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Phoenix XXV: Anyone in the theatre seen a pale horse?
1) Sources closely tied to the continuing saga that is the attempted sale of the Phoenix Coyotes to Chicago businessman Matt Hulsizer say there's a lot of moving pieces in play this week.
Among them - the city of Glendale's reported threat to sue the Goldwater Institute for interfering in the sale of the team, resulting in the potential of hundreds of millions of dollars in future lost revenue.
Glendale's lawsuit shows the city's willingness to fight back. But isn't expected to have much, if any impact on Goldwater's positioning.
Some believe the NHL may also be planning a move to assist in a deal with Hulsizer being reached, but whether that involves a financial commitment remains unclear.
The beginning of the week presents more questions than answers, with no guarantee that the bond issues will be resolved by the end of week as was originally expected.
"I've been through the desert on a horse with no name, felt good to get out of the rain..."
I read the report, and I see....well, nothing new for those of us on the boards, though I guess for those people who have a life, an update on the situation...
Interesting about the speculation of the NHL getting involved, though what could they do to get GWI off the case through anything other than financial means?
Heck, I thought the bonds would be sold by now and the deal would close.
Ironically enough, I got that wrong as well. I anticipated the deal would be closed shortly after the vote of December 14, 2010.
I still believe the deal will be completed and I still do not see Goldwater having a successful Gift Clause challenge. In a league where several teams face financial difficulties, I cannot foresee the league leaving a city when they have a public partner willing to contribute so much to the team. The NHL is certainly not going to get this type of cooperation from the City of Atlanta.
To hedge my position, I went ahead and changed my profile to indicate my favorite food is "crow".
I say push aside all the lawsuits and whether the deal is legal or not, lets just look at the deal. Many will say it's a joke, it won't work etc. But in Winnipeg 15 years ago there were countless number of people who showed up for rallies and offered money out of pocket for grass roots deals to try and save there team, and if we had a mayor like the one in Glendale we would have rejoiced! until we were handed the bill at the end of the party. Thankfully for us we had elected officials that saw not every deal to save a team from moving is a good deal. For the fans of the Coyotes the mayor make make a deal with the devil but I think it's your souls she is selling. And I truly feel badly for the fans and more importantly the non hockey fans who will be handed a bill at the end of this. Winnipeg never fell when the Jets left it's still standing and actually growing, we won't crumble without the return of the coyotes. Whether that means another team moves here next season or we sit by patiently and wait. But we have potential owners that understand the business end of hockey and Aren't taking risks with other people's money.
I can see why Glendale wants to sue Goldwater, and certainly GS2K will make a case that Glendale can win such a suit. But, I don't see how such a suit will help them keep the team, as it will take time to play out (certainly into next season), and I don't think the NHL is willing to wait another season owning the team in Phoenix.
So, from a strategy standpoint of keeping the team, talk of a lawsuit seems extremely desperate and akin to a hail mary play.
Interesting about the speculation of the NHL getting involved, though what could they do to get GWI off the case through anything other than financial means?
Thanks for the "America" reference. Great song...... I cant imagine what the NHL could possibly do from a financial perspective in order to ameliorate the GWI's concerns & expedite the sale of the Bonds & closing of the deal. IMO, the only party that could create some breathing room would be Hulsizer, re-working the agreement & contributing substantially more money. Like, thats gonna happen?...
Lawless adds that depending on whose reports you're reading, the NHL could be on the verge of either closing the sale Hulsizer or calling it dead.
"Any announcement, if one is to come at all as a result of a collapsed sale of the Coyotes to Matthew Hulsizer, would be weeks or months away," he stated.
Sure, we've waited almost two years for a resolution, what's a few more months (that will undoubtably turn into a few more months then years....)
I can see why Glendale wants to sue Goldwater, and certainly GS2K will make a case that Glendale can win such a suit. But, I don't see how such a suit will help them keep the team, as it will take time to play out (certainly into next season), and I don't think the NHL is willing to wait another season owning the team in Phoenix.
Does the league really have a choice at this point? If the Coyotes end up anywhere that's not Phoenix this October, I think it would set a precedent for shortest notice for relocation (though it does seem to be close to the timeline for the NBA Sonics' move to OKC), and they can't stay put without the keys to the franchise still in the league's pocket for some time yet.
Last edited by Buck Aki Berg: 03-07-2011 at 12:14 PM.
I can see why Glendale wants to sue Goldwater, and certainly GS2K will make a case that Glendale can win such a suit. But, I don't see how such a suit will help them keep the team, as it will take time to play out (certainly into next season), and I don't think the NHL is willing to wait another season owning the team in Phoenix.
So, from a strategy standpoint of keeping the team, talk of a lawsuit seems extremely desperate and akin to a hail mary play.
I think goldwater will win the suit. Cause at the start of the hulsizer deal COG was violating a court order to provide the Institute documents needed to see if it was legal plus the emails sent to carrie ann sitren by mistake saying to ignore her requests for documents. COG's dragging of their feet with documents and not providing all of them will come back to haunt them.
The NHL will not wait till a lawsuit resolves for the team to be relocated.
Personally I think the NHL will want this resolved one way or the other before the playoffs start. The last thing they want is to have Phoenix win a first round series only to have news of law suits and relocations on the front pages. If they are going to take the publicity hit if/when the Hulsizer deal fails, best to take it before the playoffs when everyone is watching.
Does the league really have a choice at this point? If the Coyotes end up anywhere that's not Phoenix this October, I think it would set a precedent for shortest notice for relocation, and they can't stay put without the keys to the franchise still in the league's pocket for some time yet.
The Nordiques relocation was much later then March. Wasn't til after the season that it was announce I think.
Does the league really have a choice at this point? If the Coyotes end up anywhere that's not Phoenix this October, I think it would set a precedent for shortest notice for relocation, and they can't stay put without the keys to the franchise still in the league's pocket for some time yet.
With what guys like McKenzie and Dregger are reporting, and with even the mayor suggesting time is running out, I think it is clear that the time pressure is coming from the timeline required for relocation. I would be extremely shocked if the NHL spends another year in Phoenix owning the team.
So, from a strategy standpoint of keeping the team, talk of a lawsuit seems extremely desperate and akin to a hail mary play.
Worse Im afraid. Summoning up a Lawsuit at this time is basically just calling in The Cleaners. What Hail Mary when the teams have already left the field & the crowds gone home Egil?. As Ive stated repeatedly, I simply cannot imagine the NHL awaiting disposition on a suit IF one is filed by the COG against GW, wanting nothing to do with it whatsoever. Im sure theirs one Hell of a lot of scrambling & negotiating going on right now between the COG, MH & the NHL in trying to find a remedy, absolutely, but how?.
If this isn't resolved by regular season's end, and if the Coyotes are still in the playoff hunt, it is only to try and sell playoff tickets. The CoG pledged $25 million for the loses. It now appears the loses will clock in closer to $30 million assuming a continued up-tick in attendance, and that number could come down a bit assuming some home playoff games.
It would be in the NHL's best interest to not pull the plug, although they may not care too much as whatever loses are not covered by the CoG will just be tacked on to the new owners price.
Also, it looks like MH is purchasing the Coyotes for approximately $200 million as this years loses will be covered by him if the deal closes. $200 million for a team Forbes said has a value of approximately $130 million. Makes the CoG contribution almost look reasonable.
Personally I think the NHL will want this resolved one way or the other before the playoffs start.
I think its either already been decided (dead) or will be within days. I would hope, for the sake of all parties concerned that the NHL make an announcement immediately as opposed to keeping quiet until the playoffs commence & or end should the Coyotes squeak in & possibly do some damage through a round or 2.
Meh on the title - but saved by the clever followup tagline.
That horse last made an appearance 18 months ago in BK Part XVIII - maybe this one's a whiter shade of pale.
She said there is no subsidy,
And the truth is plain to see
That I wandered through my lawsuits,
And would not let her be
One of sixteen council virgins
Who's careers are now toast.
And although the Job was open,
It might just as well have been closed.
On a related question - if the City pays out the $25M to cover this year's losses to either the NHL or to Hulsizer (after completion) - wouldn't that be a clear and obvious violation of the AZ constitution gift clause?
