CXLVII - Is this the 'Final Countdown' in Arizona?

[sneakytitz]

Here's the NHL Constitution. I believe it was disclosed to the public during the Coyotes bankruptcy proceedings (you can tell by the teams named it's not current).

https://www.lakelawgroup.com/wp-content/uploads/2017/02/constitution-NHL-.pdf

There's no provision to force a team to sell, but there is a provision to suspend or terminate a team from the league. But here's the thing - do you think any of these teams are worth much more than two nickles except for being a part of the NHL? Lets say Meruelo is suspended from the league - is he going to take the team and go play in the ECHL? Of course not. So a threat to suspend or terminate really means forcing an owner to sell.

Besides, for those of you with a historical bent, being able to force a team out was the reason the NHL was formed in the first place! Originally the NHA was the league, but 7 of the 8 owners had a major beef with the 8th team, the Toronto Blueshirts. Realizing there was no way they could force the Blueshirts out, the other seven teams quit and formed the NHL in 1917.

And there have been more modern examples. Don Sterling was forced to sell, as was Frank McCourt.

Thank you. I was very curious how the NHL could bring this to a head, so to speak, if they needed to.

 

[Yukon Joe]

The NBA got around the Sterling affair by having his wife in a separate legal action declare him unfit to run the trust that owned/controlled the Clippers. The NBA actually did little other than to bar Sterling from attending games, practices, etc.

Perhaps that was just easier than trying to force Donald out.

I just went back to the wiki article on Donald. The league did more than just give Sterling a lifetime ban - they promised to force him to sell. Shelley Sterling (who was half owner) would have been forced out as well. She responded as you said - by first saying she had her husband's permission to sell, then by having him declared unfit and selling the team.

By doing it this way Shelley was named "Owner Emeritus" and given a number of lifetime tickets, including courtside. So it was in her interest to co-operate with the NBA even if her husband didn't.

 

[Lions67]

That's definitely an entertainment district. The arena renderings look gorgeous.

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That is a beautiful looking arena IF it can get built. It’s quite stunning.

 

[mouser]

Here's the NHL Constitution. I believe it was disclosed to the public during the Coyotes bankruptcy proceedings (you can tell by the teams named it's not current).

https://www.lakelawgroup.com/wp-content/uploads/2017/02/constitution-NHL-.pdf

There's no provision to force a team to sell, but there is a provision to suspend or terminate a team from the league. But here's the thing - do you think any of these teams are worth much more than two nickles except for being a part of the NHL? Lets say Meruelo is suspended from the league - is he going to take the team and go play in the ECHL? Of course not. So a threat to suspend or terminate really means forcing an owner to sell.

Besides, for those of you with a historical bent, being able to force a team out was the reason the NHL was formed in the first place! Originally the NHA was the league, but 7 of the 8 owners had a major beef with the 8th team, the Toronto Blueshirts. Realizing there was no way they could force the Blueshirts out, the other seven teams quit and formed the NHL in 1917.

And there have been more modern examples. Don Sterling was forced to sell, as was Frank McCourt.

The NHL Constitution (like most sports leagues) allows the league to terminate or suspend teams, but in practice it’s going to require extraordinary circumstances for any league to exercise that power. A potential antitrust lawsuit permitting treble damages by the owner is not something any league wants to risk lightly.

Also, whether or not the NBA had the power to force Sterling to sell was never legally adjudicated. Sterlings wife had him declared legally incompetent; took over control of the Sterling family trust which included the Clippers among its assets; and then sold the team against his wishes. She also withdrew the unresolved lawsuit Donald had filed (on behalf of the trust) against the NBA opposing their attempt to force him to sell the team.

 

[TheGreenTBer]

My friend, the thing is the Coyotes ALWAYS seem to find a way for things to not work out.

Lots of things could still go wrong:

-they fail to win the auction. It's a public auction, someone could swoop in with a better plan / more money.
-even once he has the land, will Meruelo be able to finance and build a new arena?

Just off the top of my head.

@Tawnos you suggested shovels in the ground in 12 months. I think that wildly optimistic. They haven't even won the auction yet. A contractor hasn't been hired, plans haven't been finalized (the renderings do look nice, but a rendering isn't an architectural/engineering plan), supplies haven't been ordered, financing hasn't been finalized...

That being said if the Yotes do win the auction that is a good first step.

It can't "not work out" anymore. The future of Meruelo's franchise is counting on it. No more excuses. If he cares about this team he finds a way.

 

[Yukon Joe]

The NHL Constitution (like most sports leagues) allows the league to terminate or suspend teams, but in practice it’s going to require extraordinary circumstances for any league to exercise that power. A potential antitrust lawsuit permitting treble damages by the owner is not something any league wants to risk lightly.

Also, whether or not the NBA had the power to force Sterling to sell was never legally settled. Sterlings wife had him declared legally incompetent; took over control of the Sterling family trust which included the Clippers among its assets; and then sold the team against his wishes. She also withdrew the unresolved lawsuit Donald had filed (on behalf of the trust) against the NBA opposing their attempt to force him to sell the team.

So my usual disclaimer: I am a lawyer, I am not authorized to practice law in Arizona, and I do not practice anti-trust law.

I can't speak to whether Meruelo would be successful in an anti-trust lawsuit against the NHL is the hypothetical scenario where the league tries to suspend the franchise. But what you're referencing is what we often call "litigation risk" - what is the risk if you lose your lawsuit.

Alex Meruelo though would have substantial litigation risk as well - if he were to sue and lose his however-many-hundred-million dollar franchise would be worth next to nothing.

That's why these kind of situations never actually go to trial. What would happen is the league says "Alex it's time to sell" and casually points to their ability to force a suspension. The two sides proceed to haggle over how much of the sale price Meruelo will get vs how much of a relocation fee there is to the NHL, but it will all be settled behind closed doors. Because the two sides have too much litigation risk otherwise.

 

[Tawnos]

My friend, the thing is the Coyotes ALWAYS seem to find a way for things to not work out.

Lots of things could still go wrong:

-they fail to win the auction. It's a public auction, someone could swoop in with a better plan / more money.
-even once he has the land, will Meruelo be able to finance and build a new arena?

Just off the top of my head.

@Tawnos you suggested shovels in the ground in 12 months. I think that wildly optimistic. They haven't even won the auction yet. A contractor hasn't been hired, plans haven't been finalized (the renderings do look nice, but a rendering isn't an architectural/engineering plan), supplies haven't been ordered, financing hasn't been finalized...

That being said if the Yotes do win the auction that is a good first step.

Note: I didn’t actually say they’d have shovels in the ground in 12 months.

 

[Yukon Joe]

Note: I didn’t actually say they’d have shovels in the ground in 12 months.

OK, fair.

 

[Tawnos]

OK, fair.

I really was just making the point that 3 years at Mullett with another 2 in case they need it for arena construction time was always the plan. There’s nothing wrong with the league sticking to that essential timeline and I’d be surprised if they didn’t.

But that timeline is “getting late” as Daly put it.

 

[Melrose Munch]

That's definitely an entertainment district. The arena renderings look gorgeous.

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This is sick!

I hope they become the Phoenix Coyotes again if they move here.

 

[TheLegend]

Perhaps that was just easier than trying to force Donald out.

I just went back to the wiki article on Donald. The league did more than just give Sterling a lifetime ban - they promised to force him to sell. Shelley Sterling (who was half owner) would have been forced out as well. She responded as you said - by first saying she had her husband's permission to sell, then by having him declared unfit and selling the team.

By doing it this way Shelley was named "Owner Emeritus" and given a number of lifetime tickets, including courtside. So it was in her interest to co-operate with the NBA even if her husband didn't.

Still… the NBA avoided a direct confrontation in court.

Something the NHL always wants to avoid.

 

[Devils 3silverones]

This is utilizing the "possible 4th year" (@ the college facility) plan is it not?

 

[TheLegend]

This is utilizing the "possible 4th year" (@ the college facility) plan is it not?

Here is how that breaks down:

- They are in year two right now of the Mullett lease.

- They have one more paid up through next year and an option for one more.

- ASU can extend it as many more years if they want to without needing approval from the AZ Board of Regents.

Since ASU is making substantial money from the Coyotes being there (well into 7 figures) and will be getting the $30 million or so worth of extras and upgrades the Coyotes invested turned over to them when the team exits, that isn’t going to be the problem.

 

[Devils 3silverones]

Here is how that breaks down:

- They are in year two right now of the Mullett lease.

- They have one more paid up through next year and an option for one more.

- ASU can extend it as many more years if they want to without needing approval from the AZ Board of Regents.

Since ASU is making substantial money from the Coyotes being there (well into 7 figures) and will be getting the $30 million or so worth of extras and upgrades the Coyotes invested turned over to them when the team exits, that isn’t going to be the problem.

Thank you. I appreciate the info.

 

[Fatass]

If the Coyotes win the land auction the club stays, but if they lose the land auction they go?
If that’s the case, then shouldn’t the owner bid extra high to ensure he gets that land?

 

[TheGreenTBer]

If the Coyotes win the land auction the club stays, but if they lose the land auction they go?
If that’s the case, then shouldn’t the owner bid extra high to ensure he gets that land?

Like I said, no way Meruelo should be outbid here. It's no excuse and I doubt they stick around if this fails.

 

[hangman005]

I mean if you spend so much on the land you can no longer afford the arena to go with it it makes the first part kind of moot. To be fair.

I really hope it all finally falls into place, those renderings are gorgeous.

 

[aqib]

When the Milwaukee Bucks were sold there was a clause in the sale that if they didn't get an arena deal by a certain date the league could buy the team from the new owners. I wonder if there is a similar clause here that we don't know about.

 

[LT]

When the Milwaukee Bucks were sold there was a clause in the sale that if they didn't get an arena deal by a certain date the league could buy the team from the new owners. I wonder if there is a similar clause here that we don't know about.

Considering the arena issues weren't nearly as prevelant when AM purchased the Coyotes, I'd be surprised if there were.

 

[Boris Zubov]

Considering the arena issues weren't nearly as prevelant when AM purchased the Coyotes, I'd be surprised if there were.

This is untrue. Bettman made it clear before Barroway bought the team from the Ice Clowns that the team wouldn't & couldn't stay in Glendale.

Edit. I also believe that Mureulo or XG said in the intro press conference when they took over the team that finding a new arena was priority #1.

 

[Yukon Joe]

Considering the arena issues weren't nearly as prevelant when AM purchased the Coyotes, I'd be surprised if there were.

The arena issue was absolutely huge when Meruelo bought the team. The Coyotes were on a year-to-year lease in Glendale at that point, which is hardly a stable basis for the franchise.

I have no idea, but it is certainly possible, that a "no new arena=must sell" provision was in the original purchase deal Meruelo signed with the league.

 

[Llama19]

Two fer...

What Was and Wasn't Said At The GM Meetings

The status of the Arizona Coyotes was also brought up. The league had a chance to come out and confirm that the Coyotes would be staying at Mullett Arena and they didn’t do that. Frank (Seravalli) explained that point a little bit and explained the timeline that the Coyotes are currently facing.

Source (Podcast): open.spotify.com/episode/0SGx6lUjZ3hx4zLP00sTpb?go=1&sp_cid=ce89d61863a0e273f2801ec5c52ab04a&nd=1&dlsi=c9f331ca782149b6

Then, you have this: 32 Thoughts: What's next for the Arizona Coyotes?

Source: www.sportsnet.ca/nhl/article/32-thoughts-whats-next-for-the-arizona-coyotes/

 

[TheLegend]

Two fer...

What Was and Wasn't Said At The GM Meetings

The status of the Arizona Coyotes was also brought up. The league had a chance to come out and confirm that the Coyotes would be staying at Mullett Arena and they didn’t do that. Frank (Seravalli) explained that point a little bit and explained the timeline that the Coyotes are currently facing.

Source (Podcast): open.spotify.com/episode/0SGx6lUjZ3hx4zLP00sTpb?go=1&sp_cid=ce89d61863a0e273f2801ec5c52ab04a&nd=1&dlsi=c9f331ca782149b6

Then, you have this: 32 Thoughts: What's next for the Arizona Coyotes?

Source: www.sportsnet.ca/nhl/article/32-thoughts-whats-next-for-the-arizona-coyotes/

Y’all get to pick one….

Seravalli’s editorializing….

Or Friedman’s non-editorial summary of things….

 

[BKIslandersFan]

The status of the Arizona Coyotes was also brought up. The league had a chance to come out and confirm that the Coyotes would be staying at Mullett Arena and they didn’t do that. Frank (Seravalli) explained that point a little bit and explained the timeline that the Coyotes are currently facing.

Everyone already knows one way or another Mullet Arena was not gonna be their long term home.

 

[TheLegend]

This is untrue. Bettman made it clear before Barroway bought the team from the Ice Clowns that the team wouldn't & couldn't stay in Glendale.

Edit. I also believe that Mureulo or XG said in the intro press conference when they took over the team that finding a new arena was priority #1.

There’s more context to what Bettman said about that.

His comment was related to Glendale cancelling the 15-year lease with Ice Arizona and a shot across the Glendale city council’s bow.

You can go back to when the lease was approved and you will find Bettman stating how the Coyotes had a secure future in Glendale and praising the city.

This isn’t to say there wasn’t anyone at fault. But there were some bad actors on both sides of the situation.