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The Phoenix Issue

0628-balsillie-375_medium

"Let's get our shit disturber on"

Unless you've been living under a rock the last three months, rumblings about the legal issues Phoenix is currently facing have managed to worm their way into your consciousness. James Mirtle of From The Rink has done a bang up job chronicling the ongoing saga this entire offseason, with a recent story explaining fourteen issues the bankruptcy court will need to address before the team is put up for auction on September 10th.

A day in the life of a Coyotes fan must be like waking up to a steaming elephant turd in your living room every single day. About as brutal as it gets.

The man behind it all is Jim Balsillie, co-CEO of Research In Motion, a Canadien company who developed the Blackberry. Balsillie has attempted to slug his way into NHL ownership twice before, first with the Penguins in 2006 and then with the Predators in 2007. In both circumstances, his goal was to eventually move the team to Hamilton, Ontario.

In the case of Phoenix, the likelihood that Balsillie pulls off a "third time's the charm" coup d'etat doesn't look promising. The NHL's board of governors rejected his bid unanimously two weeks ago. Brahm Resnik doesn't like his chances, and Jerry Reinsdorf has reached an agreement with a major creditor of the team.

The issue of creditors clamoring for a return on their investment is obviously the driving point behind the whole fiasco. The question of whether or not the city of Glendale is able to support a franchise (the NHL loaned them money in February) is a major issue for those parties, and the main reason this is being decided in the courts.

Then there's the issue with the arena. In 2003-2004, the franchise signed a 30 year lease with Glendale to play in Jobing.com Arena. The city argues that a breach of this contract (i.e. a relocation) would cause severe damages, and yet the Coyotes have been unable to make their payments- Glendale has essentially allowed the team to use their arena for free the last seven months.

In short, this whole thing stinks to high heaven.

Balsille's proposed bid would move the team to Hamilton and cover nearly 100% of unsecured creditor's investments. Reinsdorf's bid would keep the team in Phoenix, with no guarantee that the team will become financially viable. Is it not the bankruptcy court's obligation to primarily take care of the creditors? Yes, but in the world of professional sports, that answer becomes quite the different story.

The NHL, as with every professional sports league in the United States, is a cartel. Plain and simple.

The advantages of this system are numerous. Public subsidies for arenas are footed by the city (read: taxpayer), and yet the franchise is run as a private enterprise. There is no federal or state governing body playing watchdog. Owners will paint a bleak economic picture by reporting expenses that exceed income, and yet tax benefits are generally not publicized. Investment in a team will allow an owner to offset "on-paper" losses with profits in other businesses they own. There's a reason it's rare to see an owner who solely runs a professional sports franchise- it's not profitable in and of itself.

Although the league has vehemently denied the accusation that the Maple Leafs are attempting to block a second southern Ontario team, the scarcity of competition allows them to charge higher ticket prices, as well as land lucrative television deals. You'd have to be a fool to think that MLSE wouldn't mind a second team cutting into their exorbitant profit margins.

At any rate, Phoenix is a mess. It's a shame the fanbase has taken such a beating, as there are some dedicated folks out there (as Five For Howling will attest to). However, ticket sales have taken a plunge- not surprising considering all the extracurriculars going on this summer, but a bearer of bad news nonetheless.

Make it seven or keep it six?

Poll
The Coyotes should (either this year or next)...
Stay in Phoenix
97 votes
Move to Hamilton
96 votes
Move to another location
52 votes

245 votes | Poll has closed

0 recs  |  Comment 36 comments |

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Comments

Display:

Sharp implements await...

for those not voting for the first option…

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 18, 2009 7:01 PM PDT reply actions   0 recs

Sorry dude. I really think you deserve to keep the team. For some reason though, I just want the whole thing to be over with.

Fear the Fin: Where... IMA TAKING UR BLOGZ FRUM U!!

by That'll Cheech You on Aug 18, 2009 7:04 PM PDT up reply actions   0 recs

Yeah. Any ways you cut it it’ll be partially done soon and then more legal challenges after.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 18, 2009 7:24 PM PDT up reply actions   0 recs

ha ha!

and thankfully I am safe since I think Balsillie is being a prick of the highest level.

Ever get the feeling we are on a collision course with reality?

by ang6666 on Aug 18, 2009 8:10 PM PDT up reply actions   0 recs

You win cookies. Grey does as well, but those are just photoshopped.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 18, 2009 8:20 PM PDT up reply actions   0 recs

only photoshopped cookies?

awww :(

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 8:52 PM PDT up reply actions   0 recs

Keep it 6!

I’ve stated my support for the ‘Yotes and their fans before, and I’m stating it again.

Also, I think I am allergic to sharp implements…

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 7:15 PM PDT reply actions   0 recs

Tough, tough question. I think the big fear with the Reinsdorf bid is that he’s going to want an out clause and put the fans through this again in five years, but the market, like Nashville, likely deserves its second chance. It will be a long, long road to profitability for them.

Unrelated to that question, however, the NHL really should find a way to get into Southern Ontario and get another huge revenue producing team in the mix. There are plenty of people not named Balsillie who would step up to own said franchise; the league should get onboard with making this a priority if (a) a team has to move at some point or (b) there’s expansion.

Blogging on hockey at fromtherink.com

by James Mirtle on Aug 18, 2009 7:32 PM PDT reply actions   0 recs

is expansion even viable

when you look at the under-performing markets the NHL already has? Or will a 7th team be the result of contraction and shift in the conference set ups? (ex. moving a team to Canada after removing it and a few others from an American city, to even things out after contraction)

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 7:39 PM PDT up reply actions   0 recs

I know adding a team during a shrinking period

makes no sense, but this is sports. Anything is possible.

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 7:39 PM PDT up reply actions   0 recs

I don’t think the league will ever contract, even if it appears they should. Expansion also appears to be well off on the horizon, but that shouldn’t stop the NHL from stating that, should it pursue adding additional teams, Southern Ontario is a top priority. It makes no sense to do otherwise.

Blogging on hockey at fromtherink.com

by James Mirtle on Aug 18, 2009 10:09 PM PDT up reply actions   0 recs

I agree that were the NHL to expand, Souther Ontario is the best place to start. I just prefer that a team not be moved for that to happen. It’s probably due in large part to my being a fan of a CA team. I want to support my south western brethren. We know what it’s like to have hockey when it’s 100 degrees F, and we love it.

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 10:22 PM PDT up reply actions   0 recs

Ah yes, I remember going to a February game wearing shorts and flip flops. Good times.

"I think I realized after the second or third punch, I should have taken his helmet off sooner." - Ryane Clowe
Proud member of the "Don't Trade Marleau" Club
Fools and Sages

by mymclife on Aug 18, 2009 10:26 PM PDT up reply actions   0 recs

Yeah!

It’s not all sunny all the time here.

-The dude responsible for this mess

Proud member of the "Don't Trade Marleau" Club

by idunno723 on Aug 18, 2009 10:33 PM PDT up reply actions   0 recs

Yeah!

Sometimes it’s smokey.

It takes a big man to cry and it takes a bigger man to laugh at that man. -Jamie Baker
Proud member of the "Don't Trade Marleau" Club

by Lurker Shark on Aug 18, 2009 10:33 PM PDT up reply actions   0 recs

Yeah!

And garlic-y. Thanks, Gilroy!

"I think I realized after the second or third punch, I should have taken his helmet off sooner." - Ryane Clowe
Proud member of the "Don't Trade Marleau" Club
Fools and Sages

by mymclife on Aug 18, 2009 10:50 PM PDT up reply actions   0 recs

only in the summer

and fall. And occasionally spring.

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 11:06 PM PDT up reply actions   0 recs

omg

James Mirtle!

/giggles

-The dude responsible for this mess

Proud member of the "Don't Trade Marleau" Club

by idunno723 on Aug 18, 2009 8:40 PM PDT up reply actions   0 recs

Hahaha.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 18, 2009 8:45 PM PDT up reply actions   0 recs

Unless you’ve been living under a rock the last three months, rumblings about the legal issues Phoenix is currently facing have managed to worm their way into your consciousness.

Wait, there’s a hockey team in Phoenix!

-The dude responsible for this mess

Proud member of the "Don't Trade Marleau" Club

by idunno723 on Aug 18, 2009 7:32 PM PDT reply actions   0 recs

My cousin who lives in Phoenix (okay, technically Scottsdale) asked me that very question.

"I think I realized after the second or third punch, I should have taken his helmet off sooner." - Ryane Clowe
Proud member of the "Don't Trade Marleau" Club
Fools and Sages

by mymclife on Aug 18, 2009 7:35 PM PDT up reply actions   0 recs

As far as I'm concerned,

Balsillie thinking they could move the team to Hamilton before the season starts just shows how little he cares about the rest of the league. It would be a nightmare for schedule changes or travel, especially for the rest of the Pacific. He just wants his new toy. And the guy wonders why the BoG rejected him as an owner…

Keep it six. Even if it means there’s six games every season that I get way more worried about than I should.

It takes a big man to cry and it takes a bigger man to laugh at that man. -Jamie Baker
Proud member of the "Don't Trade Marleau" Club

by Lurker Shark on Aug 18, 2009 8:52 PM PDT reply actions   0 recs

THIS
Keep it six. Even if it means there’s six games every season that I get way more worried about than I should.

I cringe every time we face the Coyotes. Every time. They have the Sharks figured out.

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 8:53 PM PDT up reply actions   0 recs

Any time I hear Coyote Ugly,

the movie is not the first thing that comes to mind. That game still gives me fits.

It takes a big man to cry and it takes a bigger man to laugh at that man. -Jamie Baker
Proud member of the "Don't Trade Marleau" Club

by Lurker Shark on Aug 18, 2009 8:57 PM PDT up reply actions   0 recs

ugh

you had to remind us?
That game was disaster personified.

resident cartoonist @couchtarts.blogspot.com. Endorsed by Mr. K on "CINCODEMYOOR!!!!!" Proud member of the "Don't Trade Marleau" Club

by CTGray on Aug 18, 2009 9:01 PM PDT up reply actions   0 recs

Why can’t the Coyotes stay in Phoenix, Balsillie doesn’t get a team, and Atlanta moves to Canada and we’ll all be happy.

-The dude responsible for this mess

Proud member of the "Don't Trade Marleau" Club

by idunno723 on Aug 18, 2009 9:03 PM PDT reply actions   0 recs

I very nearly voted move

But in the end, I’m a West Coast Hockey Fan. I root for the teams in so called “Non-traditional markets.” Because if the Coyotes move, it’s not going to be long before some igloo-dwelling, Tim-Horton chomping, oot and abooting, Leafs rootin’ Canadian extremist says that hockey doesn’t belong in California and insists the Sharks move to Regina /end snark.

There is already one group of fans (those in Winnipeg) who have had to see this team uprooted. I hate to ask another group of fans go through the same thing because I think the financials and the logistics work better somewhere else. It’d be hypocritical on my part.

They're not getting this kind of coverage at "Hockey Night In Canada" folks! - Randy Hahn

by ElvisVF101 on Aug 18, 2009 9:21 PM PDT reply actions   0 recs

Honestly, I don’t think any team in a non-traditional market should be moved unless nobody shows up when the team is successful. Actually, that should be the watershed for all teams – playoff team, low attendance, then you move. Of course teams that have been bad on the ice for the past few years aren’t going to do well – unless they are Montreal or Toronto, that is. But those two should serve as the exception, rather than the rule as some fans seem to think.

I really do think that Phoenix can be a viable hockey city, as long as the right group of people are in charge and they have a competent coach. And then maybe they can have their own version of the Jamie Baker goal.

"I think I realized after the second or third punch, I should have taken his helmet off sooner." - Ryane Clowe
Proud member of the "Don't Trade Marleau" Club
Fools and Sages

by mymclife on Aug 18, 2009 9:25 PM PDT reply actions   0 recs

[…] the Maple Leafs are attempting to block a second Ontario team

It would be a third Ontario team, yes? Ottawa is the second.

by Mark Parisi on Aug 18, 2009 11:41 PM PDT reply actions   0 recs

Make that southern Ontario. Thanks for the heads up.

Fear The Fin: Where Selling Your Soul Is The Likely Solution

by Mr. Plank on Aug 19, 2009 8:14 AM PDT up reply actions   0 recs

I want to see a team in Phoenix

My only concern is getting and keeping butts in the seats.

If they can do that, and commit to doing that for the foreseeable future, then all should be good.

Maybe we should trade Ehrhoff, Cheech and Luko for Doan and some picks! Those 3 marquee Sharks players sure will help get some butts on the seats in Phoenix! And what’s Doan done anyway? We’d be doing them a favor!

(/End Dreamland)

"iaT"S FUCKINGE LIEK CONICO DO MAYO!!!!!111"
Mr. K. 5/5/2009

by Morti on Aug 19, 2009 10:56 AM PDT reply actions   0 recs

Hockey needs to spread, and staying in PHX would help that. Plus, a move to anywhere besides Las Vegas, really, would throw off the divisions.

Proud member of the "Don't Trade Marleau" club.
Fear the Fin: Where Sharks Fans Aren't Like Other Sharks Fans.

by SharksFanEst.1994 on Aug 19, 2009 9:25 PM PDT reply actions   0 recs

The San Francisco KILLER WHALES

I don’t know about the rest of you, but I’d be absolutely down to watch hockey at the Cow Palace again :)

by 4Czech on Aug 22, 2009 2:13 AM PDT reply actions   0 recs

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