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Coyotes Financial/Ownership Situation #6

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08-06-2009, 03:02 PM
  #151
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Originally Posted by RousselRising View Post
So, he is bound to that bid and dollar amount until the day of the auction (can withdraw before, I assume) and can bid up, but not down?
Good question. I think he is "kinda" bound if that clears everything up

Balsillie has a contract with Moyes [the APA] saying as long as Moyes holds up his side of that deal Balsillie will make a minimum bid of $212.5k and can increase it.

If Balsillie were to walk away or submit a lower bid in violation of the APA he would have to reconcile that in some way such as amending the APA with Moyes consent, argue Moyes didn't honor his side of the APA deal, or pay the APA proscribed penalty fees for not following through on his part of the deal.

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08-06-2009, 04:04 PM
  #152
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Originally Posted by mouser View Post
Good question. I think he is "kinda" bound if that clears everything up

Balsillie has a contract with Moyes [the APA] saying as long as Moyes holds up his side of that deal Balsillie will make a minimum bid of $212.5k and can increase it.

If Balsillie were to walk away or submit a lower bid in violation of the APA he would have to reconcile that in some way such as amending the APA with Moyes consent, argue Moyes didn't honor his side of the APA deal, or pay the APA proscribed penalty fees for not following through on his part of the deal.
I'll assume he can walk away if the Judge awards him the team as the highest bidder, but finds for the NHL and/or COG that fees or damages are due, since his bid specifically precludes paying anything above the bid price. Is that kinda right?

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08-06-2009, 04:20 PM
  #153
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Originally Posted by RousselRising View Post
I'll assume he can walk away if the Judge awards him the team as the highest bidder, but finds for the NHL and/or COG that fees or damages are due, since his bid specifically precludes paying anything above the bid price. Is that kinda right?
Mostly. Any damages from the CoG are likely to go into the unsecured creditor pool where they'd get a % of whatever's left over after the secured creditors get paid. So they wouldn't require Balsillie to increase his bid to satisfy them.

The only explicit exception for overage in the APA is the NHL's relocation fee. It allows JB to decide whether to pay that fee in addition to the bid price or walk away if he decides the fee is too high.

Just for giggles they still haven't established in court whether indemnification fees are appropriate [i.e. territory infringement payments for moving into Toronto/Buffalo's home territory] in addition to the relocation fees. Balsillie's bid explicitly states no indemnification fees from the NHL as a condition.

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08-06-2009, 04:32 PM
  #154
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It'll be interesting to watch the tapdance that the CoG will need to do in negotiating concessions with Reinsdorf and/or Ice Edge prior to the auction without the concessions potentially affecting the amount Baum would consider for damages to them if he went with Balsillie.

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08-06-2009, 04:49 PM
  #155
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Originally Posted by bobbop View Post
Bill Daly interviewed on XM...click on my blog and click link
Here's a direct link so you don't have to click on some blog first.

http://nhlhomeice.com/wp/?p=1954

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08-06-2009, 05:53 PM
  #156
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Originally Posted by Alberta Yote View Post
It'll be interesting to watch the tapdance that the CoG will need to do in negotiating concessions with Reinsdorf and/or Ice Edge prior to the auction without the concessions potentially affecting the amount Baum would consider for damages to them if he went with Balsillie.
I have no idea but couldn't a fair amount of concessions lend credibility to their claims of just how large their losses would be if the team broke the lease and relocated. After all if they weren't in such dire straits they wouldn't be making all those concessions right?

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08-06-2009, 06:03 PM
  #157
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Originally Posted by Sinurgy View Post
I have no idea but couldn't a fair amount of concessions lend credibility to their claims of just how large their losses would be if the team broke the lease and relocated. After all if they weren't in such dire straits they wouldn't be making all those concessions right?
Possibly but if they give concessions AND an out clause like that goofy Reinsdorf has apparently asked for it could hurt their cause.

And by goofy I mean smart in that he's trying to make a purchase with absolutely no risk. I don't really like that but it's smart if he can pull it off.

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08-06-2009, 09:43 PM
  #158
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I find it hard to believe a US Bankruptcy judge will allow a Canadian to win and give a US city entitled to 500 million+ absolutely nothing.

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08-07-2009, 01:11 AM
  #159
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Attorneys for Coyotes owner Jerry Moyes say they are sorry for accidentally releasing confidential information related to a bidder's negotiations with Glendale, but they call the city's proposed remedies excessive.
http://www.azcentral.com/sports/coyo....html#comments

Bahahaha

I'm supposed to accept that a lawyer that has been practicing for 25+ years accidentally filed just part of the most important document in the entire case? Really? Honest to god if Baum doesn't order the lot of them shot on the spot I'll be disappointed. Talk about desperate. "soo boys they have us dead to rights.. thoughts?" "Yeah lets apologize and distance ourselves from you Jerry so we look like the villains and not you for running the team into the ground." "BRILLIANT!"

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08-07-2009, 02:19 AM
  #160
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Originally Posted by XavierX View Post
"BRILLIANT!"
Everything about Balsillie and Moyes is misdirection. I'm already very disappointed that it hasn't better been called out previous to this example. If this also comes with a slap on the wrist and PSE gets their bid, I guess it is more proof that lying, cheating and stealing is still the best way to get what you want even in US courts.

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08-07-2009, 02:50 PM
  #161
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Why an empty arena would be better than Reinsdorfs bid.

http://www.fromtherink.com/2009/8/7/...-may-be-better

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08-07-2009, 02:58 PM
  #162
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Quote:
Originally Posted by dashingsilverfox View Post
Why an empty arena would be better than Reinsdorfs bid.

http://www.fromtherink.com/2009/8/7/...-may-be-better
Quote:
And the crazy part is that, just last night, Jim Balsillie's lawyer Richard Rodier said he had contacted Glendale months ago in order to potentially negotiate a deal along these lines.
Sound familiar?

The tax district would include the Cardinals and generated more than enough to cover all arena expenses and debt.

Thanks for the sensationalism, though.

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08-07-2009, 03:09 PM
  #163
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Hey Guys,

I am an extreme hockey fan from the NY area who has been following the Coyotes Situation as best as I can through the information I get. I am pro to keeping the Coyotes in Phoenix or at least out of Hamilton. The question I pose today is if Balsille wins the auction like everybody expects that he does what are the chances that the NHL does what the AHL did to the Iowa Chops and suspends the Coyotes season due to Moyes and the current ownership not being able to maintain their obligations and Moyes not negoitating the sale and bankruptcy in good faith. Therefore keeping the rights of the Coyotes in Glendale tempoarily while the NHL pursues legal action against the sale to Balisille based on previous business and the turndown by the NHL Board of Governors. I know what logistically it does to the current NHL schedule but thats a mute issue currently. But would the NHL, The City of Glendale and Coyotes be okay with a lost season if it meant keeping its team?

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08-07-2009, 03:17 PM
  #164
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Originally Posted by whatarush1234 View Post
Hey Guys,

I am an extreme hockey fan from the NY area who has been following the Coyotes Situation as best as I can through the information I get. I am pro to keeping the Coyotes in Phoenix or at least out of Hamilton. The question I pose today is if Balsille wins the auction like everybody expects that he does what are the chances that the NHL does what the AHL did to the Iowa Chops and suspends the Coyotes season due to Moyes and the current ownership not being able to maintain their obligations and Moyes not negoitating the sale and bankruptcy in good faith. Therefore keeping the rights of the Coyotes in Glendale tempoarily while the NHL pursues legal action against the sale to Balisille based on previous business and the turndown by the NHL Board of Governors. I know what logistically it does to the current NHL schedule but thats a mute issue currently. But would the NHL, The City of Glendale and Coyotes be okay with a lost season if it meant keeping its team?
What happens to the 20-25 NHL salaries (players) next year in your scenario?

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08-07-2009, 03:19 PM
  #165
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Originally Posted by XavierX View Post
Sound familiar?

The tax district would include the Cardinals and generated more than enough to cover all arena expenses and debt.

Thanks for the sensationalism, though.
That tax district proposal has virtually no chance of being passed. The Cardinals have already said they not prepared to solve a "hockey problem".

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08-07-2009, 03:27 PM
  #166
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Originally Posted by Alberta Yote View Post
What happens to the 20-25 NHL salaries (players) next year in your scenario?
Well, That depends on how many of the young kids are on two-way contracts (which I am looking up now). But since NHL one-way deals are guaranteed, and thinking of general accounting practices wouldnt there be enough money "saved" to cover player payroll in case of a financial meltdown or limbo just as this so in case of a lost, suspended season. How many contracts will they have to buyout if lets says JoVo refuses to move and play in Hamilton and asks for a buyout to stay local to play in SJ, LA, COL etc...or otherwise he would be a Ranger since that trade proposal comes up every season. Being able to pickup contracts is an NHLPA issue as well and would be worked out accordingly.

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08-07-2009, 03:45 PM
  #167
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Originally Posted by whatarush1234 View Post
Hey Guys,

I am an extreme hockey fan from the NY area who has been following the Coyotes Situation as best as I can through the information I get. I am pro to keeping the Coyotes in Phoenix or at least out of Hamilton. The question I pose today is if Balsille wins the auction like everybody expects that he does what are the chances that the NHL does what the AHL did to the Iowa Chops and suspends the Coyotes season due to Moyes and the current ownership not being able to maintain their obligations and Moyes not negoitating the sale and bankruptcy in good faith. Therefore keeping the rights of the Coyotes in Glendale tempoarily while the NHL pursues legal action against the sale to Balisille based on previous business and the turndown by the NHL Board of Governors. I know what logistically it does to the current NHL schedule but thats a mute issue currently. But would the NHL, The City of Glendale and Coyotes be okay with a lost season if it meant keeping its team?
The Judge has not yet ruled whether Balsillie can even legally win an auction of the team. There are substantial legal questions the court would have to address before it could declare that Balsillie is the new owner of the team.

In the event it were to happen that the Judge ruled he could force the NHL to accept Balsillie as an owner the likely outcome IMO would be an immediate Appeal to the Circuit Court by the NHL with the ownership ruling being stayed for a year or more and Moyes/NHL continuing to run the team while the Circuit Court process runs.

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08-07-2009, 04:29 PM
  #168
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Quote:
Originally Posted by dashingsilverfox View Post
That tax district proposal has virtually no chance of being passed.
Says who? Your darlings in the Canadian media?

Quote:
Originally Posted by dashingsilverfox View Post
The Cardinals have already said they not prepared to solve a "hockey problem".
Because they aren't getting a cut, yet.

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Old
08-07-2009, 04:33 PM
  #169
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Originally Posted by dashingsilverfox View Post
That tax district proposal has virtually no chance of being passed. The Cardinals have already said they not prepared to solve a "hockey problem".
Of course they're against it, unless there's something in it for them

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08-07-2009, 04:35 PM
  #170
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Because they aren't getting a cut, yet.
You smell a deal, too, eh?

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08-07-2009, 04:42 PM
  #171
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Quote:
Originally Posted by dashingsilverfox View Post
Why an empty arena would be better than Reinsdorfs bid.

http://www.fromtherink.com/2009/8/7/...-may-be-better
Why would I believe some blog when the city itself obviously feels they would loose more money without the coyotes?

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08-07-2009, 05:24 PM
  #172
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Originally Posted by coyotesfan View Post
Why would I believe some blog when the city itself obviously feels they would loose more money without the coyotes?
James Mirtle, who writes the blog, is actually a sports editor at the Globe and Mail.

And, of course they will lose money without the Coyotes, but they stand to lose even more under the Reinsdorf deal?

Did you actually read the accountants summary?

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08-07-2009, 05:31 PM
  #173
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The Coyotes generate money for Glendale beyond the percentage of gate receipts the city receives. Simply, the area surrounding the stadium was developed because of the stadium itself, and without a hockey team at the center of it, every business there suffers. The Coyotes, especially if they can draw, are a huge driver for the local economy.

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08-07-2009, 05:32 PM
  #174
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Originally Posted by XavierX View Post
Says who? Your darlings in the Canadian media?



Because they aren't getting a cut, yet.
Here's one of the darlings of the Phoenix media saying exactly the same thing:

"No. But, to speculate for a minute here, I also think there's little chance that the elected officials in Glendale will sign off on incentives this big. It's not just that taxpayers are fed up around here; it's also that Cardinals president Michael Bidwill has already indicated he opposes the tax surcharge plan, and he's a guy with clout. Beasley was certainly within his rights to attempt to negotiate such a deal, but personally, I don't see it going through."

http://communities.canada.com/thepro...-glendale.aspx

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08-07-2009, 05:36 PM
  #175
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Quote:
Originally Posted by dashingsilverfox View Post
James Mirtle, who writes the blog, is actually a sports editor at the Globe and Mail.

And, of course they will lose money without the Coyotes, but they stand to lose even more under the Reinsdorf deal?

Did you actually read the accountants summary?
Most of these articles think of the arena as a stand alone development in it's benefit to the City though.

Westgage has 6.5 million square feet of planned restaurants, shops, entertainment areas that are there already or are being developed based in part on the 500,000-750,000 people that would have been expected to come the the arena each year for Coyotes hockey games. If those people are no longer there, what is the impact on the existing businesses and any that are considering locating there?

Now the City has an empty arena and huge and very sparkly new development that is struggling mightily to not become a wasteland. That makes the City appear very unprosperous which would be an extremely difficult thing to overcome for future growth.

See the difference when you look big picture like the City obviously is as opposed to just the arena itself?

Now, since I live in Alberta and have only visited the area several times I'd expect some of the locals that post here can expand on my point.

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