If the NHL approves Reinsdorf over Ice Edge, the fans of Phoenix will know that the NHL was never their” friend”
If you are named Jerry with a last name of Reinsdorf, you are in luck!
But, if you are named Jerry, but have the surname Moyes, not so much.
Come to think of it, if Jerry Reinsdorf wins the bid and is the approved owner for the Phoenix Coyotes, then we will have come full circle. The court case of Jerry Moyes’ against the NHL several months ago would have served to merely delay the agenda that was prescribed so long ago.
Reinsdorf was more than likely the chosen one. The NHL likely has full plan to move the team from the desert to another desert location (Vegas), or another prescribed location.
To claim that Ice Edge, which, despite the lack of wealth, is not the better team in this scenario is wrong on several fronts. One, they impose less of a financial burden on the beleaguered residents/taxpayers that are reeling from oppression as it is, with the goings on in the federal government at the hand of President Obama.
But as David Shoalts of the Globe and Mail points out, it is clearer than that:
While Ice Edge representatives have said their financing is conditional on a favourable lease agreement, they have long insisted at least one major commercial bank, thought to be Deutsche Bank, is ready to be the lead lender. However, the NHL does not allow a buyer to finance more than half of the value of a franchise and sources say a down payment of $70-million to $80-million is out of the reach of Ice Edge.
What is wrong with this thinking?
I’ts what has been wrong from day one. The thought that there must be equity and owner risk in ownership of this team is a moot point. Reinsdorf will ensure by his deal that he will not lose one red cent:
After the fifth year of the agreement, if the operating-loss account does not have enough money to pay for the Coyotes’ losses, Glendale is on the hook. The city will have to make up the shortfall itself or allow Reinsdorf to sell the team to someone who could move it. The city may find a buyer, but Reinsdorf will be guaranteed no less than $103-million for the team.
Take out the calculator. The businesses and the taxpayers will subsidize this team. The profitable teams in the NHL will also subsidize it. It will not matter if the Phoenix Coyotes win five Stanley Cups, the attendance is not likely to increase, nor is the ticket prices. The people cannot justify the cost. NHL hockey is a form of entertainment that does not rank high on the Arizona popularity list – not like in Canada.
There is a favoritism and monopoly at play here.
Let’s hope Goldwater can save the taxpayers of Arizona a lot of unnecessary spending and grief. Because if Reinsdorf wins, the team will eventually be gone, gone, gone.
And finally, Jerry Moyes should have one tremendous case against the NHL for proving that the lease and the franchise was a loser in Glendale, and he was taken for a ride. Collusion and the chosen few suggesting sports monopolization and favoritism are the issues.
The NHL has taken the ‘lemon’ and is looking to make lemonade. The bankruptcy case opened the opportunity to break the lease. Bettman and others can come away in a sneaky way – letting the Goldwater Group play the heavy, while the NHL packs the truck.
It is more than convenient to claim the Ice Edge boys do not have enough equity. With Reinsdorf’s incredibly demanding (read: concessions) offer, the moving truck must be warming up around the corner from the arena. In other words: they may not have to wait it out five years. No, they can just play that Goldwater card:
Carrie Ann Sitren, a lawyer for the Goldwater Institute, said recently the conservative watchdog group will be studying any lease agreement closely and will not hesitate to take the city to court if it feels Arizona laws against public subsidies for private corporations are being violated.
Some of the fans in Phoenix will complain that Goldwater seems to just “get in the way”. They don’t get it! Goldwater and other tax fighters are the only saving grace suppressing complete government tyranny in a country gone off the deep end. In short, Phoenix, Arizona and elsewhere need all the tax watchdogs they can get at the moment. At the end of the day, the skin off the nose will be felt by the Glendale taxpayer. And let’s not forget, we tend to only hear from the supporters of the hockey team on blog sites and newspaper comment areas. The majority (75% or so) could care less, and we don’t hear their voice. Why should they pay the freight to Reinsdorf as a parting gift?
If the fans of Glendale want the hockey team, they had better get on the Ice Edge bandwagon and fast. The NHL by choosing Reinsdorf will show there is no long- term commitment in Glendale. That was lip service of last summer. They hope the fans forgot.
A couple of points still remain.
Will Moyes’ lawyers have the means to effect a case? Should the City of Glendale have taken Balsillie’s $50 million?