Phoenix LXXII: Send in the Clowns
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02-13-2013, 01:32 PM
Join Date: Mar 2012
Location: Guelph, ON
Originally Posted by
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.
is that true? balsillie offered $212.5M for it. clearly, they nhl's offer was nowhere near that. if i recall, the reinsdorf bid was said to be $140M, withdrawn at the last minute and in essense, replaced by the NHL's bid for the same amount. again, i could be confused, but i recall JR withdrew so as not to muddy the waters while the nhl took on JB alone and also to not give baum another option. the nhl forced baum to either side with JB's big money offer to satisfy all creditors, or the NHL's offer to satisfy just the important creditors. additionally, the nhl's bid was tied to the larger issue of control of franchise placement (which ultimately was the issue it won on).
my point is that I dont think the NHL was ever obligated to actually spend $140M for the franchise. they just felt they had to bid that much in order to fend off JB's much bigger bid and still make baum feel like they werent scooping it up dirt cheap and screwing creditors. wasnt dell the biggest creditor at around $80M or $90M? essentially, the $140M covered everyone except moyes, swift and gretzky. but they didnt HAVE to bid that high, or would baum have rejected it if it had been any lower?
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