Phoenix bankruptcy/ownership Part XVI: Barbarian at the Gate

[jkrdevil]

Wasn't his bid supposed to be thrown out months ago? The longer this goes on, the better it is for Balsillie.

It has gone on because the judge has not ruled on anything in hopes of keeping this out of appeals court. I think if it goes to appeals court where the value of his bid and what it means to creditors won't be a consideration and the only thing is the legality of an associations right to approve its membership he is likely to lose.

what interference? the bids are being produced , best one wins, all week Balsillie will tighten the vice

One can easily argue they interfered in the negotiations between Reinsdorf and Glendale causing him to drop out.

 

[HockeyScholar]

It has gone on because the judge has not ruled on anything in hopes of keeping this out of appeals court. I think if it goes to appeals court where the value of his bid and what it means to creditors won't be a consideration and the only thing is the legality of an associations right to approve its membership he is likely to lose.

That's your opinion, and your opinion is irrelevant (as is mine), don't try to pass it off as a fact.

One can easily argue they interfered in the negotiations between Reinsdorf and Glendale causing him to drop out.

And it could also easily be argued that Reinsdorf's bid was terrible, and that's why the COG had no interest.

 

[taunting canadian]

Well, if Balsillie's bid is thrown out by the courts (at whatever level) then the team would probably go to the NHL under its bid. Their bid already has the approval of the creditors. So I doubt that would happen.

Keep in mind that Moyes contends that he is a creditor. Is he going to accept the 0$ from the NHL's offer and quietly go away, should Baum rule in favor of the NHL's bid? Or will he want to appeal?

 

[billy blaze]

One can easily argue they interfered in the negotiations between Reinsdorf and Glendale causing him to drop out.

again, what interference?

 

[popaclay]

Well as far as the NHL's argument goes it doesn't change anything, he is still has been rejected 26-0. Their argument is that they have a right to choose who can join the NHL.

Now the higher offer may help to entice Baum to accept his bid but the NHL will still appeal. An appellate court won't look at all about the value of their bid, their job is to review if the established law was applied properly.

It might help him in the short run, but in the long run it might not change the thing if one thinks the NHL has the higher ground legally (which they might given the precedents).

I think the COG would be doing nicely at 40 Million. That is 15 Million more than Toronto got for the Skydome from Rogers. COG still gets to keep the building.

 

[Artyukhin*]

Does Bettmen have any chips left to put on the table? is $140 his final offer?


or is this a poker game ?




I so would love to see this Betmen vs Basillie check book for check book...it would be a fitting way to see this end

well i guess Jim has a few more chips to put up ..

tonight opens up his check book to 242 million now vs Bettmen still at 140 million


both will break the lease


Your up Gary.

NHL deputy commissioner Bill Daly was to the point when asked in an e-mail by Canwest News Service if the league will be upping the ante before Thursday's auction.

"No," was his one-word response, but the league is expected to table more documents later this week.

http://www.vancouversun.com/business/Balsillie+Coyotes/1970037/story.html

 

[Artyukhin*]

"PSE cannot force Glendale to sell its claims, of course, but is willing to buy them for $50 million," the PSE lawyers wrote.

Further, if PSE wins the auction and the NHL appeals — as the league has vowed it will — PSE will put $25 million in an interest-bearing bank account "so that the unsecured creditors will recover the time-value of money when the court's decision is upheld."

http://www.vancouversun.com/business/Balsillie+Coyotes/1970037/story.html

The new offer only guarantees Glendale $40 million as up to $10 million could be taken away depending on the relocation fee PSE will be ordered to pay if it wins. Balsillie's camp believes $11.2 million to $12.9 million is a reasonable fee for moving the club, while the NHL counters it should be between $101 million and $195 million.

 

[Alberta Yote]

Does anybody thing that the CoG is going to drop their claims for likely $40 but maybe $50 mill?

I don't.

 

[voxel]

I've always argued that the NHL should eat the cost of running the team for 5 years in Phoenix.... (5 x $30M/yr) before breaking the lease and selling the teams to another owner (i.e for $150M to $200M).

Their bid was a bit a surprise (too low) to me as I expected somewhere along the lines of $150M + $80M (non-NHL secured creditors). Moyes still might not get a cent either.

With JB's latest bid, how could the NHL not offer $230M for the Yotes?

 

[william_adams]

Does anybody thing that the CoG is going to drop their claims for likely $40 but maybe $50 mill?

I don't.

really depends on how much they think they're going to get under A) a renegotiated lease with a glendale owner, or B) a settlement from the NHL from breaking the lease...

 

[Dado]

I will say it again. Isn't Basille hurting himself again?

I don't see how. Bottom line is that he's not only still in the game, he is close to becoming the Last Bid Standing.

Seems to me they've played this game quite well, when so many were convinced he'd be drummed out of the process months ago.

 

[mouser]

Interesting response by the NHL to a passage in one of their motions that's been oft-cited by the Debtors in their filings. [emphasis left as-is from document]

http://docs.bmcgroup.com/phoenixcoyotes/docs/azb_2-09-bk-9488_911.pdf

The Debtors Have Repeatedly and Deliberately Mischaracterized the NHL's Interest in These Cases.

6. In at least four pleadings, the Debtors have repeated a quote from the NHL's Memorandum of Points and Authorities in Support of National Hockey League's Motion for Determination (I) of Authority to Manage the Business and Affairs of the Debtors, and (II) that William Daly is the Representative of the Estates, filed May 13, 2009 (Docket No. 91) (the "Control Motion"), that the NHL's "fundamental interest in taking control of the Coyotes is to preserve the viability, good will and success of the NHL as a major professional sports league, rather than to protect any creditor interest." By this quote, the Debtors have vehemently argued that the NHL's actions are inconsistent with the "seminal principal" of maximizing asset values for the benefit of all creditors.

7. When the Control Motion is read in context, however, it is clear that the Debtors not only mischaracterized this quote, but also that they have done so deliberately. The context within which the NHL's statement was made is unambiguously clear. The comment addressed the oftrepeated accusation that the League was attempting to exercise control because it was acting with its proverbial creditor hat – that is the "creditor interest" to which the mischaracterized quote refers:

[T]he suggestion that the NHL was only acting as a "creditor" in exercising its governance rights is specious; the November 14, 2008 proxy agreements that effectuated the NHL's control of the Club predated any NHL loans. More importantly, the NHL's fundamental interest in taking control of the Coyotes is to preserve the viability, good will and success of the NHL as a major professional sports league rather to protect any creditor interest.​

The NHL was clarifying that it was not acting to protect its own creditor interest, not that it was not acting to protect the Debtors' creditors as a whole. In fact, as the NHL's Bid demonstrates, the League is committed to providing for the legitimate creditors in these cases by assuming liabilities, making cash payments and providing 100% of any Net Profit of a resale of the Team to the estates. No other bidder has shown more commitment to the creditor body as a whole.

 

[HockeyScholar]

Does anybody thing that the CoG is going to drop their claims for likely $40 but maybe $50 mill?

I don't.

As opposed to the NHL keeping the team in Phoenix for another year, then selling to a third party who will move the team immediately resulting in COG getting nothing?

It has become painful obvious that the Coyotes have no long term future in Arizona. Now it's time for the COG to determine what sort of compensation they can get.

 

[Egil]

Does anybody thing that the CoG is going to drop their claims for likely $40 but maybe $50 mill?

I don't.

That is unknown. I doubt that a large subsidy would be popular either, and $50(40) mil to walk away may just do the trick.

 

[Ward Cornell]

Well, if Balsillie's bid is thrown out by the courts (at whatever level) then the team would probably go to the NHL under its bid. Their bid already has the approval of the creditors. So I doubt that would happen.

and could any of the creditors turn around then and sue the NHL for their 'lost money' because of the NHL's position?

Hmmmm.

 

[bbud]

When was it ever a matter of "respect"? I think you're reading too much into this.

you are correct and fans who do support the game at a way higher level do feel disrespect i think that shows in these boards i am sure you do see that , but true its not part of the issue to GB or NHL only our money is just like every other business out there.

 

[bbud]

Interesting response by the NHL to a passage in one of their motions that's been oft-cited by the Debtors in their filings. [emphasis left as-is from document]

http://docs.bmcgroup.com/phoenixcoyotes/docs/azb_2-09-bk-9488_911.pdf

Ok why is their bid based on a clause to get out of Pho in one year then though?
I may be way off here but it seems opposite to what they put in to bid .

 

[taunting canadian]

really depends on how much they think they're going to get under A) a renegotiated lease with a glendale owner, or B) a settlement from the NHL from breaking the lease...

The NHL's position is that they will not have to "break the lease", since the lease will still be owned by Moyes. So option B) is even worse from the CoG's point of view. They will be left trying to obtain their claim with the rest of the creditors.

 

[Marc the Habs Fan]

The crazy thing is, I am not even sure this new offer is Ballsy's ''godfather'' offer.

 

[billy blaze]

The crazy thing is, I am not even sure this new offer is Ballsy's ''godfather'' offer.

lots more cash in the kitty I believe, to Balsillie it is a death match

 

[Proboscis]

It really does seem silly that this guy has been so stonewalled.

 

[dashingsilverfox*]

This latest gambit by Balsille is obviously an attempt to force the COG to look at which situation is likely to give them the most favorable resolution.

A brilliant move by PSE IMO.

 

[bbud]

The NHL's position is that they will not have to "break the lease", since the lease will still be owned by Moyes. So option B) is even worse from the CoG's point of view. They will be left trying to obtain their claim with the rest of the creditors.

So the NHL is leaving the COG in as bad a spot as possible , either accept terms as JR wanted or too bad and after that its pay up or the team leaves town .
This does 0 to protect fans as GB was so adamant about in his 7 year no movement talk to press when JB got involved and they call JBs character an issue.

 

[bbud]

This latest gambit by Balsille is obviously an attempt to force the COG to look at which situation is likely to give them the most favorable resolution.

A brilliant move by PSE IMO.

Sure must turn the furnace up to fry in NHL offices what will they claim this time lol.
Go ahead save Pho just face reality and sell JB a hamilton franchise .

 

[Artyukhin*]

It really does seem silly that this guy has been so stonewalled.

i often said wouldnt it have been fun to see 2 BIDDERs from Hamilton.


Even if they made the same offer it would be great to see how the second "hamilton bidder" was accepted and treated .

i guess it would really show us .