Phoenix LXXII: Send in the Clowns
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02-13-2013, 02:31 AM
Join Date: Nov 2004
Originally Posted by
Well (and I don't remember if it was CF) but the sale to Reinsdorf gave them an AMF replacing the lease that existed.
As for Balsillie/Moyes, it was presenting as Balsillie's lawyer was searching for a movable team and he initiated the talks to sell the team.
What Moyes submitted is whats called a "prepackaged bankruptcy" thats where you file and submit a plan at the same time. Usually bankruptcies are in more of a crisis situation and there is a cooling off period.
Anyway what the court ruled was that you couldn't use bankruptcy to circumvent your franchise agreement.
In the ruling he cited the hypothetical of someone putting a McDonalds franchise in bankruptcy and then trying to move it to a more desirable location.
The other leagues filed supportive statements because they were afraid of other teams doing that. So if Balsillie had been allowed to do it then it wouldn't have stopped say Mike Bloomberg from buying the Dodgers in bankruptcy and moving them back to Brooklyn.
I don't believe that's an accurate description.
I think the battle Rim Jim faced was being turned down by the NHL as an owner. The court ruled it could not force the NHL to accept someone into the club that they didn't approve of as an owner. There was a BOG meeting prior to the hearings where the governors voted on Balsillie, Reinsdorf and maybe IEH. Only Reinsdorf was approved as a potential owner.
Moyes was allowed to put a failing asset into BK, despite the NHL claiming he had not right to do so. The court never actually ruled on this point, but proceeded with a bankruptcy regardless-- so approval without delving into technicalities?
The court also said that Moyes did not have a right to sell a territory that did not belong to him. (Hamiltion) There was still some wiggle room here too however since the court heard witness estimates on the value of the market in Hamilton. A buyer would have to pay for Phoenix + the difference in value if Hamilton was worth more.
They never actually had to get to addressing that point legally since the BOG turned down Balsillie as a potential owner.
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