Phoenix LXXII: Send in the Clowns
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02-13-2013, 02:04 PM
Join Date: May 2007
CF - I think there is enough blame to go around and certainly the CoG was the cause of much of its own pain by trusting the NHL. But, I do believe the NHL at a minimum took advantage of the CoG, and by proxy, its citizens. That is something I would like to at least believe is beyond what a sports league does to its markets. IMO there is blood on the hands of the NHL. IMO also, the CoG could have done more to protect itself rather than blindly have faith in the NHL's promises that a buyer was in serious negotiations and would be closing within the next couple of weeks, not months. And, the NHL certainly could have lowered the price of the sale.
I know many ask why the NHL would lower its price, and it is a fair question. My response is the NHL knowingly paid a premium for the Coyotes, and the premium wasn't towards the value of the asset. The premium was for the right to control its markets. It was the NHL's interest in control that inflated the value of the franchise beyond reason. That, IMO, is a cost the NHL should bear and not an added cost to the value of the franchise. If relocation wasn't on the table through the Ballsilly/Moyes powerplay, and Moyes just sought basic bankruptcy, the asset would have been bought for a fair value through a local owner. The team would have cost very likely less than $70M, and off the new owner would have gone.
The only reason why the NHL paid $140M was to fight off the threat of a team being relocated without its control. It was the NHL's self-interest that inflated the price of the asset beyond what anyone will pay for it locally. And, the NHL had the perfect out by applying the found relocation money of the Thrashers to the Phoenix situation, while still making its owners whole, and while still protecting the league's interest, unrelated to the value of the Coyotes, to control locations.
In the end, if the league were serious about selling the Coyotes they would apply the relocation fee and sell the team for $80M which would be closer in line to the actual value the new owners paid for the Blues, a more highly valued team.
I really hope some reporter digs into this. Did the NHL do anything fraudulent or criminal? Of course not. Did the NHL operate ethically? I don't believe so. Did the NHL do right by a market it will soon leave? Not on your life. So they didn't give Phoenix the quick brush off it did to Atlanta, Winni, QC and Hartford. Big deal. None of those locations paid the NHL $50M to be ********* over either.
$50M...and not even a kiss. (I'm sensing a new thread title there).
Last edited by goyotes: 02-13-2013 at
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