Friday, October 2, 2009

Faux Nails Phoenix Outcome

1) We wanted to congratulate FR2 for their nailing the outcome of the Phoenix Coyote mess. For those not following the case the judge late Wednesday afternoon finally made his ruling known. That BOTH bids were going to be rejected but 'without prejudice', meaning either side can readjust its bid and come back.

2) Of course the Balsille bid relys on moving the team so the ruling, although not a NHL victory directly IS in essence a death knell on Jim Balsillie's bid to move the team to Hamilton Ontario. As FR2 wrote back on September 11:

  • We believe that the judge will essentially quash/kill Balsillie's bid saying that he doesn't want to set precedent for allowing an outside entity to decide league policy. This will delight Bettman. Who seemed poised to do anything possible short of assassination to prevent the Canadian billionaire from obtaining the franchise.

  • The judge will also NOT approve the NHL bid as it doesn't come close to satisfying creditors (its 100 million less than the PSE bid) this will not make the NHL happy!

  • We can foresee the judge 'staying' (we're not lawyers, so forgive us if we don't use correct legalese) the decision until either the NHL amends its bid, or other bids can be found that do satisfy creditors sufficiently.

3) This is EXACTLY what happened! So where do we go from here? Since FR2 nailed the ruling weeks prior, we will go with their prediction of what will happen next. They stated that it is entirely possible we will ultimately end up with a "Public Option". The least dangerous path is for the city of Glendale to assume control of the team in a Green Bay-esque type arrangement. As FR2 wrote then:" The city has already 'invested' a great deal of revenue to this and was going to be asked for compensation anyway, so why not get the equity if you're subsidizing the product anyway? This way the city can limit its losses and control the destiny....... We believe that if/after the judge rejects both bids, the city will begin to scramble to get its act together and try to convince their tax payers that a Green Bay like situation would be in their benefit.

4) Will be interesting to see how that goes down as well as how the NHL treats Wayne Gretzky. After all he is owed millions. (and why we believe he quit) Also as other teams develop ownership issues like in Florida, Atlanta, and perhaps Nashville will Jim Balsillie jump in again or is he done poking the NHL/Gary Bettman in the eye? As a result its all but assured that Hamilton will be given an expansion franchise within the next 2-3 years. Probably after the next CBA is ironed out (After the next Lockout)

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