Oh, I get it now…

Reading the Hamilton Spectator today shed some additional consideration on the issues facing the Coyotes in Glendale.

What if there are no owners that can be found to take on the Coyotes? Relocation.

What if there is a buyer interested? Concessions.

No matter how this is sliced, the City of Glendale must come up with a magic act and offer some form of concessions.

But, are they able to?

What has changed from the summer as far as subsidies being a no, no?

Any new lease is technically a subsidized lease if it contains an ability to get out of it.

If Ice Edge is so certain they want to keep the team in Glendale without requesting a lease out-clause in case things go south, how come we have the Toronto Argonaut owners bailing out of the Ice Edge group and looking to go solo?

Ice Edge never has seemed to have the support of the NHL but at the same time they seem to represent the only close chance of keeping the team in Glendale.

There has been too much ignoring to suggest the NHL is serious about Ice Edge and it may just be because they genuinly want to make a desert deal.

Here is where the problem lies for Glendale.

The NHL is really in full control, because they can go through the motions and pretend to want to help Glendale keep the team, all the while having the right to approve ownership and terms. In other words, they can manipulate the situation much like they did when they didn’t want Balsillie in the picture. Where there’s a will there’s a way.

Now that they control ownership, why in the world would they want to take a chance on a market that has never made money, and is proving how pathetic it is despite the team’s decent start.

The success of the Coyotes on the ice, coupled with the near ridiculous attendance is making the strategy obvious.

The NHL can move the team, acquire a generous expansion fee, and pretend they did all they could.

Glendale will suffer the loss of the franchise, have lost out on the $50 million they could have received from Balsillie, and are likely seeing the writing on the wall too.

Be careful who you look at as friend is the lesson.


9 responses to “Oh, I get it now…

  1. Is the lease voided, though? The way I see it, a lease can be broken in bankruptcy. The Phoenix Coyotes just left bankruptcy, so if their lease isn’t broken now, then whoever ends up owning the team is responsible for the huge relocation penalty, no?

  2. Why the City of Glendale, with the exception of one Councillor “didnt get it” last Summer was a real stunner to me. There is absolutely no way, no hope no chance thiis team can ever succeed in Glendale even WITH TOTALLY FREE RENT at Jobbing.CON arena.. Krikey, 5600, which is more like 3800. Ya see, the NHL hired the same crew of ticket counters who operate elections in Florida. 3500-4000 or whatever hardly covers the cost to pay your Zamboni Driver & a coupla illegal Mexican Ushers at 3 bucks an hour. Pa-thet-ick!….

  3. The City of Glendale is like the hoodwinked fiance who is engaged but will never get married. Way to naive and trusting of the slick handsome smooth-talking, conniving SOB otherwise called the NHL.

    However she continues to patiently wait for the nuptial bells to finally sound, since she believes in her heart of heart that he loves her based on those many empty promises.

    But alas and alack, he has other things on his mind and an agenda that.does not include her in the long term. This ending will not end happily ever after. She will be left at the alter for another love more of his choosing and convenience.

  4. John, you should read the archives here. Craigs done a fabulous job in covering the case, connecting the dots. As far as the Lease is concerned, Glendale argued that Bankruptcy in no way voided the lease and that if no local buyer was found to keep the team in Glendale at Jobbing Arena who would assume the lease as is with NO CONCESSIONS then whoever bought the team for the purposes of relocation would owe Glendale 500 million plus in indemnity fees & debt service charges. Glendale was/is an unsecured creditor but raised a Mighty Stink throughout the case. Baum never did rule on whether or not Glendales claim was legit or not and as such, the NHL assumed the Lease as is where is with no concessions or exit options. They fly at midnite their on the hook for 500Mil. And that IS funny!….

  5. It seems to me the NHL offer included an ability to relocate the team if a suitable owner could not be found after this season. Reinsdorf’s “secret” offer , that was later exposed required tons of concessions and a five year out clause if things didn’t work. The NHL was less kind at one, and if the judge has okayed that offer, then let the game playing begin. I would hope the NHL should be bound to $500 million, but I feel they have succesfully hoodwinked yet another trusting party – the City of Glendale. I woulfn’t be surprised that Reinsdorf resurfaces when the waters cool and this team is relocated. The charade we are seeing is another act of the NHL to attempt to fool everyone and appease the City and its few remaining fans.

  6. Craig; I didnt read anywhere in the judgement nor in the media that the Glendale Lease was voided in any way. No decision or opinion was made by Baum. He left it as is where is in that thats what the NHL bought. A 500million dollar lease comittment. LMFAO/. They then hope to swing a deal with a new buyer whose platitiudes to “make it work in Glendale long-term” while negotiating an exit clause after a year without penalty is one option; liquidation at years end is another followed by an immediate relo/exp to Kansas City of the Coyotes Player/Mgmnt Contracts. Recoup their losses over the 2009-10 season & Syanara. See you in court Glendale.

  7. IANAL, so I don’t know bankruptcy law. In countless media accounts, I read that the NHL offer “assumes the lease for one year” or some such. I have no idea if you can run that kind of flimflam in bankruptcy court–maybe you can if the pigeon (Glendale) doesn’t object, and they didn’t.

    From what I’ve read in the media of the Glendale arena lease, the penalty clause comes in if the Coyotes don’t play there. The NHL didn’t set up an LLC (Limited Liability Company), to my knowledge, that bought the Coyotes, the NHL bought it. So I don’t think liquidating the Coyotes is an answer–the NHL would still be on the hook for the penalty, according to the lease.

    It could be that by backing the NHL bid, legally, Glendale swallowed its terms, and they’re screwed.

    It could also be that, since the lease wasn’t broken in bankruptcy and handled in the distribution-of-assets, the original lease stands. In which case, the NHL is screwed.

  8. The NHL did form an LLC holding co. when they entered the bidding for the Yotes, but I cannot recall the name.

    Where we left this I believe the offer included an ability to relocate if a buyer could not be found – that was the NHL offer, and I do not believe it changed.

    I am not surprised we have limited proof of anything however, as there was never concrete rulings from Baum, we are left like mushrooms. It would seem there is a certain amount of politics involved in this case that might have changed an otherwise different outcome.

    But, as we have said, there could be deals in the works that have determined parties “backing off” at unusual times, and in unusual ways. Nothing is as it would seem on the surface.

  9. Check

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