Phoenix bankruptcy/ownership Part XII: For a Few Dollars More
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08-07-2009, 11:15 AM
Join Date: Jun 2009
By allowing Balsillie to take part/bid in the Sept. 10th auction the court has guaranteed that there will be a relocation fee set in the next 30 days or so for the Hamilton/Southern Ontario opportunity, if in fact the auction doesn't get delayed again. There has to be, in order for any bidders to know what it will cost them. The NHL will argue of course that 30 days isn't enough time for due diligence and Baum may very well move the whole auction again to allow them more time to set relocation prices for any relocation bidders.
Baum's also guaranteed he'll now have to rule on any COG damages before then too. Any relocation bidder has to know the damages they'll be paying, if they want to move the team. I would imagine that the COG can't argue a huge break free now when they were going to let Reinsdorf walk for free and give him subsidies/taxes (whatever you want to call it) along the way.
Baum will apply the fairness of that, gee let JR walk for free but you want 500 million from JB, that's not going to happen. Most likely they'd be unsecured and gets pennies on the dollar anyways.
Just like the NHL coming back with an exorbitant number for Southern Ontario isn't going to fly with Baum either. He already stated the number had to be FAIR.
I can see a KC bidder or a Winnipeg bidder or Bruckheimer in Vegas coming out of the woodwork but 35 days isn't enough time, they'd need the auction delayed again.
Also will a group from KC/Winnipeg/Vegas be willing to bid more than 212.5 in cold hard CASH, and pay a relocation fee (lower than Southern Ontario obviously) and pay the COG damages (depending on if Baum puts them at the top of the unsecured creditor pile), whatever they may be. Some groups may not be able to afford that or be willing to pay that much for a market outside Southern Ontario.
As for other Southern Ontario bidders, there's a little glitch there. Balsillie has exclusive rights to Copps till October and there's no other suitable venue available in the GTA. So where does one play? Building an arena would take years to plan/build and there's no taxpayer money to spend hundreds of millions on a brand new arena, it's cheaper to reno Copps!
Add the fact that SOF wants their money, in CASH and it adds additional burden to existing/new bidders to have at least 80 million dollars in CASH in their bid. The NHL will want CASH for the relocation fee as well.
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