Wednesday, May 6, 2009

Leavin on a Jet Plane...

The showdown between Jim Balsille and the National Hockey League will begin tomorrow in an Arizona court. The League is expected to fight the Chapter 11 filing by saying Jerry Moyes had no authority to make such a decision since the league is virtually in control of the franchise.

I applaud Commissioner Gary Bettman for his determination to make this franchise a success. He's the reason why the Edmonton Oilers, Calgary Flames, Ottawa Senators, Buffalo Sabres and Pittsburgh Penguins are still around today. He helped find solutions that would make the franchise succeed in their respective cities. The problem is that all these cities have traditionally had a strong fan base where as the Coyotes have struggled since moving from Winnipeg in 1996.

Bettman will run into two big problems...

1. Bettman was quoted in the Globe and Mail as saying that "...with new ownership and with the accommodations the city of Glendale is prepared to make, we think (the Coyotes) can succeed."

Just who does Gary Bettman believe will want to take over this franchise?

It's been reported that Bettman was rejected by the owner of the Chicago White Sox, the majority owner of the Phoenix Suns and the managing general partner of the Arizona Diamondbacks, when approached about buying the Coyotes.

All three, particularly Jerry Reinsdorf - owner of the White Sox, were interested in the franchise until going through the books. You don't need to be a rocket science to realize that a team that will lose $45 Million this season isn't a good investment.

The Globe and Mail also reports that Bettman is offered the team for NOTHING as long as the buyer covered 100% of the teams liabilities which would be upwards of $50 Million at the very least.

So I ask once again, just who in their right mind would want to purchase this franchise that is losing a ridiculous amount of money?

2. Confidence Vote

Gary Bettman represents the Board of Governors of the National Hockey League. They make the decisions and he's the one that acts on their behalf. Looking at this situation, there's no doubt it would be in their best interest for the Coyotes to move to a stronger market like Southern Ontario. The team would be a "have" franchise instead of a "have not" and thus strengthen the league. And, with a $212.5 Million price tag, it boosts the value of all other franchises across the league. Put up too much resistance and I think Bettman walks a dangerously fine line where he could be asked to step aside as Commissioner.

For as much good as he's done, he's also made many mistakes. One in particular stands out... Bettman failed to accept Jim Balsille's offer for the Nashville Predators and instead accepted an offer worth $50 Million LESS from a man named William "Boots" Del Biaggio. This guy had a stake in the new arena in Kansas City and was believed to want to move the franchise to Kansas City - which oddly enough, the league rejected Balsille because they didn't want him to move the team out of Nashville. And as it turned out, the league once again failed to properly vet a prospective owner and didn't realize that "Boots" was under FBI investigation for fraud.

Here's how I look this entire situation...

The NHL needs to set a firm deadline for any prospective owners for the Phoenix Coyotes. It's believed that this issue needs to be resolved by June 30th for scheduling purposes so make the deadline June 15th. If there are no legitimate owners that step up to keep the franchise in Phoenix, then set your ego aside and sell the team to Jim Balsille.

In the meantime, allow him to negotiate with both the Leafs and Sabres for "territorial rights fees" in the chance that he does gain control and move the franchise to Southern Ontario.

The battle lines have been drawn... who will win? We'll start to get an idea tomorrow.

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