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Article: How involved was the NHL in running the Dallas Stars?

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10-26-2011, 10:22 PM
  #1
Grudy0
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Article: How involved was the NHL in running the Dallas Stars?

Rather than quote salient points, I'll hit upon the one that Tyler Dellow provided:
Quote:
So, to translate the legalese, according to Mr. Hutson on January 14, 2010, the commissioner of the NHL obtained the exclusive right to control the operations of the Dallas Stars and the Dallas Arena, including the authority to cause a sale. Hicks Sports Group had no ability to control the Stars or the Arena, or their operations, from that date forward. On February 1, 2010, Dallas executed a Promissory Note pursuant to which it obtained access to money from CFV I LLC, an affiliate of the NHL.
To read the rest of the story at Yahoo!


Last edited by Fugu: 10-26-2011 at 10:40 PM. Reason: added link to original source too
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Old
10-26-2011, 11:24 PM
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Fugu
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MacLean: Have you been funding the Dallas Stars?
Bettman: No.
Ö
MacLean: But Tomís [Stars owner Tom Hicks] clearly turning back the keys right?
Bettman (aggrieved): No, heís selling the club, he isnít turning back the keys.
Declaration of Robert L. Hutson, Chief Financial Officer of Dallas Stars, Dallas Arena and StarCenter, and Treasurer of U.S. Holdings, dated September 15, 2011
....


So, to translate the legalese, according to Mr. Hutson on January 14, 2010, the commissioner of the NHL obtained the exclusive right to control the operations of the Dallas Stars and the Dallas Arena, including the authority to cause a sale. Hicks Sports Group had no ability to control the Stars or the Arena, or their operations, from that date forward. On February 1, 2010, Dallas executed a Promissory Note pursuant to which it obtained access to money from CFV I LLC, an affiliate of the NHL.
Or, put another way:
MacLean: Have you been funding the Dallas Stars?
Bettman: No.
Ö
MacLean: But Tomís [Stars owner Tom Hicks] clearly turning back the keys right?
Bettman (aggrieved): No, heís selling the club, he isnít turning back the keys.
Where's Ike?

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10-27-2011, 12:28 AM
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kdb209
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Maybe the League learned from Moyes "unconditional proxies".

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10-27-2011, 12:32 AM
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SauceHockey
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Dumb question, but have Dallas yet reached the cap floor?

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10-27-2011, 12:41 AM
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kdb209
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Originally Posted by asdwe1 View Post
Dumb question, but have Dallas yet reached the cap floor?
Confirmed Trade with Link [MIN/DAL] Wild Trades Eric Nystrom to Dallas for Future Considerations

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10-27-2011, 02:35 PM
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Killion
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Okay, Im just a little bit lost. Gary Bettman appears to be playing fast & loose with the truth, is that correct?. Through an affiliate the league accessed funds. He appears to be obfuscating semantically, while the facts seemingly completely contradict his implausible denials. Is that about right?. Whats goin on here?.

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10-27-2011, 02:45 PM
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Fugu
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Originally Posted by kdb209 View Post
Maybe the League learned from Moyes "unconditional proxies".

And their suit against Moyes for the personal contract/guarantees is back in the same Arizona BK court as well, getting the boot from the Manhattan court.


I know this may stir up a **** storm, and that's not my intent, but is Rodier a legal genius that has been sadly underestimated?

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10-27-2011, 02:51 PM
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Grudy0
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The reason I started this is because when I read it, I immediately thought about the Thrashers and Kovalchuk signing attempt. When Kovalchuk was traded, it made the Thrashers an also-ran, and the fans reacted with their wallets. The Stars now appear on the same level with not being in a position to sign Brad Richards, as the Stars' attendance has now suffered even though they are playing winning hockey.

And maybe we now know why the NHL couldn't press the issue in Atlanta too badly. Not only did the NHL have no viable option to remain in Atlanta with ASG in charge of the arena, they own one franchise and are on the hook for another, and it's been that way for close to two years.

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10-27-2011, 03:17 PM
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Killion
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Quote:
Originally Posted by Fugu View Post
And their suit against Moyes for the personal contract/guarantees is back in the same Arizona BK court as well, getting the boot from the Manhattan court.... I know this may stir up a **** storm, and that's not my intent, but is Rodier a legal genius that has been sadly underestimated?
I dont quite follow... are you suggesting he telegraphed everything that Moyes' would likely face in the future in the event the relocation through bankruptcy strategy failed?. Including the possibility that the league itself might buy the team and then sue Moyes in civil court pursuant to the personal guarantee's he signed?.

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Originally Posted by Grudy0 View Post
And maybe we now know why the NHL couldn't press the issue in Atlanta too badly. Not only did the NHL have no viable option to remain in Atlanta with ASG in charge of the arena, they own one franchise and are on the hook for another, and it's been that way for close to two years.
Well, I rather assumed back in February 2010 when the league basically took over that it was common knowledge that they'd absolutely have to be throwing money at the Stars as well. I fail to understand why Gary Bettman would have such a problem in openly admitting it. I mean, so what?. Theyve' got a problem in Dallas & they own the Coyotes, both drains on their resources, so fix it. I dont have a problem optically with the league stepping in & financing the Stars until such time as the sale closes, but I do have a problem with their denying having done so. I mean, isnt that a positive, that the league would extend itself like that for Dallas?. Its not a bad thing per se', so I really have a hard time getting my head around Bettmans little tap dance there when questioned directly on the matter.

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10-27-2011, 04:50 PM
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Confucius
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Lesson learned, believe Canadian Media.

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10-27-2011, 05:44 PM
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Killion
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Originally Posted by Hockeyhopeful View Post
Lesson learned, believe Canadian Media.
Generally speaking I do HH. What annoys me from time-time are guys like Shoalts with their feigned piety & sanctimonious condemnations of Gary Bettman & the NHL demanding the formers resignation & the relocation of about a half a dozen teams from south to north or just outright contraction.

According to reports, the guesstimated $50M the league provided through its in-direct credit facilities will be paid by Gaglardi as part of the purchase agreement. Fine. Again though, I have a hard time understanding why Mr. Bettman felt it necessary to lie when the truth would have actually gone over quite well indeed, signaling the leagues munificence & benevolence in propping up a distressed asset, protecting the team, its fans & sponsors.

Oh, and this just in; Tom Gaglardi hopes to relo the Stars to Surrey, seeking vengeance on his arch enemies, the Aquilini's.

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10-27-2011, 08:55 PM
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Fugu
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Originally Posted by Hockeyhopeful View Post
Lesson learned, believe Canadian Media.
They've been fairly good at figuring out where there's smoke, indeed a fire is required.

Of course, the claims that it's fog and not smoke often confound some observers.

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Originally Posted by Killion View Post
I dont quite follow... are you suggesting he telegraphed everything that Moyes' would likely face in the future in the event the relocation through bankruptcy strategy failed?. Including the possibility that the league itself might buy the team and then sue Moyes in civil court pursuant to the personal guarantee's he signed?.
Well, if you wanted to find a way to stick it to Gary & Friends, the bankruptcy route sure was a winner. I remember how often we were reminded that the personal guarantees would still come back to bite Moyes, and the NHL would have its pound of flesh, blah, blah, blah... Here we are 3 yrs later, with who knows how much of the NHL's own money thrown into funding the team, and no obvious way they'll get that money back short of a relocation. Only where do you move them?

Going off kdb's insightful comment that perhaps the league learned from the unconditional proxies, I think the Rodier-led initiatives have cleverly exposed the weaker legal links that the league preferred as a modus operandi. It was due to his efforts that we learned of MLSE's official position on territorial rights, which are not shared by the NHL; some elements in the Nashville lease terms that had gone unfulfilled, iirc; the fact that Moyes really could take the team into bankruptcy and that no personal contract could legally remove the rights bankruptcy laws afford any entity in seeking protection from creditors; and finally perhaps the somewhat unresolved issue about an owner's right to relocate a franchise. Recall that Baum ruled that the NHL had the right to pick who could get into the club, somewhat cleverly dodging the point about relocation on the grounds that harm could not be reversed IF a higher court ruled against an approval.

Could Moyes have moved the team himself?

Of course, not being a lawyer, I may have mangled the legal aspects to this completely, but I can surmise that Rodier has been the biggest pain in the NHL's collective rears in recent times. They're still suffering from it.


Quote:
Originally Posted by Killion View Post

Oh, and this just in; Tom Gaglardi hopes to relo the Stars to Surrey, seeking vengeance on his arch enemies, the Aquilini's.
Vindictive NHL owners? Nah, not possible.

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Old
10-27-2011, 09:40 PM
  #13
Killion
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Originally Posted by Fugu View Post
...but I can surmise that Rodier has been the biggest pain in the NHL's collective rears in recent times. They're still suffering from it.
Nor has he gone very far away, hired as a Consultant by the NHLPA, which very likely spells more trouble for the NHL. I dont know that Id call him a "genuis" by any stretch Fugu, something more of a Mr. Haney, backed by Jim Balsillie playing the role of Milburn Drysdale, Jerry Moyes as Jed Clampett, unindicted co-conspirator Steve Ellman in a bit part as Jethro Bodine. All performing admirably under the watchful & utterly indecisive gaze of Judge Redfield T. Baum. . Ya'll come back now, ya hear?.


Last edited by Killion: 10-27-2011 at 10:09 PM.
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