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Post by WPGISNHL on Aug 3, 2009 19:38:05 GMT -5
www.azcentral.com/news/articles/2009/08/03/20090803gl-coyotes0803-ON.htmlReinsdorf may withdraw bid for Coyotes; auction postponedRebekah L. Sanders - Aug. 3, 2009 03:35 PM The Arizona Republic One of the most high-profile bidders for the Phoenix Coyotes is threatening to yank his offer from U.S. Bankruptcy Court over an extraordinary leak of confidential information. The leak on Friday outraged Chicago sports mogul Jerry Reinsdorf, who along with other investors has offered $148 million for the team, and sent officials with Glendale and the NHL scrambling over the weekend to repair relations with one of the few potential buyers wanting to keep the Coyotes in the Valley.At the request of the league and the city, Judge Redfield Baum agreed Monday to postpone the auction of the financially flailing team, which had been scheduled for Wednesday, to Sept. 10. Glendale and the NHL said they needed the additional time to regroup with Reinsdorf's group and another bidder. The confidential information was posted publicly through the court's Web site by attorneys for Coyotes owner Jerry Moyes. The document described proposals Reinsdorf has made during negotiations with Glendale on how to raise millions in yearly team revenue. The team has lost as much as $30 million each season. Almost immediately, Reinsdorf's attorneys expressed "complete disbelief that such confidential information was released" and "threatened to walk away from the bidding process," Glendale officials told the court in filings Monday. The disclosure "undermines the ability to get a deal negotiated with any bidder," including a second buyer group, Ice Edge Holdings, the city said. If bidders walked away, the damage would be "staggering for Glendale." The city owns Jobing.com Arena, where the Coyotes play, and invested about $180 million in the facility, a key feature in Glendale's sports and entertainment district off Loop 101 and Glendale Avenue. The leaked confidential filings say Reinsdorf has asked for a special taxing district to be created in the district that would provide as much as $23 million next fiscal year through a "voluntary" surcharge on retail sales. Additionally, if the team were still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and relocated, according to Moyes' filing. There was no indication that Glendale officials had agreed to any of these conditions, nor has a City Council meeting to approve such a deal been scheduled. It was unclear whether the leak was intentional or not. It appears Moyes' attorneys indicated before filing that they planned to submit the documents to the judge under seal. Glendale and the NHL, however, paint it as a ploy by Moyes to undermine Reinsdorf's bid, which does not include money to satisfy Moyes' $104 million claim as an unsecured creditor. Moyes prefers a $212.5 million offer from Canadian businessman Jim Basillie that would relocate the team to Ontario and put some money back in Moyes' pocket. One document was removed from the Web site by the court clerk later. Another document containing a brief summary of the sealed facts remains. Glendale City Manager Ed Beasley asked Judge Baum to hold in contempt Moyes' counsel at Phoenix-based Jennings, Strauss and Salmon. Baum took the matter under advisement Monday and will issue a ruling later, as well as addressing a request to consider removing Moyes from the sale process.
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Post by WHA on Aug 3, 2009 19:47:35 GMT -5
This has nothing to do with hockey it is all about the big money people trying to milk the public purse with hockey as the decoy!
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Post by wagner3 on Aug 3, 2009 19:55:10 GMT -5
Great news!! WHA is correct...
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Post by roosta604 on Aug 3, 2009 20:01:34 GMT -5
This can only be good news...someone come out of the woodwork and make a bid
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Post by M.C. Molineux on Aug 3, 2009 20:28:39 GMT -5
TSN says that the auctions for staying and moving could be combined. Sounds like Judge Baum is very underwhelmed by the interest in keeping the team in Phoenix. Perhaps a third category of bidders will emerge... bidders who are approved by the NHL and want to move to a location approved of by the NHL.
If Balsillie is bidding $212 million, and Reinsdorf and Ice Edge are bidding approximately $150 million, perhaps my hypothetical third category of bidders could take it with $170 mil or so? Especially since it turns out that Reinsdorf can move in 5 years anyway, and Ice Edge can hold games in Saskatoon. The line between the stay-in-Phoenix bidders and the relocation bidder(s) is blurring, which is what I think has caused Baum to consider combining the auctions.
It's all good for Winnipeg. If I were Judge Baum, I'd tell Bettman that everyone knows that neither of these bidders are committed to Phoenix, and I could get more money for the creditors if we just acknowledge that this team is moving. So I'm opening this baby up to bidders from anywhere outside of other teams' "protected zones".
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Post by WPGISNHL on Aug 3, 2009 22:24:50 GMT -5
TSN says that the auctions for staying and moving could be combined. Sounds like Judge Baum is very underwhelmed by the interest in keeping the team in Phoenix. Perhaps a third category of bidders will emerge... bidders who are approved by the NHL and want to move to a location approved of by the NHL. If Balsillie is bidding $212 million, and Reinsdorf and Ice Edge are bidding approximately $150 million, perhaps my hypothetical third category of bidders could take it with $170 mil or so? Especially since it turns out that Reinsdorf can move in 5 years anyway, and Ice Edge can hold games in Saskatoon. The line between the stay-in-Phoenix bidders and the relocation bidder(s) is blurring, which is what I think has caused Baum to consider combining the auctions. It's all good for Winnipeg. If I were Judge Baum, I'd tell Bettman that everyone knows that neither of these bidders are committed to Phoenix, and I could get more money for the creditors if we just acknowledge that this team is moving. So I'm opening this baby up to bidders from anywhere outside of other teams' "protected zones". I kind of agree that this is heading towards an open bidding process for only "approved" owners and "approved" locations. (I read on the Sportsnet Forums, from the resident AEG insider LArider, that an ownership group in KC has been pre-approved(?!?) already which makes me believe a Winnipeg group which has been hinted at being strong and deep pocketed is also pre-approved...total speculation...but the NHL is not stupid and is guaranteed to be preparing for the inevitable). This narrows it down to realistically only KC and Winnipeg on such short notice as they have the buildings. I might add that unfortunately (or maybe fortunately considering the chaos that has plagued this particular franchise) KC is where I still believe this team is pre-destined to eventually land. It may not even be inconceivable that the Coyotes start out in Phoenix next season and finish in KC. In a nutshell, the Reinsdorf offer is take ownership of the team in exchange of assuming the debt on the condition that Glendale (or more precisely the businesses in and around the Glendale arena) volunteering to subsidize the team 23 million per season AND Glendale adding 15 million if additional losses are incurred OR releasing the team for relocation without substantial penalty?!?! This is what the NHL wants the judge to accept as the "best offer"?
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Post by Jordy Ramone on Aug 3, 2009 23:06:01 GMT -5
Wow this is kind of crazy. But let's all take comfort in bettman s email. Went something like this " If phoenix had to move it should be offered to Winnipeg first"! Now we got to step up and prove ovi wrong!
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Post by M.C. Molineux on Aug 3, 2009 23:12:26 GMT -5
Yes, because proving Ovi wrong is the most important thing in all of this...
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Post by Jordy Ramone on Aug 3, 2009 23:25:41 GMT -5
Well consirdering if he was wrong it would mean we got a team... Then Yea let's prove him wrong!
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Post by bromine on Aug 4, 2009 1:21:55 GMT -5
JUDGE MOVES COYOTES AUCTION SO BIDDERS CAN FINALIZE OFFERS www.tsn.ca/nhl/story/?id=286664PHOENIX - A bankruptcy judge has moved the local auction of the Phoenix Coyotes from Wednesday to Sept. 10. The question is whether Jerry Reinsdorf's US$148 million bid will still be on the table then. After Judge Redfield T. Baum postponed the sale date on Monday, NHL deputy commissioner Bill Daly worried that Reinsdorf may be wavering in his effort to buy the financially ailing franchise amid repeated challenges by Coyotes owner Jerry Moyes and Canadian billionaire Jim Balsillie, who wants to move the team to Hamilton. "I think from time to time, (Reinsdorf has) become very frustrated with the process," Daly told reporters outside the courthouse. "He feels like he's being fought at every turn, and he's already invested a lot of money in this. At some point, we're concerned that he may just reach a decision that it's not worth all the time and money and effort when he's getting resisted as strongly as he is by Mr. Moyes and Mr. Balsillie." Reinsdorf's lawyer declined to speak to reporters after the hearing. Reinsdorf's frustration apparently grew when Moyes' lawyer, in court filings, revealed details of Reinsdorf's negotiations with the city of Glendale, Ariz., on a possible new lease for Jobing.com Arena. Reinsdorf has asked for a special taxing district to be created near the arena that would pay the new owners as much as $23 million next year, according to documents obtained by The Arizona Republic. And if the team were still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and moved without penalty, according to the newspaper.The documents have since been removed from public. There is no indication that Glendale officials have agreed to those financial incentives, although Glendale lawyers said in court documents last week that the city was "very close to a definitive agreement" that would include "strong economic essentials." The Coyotes have never made a profit since moving from Winnipeg in 1996. On Monday, Glendale lawyers raised the possibility that the disclosures about the negotiations would chill local offers. "The Reinsdorf group is rightfully upset because the terms with Glendale concern economic issues which it is seeking to resolve in making its bid," the city's lawyers said in court filings. "If the bidders walk away from this Glendale sale process, the damage caused by the disclosure will be staggering for Glendale." In court, Glendale's lawyers said, "Our challenge, frankly, is having a bidder with us" on Sept. 10. The complicated sale has been conducted on two tracks, with different deadlines for bidders who would keep the team in Arizona and those who want to move it. But Baum is considering combining the bids in one auction. Sept. 10 was originally the date for relocation offers. Baum granted the delay at the NHL's request so local bidders would have more time to finalize their offers, and he brushed aside arguments over the merits of Reinsdorf's offer. "All we're talking about today is the 'when,"' Baum said. "We're not talking about the merits." "There's no assurance there's going to be a sale approved to anybody," Baum said. Another local offer is being prepared by Ice Edge Holdings. Balsillie has offered $212.5 million to move the team to Hamilton. The NHL's board of governors last week unanimously rejected Balsillie's ownership application while approving Reinsdorf's. Balsillie maintains that the team could move to Canada for the upcoming season -- a possibility dismissed by league lawyers in court on Monday. The Coyotes are scheduled to open their exhibition season five days after the new auction date. --- sounds like Glendale is making massive concessions to Reinsdorf. If the article is true, and the Coyotes continue to lose money over the next 5 seasons (and in all likelihood, they will if they stay), Glendale will be on the hook for 83 million more to the team! That, on top of the 180 million they spent on the arena. If I was a taxpayer there I'd be pissed.
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Post by bromine on Aug 4, 2009 1:29:14 GMT -5
Incidentally, I guessed a while ago that the Reinsdorf bid wouldn't go through. weird. Something smells fishy. Perhaps the Reinsdorf deal is actually dead or dying. There's no evidence of that yet, but this could be a sign the NHL is trying to be proactive and bringing in another buyer before word gets out that Reinsdorf has pulled the plug. Just speculation.
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Post by teemu13 on Aug 4, 2009 8:49:02 GMT -5
This is all great news for a potential move to Winnipeg...
MORE IMPORTANTLY, it is an example of why speculation and leaking of sensitive information can be extremely detrimental to the "cause". Business people hate negotiating in the press, and detest every little detail making it to the media.
(Especially, when you are trying to hold a city hostage, like Reinsdorf appears to be doing.)
These leaks can kill a deal; sometimes before a deal is even close to being finalized.
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Post by WHA on Aug 4, 2009 9:38:19 GMT -5
Leaks only kill bad and shady deals not ones that are sincere and in the best interests of most! Leaks allow watch dogs to due their due diligence instead of things being corruptly secret!
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Post by leer2006 on Aug 4, 2009 9:49:38 GMT -5
If I were Glendale I would tell Reinsdorfs to "go jets go!", cut my losses, let the Coyotes leave and start filling the arena with money making concert dates instead of hockey.
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Post by wagner3 on Aug 4, 2009 9:58:45 GMT -5
^ the NHL doesn't like transparency...
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Post by WHA on Aug 4, 2009 22:26:50 GMT -5
Hear is the proof of the above. Now that the public is aware of the fraud like funding to keep a hockey team alive while they cash in land deals worth millions all at the tax payers expense. The city and the bidder both want to dig a big hole to hide their shame. The only problem is these types are shameless scammers and will somehow paint the fact the facts were leaked as the problem rather than the intended heist.
Got to love it! All this grief because of some guy named Jim who wants a hockey team in Canada.
Bettman was in Long Island to lend support to using billions of taxpayers money for an arena and land development. Once again the decoy is the Islanders hockey team. Bettman should become a land developer instead of pretending to know something about hockey.
Judge issues show-cause order in Coyotes case
By THE ASSOCIATED PRESS
Phoenix Coyotes owner Jerry Moyes may be held in contempt of court for a filling he made last week. (AP Photo/Ross D. Franklin)
PHOENIX - A U.S. Bankruptcy Court judge is ordering the owner of the Phoenix Coyotes to show why he should not be held in contempt of court.
Judge Redfield T. Baum ordered Jerry Moyes, his wife Vickie and their lawyers on Tuesday to appear at a show-cause hearing on Wednesday morning. The Moyes' and their lawyers must show why they should not be held in contempt for "willfully violating" the confidentiality order issued by the judge on July 18 in the exchange of information between parties in the team's bankruptcy case.
Moyes' filing last Friday included details of negotiations between potential buyer Jerry Reinsdorf and the city of Glendale.
Glendale sought the contempt order on Monday, saying the city was "absolutely outraged" by the release of the information.
"Significant damage to the integrity of the sale process had been done and the whole sale process was compromised," the city said. "This is not an overstatement or hysterical reaction. It is the very harm that was not supposed to happen."
According to the city, the Reinsdorf group "expressed its complete disbelief that such confidential material was released by Moyes and threatened to walk away from the bidding process."
In addition to Moyes and his wife, the show-cause order names the law firm of Jennings, Strouss & Salmon, PLC. The firm represents Moyes as an individual in the complex case. A separate firm not subject to the show-cause order handled the bankruptcy filing on May 5 with Moyes listed as the lead creditor.
Glendale is seeking "that appropriate relief be fashioned immediately to curb and mitigate the chilling effect this disclosure and willful violation" will have on the sale process.
Reinsdorf's group has offered US$148 million to buy the team and keep it in Glendale, but according to the material in the Moyes filing the deal would include controversial and yet-to-be-approved agreements with the city.
Moyes opposes the Reinsdorf deal, which would give him little or no money. He supports a proposal by Canadian billionaire Jim Balsillie to buy the team for $212.5 million and move it to Hamilton. That deal would give Moyes about $100 million.
The NHL has unanimously rejected Balsillie as an owner.
On Monday, Baum delayed the sale of the team to anyone who would keep the franchise in Arizona until Sept. 10. The sale had been set for Wednesday, but the NHL asked for another month while another potential bidder puts a proposal together.
Baum is considering whether to open the Sept. 10 date to bidders who would move the team.
According to Glendale's filing, details of the negotiations that should have been made confidential were included in an appendix to Moyes' document filed on Friday. When city lawyers objected, the appendix was removed from the public record.
"The damage had already been done," the city said. "The press, public groups and other bidders had a chance to review this confidential information."
The Arizona Republic saw the appendix before it was removed.
It showed that Reinsdorf has asked for a special taxing district to be created near the arena that would pay the new owners as much as $23 million next year. And if the team was still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and moved without penalty, according to the newspaper.
Now, in place of the appendix in court records, is a statement that reads "The attachment originally filed under this docket entry has been removed. The removed attachment contained confidential information and therefore was removed at the request of the attorney."
The city contended the Moyes filing itself also includes material that should have been made confidential, and that information remains on the public record. Among other things, the filing says Reinsdorf has told the city that he needs $23 million a year in new revenue through a modified lease agreement or the business cannot be successful.
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Post by WpgJets2008 on Aug 5, 2009 9:41:03 GMT -5
Among other things, the filing says Reinsdorf has told the city that he needs $23 million a year in new revenue through a modified lease agreement or the business cannot be successful. Thanks for the article WHA! But this portion of the story is the key. Reinsdorf needs another $23 million in revenue in order to make a go of the Coyotes. And presumably that also incldues a ton of cuts and other changes to stop the losses from hitting $30+ million each year. (Good bye Gretzky, goodbye office rental outside the rink, etc. etc.) So now we have it in public, that the team is a money-shredder, possibly the worst in NHL history. That is not just what Moyes, the current owner, says but also what Reinsdorf, the prospective owner, now says. Here's the clincher! Remember when Gary Bettman's email said that it's hard to find a buyer for a team that loses $40 million a year? Now we have from all parties involved how bad it is and will continue to be. This validates Bettman's email yet again and it also shows the move to bankruptcy as the best one for the team by ending the lease among other contracts without the $700 million move penalty.No longer can the NHL look the other way or deny these sorts of stories. Not in Phoenix anymore. And in any NHL city that claims "every thing is just fine", the media won't let it go now, sensing another round of denial. This will have ramifications at the BOGs where Bettman had reportedly and off the record has tried to use the same deny-mislead-deny approach with his own bosses. That act might be getting a little old now seeing how this mess is now public. If Bettman is a cat, then the Coyotes cost him one of his nine lives with the BOG. And if Reinsdorf's bid doesn't get accepted, leaving Balsillie as the courts only option, then Bettman just might lose a few more lives before the Next Stanley Cup is presented. Chris
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Post by allthisgold on Aug 5, 2009 11:45:19 GMT -5
Has anyone found any articles about how the taxpayers of Glendale feel about the 23M per year and the payments is losses continue. One would think with the state of the economy down there that they would be hollering. Really doubt that the Reinsdorf did will be formally materialize.
Overall, I thought the lease was not bad for the hockey team to begin with. Can't imagine where the other 23M will come from.
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Post by leer2006 on Aug 5, 2009 12:40:00 GMT -5
Has anyone found any articles about how the taxpayers of Glendale feel about the 23M per year and the payments is losses continue. One would think with the state of the economy down there that they would be hollering. Really doubt that the Reinsdorf did will be formally materialize. Overall, I thought the lease was not bad for the hockey team to begin with. Can't imagine where the other 23M will come from. TAXES, TAXES AND MORE TAXES
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Post by bromine on Aug 5, 2009 13:08:09 GMT -5
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