Post by WpgJets2008 on Sept 23, 2009 14:09:16 GMT -5
Balsillie sweetens offer for Coyotes
David Shoalts Globe and Mail Sep. 23, 2009 02:55PM EDT
www.theglobeandmail.com/sports/balsillie-sweetens-offer-for-coyotes/article1298722/
Jim Balsillie has once again sweetened his offer for the Phoenix Coyotes.
When U.S. Bankruptcy Court Judge Redfield T. Baum opened an emergency hearing Wednesday morning to hear arguments about whether or not he should force the warring parties – Coyotes owner Jerry Moyes, Balsilllie, the NHL and the city of Glendale – into mediation on the sale, one of Balsillie’s lawyers introduced three changes to his $242.5-million (all currency U.S.) offer, one of which was presented to Glendale city council on Tuesday night. Balsillie also conceded he is willing to keep the Coyotes in suburban Glendale for the coming NHL season.
Jeffrey Kessler, Balsillie’s specialist in anti-trust law, told the court that three new terms were added to the offer.
One was to defer the closing until after Dec. 31, 2009. This is to allow a buyer to emerge who is willing to keep the team in Glendale. If one is found, Balsillie is willing to step aside and drop his plans to buy the team and move it to Hamilton. The second, which was disclosed to council on Tuesday night, is that $25-million of the $50-million Balsillie offered the city in exchange for droppings its damages claim if the arena lease is broken will be paid as soon as the court approves a sale. He also said the city can keep the $25-million even if the NHL wins an appeal and Balsillie eventually loses his bid for the Coyotes. And the final carrot was an offer to agree to a stay of the sale if Balsillie’s bid was accepted and the NHL appealed, plus post a bond sufficient to pay all of the creditors.
Judge Baum seemed impressed by the first two new terms, telling one of the NHL’s lawyers, “to an old bankruptcy judge, $25-million in cash no matter what happens seems like a big change.” As for the third term of posting a bond, the judge said that was what is required under bankruptcy law anyway.
The judge was less sanguine about the prospects of mediation, although he reserved his decision. He noted that all of the parties except Moyes and Balsillie opposed mediation because their positions are so entrenched.
“My blunt guess is I see no prospect of settlement under the present posture of this case,” Judge Baum said.
While Balsillie appeared to concede the Coyotes would stay in Glendale this season, under questioning by the judge, Kessler said it was possible if no local buyer was found, the team could be moved to Hamilton during the Olympic break in February 2010. Balsillie's offer also stipulated that the NHL would continue to pay the team's losses this season if it did not move. Balsillie's lawyer admitted to Judge Baum that in this scenario it was unlikely the team would move before the end of the 2009-10 season.
The issues up for mediation are the NHL’s rejection of Balsillie as an owner on character grounds, the relocation of the team and a relocation fee. NHL lawyers said the league’s position that only it can decide who owns a team and on relocation cannot be changed so mediation is a waste of time.
“The season starts in two weeks,” NHL lawyer Alan Meda said. “It is critical to resolve this so the Coyotes can move on.”
In a court filing late Tuesday, the NHL dismissed an argument by Balsillie’s lawyers that Ottawa Senators owner Eugene Melnyk said league owners have a veto over teams trying to set up shop in their territory. Melnyk told Toronto radio station The Fan 590 last week that he thought he could block anyone from entering his territory, which Balsillie seized upon to bolster his legal argument that such a veto violates anti-trust laws and that the real reason he was rejected as an owner is that the NHL does not want to get into a legal war with the Toronto Maple Leafs, who have said they believe they have a veto.
The NHL’s lawyers said in the filing that Melnyk was mistaken about a veto and that in any event, legal arguments in the case ended on Sept. 11 with the auction sale for the team. They also accused lawyers for PSE, the company Balsillie formed to handle his NHL purchases, of trying to mislead the court.
“PSE's unauthorized, improper, and highly misleading reliance on a radio interview, which has no relevance to any issues under submission, is indicative only of PSE's desperation,” the NHL wrote. “With respect to the assertions in PSE's submission, there is a good reason that the court has discounted statements made in the press. As Mr. Melnyk made clear in the interview, he has not been directly involved in these proceedings and has not been following the proceedings very closely.”
The brief added that Melnyk also did not attend the governors’ meeting on July 29 when Balsillie was interviewed and then rejected as an owner.
Melnyk declined to comment further about his opinion of a veto. But he did say in an e-mail message that Balsillie’s lawyers took his remarks in the interview out of context.
Chris
David Shoalts Globe and Mail Sep. 23, 2009 02:55PM EDT
www.theglobeandmail.com/sports/balsillie-sweetens-offer-for-coyotes/article1298722/
Jim Balsillie has once again sweetened his offer for the Phoenix Coyotes.
When U.S. Bankruptcy Court Judge Redfield T. Baum opened an emergency hearing Wednesday morning to hear arguments about whether or not he should force the warring parties – Coyotes owner Jerry Moyes, Balsilllie, the NHL and the city of Glendale – into mediation on the sale, one of Balsillie’s lawyers introduced three changes to his $242.5-million (all currency U.S.) offer, one of which was presented to Glendale city council on Tuesday night. Balsillie also conceded he is willing to keep the Coyotes in suburban Glendale for the coming NHL season.
Jeffrey Kessler, Balsillie’s specialist in anti-trust law, told the court that three new terms were added to the offer.
One was to defer the closing until after Dec. 31, 2009. This is to allow a buyer to emerge who is willing to keep the team in Glendale. If one is found, Balsillie is willing to step aside and drop his plans to buy the team and move it to Hamilton. The second, which was disclosed to council on Tuesday night, is that $25-million of the $50-million Balsillie offered the city in exchange for droppings its damages claim if the arena lease is broken will be paid as soon as the court approves a sale. He also said the city can keep the $25-million even if the NHL wins an appeal and Balsillie eventually loses his bid for the Coyotes. And the final carrot was an offer to agree to a stay of the sale if Balsillie’s bid was accepted and the NHL appealed, plus post a bond sufficient to pay all of the creditors.
Judge Baum seemed impressed by the first two new terms, telling one of the NHL’s lawyers, “to an old bankruptcy judge, $25-million in cash no matter what happens seems like a big change.” As for the third term of posting a bond, the judge said that was what is required under bankruptcy law anyway.
The judge was less sanguine about the prospects of mediation, although he reserved his decision. He noted that all of the parties except Moyes and Balsillie opposed mediation because their positions are so entrenched.
“My blunt guess is I see no prospect of settlement under the present posture of this case,” Judge Baum said.
While Balsillie appeared to concede the Coyotes would stay in Glendale this season, under questioning by the judge, Kessler said it was possible if no local buyer was found, the team could be moved to Hamilton during the Olympic break in February 2010. Balsillie's offer also stipulated that the NHL would continue to pay the team's losses this season if it did not move. Balsillie's lawyer admitted to Judge Baum that in this scenario it was unlikely the team would move before the end of the 2009-10 season.
The issues up for mediation are the NHL’s rejection of Balsillie as an owner on character grounds, the relocation of the team and a relocation fee. NHL lawyers said the league’s position that only it can decide who owns a team and on relocation cannot be changed so mediation is a waste of time.
“The season starts in two weeks,” NHL lawyer Alan Meda said. “It is critical to resolve this so the Coyotes can move on.”
In a court filing late Tuesday, the NHL dismissed an argument by Balsillie’s lawyers that Ottawa Senators owner Eugene Melnyk said league owners have a veto over teams trying to set up shop in their territory. Melnyk told Toronto radio station The Fan 590 last week that he thought he could block anyone from entering his territory, which Balsillie seized upon to bolster his legal argument that such a veto violates anti-trust laws and that the real reason he was rejected as an owner is that the NHL does not want to get into a legal war with the Toronto Maple Leafs, who have said they believe they have a veto.
The NHL’s lawyers said in the filing that Melnyk was mistaken about a veto and that in any event, legal arguments in the case ended on Sept. 11 with the auction sale for the team. They also accused lawyers for PSE, the company Balsillie formed to handle his NHL purchases, of trying to mislead the court.
“PSE's unauthorized, improper, and highly misleading reliance on a radio interview, which has no relevance to any issues under submission, is indicative only of PSE's desperation,” the NHL wrote. “With respect to the assertions in PSE's submission, there is a good reason that the court has discounted statements made in the press. As Mr. Melnyk made clear in the interview, he has not been directly involved in these proceedings and has not been following the proceedings very closely.”
The brief added that Melnyk also did not attend the governors’ meeting on July 29 when Balsillie was interviewed and then rejected as an owner.
Melnyk declined to comment further about his opinion of a veto. But he did say in an e-mail message that Balsillie’s lawyers took his remarks in the interview out of context.
Chris