth, and nothing but the truth so help you God?"

First Lie – The NHL said the team never needed to be put into bankruptcy.

There are now reports that studies were done in conjunction with the NHL back in Nov. 2008 showing the current lease and financial situation was unworkable and a best case scenario to break even required a $25M subsidy from Glendale. Bettman apparently negotiated a $15M subsidy with Beasley and bragged he could get more. However, the braggart couldn’t come through on his brag since no deal was ever finalized.

How does this make the NHL a liar?

The NHL knew the existing lease was killing the franchise. The only way to stop the bleeding was either renegotiate the lease or kill it. Glendale wasn’t playing ball, so that left the only option of killing it and the only way to do that is through BK. The NHL needed this lease killed as badly as Moyes did. A team that needed $25 million annually in subsidies just to break even is a team that is in desperate financial trouble, the kind of trouble only BK can cure.

Second Lie – The NHL said there were as many as four (4 ) interested bidders to keep the team local.

Yet when all was said and done, four (4) became one (1)  bidder in Reinsdorf and it was never a serious bid because it required a subsidy that we now know the NHL itself had been unsuccessful in getting for the previous eight (8) months. Interesting how all the other bidders disappeared and the NHL explained it by saying that all these other bidders coalesced behind Jerry Reinsdorf which of course immediately brought allegations of collusion from the BK Trustee (which is another problem for the NHL). Then to try to steer the Trustee away, magically, the phantom Ice Edge offers appears. Then, true to form these offers all disappeared prior to the auction.

The Glendale lawyer at the auction tried to blame PSE for scaring away the bidders. The judge would have none of it. Judge Baum argued with the NHL that the other bidders were “just hanging around”, and that they were not serious. I guess that should clear up the Moyes contempt issue.

The judge also knows that this lie caused the process to drag on longer than it had to. The NHL’s lies that there were plenty of local buyers helped delay the process. Time and money have been wasted by the NHL’s lies to the court. Why was lying so important to the NHL and dragging the auction out all summer. Very simply, the NHL could not argue against relocation for this season if this Coyotes mess had been cleared up in June. There would have been plenty of time to redo the schedule. But by dragging out the auction process, the NHL could finally bring the “no time to change schedule” argument.

 
The NHL continues to 'hang the owners out to dry'. Click on the picture to be taken to a Washington Post article where Gary Bettman is quoted as saying, ""We believe that the most important covenant we have is with the fans," Bettman said. "We don't like to move franchises around. There were rumors about whether Washington was a hockey town and should we move the Capitals. And the answer was always no, we have to do what's best for our fans."

The NHL continues to 'hang the owners out to dry'. Click on the picture to be taken to a Washington Post article where Gary Bettman is quoted as saying, ""We believe that the most important covenant we have is with the fans," Bettman said. "We don't like to move franchises around. There were rumors about whether Washington was a hockey town and should we move the Capitals. And the answer was always no, we have to do what's best for our fans."

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Lie – NHL told the court hockey can work in Phoenix financially.

Under normal circumstances, no it cannot. Hockey will only work in Phoenix with massive subsidies. Bettman, going to Beasley and negotiating for $15 million proves the NHL knows that. With enough subsidies, the NHL could work anywhere even Dog River, Saskatchewan. Could hockey work in Phoenix under normal financial conditions? The answer is no and that was the lie.

Fourth Lie – The NHL bid.

The NHL knew they were going to be a bidder while they were also deciding who would be in the bidding process. Not disclosing this is a very serious omission on par with a lie. The NHL itself deserves to be cited for contempt for much of their conduct in this matter.

Fifth Lie – The NHL veto.

The NHL has told the court that its teams do not have a veto. Their own Constitution confirms this, bet Bettman does a quick shimmy shuffle and says ” I can interpret it as I see fit”. The MLSE letter shows Bettman lied; the Macaluso letter show Bettman lied; the Leipold deposition proves Bettman lied; and the Eugene Melnyk Fan 590 interview supports that Bettman lied.

Sixth Lie – NHL argued against turning over data to PSE that would help his expert put a value on relo saying the request’s byBalsillie’s were too volumous and couldn’t possibly be complied with in such a short time.

At the very same time, the NHL had secretly commissioned three (3) experts to render a value to relocation and had the time and in fact did provide to them the very same documents that the denied Balsillie. They told the court there simply wasn’t enough time to comply with such a request even as they were complying with it for their own experts.

The judge is very aware of all the lies, misdirection and delaying tactics of the NHL. There simply is no chance of the NHL being rewarded by Baum for such contemptible behavior. For Baum to reward the NHL for this would be as if Baum would have declared open season on the truth in a court of law.

It is so ironic that the NHL is asking the court to observe its rules all the while that the NHL has broken so many legal rules and procedures to force the recognition of the NHL rules. The court will recognize that the NHL has become too arrogant, so full of itself to the extent that it thinks it can lie and manipulate the court for its own endgame. The court will see that neither the NHL, nor its Constitution and rules are above the law and the NHL will be brought back down to earth……hard!

A Head To Head Collusion?

Definition: “collude – conspire: act in unison or agreement and in secret towards a deceitful or illegal purpose;”

Point 1: Evidence seems to suggest that the NHL, Bettman in particular was working with Reinsdorf and negotiating with Beasley on concessions from Glendale all the while that Glendale was refusing to even talk to Moyes about concessions. Was the plan to ensure Moyes got no help a bid to force his hand and force him out of ownership for the purpose of then flipping the franchise over to Reinsdorf with an agreement on concessions already in place?

Moyes has mentioned many times how he couldn’t get a return call or email from Beasley. He was persona no gratia. However Jerry Reinsdorf and Bettman had no problem connecting with him. Beasley was negotiating with Reinsdorf and Bettman as if Reinsdorf was already in place as the owner of the Coyotes while the real owner is kept in the dark.

Point 2: Has the league acted in collusion with other phantom bidders to create a phantom auction and then delay it for “scheduling purposes”? It’s telling that the Coyotes were trying to solicit bids since the summer of 2007. There were supposedly a few tire kickers, but no one willing to put anything on paper. Then all of a sudden, there is a BK auction and friends of Bettman come out of the woodwork with public announcements of interest in buying the team and keeping it local.

However, once it was time to “show the dough”, all these other bidders but Reinsdorf disappeared and Reinsdorf’s bid was only in because it requires him to “not show the dough”, rather it was Glendale’s dough required to show. Then when the BK Trustee started asking what happened to all those bidders the NHL had and have now disappeared, the Ice Edge offer appears, the offer that talked the talk, but never did walk the walk. If there ever was a bid engineered to pretend to be a serious offer, this was it.

So just how many markers did Bettman and other power brokers in the NHL call in to create this phantom need for an auction and then the delay to bring the scheduling issue to bear. That the NHL and “friends” have colluded to pull the wool over Judge Baum’s eyes and force out Moyes seems clear and Baum is a smart guy, he sees it and I’m sure he doesn’t like it. No judge likes being played.

Moyes will have one hell of a case against the NHL, Glendale and “friends” as even more details come out about the collusion. Only question is, will Moyes options be limited to civil court or perhaps criminal court as well? And how about the court and Baum himself? If he sees that the BK process has been manipulated for ulterior purposes by the NHL and others, what price might they pay over and above simply losing the auction?

Editors note on Ice Edge Holdings bid:

Was Anthony LeBlanc (Ice Edge investor & former RIM exec) co-opted to bid by Gary Bettman as a result of the responses he gave during the Kroll Report investigations or did LeBlanc see an opportunity after being pumped for negative information on Balsillie? Or both?

Background

“Former RIM VP/Global Sales Anthony LeBlanc, who is a partner in the Ice Edge bid, said, “Southern Ontario can support another (NHL) team — there’s absolutely no question, and I think Jim would be a tremendous owner. It’s just that we don’t think that Phoenix is the right team because we think there’s a real savvy business case that can be had in Phoenix.” Ice Edge has “won the blessing” of NHL Commissioner Gary Bettman (GLOBE & MAIL, 7/25).”

The league hired Kroll Inc. to perform the investigation. In conducting its due diligence, former Research In Motion vice-president Peter Broughall was contacted by Kroll’s investigators.

According to the article, he did not feel the questions asked of him were what he considered to be normal procedure. Broughall said “If this is due diligence, I found it surprising that the line of questioning was not in line with trying to seek accurate positive information as well as negative.”

“I could tell by my answers that he wasn’t satisfied,” said Broughall. “I wasn’t giving him the information that he was hoping to get from me…He realized he wasn’t going to get any dirt out of me because I didn’t have any dirt to offer.”

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Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

There’s No Time Like The Precedent!

Posted on September 27, 2009 | 1 Comment

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).

We are very pleased to have seen Mr. Sandor’s comments in our posts, and Patrick was kind enough to edit these ideas into Mr. Sandor’s first post to our site. We certainly hope it will not be his last. Just when we reached our own ‘abyss’, Charles has tremendous insight to bring it home!

 

By: Charles Sandor

 

Everyone has gone on about the fact that Judge Baum either can’t or won’t set a precedent in the Coyotes BK issue. Well let’s look at why the judge should set a precedent.

The NHL Constitution

Baum: "The NHL doesn't always follow what's in the constitution does it?"

Baum: "The NHL doesn't always follow what's in the constitution, does it?"

“The NHL doesn’t always follow what’s in the constitution, does it?”

 Baum knows that the NHL Constitution is a flawed document because it is a “Constitution of Convenience”. Sometimes the NHL follows it and sometimes it doesn’t. A classic example is relocation fees. Sometimes the NHL charges one and sometimes it doesn’t.

Also the NHL Constitution contradicts itself further proving it is a very flawed document. Article IV 4.3 confirms the veto by declaring that “No franchise shall be granted for a home territory within the home territory of a member, without the written consent of such member.” However, Gary Bettman says that this clause has no standing and that in fact all that is required is a two thirds vote.

Further it is the position of the NHL that:

“While we respect that the Leafs may have a different interpretation (although it’s not even clear that they do at this point), at the end of the day, it is the Commissioner and the League that is ultimately charged with interpreting the NHL Constitution and by-laws.”

So what we have is an NHL Constitution that contradicts itself and therefore must be interpreted by the Commissioner.

Well we have seen just how much weight Bettman’s interpretation carries with the owners. Leipold in his deposition said he believed there was a veto. MLSE’s letter confirmed the veto and clearly indicated that they disagree with Bettman’s “interpretation. Finally, we have Eugene Melnyk confirming on public radio that he has a veto.

The fact that there is no consensus of opinion between Bettman and the owners on this important provision of the Constitution proves that the document is flawed. However, the important point made above is that the NHL’s Constitution is open to interpretation and if the Commissioner can interpret it, so can a judge since, regardless of what the NHL might think, the highest and last authority in the land is the courts, not a league commissioner.

Gary Bettman opened a door that he will regret opening and Baum will have no problem walking through that open door. Is the NHL’s Constitution enforceable if it is determined to be so badly flawed? The fact the NHL doesn’t always enforce their Constitution or they opt out of it at their whim would seem to indicated that holding others to the letter of their Constitution when they don’t always follow it themselves is highly prejudicial.

It should be noted that when Balsillie was rejected by the Board of Governors, it was on character. Relocation was never an issue. The NHL refused to even look at Balsillie’s relocation application on the grounds that there was no point since he hadn’t been approved as an owner. Therefore relo isn’t an issue, it’s all about character.

Many of us here have wondered why the NHL didn’t tie in the relocation issue with the rejection especially since many of us felt there might be some, although very limited merit to an argument that relocation to Hamilton would cause some financial pain to Buffalo. The NHL had that option and didn’t take it. Why?

Is it because the NHL doesn’t want that part of their Constitution dealing with relocation  tested in court? Why not? Is it because the NHL themselves believes their Constitution as it deals with relocation would not survive any court challenge? Very likely that is true and if a part of your Constitution can’t survive a court challenge, it’s likely the document as a whole won’t survive a challenge.

It would seem the NHL itself realizes their Constitution is flawed and won’t hold up in court. Baum should have very little trouble working around or “interpreting” this very flawed Constitution and making it work so that the court can award Balsillie the team.

Oh, that Balsillie Is Quite The ‘Character”!

Now let’s take a look at the “rejection” of Balsillie on grounds of “character”

 Quote from the CBC:

Jim Balsillie

Jim Balsillie

The NHL may have to justify its rejection of Balsillie to the court. Citing a 1986 case involving the Los Angeles Raiders and the NFL, Baum said in his mid-June ruling that the NHL needed to show good faith in assessing Balsillie, who was twice previously greeted with initial enthusiasm as a prospective owner before negotiations to buy the Pittsburgh Penguins and Nashville Predators broke down.

“Significant to the court here regarding the objection to the transfer of ownership of the Phoenix Coyotes is the fact that in 2006 the NHL approved PSE to become a member,” Baum wrote. “Absent some showing by the NHL that there have been material changes in PSE’s circumstances since 2006, it appears that the NHL can not object or withhold its consent to PSE becoming the controlling owner of the Phoenix Coyotes.”

So did the NHL show any material change in PSE’s circumstances? Well it is interesting here to note that Balsillie was never rejected on the grounds of relocation, merely on “character & integrity”. So what has changed with Balsillie from 2006 when he was approved and 2009 when he was rejected? The only change cited by the NHL was Balsillie’s SEC issue. Is that enough of a material change to warrant rejection? No, it is not. In fact, I am sure Baum will note that to reject Balsillie on this “material change” is high-handed, defamatory, discriminatory, prejudicial and most importantly, unreasonable. This is so because of the NHL’s own track record in the company the NHL ownership welcomes and keeps.

We do not need to go over the various past and present owners who have run afoul of the SEC and the law and even spent time in jail. Talk about the kettle calling the pot black. Baum will again see that the application of the flawed NHL Constitution to reject Balsillie by the Board of Governors was unreasonable and more so, the NHL has not shown any material change in PSE’s circumstances since approval in 2006 to merit the rejection.

You can’t reject Balsillie on the grounds of his SEC issue when your own membership is rife with problem individuals and you aren’t holding them to the same standard. Is the NHL kicking Samueli and Melnyk out of the league?  No, so clearly running afoul of the SEC is not against the NHL Constitution and therefore no basis for rejecting a prospective owner.

Also rejecting Jim Balsillie on an SEC issue while turning a blind eye to your own members with their SEC issues is acting in bad faith towards Balsillie and Baum also said the NHL needed to show good faith in assessing Balsillie. They did not therefore the rejection must be invalidated by Baum.

Therefore Baum can rescind the rejection and run with Balsillie’s bid as an approved NHL owner and further, since the NHL never objected to relocation, they can’t be heard to reject now on relocation especially when they themselves now want to relo the Coyotes. Baum also will overturn or set aside the rejection of Balsillie on the grounds of a conflict of interest.

I Am Feeling Very Conflicted!

The judge again floated the idea that he might reject both bids, noting that a potential purchaser must satisfy several legal requirements.

 “If you don’t both get there, it’s going to be hard to approve it,” he said.

The NHL simply cannot be both a bidder and the governing body who decides who gets to bid against them. This is an obvious conflict and goes against bankruptcy law. The NHL by discussing the option of placing the bid prior to their rejection of Balsillie and then actually rejecting him knowing they were going to bid means they deliberately and knowingly walked into a conflict of interest. The NHL can’t be rewarded for that. If they were, it would make Baum’s decision very easy to overturn and he doesn’t want that.

The NHL’s actions create the very real impression that “the fix is in”.

 No judge can go along with a bid where there is even the slightest hint of impropriety. Here is another conflict for the judge to have to deal with. As mentioned earlier, Balsillie was rejected and the only material change cited was Balsillie’s SEC run in. Well, both the Ducks and Senators voted at the Board of Governors meeting to reject Balsillie. That is a conflict of interest right there. Both Samueli and Melnyk have had their own run in with the SEC and Board of Governors members be allowed to vote on a rejection whereby the only material fact cited was an SEC issue?

 Melnyk and Samueli, with their own records can’t and should not have voted or been allowed to vote due to a clear conflict. More to the point, their votes are sheer hypocrisy in that they are rejecting Balsillie on the basis that Jim Balsillie did what they did?

Finally, the Board of Governors vote is tainted because of both the direct and implied threat by MLSE if the board voted in favor of Balsillie.PSE’s intent is to move the team to Hamilton which MLSE considers its territory. The MLSE letter makes it very plain that MLSE believes it has a veto over its territory and that they would take any and all legal means necessary to enforce their veto. Therefore the Board of Governors vote was held under duress to the other owners because of the direct and implied threat of litigation if the Board of Governors voted in favor of Balsillie.

A vote made under threat is an illegal vote and must be overturned. We will never know if all the voters voted with their conscience because every voter faced the threat of being hauled into court by MLSE if they voted in favor of Balsillie. Again, it’s so easy for Baum to overturn a decision from a vote made under a threat of litigation if you don’t vote a particular way. Sort of like the “free democratic” votes in the old Soviet Union. Everybody had a right to vote; but for the one single candidate running and selected by the ruling party.

Therefore the vote to reject is tainted by these conflicts of interest and therefore in the interests of justice, the rejection must be overturned. Baum will have probably his easiest time in rejecting the NHL bid on the conflict issue, but more importantly, will have an easy time overturning the NHL’s rejection and then running with Balsillie as an approved owner from 2006.

Aw, You’re Not Playin’ By The Rules!

The NHL and many posters here have stated Balsillie can’t or shouldn’t get in because either he has broken some NHL rules or because he will break some NHL rules and therefore the NHL can’t work with him. This point is pure crap.

First, what rules has Balsillie broken? None. How could he break any rules, he isn’t an NHL owner yet and therefore he isn’t bound by the NHL’s rules therefore he can’t have broken any.

Can anyone cite a rule that Jim Balsillie  has broken? No, and neither has the NHL.

There is not a single rule the NHL has quoted that Balsillie supposedly broke. So let’s look at the NHL’s point that they presume Balsillie won’t follow the rules. Again, what proof do they have? None. Have they ever quoted a rule that Balsillie is expected to break?  No, they can’t because you can’t prove a negative. Again, the presumption that Balsillie will break the rules will never fly in court.

There is no basis to reject anyone on the basis where you have no proof that they will do something, only a presumption that they might. The judge will see the hypocrisy of this point as well because you can’t charge someone for something you think they might do; you can only charge them for something they did.

This hypocrisy is emphasized by the acceptance of Jerry Reinsdorf as an approved owner. Reinsdorf has a history of going against his own leagues rules in MLB and in the NBA. It’s well documented, all one has to do is Google it.

So let’s see, Baum is supposed to respect the NHL’s rejection of Balsillie when there has been no significant material change since 2006 and also Baum should respect the NHL’s rejection of Jim Balsillie. because they think (not know) that he might be a bad boy as an owner and break their rules, however Baum should overlook the fact that the NHL approved an owner with a history of breaking the rules governing him in two other major sports leagues?

The NHL approved an owner with a track record of breaking the rules, but rejected an owner who they think might break the rules? That sounded stupid to me as I wrote it. Does it sound as stupid to you? It should. Again, overturning the NHL’s rejection of JB is about the easiest thing for Baum to do.

This Isn’t Very Sporting, You Know!

Some say a ruling for the NHL will have a negative impact on all the other sports leagues? Why?

Do the other leagues have a flawed Constitution that requires constant interpretation by the Commissioner?

Not the Constitution of the United States, but the NHL constitution has major flaws

Not the Constitution of the United States, but the NHL constitution has major flaws

  • Do the other leagues have a history of opting out of their Constitutions at whim?
  • Do the other leagues have a contradictory Constitution whereby one clause calls for one action and another clause contradicts it?
  • Do the other leagues have a history of having their Commissioner step in and “interpret” their Constitution because the document is so badly written that it isn’t self explanatory?
  • Do the other leagues haphazardly apply their rules such as sometimes charging a relocation and sometimes not charging?

The fact is that Judge Baum can write and set a precedent that impacts the NHL only. He merely cites that the NHL’s Constitution is badly written, requires judicial interpretation and also cites the fact that the NHL doesn’t always follow its own rules and if the NHL isn’t bound by its own Constitution, why should the court be bound by it?

This is such an important point, I will repeat it again. If the NHL isn’t bound by its own Constitution, then why should a court of law be bound by it? Can anyone answer that?

Judge Baum’s decision will clearly impact the NHL and the way it does business and it needs to be done. Running a business as an old boys club is no longer acceptable. It’s not acceptable to the public and it’s not acceptable to the courts and Baum will certainly show his displeasure with the NHL.

The fact is that the other leagues might have well written Constitutions which they follow to the letter and never opt out of. So why should a ruling against the NHL impact them?

So many people have said a victory by Balsillie will impact all sports leagues ability to pick their owners. Really. How? If Balsillie wins, how does that prevent the NBA from picking an owner they want for a franchise sale or expansion franchise?

Fact is, it doesn’t impact them. Where it impacts everybody is if you are going to be looking for owners and soliciting bids, be careful how you turn prospective buyers away. If you discriminate against particular buyers and treat then unfairly even though they meet all your criteria for ownership, then you should be in trouble as a league.

C’mon, Pick Me, Pick Me!

Sports leagues have a right to choose their owners. Yes they should. Everyone seems to be going on about the right of leagues to select their owner members. But is that was this case is about? I think not. I think it’s about whom these leagues can turn away and what is the basis for turning an owner away who matches all the required criteria for ownership.

Certainly, if there are multiple prospective bidders for a team, a league should select the best bidder of the group, the bidder that enhances the league the best. However, can a league turn away a potential owner who meets all the criteria for being an owner and is the only bidder? I think this is the real question here. It’s not who you let in, it’s who you turn away and why you turn them away.

Jim Balsillie under any ownership criteria you want to put forward would be the type of owner any sports league would covet. He has the money, he is smart and he is passionate about the sport. It just doesn’t get any better than that. So the question is, when you are looking for an owner, do you have a right to turn one away who does meet all your criteria?

In fact Balsillie is even superior to many of the NHL’s existing owners and if they do have that right, is it required to be a turn away that is reasonable? I would say yes, anyone can be turned away if it is found to be reasonable and those reasons would also hold up in court without being high handed, discriminatory, defamatory, and prejudicial. However any rejection that falls afoul of that must be overturned and the NHL’s rejection does indeed fall afoul of all those points and therefore it leaves Baum with no choice but to overturn the rejection.

Will The NHL Find Baum Appealing?

Everyone assumes that if Baum finds for Balsillie, an appeal is automatic. Not so.

It is easy to file an appeal, it is very hard to follow through, find judicial error and get an appeals court to agree with you. If Baum’s decision can show and outline the flaws of the NHL Constitution and show that the NHL itself doesn’t follow their own Constitution and opts out of it at whim, then how does the NHL appeal that? They can try, but they won’t win.

That the NHL doesn’t follow it, opts out at whim, has a Commissioner who interprets it because its contradictory and the owners dispute the Commissioners interpretation and the fact that it requires interpretation at all indicate a very flawed document that will never stand up to the scrutiny of the court and therefore will also NOT stand up to scrutiny in appeals court either.

Not so fast NHL! It won't be that easy to appeal a well thought out, and well respected Judge's ruling!

Not so fast NHL! It won't be that easy to appeal a well thought out, and well respected Judge's ruling!

Fact is, it’s the easiest thing in the world to threaten litigation hell if you lose, and it’s quite another thing to follow through on it.

  • If Baum overturns the Balsillie rejection on the basis of conflict of interest, how does the NHL appeal that?
  • If Baum overturns the Balsillie rejection on the basis of the direct and implied threat of litigation by MLSE if a favorable vote for Balsillie was rendered by the BoG, how does the NHL appeal that?
  • If Baum overturns the Balsillie rejection on the basis that there has been no material change to PSE since 2006 to warrant a rejection, how does the NHL appeal that?
  • If Baum overturns the Balsillie rejection on the basis that the rejection was done in bad faith, how does the NHL appeal that?
  • If Baum backs up his decision by citing the contradictory nature of the Constitution as a contributing factor in his decision, how does the NHL appeal that?
  • If Baum backs up his decision with the proven fact that the NHL itself doesn’t always follow its own Constitution how does the NHL appeal that?
  • If Baum chooses to make his own interpretation of what the Constitution says or doesn’t say after Bettman confirmed the Constitution does need to be interpreted from time to time, how does the NHL appeal that?
  • If Baum’s decision allows for a relocation to Hamilton and the NHL has never rejected a relocation move to Hamilton, how does the NHL appeal that?
  • If Baum states in his decision that his court is not bound to follow the NHL Constitution since the NHL itself does not always follow its own Constitution, how does the NHL appeal that?

Fact is, Baum could easily render a decision in favor of Balsillie that can’t be appealed.

→ 1 Comment

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

We've reached the abyss….Nothing more to say: Just put hockey back in the 'Hammer'!

Posted on September 27, 2009 | 9 Comments

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).

Time for a little recap……..

Has the NHL lost it?

Has the NHL lost it?

Is this insanely ridiculous or what? (rhetorical question)

Of course it has been an insane ride.

Many of us over the past several months have experienced highs and lows, and many of us have become friends with a common cause.

Trying to sell hockey in the desert of Arizona at the expense of hockey crazed Canadians is well, crazy.

 

Many of us who were true Leaf fans have sworn against the Toronto team because of the greed that has been demonstrated by the Leaf team, and MLSE in particular.

Soon, we hope, Judge Baum will come to a decision, and we can see where we stand.

Judging by the looks of things, several of us have surmized that the judge is ready to hand a decision in favor of PSE.

We have had the media  in Toronto go from not giving PSE a chance, to now joining the ranks of us “giving it” to the league, and ensuring we all show just how “not appreciated” they are. I say bravo to those that have made a living on reporting on the Leafs, and are more fed up than worried about the fallout to their careers. A few dirty looks their way, they have determined, must be worth it.

Look at Damien Cox  of the Toronto Star, in his last article, saying to just give it to Jim Balsillie already. We had not seen that side of Cox in a while. A refreshing move from the normal Toronto publishing party line.

Way to go Coxy.

Damien Cox would likely not remember me from years ago, as we were both students at McMaster University. It was Whidden Hall, and it was my first year. The year before on CH News, they were showing the animal house qualities of Whidden, when it was a male only residence. It tamed down a lot the year I moved in, when it became co-ed.

If anyone is reading this and the lightbulb has just gone off, give me an email at ferguson@makeiteighteh.com. I would love to talk with you again, about the old days. Anyhow, Coxy wasn’t the reporter he is today then, we were just students. But his love for sport was certainly there! He has done well for himself, and I am proud of him.

Yes, the NHL has messed with us all – from the sports fan, to the current owners of the Coyotes, to us all.

It’s as if the NHL just doesn’t care.

Now the NHL has shown their true colors to the Great One too

Now the NHL has shown their true colors to the Great One too

If the NHL loses in court (sorry, when), they have said they will appeal.

They have got to be kidding. It would be wise to cut their losses.

Can you imagine how many people are going to be extremely p’oed at them then? I don’t even want to know.

As Patrick Romanoski pointed out today on Make it Seven:

Bettmans ignorance has delayed the NHL from entering the homes of every fan that wants to see the game. ……… His blindness to the future is stunning. The fact that he cannot comprehend it is technology like RIMs that will bring video into the home in the near future will cost the owners & players a bundle. ……….. What a dolt, to turn down someone who can help make that happen. Moving first, instead of waiting for the other sports to adopt technology, could vault the NHL ahead of several sports in popularity. Instead mediocrity will reign & ESPN will continue to see BMX bike racing as a more lucrative broadcast & Canadians will continue the mass exodus already underway to other sports. ……. He has failed to maintain the fine balance of keeping the fans while changing the game. The imminent collapse in Canadian support for NHL hockey is an indicator that not only has Gary failed but he has failed brilliantly.

I started my blogging on this topic, as many of you know, from a point of view of not being able to grasp the concept of utter disrespect for Jerry Moyes from a very arrogant NHL.

No, the NHL did not want Jerry to get any of his money out of this team, and it drove me bananas!

I built the site, and added a very needed stat counter feature, and it became a catalyst to see what was happening, who was getting strirred, and it set the stage for the bigger quest for truth.

A simple hit from a developer that partnered with IFG (International Facilities Group), as many of you know, led to a long run of investigations into the connections and motives of several of the key parties to the Coyotes’ drama.

It was quite honestly pathetic.

A complete collaboration against Jerry Moyes by just about everyone around him.

And that  brings us back to the question, “how could anybody be so cruel?”

Well, it is nearing the end, we all hope, but we must admit it was quite a ride.

I am hoping Judge Baum, at least in the next couple of days will render his ruling, or at the very least force mediation between the NHL, Glendale, and PSE.

I welcome you all to peruse the articles on this site, if you haven’t already, and see what we have here – an interesting and muckety situation indeed.

And what has it all been about?

Keeping hockey from the people of Hamilton and surrounding areas? It would certainly seem that way.

Thanks Ic Arus for the link to this picture…..

This is September 26th against the Sharks. Imagine if this was Winnipeg way back when? What kind of support would the people of Winninpeg shown their team to convince the judge?

This is September 26th against the Sharks. Imagine if this was Winnipeg way back when? What kind of support would the fans of Winnipeg have shown their team to convince the judge?

 

Bryan Kirkham  (of Make it seven) has informed me of this latest news:

Heard this on CHCH
 
depending on what happens in the BK Councillor Whithead has notified Hamilton City Council that he may be calling on them to pass a notion asking for an all party Committee of the federal government to investigate the NHL and how its dealt with efforts to bring the Coyotes to Hamilton.

 

Gregory Galante had this to say regarding the above photo:

If one need any further evidence that the Coyotes ARE NOT STAYING IN GLENDALE, that one single powerful photograph should be all that is required. To the NHL. HURRY UP AND MAKE A DEAL WITH DIAMOND JIM AND SALVAGE WHAT YOU CAN IN THE PR DEPARTMENT. The NHL in their obstinance and desperation to sheild there despicable business practices are fulfilling the BUSH LEAGUE reputation it is perceived to have in many parts of North America.

I’d like to think that what the Make it Seven team had said from the outset as being very important, turned out to be very important indeed.

People can make a difference.

The people at the Make it Seven Rant page, those leaving videos, those drawing up new jersey ideas – these people have made an impact on this case.

I am willing to bet that mainstream media checks Make it Seven and the rant page to find out what’s going on! I am not kidding.

At Make it Seven, we have taken ideas from media, and media has taken information from us. We were a team!

And the impact that it has had is the fundamental principle that if you work together and share ideas, a common purpose can be achieved.

We in Canada are a little slow, but rather surprisingly we are rising to the occasion, coming together, and our voices are being heard. Our passion for Canada’s game is being refueled.

I for one have never felt more sure that we have a voice, and our collective voices are making a difference!

The team is coming to Hamilton, Ontario.

Can’t you just feel it?

No amount of manipulation by those at the NHL will do it this time.

Many of us have been left to analyze the moves of the NHL, and to ask what their strategy has been. It was a game of countering the less than ethical. If you need a fix, you can see a summary of past articles here.

We ex-Leaf fans have had enough. I share the sentiments. Sad really, for years I supported the Blue and white, win or lose. But they have lost my respect with the simple notion of  showing their greed.

I have reached the abyss of what to write. Sorry about this. I have hit the bottom of the tank, and like you,am waiting, waiting, and waiting.

It’s time for the decision to come from court.

Come on Judge Baum. Do the right thing.

Hockey needs to return to the ‘Hammer’!

→ 9 Comments

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports

We’ve reached the abyss….Nothing more to say: Just put hockey back in the ‘Hammer’!

Posted on September 27, 2009 | 9 Comments

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).

Time for a little recap……..

Has the NHL lost it?

Has the NHL lost it?

Is this insanely ridiculous or what? (rhetorical question)

Of course it has been an insane ride.

Many of us over the past several months have experienced highs and lows, and many of us have become friends with a common cause.

Trying to sell hockey in the desert of Arizona at the expense of hockey crazed Canadians is well, crazy.

 

Many of us who were true Leaf fans have sworn against the Toronto team because of the greed that has been demonstrated by the Leaf team, and MLSE in particular.

Soon, we hope, Judge Baum will come to a decision, and we can see where we stand.

Judging by the looks of things, several of us have surmized that the judge is ready to hand a decision in favor of PSE.

We have had the media  in Toronto go from not giving PSE a chance, to now joining the ranks of us “giving it” to the league, and ensuring we all show just how “not appreciated” they are. I say bravo to those that have made a living on reporting on the Leafs, and are more fed up than worried about the fallout to their careers. A few dirty looks their way, they have determined, must be worth it.

Look at Damien Cox  of the Toronto Star, in his last article, saying to just give it to Jim Balsillie already. We had not seen that side of Cox in a while. A refreshing move from the normal Toronto publishing party line.

Way to go Coxy.

Damien Cox would likely not remember me from years ago, as we were both students at McMaster University. It was Whidden Hall, and it was my first year. The year before on CH News, they were showing the animal house qualities of Whidden, when it was a male only residence. It tamed down a lot the year I moved in, when it became co-ed.

If anyone is reading this and the lightbulb has just gone off, give me an email at ferguson@makeiteighteh.com. I would love to talk with you again, about the old days. Anyhow, Coxy wasn’t the reporter he is today then, we were just students. But his love for sport was certainly there! He has done well for himself, and I am proud of him.

Yes, the NHL has messed with us all – from the sports fan, to the current owners of the Coyotes, to us all.

It’s as if the NHL just doesn’t care.

Now the NHL has shown their true colors to the Great One too

Now the NHL has shown their true colors to the Great One too

If the NHL loses in court (sorry, when), they have said they will appeal.

They have got to be kidding. It would be wise to cut their losses.

Can you imagine how many people are going to be extremely p’oed at them then? I don’t even want to know.

As Patrick Romanoski pointed out today on Make it Seven:

Bettmans ignorance has delayed the NHL from entering the homes of every fan that wants to see the game. ……… His blindness to the future is stunning. The fact that he cannot comprehend it is technology like RIMs that will bring video into the home in the near future will cost the owners & players a bundle. ……….. What a dolt, to turn down someone who can help make that happen. Moving first, instead of waiting for the other sports to adopt technology, could vault the NHL ahead of several sports in popularity. Instead mediocrity will reign & ESPN will continue to see BMX bike racing as a more lucrative broadcast & Canadians will continue the mass exodus already underway to other sports. ……. He has failed to maintain the fine balance of keeping the fans while changing the game. The imminent collapse in Canadian support for NHL hockey is an indicator that not only has Gary failed but he has failed brilliantly.

I started my blogging on this topic, as many of you know, from a point of view of not being able to grasp the concept of utter disrespect for Jerry Moyes from a very arrogant NHL.

No, the NHL did not want Jerry to get any of his money out of this team, and it drove me bananas!

I built the site, and added a very needed stat counter feature, and it became a catalyst to see what was happening, who was getting strirred, and it set the stage for the bigger quest for truth.

A simple hit from a developer that partnered with IFG (International Facilities Group), as many of you know, led to a long run of investigations into the connections and motives of several of the key parties to the Coyotes’ drama.

It was quite honestly pathetic.

A complete collaboration against Jerry Moyes by just about everyone around him.

And that  brings us back to the question, “how could anybody be so cruel?”

Well, it is nearing the end, we all hope, but we must admit it was quite a ride.

I am hoping Judge Baum, at least in the next couple of days will render his ruling, or at the very least force mediation between the NHL, Glendale, and PSE.

I welcome you all to peruse the articles on this site, if you haven’t already, and see what we have here – an interesting and muckety situation indeed.

And what has it all been about?

Keeping hockey from the people of Hamilton and surrounding areas? It would certainly seem that way.

Thanks Ic Arus for the link to this picture…..

This is September 26th against the Sharks. Imagine if this was Winnipeg way back when? What kind of support would the people of Winninpeg shown their team to convince the judge?

This is September 26th against the Sharks. Imagine if this was Winnipeg way back when? What kind of support would the fans of Winnipeg have shown their team to convince the judge?

 

Bryan Kirkham  (of Make it seven) has informed me of this latest news:

Heard this on CHCH
 
depending on what happens in the BK Councillor Whithead has notified Hamilton City Council that he may be calling on them to pass a notion asking for an all party Committee of the federal government to investigate the NHL and how its dealt with efforts to bring the Coyotes to Hamilton.

 

Gregory Galante had this to say regarding the above photo:

If one need any further evidence that the Coyotes ARE NOT STAYING IN GLENDALE, that one single powerful photograph should be all that is required. To the NHL. HURRY UP AND MAKE A DEAL WITH DIAMOND JIM AND SALVAGE WHAT YOU CAN IN THE PR DEPARTMENT. The NHL in their obstinance and desperation to sheild there despicable business practices are fulfilling the BUSH LEAGUE reputation it is perceived to have in many parts of North America.

I’d like to think that what the Make it Seven team had said from the outset as being very important, turned out to be very important indeed.

People can make a difference.

The people at the Make it Seven Rant page, those leaving videos, those drawing up new jersey ideas – these people have made an impact on this case.

I am willing to bet that mainstream media checks Make it Seven and the rant page to find out what’s going on! I am not kidding.

At Make it Seven, we have taken ideas from media, and media has taken information from us. We were a team!

And the impact that it has had is the fundamental principle that if you work together and share ideas, a common purpose can be achieved.

We in Canada are a little slow, but rather surprisingly we are rising to the occasion, coming together, and our voices are being heard. Our passion for Canada’s game is being refueled.

I for one have never felt more sure that we have a voice, and our collective voices are making a difference!

The team is coming to Hamilton, Ontario.

Can’t you just feel it?

No amount of manipulation by those at the NHL will do it this time.

Many of us have been left to analyze the moves of the NHL, and to ask what their strategy has been. It was a game of countering the less than ethical. If you need a fix, you can see a summary of past articles here.

We ex-Leaf fans have had enough. I share the sentiments. Sad really, for years I supported the Blue and white, win or lose. But they have lost my respect with the simple notion of  showing their greed.

I have reached the abyss of what to write. Sorry about this. I have hit the bottom of the tank, and like you,am waiting, waiting, and waiting.

It’s time for the decision to come from court.

Come on Judge Baum. Do the right thing.

Hockey needs to return to the ‘Hammer’!

→ 9 Comments

Posted in Antitrust, bankruptcy, Competition Bureau, Corruption, National Hockey League, NHL, Phoenix Coyotes, Sports