Irreparable Harm, or Deception and Correction?

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

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?

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.

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2 responses to “Irreparable Harm, or Deception and Correction?

  1. Reinsdorfs’ had well over 2mnths to sort things out with Dell & Glendale, while Ice Age’s bid strikes me as being an extreme long shot at best. That SFO filed an objection to the formers bid to re-structure its debt combined with the City of Glendales’ adamant opposition to the release of its communications pursuant to the re-working of the arena lease isnt exactly promising for JR, the NHL, nor the 47 member strong “keep the Yotes alive” contingency of fans. No money down, no 10 million dollar court ordered deposit, further requests for delays and deferrals ad nauseum. Will Baum play ball?. I fear he likely will, as to date he has been overly accommadating to the NHL & its fellow petitioners (NBA/MLB/NFL). Requesting instead of ordering things (mediation etc), afraid to make a decision based on “lack of precedent” when it was quite apparent from May 5th that JB’s offer was, is & will be the only one that comes close to satisfying creditors. This Judge is going to have to reach down between his legs & find his Balls, do whats right for the creditors & put an end to Gary Bettmans shell games.

  2. Pingback: Are we onto ‘Something’? Time for the ‘Real Truth’! « Make It Eight, eh? Hockey again for Winnipeg!

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