Post by WpgJets2008 on Sept 2, 2009 14:20:12 GMT -5
Glendale braces for costly fight
MARK SPECTOR Tuesday, September 1, 2009 Sportsnet.ca
www.sportsnet.ca/hockey/2009/09/01/glendale_coyotes/
As they gather again in Phoenix on Wednesday, this time to decide if the richest bid is allowed in the auction, we are reminded of what a mess the Phoenix Coyotes situation has become.
But while judge Redfield T. Baum rules on whether or not Jim Balsillie’s $212.5 million (all figures US) bid is eligible for the Sept. 10 auction, the largest unsecured creditor with perhaps the most to lose in this fight for a franchise will be in the court room, puffing its feathers and trying and look as large and ominous as it possibly can.
"Over $700 million (US)," said spokesman Gary Husk, when asked for a buy-out figure on the team’s lease at Jobing.com arena in Glendale. "It is a term set at the signing of the lease."
Rather than spend his own money to build a rink in Scottsdale, where the Coyotes may have had a chance at survival, former owner Steve Ellman accepted the nearly $200 million arena from the City of Glendale, signing a lease with an exit price of more than $700 million.
The problem? Leases are not secured in bankruptcy court.
Meanwhile, in filings on Friday, SOF Investments , the largest secured creditor — which means they get paid first, before the unsecured creditors — said it has forged an agreement with Ice Edge Holdings that would include repayment of the $80 million debt owed to SOF by the Coyotes.
Both bidders who plan to play in Phoenix this season — Ice Edge and the NHL — have said that negotiating a new arena deal with Glendale is a priority. Balsillie has no interest in that, as the Research in Motion co-CEO would uproot the team and play in Hamilton if he wins the auction.
"Balsillie’s bid is totally conditional on his ability to move," said NHL deputy commissioner Bill Daly. "Ours contemplates the Coyotes playing clearly for the ‘09-‘10 season, but hopefully into the future.
"Balsillie’s is a qualified bid … whether there can be a season for the Coyotes anywhere but Phoenix in the ‘09-10 season. Our position is that there can’t be."
It seems clear: Glendale will have to amend on their lease, or risk being stuck with a hockey arena and no team. The NBA’s Phoenix Suns are entrenched in downtown Phoenix, so losing 41 dates a year would be a serious blow to the arena.
"We are an interested party and … have made the most significant financial investment of any creditor," Husk points out. "The NHL has indicated that they want to take a year to solicit other proposals. We feel very confident that within a year, between the league and the City of Glendale, we will have attracted bidders who will want to keep the team in Glendale."
Over 800 documents have been filed thus far, and all parties sent in a fresh batch on Monday.
Though the possibility exists that Balsillie’s dream could die on Wednesday, it is unlikely that Judge Baum would eliminate the largest bidder from the process just eight days before the auction date.
Balsillie has offered $212.5 million for the Coyotes, while the Ice Edge bid comes in at $150 million, and the league’s bid to buy their own franchise opens at $140 million.
"Clearly (Ice Edge) have improved their bid from what they submitted a month earlier," Daly said of the group that hopes to play a handful of games in Saskatoon. "But there continues to be some contingencies, including getting a deal with the city."
Chris
MARK SPECTOR Tuesday, September 1, 2009 Sportsnet.ca
www.sportsnet.ca/hockey/2009/09/01/glendale_coyotes/
As they gather again in Phoenix on Wednesday, this time to decide if the richest bid is allowed in the auction, we are reminded of what a mess the Phoenix Coyotes situation has become.
But while judge Redfield T. Baum rules on whether or not Jim Balsillie’s $212.5 million (all figures US) bid is eligible for the Sept. 10 auction, the largest unsecured creditor with perhaps the most to lose in this fight for a franchise will be in the court room, puffing its feathers and trying and look as large and ominous as it possibly can.
"Over $700 million (US)," said spokesman Gary Husk, when asked for a buy-out figure on the team’s lease at Jobing.com arena in Glendale. "It is a term set at the signing of the lease."
Rather than spend his own money to build a rink in Scottsdale, where the Coyotes may have had a chance at survival, former owner Steve Ellman accepted the nearly $200 million arena from the City of Glendale, signing a lease with an exit price of more than $700 million.
The problem? Leases are not secured in bankruptcy court.
Meanwhile, in filings on Friday, SOF Investments , the largest secured creditor — which means they get paid first, before the unsecured creditors — said it has forged an agreement with Ice Edge Holdings that would include repayment of the $80 million debt owed to SOF by the Coyotes.
Both bidders who plan to play in Phoenix this season — Ice Edge and the NHL — have said that negotiating a new arena deal with Glendale is a priority. Balsillie has no interest in that, as the Research in Motion co-CEO would uproot the team and play in Hamilton if he wins the auction.
"Balsillie’s bid is totally conditional on his ability to move," said NHL deputy commissioner Bill Daly. "Ours contemplates the Coyotes playing clearly for the ‘09-‘10 season, but hopefully into the future.
"Balsillie’s is a qualified bid … whether there can be a season for the Coyotes anywhere but Phoenix in the ‘09-10 season. Our position is that there can’t be."
It seems clear: Glendale will have to amend on their lease, or risk being stuck with a hockey arena and no team. The NBA’s Phoenix Suns are entrenched in downtown Phoenix, so losing 41 dates a year would be a serious blow to the arena.
"We are an interested party and … have made the most significant financial investment of any creditor," Husk points out. "The NHL has indicated that they want to take a year to solicit other proposals. We feel very confident that within a year, between the league and the City of Glendale, we will have attracted bidders who will want to keep the team in Glendale."
Over 800 documents have been filed thus far, and all parties sent in a fresh batch on Monday.
Though the possibility exists that Balsillie’s dream could die on Wednesday, it is unlikely that Judge Baum would eliminate the largest bidder from the process just eight days before the auction date.
Balsillie has offered $212.5 million for the Coyotes, while the Ice Edge bid comes in at $150 million, and the league’s bid to buy their own franchise opens at $140 million.
"Clearly (Ice Edge) have improved their bid from what they submitted a month earlier," Daly said of the group that hopes to play a handful of games in Saskatoon. "But there continues to be some contingencies, including getting a deal with the city."
Chris