04/18/24
August 05, 2009
Coyotes judge permits Baisallie bid: Hope I didn't spell his name wrong. The judge in the Coyotes' case said he will allow the co-CEO of Research in Motion to stay in the bidding process.
This is getting "Coyote Ugly" and the recent leak of confidential Bankruptcy Documents has the League and local (Glendale) officials scrambling to keep one of the few Bidders for the team promising to keep it in the area. Jerry Reinsdorf's (and a consortium of other investors) $148 Million bid is in jeopardy of being withdrawn as the Chicago Sports Mogul expressed his anger over the leak this past weekend. His representative however were in Federal Court speaking with Judge Redfield Baum on Monday the 3rd.
The leak exposed information pertaining to negotiations between the Reinsdorf Group and Glendale officials over an estimated $23 in Retail Sales Surcharges for the next fiscal year Mr. Reinsdorf requested in exchange for keeping the team in Glendale. Further more the agreement called for payments to the Group of $15 Million if the team continued to lose money over the next 5 years or allow the the team to be Sold and/or moved.
Although he denies it observers believe the confidential information was posted publicly through the court's Web site by attorneys for current Coyotes owner Jerry Moyes. A spokesman for Moyes, Steve Roman, said on Monday that the leak was "completely inadvertent and accidental."
"There was no funny business," he said. Moyes of course would prefer the $212.5 Million (U.S.) offer from Balsillie who would move the team to Ontario and Moyes would get some cash as well. The suspicion of Moyes involvement with the leak appear well founded.
Glendale residents are already reeling over the $180 Million investment the city made into the Jobing.com arena. The arena has lost an estimated $30 Million a year already since the Coyotes moved into the facility.
This has Glendale City Manager Ed Beasely scrambling for his political life as he has requested Judge Baum to hold in contempt Moyes' council and remove Mr. Moyes from the bidding process.
Really, it seems no matter the eventual outcome Glendale residents have already lost. By moving the auction to Sept. 10th and opening up the process to Mr. Basillie some of the monetary burden can be diverted from the Glendale taxpayers despite the efforts of NHL Commissioner Gary Bettman.
NHL owners voted on July 29th to block the Basillie Bid. It will be interesting to see how the league and Bettman can justify blocking Basillie when his bid is by far the most favorable. The NHL has been funding many of the Coyote's operation since the move from Winnipeg in 1996 and has lost $10's of millions since.
Like I said it's "Coyote Ugly"
posted by skydivedad at 07:51 PM on August 06, 2009
an estimated $23 in Retail Sales Surcharges for the next fiscal year (should read an estimated $23 Million In Retail Sales...)
posted by skydivedad at 11:14 PM on August 06, 2009
Given the general unpopularity of the team, skydivedad, it's entirely possible they might only sell $23 worth of merchandise next season.
posted by wfrazerjr at 09:27 AM on August 07, 2009
Great rundown on the situation, sdd. A bankruptcy judge's only duty is to maximize the value of the return to the debt holders. If he fails to do this, then he has not properly executed his duty. Of course, there is always conflict between what the City of Glendale holds to be its best interests and what the other investors in the team hold to be theirs. That's when it gets to be fun, and the side with the loudest lawyers gets its way.
posted by Howard_T at 04:05 PM on August 07, 2009
Balsillie, or to those of us in the know, RimJim.
The Hamilton Coyotes, Kitchener Blackberries, both have a decent ring to them.
If the Bankruptcy Court Judge does what is best and right for the creditors, Jim will own the team shortly.