Phoenix LXXII: Send in the Clowns
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02-13-2013, 08:42 AM
Join Date: Mar 2012
Location: Guelph, ON
Originally Posted by
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.
that was one of the more interesting aspects of the trial, i thot. both the league and balsillie offered economic evaluations of the hamilton market. both were quite positive and essentially differed only in value. i thot baum was very astute in obliging all parties to clearly think through their positions as well as their alternatives. and indeed he wasnt shy about offering advice with the occasional, "are you sure?".
re: BoG vote on Balsillie's "character", that was one of the more shameful elements of this whole saga. sure, jim played fast and hard, but even the rogues gallery sitting around the table must have recognized their hypocrisy, especially after having lauded balsillie as a saviour a couple years earlier, and then later admitting they'd still consider him. huh? what exactly are you actually saying, gary? it's hard to understand words that come out of both sides of your mouth.
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