I'm not necessarily disagreing with you here, it's just that all I've ever heard or read is that Buffalo would be entitled to an indemnification fee. Is that 50 mile radius in the NHL bylaws? I would imagine if the rink was in Burlington, it would just be semantics, the team would still be called Hamilton. Could they skirt the rules and build the arena 51 miles outside of Buffalo and be in accordance with league territorial borders? Maybe. I doubt Pegula would be happy with an arena being 51 miles away from Buffalo though.
Quote from the article linked: "Under longstanding N.H.L. rules, Hamilton lies within the Buffalo Sabres' territory. ... It would take an enormous indemnification payment to the Sabres to make them give up as much as 15% of their annual business."
slapshot.blogs.nytimes.com/2009/05/16/what-southern-ontario-means-and-why-losing-the-sabres-could-crush-the-nhl/
hamilton and burlington are two different cities. burlington is north of hamilton and further away from buffalo.
the nhl rules seem to indicate the outer boundaries of the city in which a franchise sits, not where the actual arena is, dictates the point of measure. we've argued here for sometime if that extends to both parties, just the new franchise or just the current one. regardless, the closest point along the burlington boundary is right at the north shore of the burlington skyway - the centre of my green circle. the 50M radius does not include buffalo, whether one chooses to measure where "buffalo" is located as the actual arena, general downtown, or the north edge of the city of buffalo boundary. (drawing the circle around buffalo serves the same explanation but it makes less clear where "burlington" is). in other words, anything located anywhere in burlington is beyond buffalo's 50M territory.
the issue under debate with respect to hamilton had to do with where to locate and measure "hamilton". if it's downtown or where copps sits, that distance to buffalo is actually very close to that 50M distance. if its measure at the southern most point along the city of hamilton boundaries, that's actually in (rural) glanbrook and it's well within the 50M distance to Buffalo. so, whether "Hamilton" is or is not technically within "Buffalo's" territory, it sure looks like it is, and most importantly, folks have behaved as if it is for decades, so it is.
burlington, though, is that that much further away from buffalo that it is not within sabres territory. that was all i was trying to say.
but to add, the sabres is a very different organization now than it was a few years ago when balsillie was trying to get into hamilton. it's performing much better now and has one of the deepest pocket owners in the league. buffalo is no longer in need of protection.