Close encounters of the 'denial' kind: You'd all better listen to Papa Baum


 For the bullet summary, please go here. To contact your MP regarding the Veto issue, please go here.

The kids are all in denial Papa… you’ve got a tough one on your hands here
Note: Please be sure to read the comment from Patrick Romanoski below the post. He has an incredible insight into the finer points in this case.
Featuring Judge Baum as "Papa"

Featuring Judge Baum as "Papa"


I have to confess I have no idea where Jordan Kroop is going with this argument. I wish him a safe trip. –BrahmResnik


I have to laugh at Brahm Resnik. I’m sure his wife thinks he does more than just repeat himself as well as any lawyer does in this court case.  Well done Brahm! I’m looking forward to more of “what’s behind door number 3, Monty?” 


Even Perry Mason would have been exhausted after this day in court
Even Perry Mason would have been exhausted after this day in court

I think we can safely say that Perry Mason would have come out of court a little leary in the head too after Thursday’s proceedings. And sorry folks, it’s another anniversary of 9/11 tomorrow (Friday). ‘911’ may be a great way to describe this case that seems to have some end in sight, but only God and Judge Baum know when that is.

We even had a tired Jim Balsillie trying not to show emotion when Glendale turned down his generous $50 million offer to pay the lease payments, and Jim was so worn out that rumor from Resnik has it he couldn’t find his car. Don’t worry Jim, one day you will laugh at this. I promise.

Well, there are definite emotions that hit us all as we digest and take part to our varying degrees of ability during a busy day. There were times that the Make it Seven crew weren’t posting anymore, and I thought maybe there was something wrong with my computer. Turns out nah, it was just some possibly shocked and red eyed friends that were as numb as the butts in the courthouse seats.

Anyway, it’s late and too much humour in me…..on to the task at hand. Oh ya….

OK, let’s start with young attorney for Glendale, Jordan Kroop.

Resnik made us laugh, but it is only now I realize how difficult Kroop’s job was. In fact, how embarrasing it must have been. I can imagine his conversation with the City council of Glendale preparing his case. ‘You want me to what?’ You want me to tell them that the team had a ‘pact’, and it isn’t about the lousy (sorry Jim) lease payments? It’s about everything else. They ‘promised’ to play in our backyard? You want me to tell them that? Oh, brother!’

So, Judge Baum, in case you need a non-attorney to explain it in layman’s terms, here goes.

It was, is, and will always be about what the hockey team was supposed to do for the City of Glendale. That’s why they mention $500 million dollars. They might as well have said a $ billion. Because it isn’t a question of breaking a lease, it’s the admission of complete failure on the original plan of land development, job growth, resident attraction, and all that city mumbo jumbo,  not hockey. But, just what the hockey team could do for the City. Okay?

There Jordan, would that pretty much sum it up for you?

So we have a city in denial. They cannot accept Jim Balsillie’s lease payments, because it was never about the measly lease. To Jerry Moyes, that is all he is responsible for, but for the city, they were sold a whole different angle to this.

Now, where oh where are those people that promised Glendale the moon, the stars, and the hollywood of the desert? They seem to be in hiding. Come on out fellas. Time to fess up and admit it isn’t happening.

On to the NHL, oh but yet again.

Do we have denial from our friends at the NHL too?

Oh, yes.

Because if Gary Bettman and company lose this case, they lose face.

If they lose this case, it will set a standard for the other losing teams to seek out the rich guys in Canada (where the real market for hockey has always been) and it will create a potential run on hockey franchises, completely ticking off all those other cities that were sold a similar bill of goods from an irresponsible league.

Can’t have that, now can we?

So, when the City of Glendale is adamant that they ‘know’ that the NHL will ensure the team will stay in Glendale, what they are saying is they will sue the NHL and everyone else to ensure it happens. The NHL buys themselves some time and plenty of worry. A problem sort of deferred but far from over.

No, this problem is going to magnify itself. As our friends at Make it Seven would say, this is a house of cards, and the wind is starting to blow.

So, more denial.

Now, we have Papa (Judge) Baum wanting the ‘kids’ to come to terms, because he might just get rid of the toy altogether, and nobody will be able to play with it then.

So kids, are you going to listen to Papa and get along with each other?

Because Papa knows that he can inject a very expensive punishment on the NHL sibling that will take away the power the NHL thinks it has. So much for not having respect eh NHL? Not working now is it? Papa knows best.

And, Glendale, you had better cut your losses or the little that is offered you will disappear too, and you might get nothing. That’s right, Papa can dissolve that team, and you will not have the $50,000,ooo that would cover that deficit nicely for the next three plus years. And, get over it kid, the team’s as good as gone. Don’t try Papa. You’d better think again and take the deal.

And Glendale, as Papa said, what if the NHL does to you what it did to Mr. Moyes, and told you one thing, but messed you up? It’s pretty obvious they say one thing but do the opposite. I wouldn’t trust them if I were you.

So, in summary, let’s think what judge Baum seems to be ‘strongly’ suggesting:

  • If you can’t get along, forget about talking about that nasty relo fee (you aren’t there yet),
  • You’d better start appreciating each other and what the offers are,
  • Glendale better take that $50 million because your team is going bye bye one way or another,
  • NHL and PSE: it’s time to appreciate what you can do for each other,
  • because if you can’t I will prove to you that an appeal will not be necessary, and I will make it hurt with no money, or an expensive trustee running the team at the NHL’s expense for however long I want.
  • There won’t be a team to sell to who you have waiting around the corner NHL, the team and the players will have to be dispersed
  • You as a league will suffer much indignity, and further embarrasment,
  • and hopefully other owners will see how you treat them, and you will have a hard time finding ones like brother Jim

In short, you will all be screaming uncle, because none of you have respected your Papa Baum.

Is that clear?

The moral of the story is you don’t know what you’ve got, till it gets a whole lot worse. And, some of you never deserved what you had in the first place, so get over it.

But then there’s the older sibling, Jerry. Jerry seems to have lost a lot, and Papa is upset. He wants to ensure Jerry gets some of his money back, and wishes the others would see that making up would be a whole lot less painful for all of us. And, you wouldn’t want a ‘bad reputation’ in that department. Not good for business.

You’ll all be wishing you took some good advice:

‘Why didn’t we just spend that money on what was offered [in the bids] and satisfy the creditors and never have this fight?’

I can hardly wait how Papa takes care of the kids on Friday. Will they learn?

Time and a few more lessons, and we’ll see.


5 responses to “Close encounters of the 'denial' kind: You'd all better listen to Papa Baum

  1. What Happens if the NHL Wins & Jerry Moyes is a Creditor in Judge Baum’s ruling?

    Apart from the scenarios of “no sale” which Judge Baum has said is possible or a victory by PSE that Baum knows will trigger more lawsuits, is a 3rd result which the NHL & those supporting their bid have incorrectly brushed off.

    Judge Baum has clearly shown that his opinion trends to making sure ALL creditors are satisfied. Presently only the PSE bid addresses this & the others ignore it at their peril. If it is Baum’s opinion that Moyes & to a lesser extent Gretzky must be satisfied then Dell, Glendale & all of the other creditors will be paid much less.

    The NHL as a secure creditor will be paid 1st, but they will inherit the crippling lease that Jerry Moyes would be freed of. The rest of the creditors would then be treated equally & would have to split the remaining pot of money. A pot of money that is not merely evaporating but boiling away at an ever-increasing rate. Add $60 million this year in losses & you have a very small pot of money indeed.

    I’ll bet Michael Dell didn’t consider that scenario when he backed the conditional offer of the NHL. The NHL BOG certainly didn’t expect to be stuck with a 26-year ‘ironclad’ lease. The 100+ suppliers & contractors for the team surely expected to be ‘paid in full’. These all have a good chance of being extremely disappointed now should the NHL succeed in blocking the PSE bid.

    If the NHL succeeds they will have little chance of selling the team to anyone with such a crippling lease. The city of Glendale is powerless to change the terms of the lease since the Goldwater Group will fight anything it considers to be a gift. We know this to be a truth in this equation because despite the time allotted, both the Reinsdorf & Ice Edge groups could not come to a deal in restructuring the lease.

    The City of Glendale negotiators know that by playing their version of ‘rope a dope’ a good chance exists for the winner to be tied to the present lease., especially if the NHL is that winner. Any winning bid that intends to play 1 day in Glendale would be tied to that lease unless the Judge deems an intended relocation sale (PSE) is preferable & time must be allowed for that transfer to take place.

    In other words, he can temporarily assign the lease in order to complete the sale. Under no other conditions of bankruptcy law can the lease be modified. Glendale knows that if the NHL tries to fold the franchise they will face opposition from the NHLPA that since its last contract has the right to block a team folding. They also know that if the team folds it would be an admission of complete failure in the ‘sunbelt experiment’.

    This is why Glendale has stalled any renegotiation of the lease. It is the best way to play their limited cards under most circumstances. The only other consideration they have is that PSE might win the auction, which has become a very large possibility. In that circumstance they could receive as little as $7 million, a risk they are apparently willing to take even in the face of a $40 – $50 million offer to buy out the lease.

    This offer now having been rejected by Glendale should be pulled from the bid by PSE & added to the main bid. It is of no value anymore & quite possibly a detriment to the bid being successful. While it was an offer designed to show good faith on the part of PSE, the lack of good faith by Glendale in not endorsing it, makes it an anchor that should be cut loose. Glendale has already made their decision & should no longer be allowed this safety net.

    No matter what happens in this auction the NHL will be ‘paid in full’ & no doubt shall feign sadness at the creditors losses but the crocodile tears they shed today will be long gone tomorrow. Gary Bettman, smug in the knowledge that he played his cards well, will be able to say it wasn’t HIS decision to settle the debts in this manner. This despite the fact that it was his persuasion that caused these creditors to ignore their own best interests & support his bid.

  2. Please amend the 2nd sentance in the last paragraph to read “If the NHL wins,” …. Gary Bettman, smug in the knowledge.

    Thanks Craig

  3. Why doesn’t JB just offer to buy outright for what it cost to build (($180)
    He get forms an arena management group to run both Copps & Jobbing; the money stay with J.B! He can always put his AHL team @ Jobbing & He can always sell the arena at a later date….maybe for a profit. Why los e$50 for nothing when you can spend $180 ($$$ stays with J.B via the asset) and still left with future options!!! Of course all contingent on him getting the Coyotes for Hamilton! How many of us if we had $180 dollar; and someone said you can rent the BBQ 1 time for $50 buck or buy it for $180…What would we do?

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

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