[Globe Editorial] NHL expansion: And why is Canada always the last draft choice?

[Mayor Bee]

Ah, yes. The very honorable Mr. Leipold, who also promised to Balsillie he'd help him get approval to move the Preds. Or withholding information from the commissioner in the sale of the Preds to Boots, having lent money to him to complete the sale because Boots couldn't come up with the money...while he was on the committee charged with reviewing and approving sales.

None of which changes the fact that he and Daly filed a sworn affidavit in a federal court that made some pretty damning comments about Balsillie.

Alleging what appears to be tortious interference on the part of Rodier is an extremely serious statement to make, to say nothing of everything else in the affidavit.

It reminds of when I was a mere 15 or 16 years old, and my father sat me down and said, "Son, if there's one thing that you should not ever, ever do, it's cross a federal judge. Outside of me, those are the only people in the world who can make you regret the day you were born."

 

[TheLegend]

Yes, it is. Baum wasn't going to make the fee less than Balsillie's offer and he wasn't going to make it more than what the NHL would've said. You always want to negotiate from a position of power, yes? By opening with a low number Balsillie attempted to do just that.

Also, it's not like he led with his worst offer on the franchise itself, merely the numbers around it.

Not really.

Judge Baum made it clear he did not want to open up a Pandora's Box by superceding the NHL rights to determine where their franchises go.

Balsillie's only chance was to buy Glendale off and the only way THAT would have worked was to buy out the remaining time on their original 30-year release (which IIRC was ~$300-400M). Glendale would then have their funds to pay off the arena and wouldn't care what was playing in it.

 

[sandysan]

If you took the time to read it through, that's exactly what's being said.

i did read it and objected to the point that the leafs get grouped in with the stars, not because they dont have a good lease ( they do) not because they dont have a voracious demand for their product ( they most certainly do) but the biggest economic engine in the league gets lopped in as " doing ok" with the likes of the stars because of their current lack of playoff success. finacially the stars are NOT in the leafs league by any available metric.

if you, also, want to conflate how well a team does on the ice with how good their franchise or market is, be my guest. One person wrong, two people wrong its the same to me.

if you are talking about markets or franchise strength, any analysis that has the leafs sharing space with the canucks and the stars is irrevocably flawed.

 

[Gnashville]

i did read it and objected to the point that the leafs get grouped in with the stars, not because they dont have a good lease ( they do) not because they dont have a voracious demand for their product ( they most certainly do) but the biggest economic engine in the league gets lopped in as " doing ok" with the likes of the stars because of their current lack of playoff success. finacially the stars are NOT in the leafs league by any available metric.

if you, also, want to conflate how well a team does on the ice with how good their franchise or market is, be my guest. One person wrong, two people wrong its the same to me.

if you are talking about markets or franchise strength, any analysis that has the leafs sharing space with the canucks and the stars is irrevocably flawed.

We get the point you were offended that the 2nd greatest revenue producing hockey market in the world was placed in a unbecoming status. You think it should placed high at the top of Everest where it shall forever be worshiped by the hockey world. You are not right every time or other people are not wrong every time.

 

[stchamp98]

Yes, it is.

No, no it isn't.

 

[Gnashville]

AIUI, the NHL did check on Boots when he became a minority owner as part of Freeman's group - and found no problems.

Boots' 27% stake with Nashville was in the form of Preferred Shares with no obligation for future cash commitments - hence when due diligence showed the adequate amount of capital available in brokerage accounts (based on forged statements backed up by an inside accomplice) the NHL approved him as an owner.

The fraud was only discovered later by an SEC Examiner auditing Merriman (the brokerage whose statements Boots' forged using an inside broker collaborator) from internal documents which would not have been available to the NHL, no matter how thorough their due diligence.

Now, Leipold & Lieweke not disclosing that they lent money to Boots - well that's a different story.

A he only owned 20% of the team. Other investors were a part of "Forecheck Investments" which he was director of. Forecheck owned 27% of the team. He was committed to 38 million dollars in his part of the ownership. Yes he was able to dupe the BOG that he was good for that amount. As you stated the NHL had no access to his fraud and his loans from both Leipold and Lieweke were personal loans and not a part of Forecheck's finances (at least as far as the league was concerned)

B Regardless none of this had any bearing on Balsillie (man it hurts not to call him a derogatory name) or his actions. He failed to deceive the BOG which appears to be an easy thing to do. What does it say about his character when he is the only person ever denied ownership due to poor character.

 

[kdb209]

Not sure whether to put this here or in the Phoenix thread.

Interesting, but long read from an American Bar Association bankruptcy committee -

ABA Business Bankruptcy Committee
Chapter 11 Subcommittee
Fall 2010

Pucks, Baseballs, and...Franchise Auctions? Lessons from
the Wide World of Sports Bankruptcies

Hon. Robert D. Drain, Bankr. S.D.N.Y., White Plains, NY
Susan M. Freeman, Lewis and Roca LLP, Phoenix AZ
Thomas J. Salerno, Squire Sanders & Dempsey LLP, Phoenix AZ
J. Gregory Milmoe, Skadden, Arps, Slate, Meagher & Flom LLP,
New York City NY
Bryan Krakauer, Sidley Austin LLP, Chicago IL

Moderated by Michael D. Reed Pepper Hamilton, Philadelphia PA​

 

[sandysan]

We get the point you were offended that the 2nd greatest revenue producing hockey market in the world was placed in a unbecoming status. You think it should placed high at the top of Everest where it shall forever be worshiped by the hockey world. You are not right every time or other people are not wrong every time.

I'm not not leaf fan I hate to leafs. But if someone wants to suggest they ain't the straw that stirs the drink let them. It makes sorting out the cranks easier.

 

[Confucius]

I thought Boots met the boys at a golf tournament, buddies up to Lemieux there, though I think you recalled correctly the Jamison link and how he got there.

Lemieux also came down on Balsillie's character, the same guy who visited KC as a relo ploy to get the government in Pennsylvania and Pittsburgh to build him an arena-- ultimately increasing his own net worth by hundreds of millions.

Nice people.

Wasn't it L A (alright just checked it was KC, getting old sucks lol) and didn't the mayor say we won't be used so hit the road? Or something like that.

I do recall reading the speculation long ago Lemieux wanted out for health reasons. Guess he got better, or all the speculation was incorrect. Which is entirely possible. Lol

 

[Killion]

Interesting, but long read from an American Bar Association bankruptcy committee -

Awesome & thanks. Very interesting read kdb. Only got through the first two opinions but well worth the time spent, look forward to reading the rest of it.

Edit to add; and on pages 142 & 143, the last two, you'll find a brief section on Boots Del Biaggio & the disposition of his minority shares in the Preds.

 

[Fugu]

He went to bat for him originally yes but, Balsillie lied to him and tried changing the agreement and then threatened him with a lawsuit. He also found out that Rodier had contacted the City of Nashville 2 years prior and instigated the friction between him and the city.

He never sold the Predators to Boots end of story. He sold it to a local group in Nashville which included Boots. How many times must this be repeated. How about this deal for every dollar someone owes you they should give you 20 cents the next time since everyone wants to believe 20%=100%.
Boots was a crook!!! But he never owned a team and never had the capital to do so. He never had the NHL look into his finances because he NEVER had to since he was not buying a team.

Once again the actions of other people don't change the fact that it was Balsillie and Rodier lying and deceiving people.

Freeman was put in a vey difficult position from a tax and cash perspective due to that mess-- which if Leipold and Lieweke hadn't facilitated -- would never have happened! That would have indicated Boots did not have the money. Period. So yes, members of the NHL BOG made their own due diligence process fail. And these were the character references rolled out to blackball JB? Please.

Nashville fans are fortunate Cigarran came along and treated this as a matter of civic pride, and I'm happy for him and Preds fans this worked out. No thanks to the honorable Mssrs Leipold and Lieweekly.

None of which changes the fact that he and Daly filed a sworn affidavit in a federal court that made some pretty damning comments about Balsillie.

Alleging what appears to be tortious interference on the part of Rodier is an extremely serious statement to make, to say nothing of everything else in the affidavit.

It reminds of when I was a mere 15 or 16 years old, and my father sat me down and said, "Son, if there's one thing that you should not ever, ever do, it's cross a federal judge. Outside of me, those are the only people in the world who can make you regret the day you were born."

I'm not protecting the characters of any of the names mentioned, just pointing out there are lots of pots and kettles.

 

[Gnashville]

I'm not not leaf fan I hate to leafs. But if someone wants to suggest they ain't the straw that stirs the drink let them. It makes sorting out the cranks easier.

[MOD]

[...]

He is not placing them in revenue as a second rate market but it's ridiculous to claim them as anything but a poorly run organization. How they do not invest their massive profits back into the franchise shows incompetence. But they have a brainwashed fan base that supports this stupidity along with Edmonton. Even they both have empty seats all over the building at the end of the season but because those seats are sold months in advance they count them as occupied. I will photographs but I know after my past posts that you ignore the facts and continue to pound this table over and over again.

Or the empties in Edmonton

 

[Confucius]

[...]

He is not placing them in revenue as a second rate market but it's ridiculous to claim them as anything but a poorly run organization. How they do not invest their massive profits back into the franchise shows incompetence. But they have a brainwashed fan base that supports this stupidity along with Edmonton. Even they both have empty seats all over the building at the end of the season but because those seats are sold months in advance they count them as occupied. I will photographs but I know after my past posts that you ignore the facts and continue to pound this table over and over again

You have no idea how many hockey fans in the GTA do not support the Leafs. I would say over 75% cheer for other teams. There is that many fans though that the Leafs still benefit from sellouts. No different than the Panthers drawing 10,000. It's just that there is a bigger fan base here than Florida has. So the 18000 that show up at the ACC are no more brain dead than the 10,000 or less fans that showup in any other city.

If 75% of the hockey fans in Nashville were fans of other teams, how many fans would there be at your average game?

MLSE realizes that and realizes all the money that is being left on the table. Why else would they spend 50 million on a coach? Not to mention all the other recent hirings.

When the Leafs get good the money spent today on Leaf games and merchandise will seem like peanuts. What will you say then?

 

[Headshot77]

I agree with all of the above. It really goes to show just how fantastic the GTA is for hockey as a market. Logically, it doesn't make sense that New York has 3 teams and LA 2, while there is only 1 in the GTA.

 

[KevFu]

I agree with all of the above. It really goes to show just how fantastic the GTA is for hockey as a market. Logically, it doesn't make sense that New York has 3 teams and LA 2, while there is only 1 in the GTA.

Well, it does from the standpoint of "Willingness to sell a share of their market."

Bruce McNall needed cash, so he sought the territorial rights fees from the Ducks.
The Rangers allowed the Islanders in to their market to thwart the WHA's attempt at a NY franchise.

 

[Carolinas Identity*]

God bless Jim Balsillie because of the attention he created, we now have 7 and probably 8 very soon.

Thanks again Jim.

i refuse to believe that this is a serious post

this is essentially saying that we should also praise donald sterling, because the attention he created increased the value of every nba franchise by ~250m

 

[Carolinas Identity*]

He is not placing them in revenue as a second rate market but it's ridiculous to claim them as anything but a poorly run organization. How they do not invest their massive profits back into the franchise shows incompetence. But they have a brainwashed fan base that supports this stupidity along with Edmonton. Even they both have empty seats all over the building at the end of the season but because those seats are sold months in advance they count them as occupied. I will photographs but I know after my past posts that you ignore the facts and continue to pound this table over and over again.

another important aspect of this to remember as far as seating goes, is the facilities themselves can lead to misleading and easily warped bs

as an example, you know those crazy wpg fans who are so loud and crazy that no team can ever go in there and win?

it seats 15,004

jobing.com arena in glendale seats 18,300
bridgestone arena in nashville seats 20,000
bb&t arena in sunrise seats 19,250
pnc arena in raleigh seats 19,772
american airlines centre in dallas seats 19,323

last season, according to ESPN, the jets drew 100,000 more fans than the hurricanes (the team i am most familiar with), which is pretty paltry to be fair, what is interesting though, is the jets averaged 100.2% ticket sales and the hurricanes 67.4%

you give raleigh a half ass decent team and that % number will sky rocket

 

[TheLegend]

Not sure whether to put this here or in the Phoenix thread.

Interesting, but long read from an American Bar Association bankruptcy committee -

ABA Business Bankruptcy Committee
Chapter 11 Subcommittee
Fall 2010

Pucks, Baseballs, and...Franchise Auctions? Lessons from
the Wide World of Sports Bankruptcies

Hon. Robert D. Drain, Bankr. S.D.N.Y., White Plains, NY
Susan M. Freeman, Lewis and Roca LLP, Phoenix AZ
Thomas J. Salerno, Squire Sanders & Dempsey LLP, Phoenix AZ
J. Gregory Milmoe, Skadden, Arps, Slate, Meagher & Flom LLP,
New York City NY
Bryan Krakauer, Sidley Austin LLP, Chicago IL

Moderated by Michael D. Reed Pepper Hamilton, Philadelphia PA​

It should be noted that Thomas Salerno was attorney for Jerry Moyes and worked behind the scenes with Richard Rodier to convince Moyes to go with Balsillie's (nee Rodier's) BK scheme to get the Coyotes.

 

[GuelphStormer]

i refuse to believe that this is a serious post

this is essentially saying that we should also praise donald sterling, because the attention he created increased the value of every nba franchise by ~250m

believe what you like, thats fine. but balsillie did indeed single handedly create sufficient hype and inertia that did pave the way for winnipeg and will result in quebec. how he did that, or whether you or me or the easter bunny agrees with the ethics of his various attempts, is absolutely irrelevant to what did and continues to occur.

God Bless Jim Balsillie.

 

[Grudy0]

believe what you like, thats fine. but balsillie did indeed single handedly create sufficient hype and inertia that did pave the way for winnipeg and will result in quebec. how he did that, or whether you or me or the easter bunny agrees with the ethics of his various attempts, is absolutely irrelevant to what did and continues to occur.

God Bless Jim Balsillie.

The reality is that anything Balsillie did had nothing to do with the relocation of the Atlanta Thrashers to Winnipeg. It is a fairy tale to think that Balsillie did anything to help True North purchase and relocate a team.

 

[Gnashville]

another important aspect of this to remember as far as seating goes, is the facilities themselves can lead to misleading and easily warped bs

as an example, you know those crazy wpg fans who are so loud and crazy that no team can ever go in there and win?

it seats 15,004

jobing.com arena in glendale seats 18,300
bridgestone arena in nashville seats 20,000
bb&t arena in sunrise seats 19,250
pnc arena in raleigh seats 19,772
american airlines centre in dallas seats 19,323

last season, according to ESPN, the jets drew 100,000 more fans than the hurricanes (the team i am most familiar with), which is pretty paltry to be fair, what is interesting though, is the jets averaged 100.2% ticket sales and the hurricanes 67.4%

you give raleigh a half ass decent team and that % number will sky rocket

Nashville only seats 17113 they do have SRO but that's around 500

The reality is that anything Balsillie did had nothing to do with the relocation of the Atlanta Thrashers to Winnipeg. It is a fairy tale to think that Balsillie did anything to help True North purchase and relocate a team.

But he took credit for it and he never lies.
http://www.thestar.com/sports/hockey/2009/10/01/its_game_over_for_balsillie.html

"Nobody can deny that we are now a big step closer to having a seventh NHL team in Canada," Balsillie said in a statement. "It doesn't matter who owns that team. When that day comes, I will be the first in line to buy a ticket to the home opener."

........Still waiting on him attending a game in Winnipeg as he promised.

He also took credit for saving Nashville, and Pittsburgh. Oh what a great human being he is. Just ask him he will tell you.

 

[Major4Boarding]

It should be noted that Thomas Salerno was attorney for Jerry Moyes and worked behind the scenes with Richard Rodier to convince Moyes to go with Balsillie's (nee Rodier's) BK scheme to get the Coyotes.

(Nit) - You must be thinking of Earl Scudder, TL, not Salerno. Salerno only represented Dewey Ranch Hockey, LLC for the Bankruptcy Court proceedings.

 

[GuelphStormer]

The reality is that anything Balsillie did had nothing to do with the relocation of the Atlanta Thrashers to Winnipeg. It is a fairy tale to think that Balsillie did anything to help True North purchase and relocate a team.

oh, i disagree strongly.

directly, of course he was not involved in negotiations between TNSE, ASG and the NHL to move the thrashers.

but he created the context for everything ... he wasnt just fighting for a team in hamilton, he was very publicly and aggressively fighting for another team in Canada

folks here can argue that bettman will do what bettman wants to, but balsillie created an absolute and undeniable expectation across the Canadian hockey/sports fan and media landscape that helped force bettman's hand. sure, the logistics were conveniently favourable to move the thrashers to winnipeg, but i have no doubt that bettman felt a real pressure to go back to Canada and that pressure was the direct result of Balsillie's overall campaign to put one or more new teams in Canada. indeed that campaign continues to put pressure on Bettman to makeiteight, probably even makeitnine.

 

[Confucius]

oh, i disagree strongly.

directly, of course he was not involved in negotiations between TNSE, ASG and the NHL to move the thrashers.

but he created the context for everything ... he wasnt just fighting for a team in hamilton, he was very publicly and aggressively fighting for another team in Canada

folks here can argue that bettman will do what bettman wants to, but balsillie created an absolute and undeniable expectation across the Canadian hockey/sports fan and media landscape that helped force bettman's hand. sure, the logistics were conveniently favourable to move the thrashers to winnipeg, but i have no doubt that bettman felt a real pressure to go back to Canada and that pressure was the direct result of Balsillie's overall campaign to put one or more new teams in Canada. indeed that campaign continues to put pressure on Bettman to makeiteight, probably even makeitnine.

Not to mention he helped increase all NHL teams value not once but three times. Offered way more for the Pens than they were worth at the time. Then offered way more for the Preds an yet again for the Coyotes.

 

[Gnashville]

oh, i disagree strongly.

directly, of course he was not involved in negotiations between TNSE, ASG and the NHL to move the thrashers.

but he created the context for everything ... he wasnt just fighting for a team in hamilton, he was very publicly and aggressively fighting for another team in Canada

folks here can argue that bettman will do what bettman wants to, but balsillie created an absolute and undeniable expectation across the Canadian hockey/sports fan and media landscape that helped force bettman's hand. sure, the logistics were conveniently favourable to move the thrashers to winnipeg, but i have no doubt that bettman felt a real pressure to go back to Canada and that pressure was the direct result of Balsillie's overall campaign to put one or more new teams in Canada. indeed that campaign continues to put pressure on Bettman to makeiteight, probably even makeitnine.

Bettman was helping Winnipeg as far back as 2005. He is not the overlord of the NHL with total control over franchise location either. Balsillie took and was given way more credit than he deserves. Yes he showed how not to deal with the NHL, but that's all. The makeit7 crap was showmanship and a way to gain support for him. IF he was such a patriot why did he instantly cancel the movement when he lost in the courts? The jetowner website (which was around longer) did more than Balsillie.