Tag Archives: Jim Balsillie

For the bullet summary, please go here.

Land development seems to be the order of the day for Related Companies, and MSD Capital. And we are not talking small potatoes either. Here are some exerpts and notes of interest to solidify the land development interests of some of the players in the Phoenix Coyotes case. Take from it what you will.

The New York Times reported the Related Company wooing of the Mayor of New York in 2006:

The proposal — a commercial complex that would rival Rockefeller Center in scope — is sprawling, expensive and fraught with political consequences. But after years of discussions between the developers and the owners of Madison Square Garden, the specifics are finally emerging.

On Tuesday, the developers — Steven Roth of Vornado Realty and his partners at the Related Companies — sought to convince Mayor Michael R. Bloomberg that moving the Garden one block west to Ninth Avenue would open up a historic opportunity to transform a dowdy and claustrophobic transit hub, overhaul an important corner of the city and generate tens of millions of dollars in tax revenues.

And in December 2007, Seeking Alpha reported:

Goldman Sachs (GS), Abu Dhabi’s ever-expanding investment arm and others have agreed to invest $1.4 billion into privately-held Related Cos., a deal that will allow it to continue investing despite today’s less borrower-friendly climate. The deal, expected to be announced today, includes about $400 million from Goldman and Michael Dell’s investment firm MSD Capital, giving them a 7.5% stake in Related. Abu Dhabi and Saudi company Olayan Group will invest about $1 billion, sources told the Wall Street Journal.

And further in the article:

Together with Vornado Realty (VNO), it runs a $14 billion project in downtown NYC which involves building two train terminals and a new Madison Square Garden.

The bigger project did not fly with a moved Madison Square Garden. 

Artist rendering of the new and improved MSG

And, if you think luxury boxes are special, wait till you see the supersuite! :

The “supersuite” will be the size of 10 suites and can be broken down into smaller rooms if necessary.

 At the end of the day, this is the reality, with the other projects put on hold, the priority is the renovation of the MSG:

The renovation of the nation’s busiest arena will take a year longer than planned — the upper level won’t be finished until the beginning of the NBA and NHL’s 2012-2013 season — and will go over its $500 million budget, MSG Vice Chairman Hank Ratner said.

But, “we’re not going to be looking for anyone else to pay for it,” Ratner said.

The city and state have committed hundreds of millions in bonds and other incentives to the Yankees and Mets’ new stadiums and a planned arena for the New Jersey Nets.

Interesting choice of words….maybe the City has learned that the bond issues and the promise of ‘buy now, pay later’ is not necessarily the best choice. If Related had their way, would the financing have been in the same type of sales tax related land development subsidies? Perhaps it will be of interest in future posts to look at the details of the Yankees, and Mets stadiums and the planned arena for the Nets.

Related Companies did not realize their original proposal that would have been huge:

Following rejection, an alternate plan, known as Plan B, was developed by Manhattan Borough President Scott Stringer (D-Manhattan), then-candidate for Governor Eliot Spitzer (D-New York), New York State Assembly Speaker Sheldon Silver (D-New York), and the Moynihan Station Venture – a collaboration between private developers Vornado Realty Trust and The Related Companies. Plan B laid out a significantly expanded vision. At a total cost of $14 billion, Plan B proposed relocating MSG to the Farley Post Office and replacing the existing MSG with a renovated Penn Station and several office buildings. The massive scope and scale of the project, combined with rising construction costs and a weakening credit market, inhibited progress on the proposed project.

 While Related Companies didn’t get their way in the MSG and area development, it was not without trying.

On July 31st, it was announced that MSG would break away from the owner, Cablevision parent. I wonder what the new deal will be as a tax incentive to the cablevision shareholders.

The old deal, as reported in 2007 saw:

MSG’s owners, Charles Dolan and his son, Jim, haven’t had to pay property taxes on the famed arena since 1982 – an exemption that’s now worth $11 million a year.

 

As shown in the ‘old deal’ article, there were the folks that were against tax subsidies to the rich owners of the arena, and I am sure whatever deal the Dolan family has now, it will be just as lucrative.

The difference between MSG and Jobing.com arenas are miles apart. I am sure 72% of taxpayers don’t argue with the deals for MSG. But 72% do argue in Glendale. And that is the important point.

For the bullet summary, please go here.

Wow!

I sit in reflection of the Phoenix New Times article of August 3rd, and I can’t help but think, ‘Yes, finally some dog gone, drag out, get to the bottom of it reporting!’

Well, actually, the first time I was impressed with the PNT reporting was on the excellent article about the CityNorth Phoenix land development subsidies, that basically proved that  a City can act just as  irresponsibly as the average household. Buy now, and prepare to pay large later. The only sure gainers in that game are the lenders and land developers. Easy money for the rich, on the backsides of the middle and lower income earners. And, it  makes you wonder how in the heck these deals could happen. Who negotiates these lucrative opportunities, and why?  At least we can take comfort in learning that the land barons lost their appeal in the Supreme Court.

The passengers on this train aren't getting off until the journey is done

Have you ever wondered how some people are able to ‘carry on’ their less than ethical ways and not get stopped?

 You know the scenario. We have an expression for some people. We like to call them ‘Teflon Tims’. They seem to do things that are less than noble, time and again, and just don’t seem to have to pay the piper. We wait, in patience, or sometimes impatiently, for those people to ‘finally get theirs!’ Until then, the ramifications of their actions seem to fall away, like food on a teflon fry pan. Swoosh… gone as if it was never there. No consequences. No exposure.

When Jerry Moyes put the Phoenix Coyotes in Chapter 11, and found Jim Balsillie to buy the team and satisfy his needs, it could have been a non-eventful process. Kind of like when the Montreal Canadiens seemlessly changed hands over the past little while. Blink, and you might have missed it. Wow! It could be that easy?

Over the past while, strange things have occured. Ponzi schemes by the handful exposed. Corporations exposed for less than ethical behaviour or accounting practices. The economy a facade,  to fall on a far grimmer reality. And now, the NHL.

Is it just me, or is ’strange’ becoming the new normal?  With wierd uncoverings of truths. The Teflon Tims losing their lustre, and having to face the past, and their demons.

What’s incredibly interesting in the current Coyotes case  is that there are so many ‘Tims,‘ all coming at once to face the music . Each one having a role to play in this saga, but each  having to face their own realities.

 Absolutely fascinating stuff!

It makes you hope the experience will teach each of them a valuable lesson. It makes you wonder if the experience will be ‘life altering’?

Who would have known a simple auction process in a bankruptcy court would be the root of such human drama?

How will Gary Bettman surface from the rubble of the exposure that is taking place regarding the NHL’s potential collusion with the City of Glendale, and the ‘friends of Glendale’? How will it look on the NHL when they seem to have more contact and compassion for everyone else but the current owner Jerry Moyes? With all the mudslinging, how will it look should Jim Balsillie be awarded the team, and Gary Bettman will have to now work with Balsillie as a new owner? Has Gary Bettman crossed the line, and committed himself too far, and made it too obvious that he has a personal dislike for Balsillie? How will he account for the ‘uniqueness’ of each team’s financial position? Will he be able to come clean? With profit sharing issues and the arena subsidies, how will he appease those teams upset by the reality proven by this fiasco? Subsidizing a team that thrives on all kinds of subsidies to survive? Many questions to be answered and faced.

How about Jerry Reinsorf ? How will he explain the relationship with John Kaites, and in turn Ed Beasley, and the obvious advantage it has with the negotiations with the City of Glendale? And, the advantage he has with son Michael, who already works closely with the City, in several key capacities. No matter what happens, a succesful acquiring of the Coyotes will be tainted by accusations of favoritism and unfair advantage. It would seem a situation of networking at it’s finest. A man that was voted the ‘most networked’ in Chicago. Will it be viewed as a man strategically using influence to get what he wants?

What of Michael Dell? If he works a deal to renegotiate the SOF debt, will he be looked at as the man that didn’t do Jerry Moyes any favors, but because of his land development strategies in Arizona, and the contacts surrounding Glendale, that he would favour a fellow friend, instead of compassion for one not in the close knit business group? What of his decision to become a shareholder of Related Companies, involved in CityNorth, and the land development subsidies? How will this be looked upon by the taxpayers of Arizona?

 How about Ed Beasley, the City Manager of Glendale? As pointed out in the Phoenix New Times article, his apparent favoritism towards John Kaites? It makes you wonder as a public official if he should be holding close friendships of this nature with clients of the City. How will Glendale residents view his character for the role he is playing in the apparent collusion with the Reinsdorf/Kaites group? How will this affect any liability he could expose the City to should Jerry Moyes take civil action for damages?

For other officials at the City of Glendale involved in this process, and voted in by residents and taxpayers. How will they appear when the deceptions are brought to the surface? So many secrets and delays for a City accountable to the people. Will there be a public outcry and protest?

And John Kaites? A man that has networked and befriended his way to where he is today. A lawyer with roots in Phoenix. After this mess is over, who will have confidence in his ability and feel confident of his ethics? His slip up that the City was negotiating with the ‘robust group’ he represented for at least six months leading to the bankruptcy was a royal blunder.

As pointed out bluntly by the Phoenix New Times, the whole situation simply ‘smells’! There is no better way to describe it. All the players in this game are going to have to answer for their roles, one way or another. Either now, or sometime in the future, the events surrounding their role in this fiasco will be taken into account. That much I’m sure.

Even the Daryl Jones group is suspect because of relationships as described in previous articles. Can anyone that is pulled from the NHL hat be trusted, or do we simply need to overturn some rocks to find a connection?

We could go on and on. The point is that many will have to face their own shortcomings, seemingly at the same time, due to the same circumstances.

They could have missed this train, if only the sale of the Phoenix Coyotes went as uneventfully as that of the Montreal Canadiens. It was not meant to be.

No, this train of fate, left the station with many passengers. As if the ‘Final Destination’ to face their demons awaited them on this journey.

It would seem the ride will have to play itself out. The fate train has left the station, and won’t stop until the journey comes to it’s logical end. Until the demons are faced. Until it pulls into the next station.

What will the new lanscape be like?  What will be the life altering lessons learned on this journey?

For the bullet summary, please go here.

Wow!

I sit in reflection of the Phoenix New Times article of August 3rd, and I can’t help but think, ‘Yes, finally some dog gone, drag out, get to the bottom of it reporting!’

Well, actually, the first time I was impressed with the PNT reporting was on the excellent article about the CityNorth Phoenix land development subsidies, that basically proved that  a City can act just as  irresponsibly as the average household. Buy now, and prepare to pay large later. The only sure gainers in that game are the lenders and land developers. Easy money for the rich, on the backsides of the middle and lower income earners. And, it  makes you wonder how in the heck these deals could happen. Who negotiates these lucrative opportunities, and why?  At least we can take comfort in learning that the land barons lost their appeal in the Supreme Court.

The passengers on this train aren't getting off until the journey is done

Have you ever wondered how some people are able to ‘carry on’ their less than ethical ways and not get stopped?

 You know the scenario. We have an expression for some people. We like to call them ‘Teflon Tims’. They seem to do things that are less than noble, time and again, and just don’t seem to have to pay the piper. We wait, in patience, or sometimes impatiently, for those people to ‘finally get theirs!’ Until then, the ramifications of their actions seem to fall away, like food on a teflon fry pan. Swoosh… gone as if it was never there. No consequences. No exposure.

When Jerry Moyes put the Phoenix Coyotes in Chapter 11, and found Jim Balsillie to buy the team and satisfy his needs, it could have been a non-eventful process. Kind of like when the Montreal Canadiens seemlessly changed hands over the past little while. Blink, and you might have missed it. Wow! It could be that easy?

Over the past while, strange things have occured. Ponzi schemes by the handful exposed. Corporations exposed for less than ethical behaviour or accounting practices. The economy a facade,  to fall on a far grimmer reality. And now, the NHL.

Is it just me, or is ’strange’ becoming the new normal?  With wierd uncoverings of truths. The Teflon Tims losing their lustre, and having to face the past, and their demons.

What’s incredibly interesting in the current Coyotes case  is that there are so many ‘Tims,‘ all coming at once to face the music . Each one having a role to play in this saga, but each  having to face their own realities.

 Absolutely fascinating stuff!

It makes you hope the experience will teach each of them a valuable lesson. It makes you wonder if the experience will be ‘life altering’?

Who would have known a simple auction process in a bankruptcy court would be the root of such human drama?

How will Gary Bettman surface from the rubble of the exposure that is taking place regarding the NHL’s potential collusion with the City of Glendale, and the ‘friends of Glendale’? How will it look on the NHL when they seem to have more contact and compassion for everyone else but the current owner Jerry Moyes? With all the mudslinging, how will it look should Jim Balsillie be awarded the team, and Gary Bettman will have to now work with Balsillie as a new owner? Has Gary Bettman crossed the line, and committed himself too far, and made it too obvious that he has a personal dislike for Balsillie? How will he account for the ‘uniqueness’ of each team’s financial position? Will he be able to come clean? With profit sharing issues and the arena subsidies, how will he appease those teams upset by the reality proven by this fiasco? Subsidizing a team that thrives on all kinds of subsidies to survive? Many questions to be answered and faced.

How about Jerry Reinsorf ? How will he explain the relationship with John Kaites, and in turn Ed Beasley, and the obvious advantage it has with the negotiations with the City of Glendale? And, the advantage he has with son Michael, who already works closely with the City, in several key capacities. No matter what happens, a succesful acquiring of the Coyotes will be tainted by accusations of favoritism and unfair advantage. It would seem a situation of networking at it’s finest. A man that was voted the ‘most networked’ in Chicago. Will it be viewed as a man strategically using influence to get what he wants?

What of Michael Dell? If he works a deal to renegotiate the SOF debt, will he be looked at as the man that didn’t do Jerry Moyes any favors, but because of his land development strategies in Arizona, and the contacts surrounding Glendale, that he would favour a fellow friend, instead of compassion for one not in the close knit business group? What of his decision to become a shareholder of Related Companies, involved in CityNorth, and the land development subsidies? How will this be looked upon by the taxpayers of Arizona?

 How about Ed Beasley, the City Manager of Glendale? As pointed out in the Phoenix New Times article, his apparent favoritism towards John Kaites? It makes you wonder as a public official if he should be holding close friendships of this nature with clients of the City. How will Glendale residents view his character for the role he is playing in the apparent collusion with the Reinsdorf/Kaites group? How will this affect any liability he could expose the City to should Jerry Moyes take civil action for damages?

For other officials at the City of Glendale involved in this process, and voted in by residents and taxpayers. How will they appear when the deceptions are brought to the surface? So many secrets and delays for a City accountable to the people. Will there be a public outcry and protest?

And John Kaites? A man that has networked and befriended his way to where he is today. A lawyer with roots in Phoenix. After this mess is over, who will have confidence in his ability and feel confident of his ethics? His slip up that the City was negotiating with the ‘robust group’ he represented for at least six months leading to the bankruptcy was a royal blunder.

As pointed out bluntly by the Phoenix New Times, the whole situation simply ‘smells’! There is no better way to describe it. All the players in this game are going to have to answer for their roles, one way or another. Either now, or sometime in the future, the events surrounding their role in this fiasco will be taken into account. That much I’m sure.

Even the Daryl Jones group is suspect because of relationships as described in previous articles. Can anyone that is pulled from the NHL hat be trusted, or do we simply need to overturn some rocks to find a connection?

We could go on and on. The point is that many will have to face their own shortcomings, seemingly at the same time, due to the same circumstances.

They could have missed this train, if only the sale of the Phoenix Coyotes went as uneventfully as that of the Montreal Canadiens. It was not meant to be.

No, this train of fate, left the station with many passengers. As if the ‘Final Destination’ to face their demons awaited them on this journey.

It would seem the ride will have to play itself out. The fate train has left the station, and won’t stop until the journey comes to it’s logical end. Until the demons are faced. Until it pulls into the next station.

What will the new lanscape be like?  What will be the life altering lessons learned on this journey?

For the bullet summary, please go here.

Perhaps we could ask President Obama to run the economy and the NHL

Everything is Rosy! OK? Are you buying it?

That is what we were led to believe by the brass at the NHL over the years. Everything is just fine.

Forget Forbes’ or Fitch’s ratings. Forget the press, forget them all, because everything is just fine, OK!

Well, if everything was just fine, why are we finally getting a glimpse of a reality far removed from fine?

Why has Jim Balsillie had a few chances to be a ‘white knight’ on his own terms, and look to bailout some franchises in trouble?  Doesn’t sound like everything was just fine to me.

Everything was just fine in the U.S. housing market until the bubble burst too, and it was discovered that if you could fog up a mirror, and had a pulse, you were eligible for a fairly large mortgage. We were led to believe it was all just fine till we found out the truth. Then, just how ‘not fine’ it was began to surface. And, if you can fog up a mirror and your name is not Jim Balsillie, you might want to call Gary Bettman. Has he got a no money down deal for you. Just don’t have any bats in the bellfrey. We might find out what they are.

I’m sure when the dirt of the state of the economy in the U.S. began to surface there were many on edge, and many questions to be asked and answered. Well, we could be at that stage for the National Hockey League.

Look at Bernie Madoff’s lucrative, but now exposed, Ponzi Scheme, where Muckety adds:

Don't let anyone know the 'deal' you have with the others...the Mushroom Principle

Wall Street trader Bernard Madoff was arrested Dec. 11 and charged with running a $50 billion “Ponzi scheme” that allegedly defrauded tens of thousands of investors, from France’s richest woman, Liliane Bettencourt, to a charity run by Holocaust survivor Elie Wiesel.

Click on the “Muckety adds” link above and you can see a web of people fooled by Madoff. The trick behind it is, don’t tell one person the deal you have with the other. Because if they knew it was their friends money disguised as ‘true return’, then that would tell a far grimmer tale, than if the money were earned legitimately. We could liken that to “profit sharing”. Sound familiar? Kinda like ‘robbing Peter to pay Paul’. Only we call that a league process, to give it validity and meaning. Ok?

The current crisis in the U.S. has been largely due to deception. The reality of the economy not matching the display of wealth and lifestyle many experienced. But it was to be a short-lived bubble. It could not continue for long, without the collapse we see today.

It is interesting to note the similarities though. You need a few, setting procedure and guidelines that many follow. Once it is discovered that the underlying principles behind the guidelines are flawed, then exposure results, and the truth surfaces.

Could this be what we are now seeing as a result of the Phoenix Coyotes court case?

What's the true state of the finances of the NHL?

Remember Commissioner Bettman. He explained to Ron McLean that the Coyotes were never in jeopardy, and the thought of it was just ‘silly’. Well, the question is, who wasn’t in jeopardy? Did Gary Bettman think Jerry Moyes, the owner of the Coyotes wasn’t in jeopardy? Because the facts speak a different tune. Or, was Bettman thinking the ‘plan’ that was there would mean the team was not in jeopardy? The plan, that apparently was in the works for at least six months according to John Kaites, the lawyer for the Reinsdorf coalition. Would it be that group to suggest the team was never in jeopardy, if we could ‘just get the team in the hands’ of that group? Boy, problems would go away!

Well, the team is not in the Kaites group’s hands, it’s in Jerry Moyes’ hands. He is still the owner until he sells the team. Moyes is questioning the validity of Reinsdorf as a prospective owner for good reason.  Forget Balsillie. We have more questions with Reinsdorf. Just read some of the articles here, and we could all go to the ‘red flag’ store, and wave until we lose a few pounds, and firm the muscles under our arms. Is this why the bidders need more time? Getting the cold feet of ‘exposure’?

Might explain the ‘stall tactic’ of a plan six months in the making, that suddenly is getting bogged down in negotiations? Ya, right? More cold feet no doubt, and the excuse is explained well in the Globe:

Meanwhile, SOF Investments, the largest secured creditor who is owed some $80 million, says it can’t consent to the Reinsdorf bid because their payment hasn’t been worked out, although negotiations have begun.

 Heck, Michael Dell and Michael Reinsdorf had many lunches over several months to go over the fine tuning, no doubt. Suddenly the negotiations are just starting? How about the people are starting to smell a rat. That’s what’s more likely ‘starting’!

When Kaites says six months of negotiations, this would have been going on behind Jerry Moyes’ back, while he was the owner. How did they know he would end up broke at the end of the day? We already know the answer to that. It’s called collusion. Sorry, we keep coming back to that word, but it explaines Moyes desire to discount Reinsdorf as a suitable owner.

Deception uncovered. Financial reality far different than claimed. Irreparable harm.

No wait, the term ‘irreparable harm’ I believe was reserved for Jim Balsillie, as the ‘new’ reason the NHL Board of Governors (that is, those that showed for the meeting) had to say. I wonder how that meeting went. Could it have been, “this is what I believe, is everyone in agreement?” Ya, that’s sounds about right.

So, Jim Balsillie has not gone along with league processes, huh? Well, there is one owner that has seen enough of league processes to call in a friend to help him alter those processes. To blow the whistle when the process doesn’t serve the owner properly. When the process doesn’t serve the bankers, the players, the fans, or the league as a whole. The question is, ‘who are the processes serving the most?’ It certainly didn’t do Jerry Moyes any favours, especially since he was being set up for takeover. Could that be an ‘unofficial league process’ that is being challenged?

Well, the New York Times has an interesting view of the current legal proceedings.  And, according to the New York Times:

This may put the National Hockey League and its 29 other teams in an awkward position. Other teams and the companies that do business with them are surely happy to get a glimpse of at least part of the Coyotes’ finances. In an industry where operational data is closely guarded, any information that helps teams and their vendors benchmark themselves against their competitors is valued.

I would suggest you look at the full article for enlightenment.

The economy of the U.S. is now coming out of a period of deception. They now have to work on repairing what is broken. They need to look at what is there, clear the rubble, and look for ways to live within their means.

I would say the National Hockey League needs to become accountable to it’s owners, it’s lenders, it’s players, and it’s fans. Everything is not ‘just fine’. There are other franchises that are not fine either.

There would be more respect if the league stood up and finally gave a true account of reality. The longer they delay, the more exposure will take place in courtrooms, in newspapers, and even in blogs. When the chief always says things are great, then start waiving the flag.

So, when the character of Jim Balsillie is challenged now by the Board of Governors for not respecting league processes and guildelines, perhaps there is good reason.

What’s the real reason the bidders need an extension beyond August 5th? Could it be time to see if they can cover the tracks of deception of their own? Or, is it simply to see if Glendale can offer concessions ‘ a la’ the CityNorth Supreme Court case in Phoenix?

Brings us to wonder that what we read and hear is far removed from reality too. The underlying truths it would seem do not get exposed too often either.  I for one, wish the press would dig a little deeper and give us the real dirt. Getting kind of mundane in the reading department. Making this reader question his newspaper subscriptions. Just sayin’!

For the NHL, I believe this spells the beginning of the ‘uncovering of the truth’ and there are a few folks that don’t like it.

As for the Moyes/Balsillie ‘schooling’ taking place…..it suggests one thing…..the guidelines need repair.

For the bullet summary, please go here.

It’s time to recap this story in plain english. It’s  important to just lay it out there. To put the opinion based on the obvious to paper.

It’s easy to get so wrapped up in the daily drama, and legal maneuverings occuring in court, to lose focus on the obvious; get clouded on what sits right in front of us.

In Hamilton, and all of Canada, when we first heard of Jim Balsillie getting another crack at an NHL hockey team, it came as a bit of a surprise. ‘ Who now? The Phoenix Coyotes? Why?’

The ‘why’ is really the interesting part. The ‘why’ is also the justification. And, the ‘why’ has led to a lot of people scrambling to cover their tracks, to want to retain evidence, and to strategize how to ‘explain’ their actions.

But, like all financial transactions, documents were produced, leases drawn up, emails sent, phone calles were made and ignored, and a meddly of other things that lead us to where we are in this story.

I say story, but make no mistake, there is a dark reality to this real life case that leaves a sick feeling in the pit of one’s stomach.

We are talking about a man named Jerry Moyes. Now Mr. Moyes started out in the trucking industry, worked hard, and built it from the ground up to be a very large firm. He knew what it took to run a succesful business. Sometimes though, despite best effort, the economy can go sour, and a business can lose cash flow, profits, and end up in hard times. This is what happened to Jerry Moyes in the trucking industry, as did happen to many others.

But, at the same time, Jerry Moyes was looking to save his hockey franchise from financial decay, and he took his own wealth, and the wealth of his familty and injected it into the Coyotes. The last of which was in the form of a loan to the Coyotes. This has become a sticking point in the current bankruptcy procedings.

The NHL would want us to believe that the money Jerry Moyes put in the team was an owner putting in equity. A share position, and not a creditor position. This, in strategy, would give the NHL an ‘out’, and be able to find a bidder (or bidders) that would, in essence, be able to take this team over with ‘no money down’. You see, Jerry Moyes $104 million creditor position cramps the NHL’s plans.

But it is interesting that the offer from Jerry Reinsdorf is a ‘no cash’ offer. It just enlightens us more to the lack of confidence in the team’s viability. It also suggest where collusion is fairly obvious.

It’s important to recap the expectations of the Reinsdorf offer. According to John Kaites, the lawyer for the Reinsdorf coalition, the City was negotiating and talking to the group for six months leading into the offer. There was courting all right. But for much longer than would appear normal. No, this situation was in the works for a while, and explains the presumptous terms of the bid. It might have been a ‘done deal’ before it was ever made public.

There are secured creditors, the largest being SOF Investments owned by Michael Dell. This is worth $80 million. Most significant of this loan is the strangehold terms that were drawn up. Mr. Moyes would get a measly $9 per ticket sale to go towards the Coyotes, and Dell, would take all other revenues as ‘collateral’ against the loan. The bottom line. Moyes did not have a chance based on the easy math to pay the bills. Why would the terms be that bad? Good question. Let’s carry on.

The City of Glendale was asked on several ocassions by Mr. Moyes to rework the Jobing.com lease terms. They refused. Mr. Moyes was yet again wondering why no consideration, as his team was suffering more and more.

Finally, the NHL had to step in with assistance to ‘help’ Moyes with a loan. But, in order to get the loan, he had to sign various proxies surrendering all rights to control of the team in the process.

Now, over the articles written, we have shown that Jerry Reinsdorf coming into the scene was anything but a coincidence. In fact, all the facts leading up to the Coyotes going bankrupt was a cold, calculated plan by the friends to Glendale.

Jerry Reinsdorf’s son Michael has a very good relationship with the City of Glendale. He also is responsible for stadium and arena development and financing negotiations for the City. He was responsible for overseeing the building of Jobing.com arena, and we still do not have any proof of involvement in lease negotiation assistance, that he professes to be an expert in. If Jerry Moyes needed help, where was the City of Glendale and Michael Reinsdorf to lend professional assistance? Another red flag.

To make the summary short, based on the knowledge obtained, it would appear there is a strategy of business alliances in Glendale that are responsible as corporate partners to increase the development of land, with the hope of influx of residents, taxes and jobs. There has not been terrific proof that this growth has occured. The only for sure, is the corporate partners like Michael Dell and Michael Reinsdorf, that are proffiting from their strong ties to the City.

Glendale, it would seem has ‘hopped into bed’ with these private corporations so much, that they colluded to get rid of Jerry Moyes, because he did not offer continued growth. The means to the end was the financial strangelhold with the SOF loan, and the ignoring of his need to have the arena lease reworked.

With the addition of the second bid by Daryl Jones, it would, with more careful look, appear to be another good boy maneuver, bringing in ‘friends of friends’, with common business interest. Hardly an autonomous bid.

In the Board of Governors of the NHL, the interesting choice of words that Jerry Reinsdorf is fully endorsed, while the rookies show promise, but are still not fully approved is interesting too. Going back to plan A, where plan B may have just been an attempt to show the court that the NHL did not collude with Reinsdorf. I don’t know if anyone will buy that, including the U.S. bankruptcy trustee who smelled the rat a while ago.

And the big proof is the Reinsdorf offer. How obvious can it be?  It requires a friend, Michael Dell, to renegotiate his SOF loan. Golly gee. And it requires the NHL to rework or dismiss it’s loan. You don’t say?  And, are you ready for it? It requires the City of Glendale to work a plan of concessions that Moyes was asking for, but was ignored. And, I hope you are sitting down. The City of Glendale negotiated with Jerry Reinsdorf when they wouldn’t with Jerry Moyes. Wow, good to have a son in tight with a municipality, eh?

I hope Moyes has a good legal team to go after the boys civilly when this round is over.

If it could be anymore obvious by the demands that the strangelhold the ‘friends’ had on Jerry Moyes, I don’t know how you could do it. The proof is in the offer. Don’t put Jerry Reinsdorf in the same position as Moyes. Are you kidding me?

With Michael Dell repositioning himself as a major player in land development with Related Companies, it would seem he has learned to hedge his opportunities. With computer industry profits diving, and the opportunity for easy, big money in land sales tax strategies with government, it would appear he has a lot to gain and lose. So much so, he would want to ensure he structures Glendale with as many friends as he can. Will he make the loan terms much better that $9 per ticket? Please, do you have to ask?

It can only be hoped that the judge sees this charade for the joke it is. A collusion poster child legal departments at ivy league universities could use for years to come. Wouldn’t it be ironic if these same friends went to these universities for advice? Downright hilarious!

No, Judge Baum has a chance, along with the U.S. trustee in bankruptcy, to put these ‘friends’ on the ropes, then to the canvas, and put them in a stranglehold of their own.

Why did Hamilton learn of yet another team in financial ruin ready to make a deal?  It was the courage of Jerry Moyes to call the NHL, and the friends of Glendale’s spade. Calling a spade a spade!

Is it any wonder Commissioner Bettman was scrambling to avoid the public knowledge that would occur when this charade went public? Is it any wonder he put together proxies in a feeble attempt to control a man that could not be controlled?

There are no coincidences here. Just a long stream of maneuvers, greed, lies, and deception. They never would have expected Jerry Moyes to blow the whistle. I for one, am proud of him. I support him, and I don’t even know him. But, I can relate to the injustice he experienced. And I will do my part, along with others like Jim Balsillie to help him regain his wealth.

Jerry Moyes deserves our support. The NHL, and the friends of Glendale deserve the exposure they get too.

May justice prevail!

For the bullet summary, please go here.

It’s time to recap this story in plain english. It’s  important to just lay it out there. To put the opinion based on the obvious to paper.

It’s easy to get so wrapped up in the daily drama, and legal maneuverings occuring in court, to lose focus on the obvious; get clouded on what sits right in front of us.

In Hamilton, and all of Canada, when we first heard of Jim Balsillie getting another crack at an NHL hockey team, it came as a bit of a surprise. ‘ Who now? The Phoenix Coyotes? Why?’

The ‘why’ is really the interesting part. The ‘why’ is also the justification. And, the ‘why’ has led to a lot of people scrambling to cover their tracks, to want to retain evidence, and to strategize how to ‘explain’ their actions.

But, like all financial transactions, documents were produced, leases drawn up, emails sent, phone calles were made and ignored, and a meddly of other things that lead us to where we are in this story.

I say story, but make no mistake, there is a dark reality to this real life case that leaves a sick feeling in the pit of one’s stomach.

We are talking about a man named Jerry Moyes. Now Mr. Moyes started out in the trucking industry, worked hard, and built it from the ground up to be a very large firm. He knew what it took to run a succesful business. Sometimes though, despite best effort, the economy can go sour, and a business can lose cash flow, profits, and end up in hard times. This is what happened to Jerry Moyes in the trucking industry, as did happen to many others.

But, at the same time, Jerry Moyes was looking to save his hockey franchise from financial decay, and he took his own wealth, and the wealth of his familty and injected it into the Coyotes. The last of which was in the form of a loan to the Coyotes. This has become a sticking point in the current bankruptcy procedings.

The NHL would want us to believe that the money Jerry Moyes put in the team was an owner putting in equity. A share position, and not a creditor position. This, in strategy, would give the NHL an ‘out’, and be able to find a bidder (or bidders) that would, in essence, be able to take this team over with ‘no money down’. You see, Jerry Moyes $104 million creditor position cramps the NHL’s plans.

But it is interesting that the offer from Jerry Reinsdorf is a ‘no cash’ offer. It just enlightens us more to the lack of confidence in the team’s viability. It also suggest where collusion is fairly obvious.

It’s important to recap the expectations of the Reinsdorf offer. According to John Kaites, the lawyer for the Reinsdorf coalition, the City was negotiating and talking to the group for six months leading into the offer. There was courting all right. But for much longer than would appear normal. No, this situation was in the works for a while, and explains the presumptous terms of the bid. It might have been a ‘done deal’ before it was ever made public.

There are secured creditors, the largest being SOF Investments owned by Michael Dell. This is worth $80 million. Most significant of this loan is the strangehold terms that were drawn up. Mr. Moyes would get a measly $9 per ticket sale to go towards the Coyotes, and Dell, would take all other revenues as ‘collateral’ against the loan. The bottom line. Moyes did not have a chance based on the easy math to pay the bills. Why would the terms be that bad? Good question. Let’s carry on.

The City of Glendale was asked on several ocassions by Mr. Moyes to rework the Jobing.com lease terms. They refused. Mr. Moyes was yet again wondering why no consideration, as his team was suffering more and more.

Finally, the NHL had to step in with assistance to ‘help’ Moyes with a loan. But, in order to get the loan, he had to sign various proxies surrendering all rights to control of the team in the process.

Now, over the articles written, we have shown that Jerry Reinsdorf coming into the scene was anything but a coincidence. In fact, all the facts leading up to the Coyotes going bankrupt was a cold, calculated plan by the friends to Glendale.

Jerry Reinsdorf’s son Michael has a very good relationship with the City of Glendale. He also is responsible for stadium and arena development and financing negotiations for the City. He was responsible for overseeing the building of Jobing.com arena, and we still do not have any proof of involvement in lease negotiation assistance, that he professes to be an expert in. If Jerry Moyes needed help, where was the City of Glendale and Michael Reinsdorf to lend professional assistance? Another red flag.

To make the summary short, based on the knowledge obtained, it would appear there is a strategy of business alliances in Glendale that are responsible as corporate partners to increase the development of land, with the hope of influx of residents, taxes and jobs. There has not been terrific proof that this growth has occured. The only for sure, is the corporate partners like Michael Dell and Michael Reinsdorf, that are proffiting from their strong ties to the City.

Glendale, it would seem has ‘hopped into bed’ with these private corporations so much, that they colluded to get rid of Jerry Moyes, because he did not offer continued growth. The means to the end was the financial strangelhold with the SOF loan, and the ignoring of his need to have the arena lease reworked.

With the addition of the second bid by Daryl Jones, it would, with more careful look, appear to be another good boy maneuver, bringing in ‘friends of friends’, with common business interest. Hardly an autonomous bid.

In the Board of Governors of the NHL, the interesting choice of words that Jerry Reinsdorf is fully endorsed, while the rookies show promise, but are still not fully approved is interesting too. Going back to plan A, where plan B may have just been an attempt to show the court that the NHL did not collude with Reinsdorf. I don’t know if anyone will buy that, including the U.S. bankruptcy trustee who smelled the rat a while ago.

And the big proof is the Reinsdorf offer. How obvious can it be?  It requires a friend, Michael Dell, to renegotiate his SOF loan. Golly gee. And it requires the NHL to rework or dismiss it’s loan. You don’t say?  And, are you ready for it? It requires the City of Glendale to work a plan of concessions that Moyes was asking for, but was ignored. And, I hope you are sitting down. The City of Glendale negotiated with Jerry Reinsdorf when they wouldn’t with Jerry Moyes. Wow, good to have a son in tight with a municipality, eh?

I hope Moyes has a good legal team to go after the boys civilly when this round is over.

If it could be anymore obvious by the demands that the strangelhold the ‘friends’ had on Jerry Moyes, I don’t know how you could do it. The proof is in the offer. Don’t put Jerry Reinsdorf in the same position as Moyes. Are you kidding me?

With Michael Dell repositioning himself as a major player in land development with Related Companies, it would seem he has learned to hedge his opportunities. With computer industry profits diving, and the opportunity for easy, big money in land sales tax strategies with government, it would appear he has a lot to gain and lose. So much so, he would want to ensure he structures Glendale with as many friends as he can. Will he make the loan terms much better that $9 per ticket? Please, do you have to ask?

It can only be hoped that the judge sees this charade for the joke it is. A collusion poster child legal departments at ivy league universities could use for years to come. Wouldn’t it be ironic if these same friends went to these universities for advice? Downright hilarious!

No, Judge Baum has a chance, along with the U.S. trustee in bankruptcy, to put these ‘friends’ on the ropes, then to the canvas, and put them in a stranglehold of their own.

Why did Hamilton learn of yet another team in financial ruin ready to make a deal?  It was the courage of Jerry Moyes to call the NHL, and the friends of Glendale’s spade. Calling a spade a spade!

Is it any wonder Commissioner Bettman was scrambling to avoid the public knowledge that would occur when this charade went public? Is it any wonder he put together proxies in a feeble attempt to control a man that could not be controlled?

There are no coincidences here. Just a long stream of maneuvers, greed, lies, and deception. They never would have expected Jerry Moyes to blow the whistle. I for one, am proud of him. I support him, and I don’t even know him. But, I can relate to the injustice he experienced. And I will do my part, along with others like Jim Balsillie to help him regain his wealth.

Jerry Moyes deserves our support. The NHL, and the friends of Glendale deserve the exposure they get too.

May justice prevail!

Obama salutes the People

For the bullet summary, please go here.

We all know the expression, ‘how badly do you want it’!

How much are you willing to do or offer in an attempt to ‘get it‘?

When man has ambition, he may do anything in the name of ambition; to gain power, and be put in man’s ‘seat of authority’. He may even promise a few future favors in return.

Politics is full of ambition for  power, and the whole system is geared to political campaigning to influence the voters, which gives the candidate a good chance at winning the election.

We all know about the last Presidential race, where Barack Obama was in competition with Senator of Arizona John McCain. Senator McCain, of course represents the Republican Party, and President elect Obama the Democrats.

How this ties into the government land subsidy issues being fought in  the U.S. Supreme Court, the Phoenix Coyotes bankruptcy case, and the Republican Goldwater Institute may prove intriguing.

Lines may begin to blur, where political ideals and values  may not match political ambition. Where Republican values may be ‘numbed’ by past relationships, or potential promises or favors made. ‘Eyes’ deflected away when they should be firmly focused.

So, what on earth am I talking about?

Well, a recent article asked Arizonans to contact their Senator to help put an end to the sales tax based government spending as evidenced in the CityNorth case, and in the Coyotes case in Glendale.

The Republican values of the Goldwater Institute are fighting fiercely the governments of Phoenix and Glendale on these tax concessions.

Now, as we have looked at time and again, the ‘friends of Glendale’ seem to have positioned themselves well with the City and it’s officials. But if they truly wanted to position themselves well in Glendale, Arizona, perhaps they should position themselves well with the State of Arizona. Could this also be why the Mayor of Phoenix is fighting so fiercely to keep the corporate partners like Related Companies happy?

Could it also explain why Jerry Reinsdorf was a political fundraiser in John McCain’s 2008 Presidential Campaign?

Jerry Reinsdorf (fundraiser for John McCain in 2008 Presidential Campaign)

I would certainly hope that the Senator of Arizona would join the Republican cause in fighting hand in hand with the Goldwater Institute to take back control for the taxpayers.

Senator John McCain (Arizona)

Arizonans, you can help Senator McCain by contacting him. Show your support of reduced government spending, and support the ideals and goals of the Republican Party to have your voice count.

Help him put the past behind him, and focus on the rights of the American people.

And, even if you live in a state outside Arizona, chances are good your government is considering land development sales tax subsidies too. Time to have your voice heard!