|
Post by Wolfpack on May 5, 2009 19:11:35 GMT -5
tsn.ca/nhl/story/?id=277664Jim Balsillie has put in an offer on the Phoenix Coyotes. According to a media release, the Blackberry billionaire's offer of $212.5 million (US) for the team is conditional on the franchise relocating to Southern Ontario. "The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and Southern Ontario," Balsillie said in the release. "I am excited to move closer to bringing an NHL franchise to what I believe is one of the best un-served hockey markets in the world, Southern Ontario. A market with devoted hockey fans, a rich hockey history, a growing and diversified economy and a population of more than 7 million people," he said. The release also says, Balsillie agreed to post debtor-in-possession financing of $17 million (US) at the request of the Coyotes franchise. The money will keep the franchise going before the sale is completed. This is far from the first time that Balsillie has attempted to move an existing franchise to the Golden Horshoe. In 2007 Balsillie attempted to purchase the Nashville Predators in an effort to re-locate the team to Hamilton, and even gave fans the opportunity to put a down payment on season tickets. The deal fell through leading to speculation that the league was not interested in Balsillie attempting to move a team before he actually owned them. These new details come on the heels of a series of confusing reports last week that the NHL was in charge of the Coyotes, a report Coyotes president Doug Moss refuted. The league did not release a comment. The Arizona Republic reported that the Coyotes filed for Chapter 11 bankruptcy protection on Tuesday. Coyotes' CEO Jerry Moyes stated that they have done everything they can to try and keep the team in Arizona. "Extensive efforts have been undertaken to sell the team, or attract additional investors, who would keep the team in Glendale," Moyes told the Republic. In addition there seems to be a growing sentiment of bringing a second team to the Southern, Ontario region, recently deputy commissioner Bill Daly met with a group who are attempting to bring a second team to the Greater Toronto area. According to a release by the NHL following that meeting, that is not on the league's agenda. "There is no consideration of bringing a second franchise to Toronto. We have no intention to expand in the foreseeable future, and there is no desire to relocate any of our existing franchises." If Balsillie is successful in bringing the Coyotes to Canada it would mean that the franchise has come nearly full circle after the team was forced to relocate to the desert from Winnipeg in 1996.
|
|
|
Post by Zoom Waffles on May 5, 2009 19:17:06 GMT -5
This comes just over a month after Bettman definitively says "at this point moving the [Coyotes] franchise elsewhere is not on the table."
I must reiterate a point I made in an article a few months ago -- while the Coyotes franchise has reportedly lost $200 million since moving to Phoenix, the NHL has only gained. The NHL will be extremely reluctant to allow Balsillie to purchase this team, and even more reluctant to allow him to move it to Southern Ontario. I guess I can never be sure, but I would be very, very surprised if Balsillie were to acquire the Coyotes.
Great find, Wolfpack!
|
|
|
Post by fukufuji on May 5, 2009 22:04:34 GMT -5
I see the logic in moving a sport played on ice out of one of the hottest areas in north america lol!
Welcome aboard Windsor Cyot's or Jets!!! Of course seeing will be believing
|
|
|
Post by Zipper14 on May 6, 2009 0:20:19 GMT -5
Everyone knew Bettman was full of it. He's been lying through his teeth about the Coyotes since the All-Star break.
It would make sense to move a team to Southern Ontario, and fans in Canada would be ecstatic.... which is why I don't see it happening. Bettman is still hellbent on growing the sport in the US.
On the bright side, maybe the bankruptcy of the Coyotes is the first step in the dethroning of Bettman.
|
|
|
Post by Zoom Waffles on May 6, 2009 0:33:21 GMT -5
The NHL's reasoning behind moving franchises to non-traditional markets is extremely sound in a business sense. The league gains most of its revenue from merchandising and general fan support exclusive of ticket sales. If you read the article I posted a while ago, skip this post... I'm just going to repeat it.
The fact is, a professional hockey team essentially makes money in two ways. First, ticket sales. A large percentage of revenue earned from ticket sales goes directly into the team's pocket. Very little of it goes to the NHL. Second, merchandising. The bulk of merchandise sales revenue goes to the NHL, and this is where they gain most of their profit. Remember, the NHL is a business first -- it is not the IIHF.
So if you've got the city of Hamilton already hooked on hockey (it's Canada, after all), the NHL has absolutely nothing to gain by moving a hockey team there. Those people are already buying (Leafs) merchandise, and supporting the league. Yes, putting a new team there would create a successful team because there would be huge ticket sales revenue. But the NHL doesn't gain from that profit. Rather, the NHL is in a position to earn far more money by introducing an entirely new market to the sport of hockey. This is why they set up teams in Florida and Atlanta, and moved teams to Carolina and Phoenix.
So when the NHL controls a team, as they now do in this bankruptcy situation, it's up to them to decide where the team goes (essentially). The NHL wants the team to go to a fresh market, not a market where merchandise is already sold. Therefore, Kansas City or Portland stands a better chance of getting this franchise than Hamilton or Windsor.
It's business (Bettman) vs. Bettman-haters (Canadians). I don't see how this will be Bettman's downfall -- the reins are in his hands. If Balsillie is going to move the team to Canada, Bettman WILL NOT sell the team to Balsillie. Simple as that.
|
|
|
Post by Zoom Waffles on May 6, 2009 0:42:29 GMT -5
|
|
|
Post by Zipper14 on May 6, 2009 12:16:09 GMT -5
I get how Bettman wants to create new hockey markets. But in large part Canadians are sick of the NHL trying to sell the game to people that don't appreciate it. Hockey has been tried in the southern US, and it failed. I'm OK with that, hockey's not for everyone.
How about caring even the tiniest amount about the people that live and die for the NHL?
Either way, Bettmen said it's not up to him weather or not the team would move. It has to be approved by the other owners in the league.
|
|
|
Post by Zoom Waffles on May 6, 2009 12:36:20 GMT -5
But the point is, hockey in the southern US has NOT failed. The goal was never to build long-lasting, thriving franchises. It was to build 10 year franchises and then move them again.
The problem is that it's BETTER for the NHL as a league, and it's BETTER for the other owners if a team goes to a brand new market. In Bettman's tenure, the league's revenue has gone from $400 million to $2.2 billion! If the league makes more money, life is easier on everyone. And you can bet that Leafs ownership doesn't want another team in Ontario. That wouldn't seem to make much sense for them.
I really just don't see another team moving to Ontario as long as Bettman is running this league. You have to realize that Bettman isn't a die-hard hockey fan like you'd want him to be. He's an extremely intelligent businessman, and in that regard, he's done a phenomenal job.
|
|
|
Post by Wolfpack on May 6, 2009 14:44:26 GMT -5
This thing is going to get messy. You've got an owner that desperately wants to sell and the NHL bigwigs that are doing everything they can to keep it from happening. From Rotoworld...
Phoenix owner Jerry Moyes has placed the Phoenix Coyotes in Chapter 11 bankruptcy. Moyes wants to sell the team to Jim Balsillie of Blackberry fame and has reportedly been offered $212.5 million for the team which Balsillie wants to move to Southern Ontario. A stickling point is that there is $700 million worth of penalties if the Coyotes break their arena lease with the city of Glendale, but bankruptcy may be the only way that the city could not sue the organization for payment. The NHL is not at all happy with Moyes and are considering taking over the franchise, although this is up in the air at this time. This is going to be quite the soap opera over the next few days or longer so stay tuned. May. 6 - 8:14 am et
|
|
|
Post by Zoom Waffles on May 6, 2009 14:53:17 GMT -5
According the Deputy Commissioner of the NHL, Jim Daly, the league has ALREADY taken control of the franchise. Bettman is writing this off as if he's OK with Balsillie taking a franchise to Southern Ontario. He claims his problem is with the method through which they're doing it. Question is... if that's his only problem, why has he already screwed Balsillie... twice? Just published an article on the whole situation, though I'm sure it'll be outdated within the hour... www.freewebs.com/hockeyutopia/phoenix.htm
|
|
|
Post by Zipper14 on May 6, 2009 18:28:48 GMT -5
That's $400 million to $2.2 billion over seventeen years. And in that time the team has gained 9 teams, so I would hope that revenues would go up quite a bit. By comparison, the NFL has also increased its revenues 6 fold over that time period, but in that time the NFL has only added 5 teams. When Bettman took over in the early 90s Sports Illustrated said hockey was going to be the next big thing to sweep the nation. Well 17 years later and hockey now has less fans than the MLS. It's biggest TV deal is with VS, which is only carried in 60% of American homes, and game sevens of the Stanley Cup finals (2004) are beat out in the ratings by Cosby Show reruns. I get that they want new fans, and I get that new fans equals cash flow for 5-10 years, but after 10 years it's no longer a novelty and the team suffers financially and has to move. When you combine the prospect of roaming franchises with teams playing in places that have never had ice, the integrity of the game becomes very damaged. It makes the NHL a joke in the US. Being a joke might get some attention, but down the line it wont sell tickets or merch. If they were to move this team to Canada they could sell 20 000 tickets every night and get very consistent revenue that way, plus a little bit of revenue from the novelty of buying a Hamilton Jets jersey .
|
|
|
Post by Zoom Waffles on May 6, 2009 22:48:57 GMT -5
i can't disagree with you. i wonder though... are there still untapped hockey markets? places that would become crazy fanatical about hockey, but we just don't know it yet? i mean, what if you dropped a team in portland, and suddenly the northwest got really into hockey.
a pipe dream, perhaps.
|
|
|
Post by Wolfpack on May 6, 2009 23:54:57 GMT -5
I agree with you Zoom. There has to be a market in Portland or even better, how about Seattle?
|
|
|
Post by Zoom Waffles on May 7, 2009 0:15:00 GMT -5
exactly. especially after having lost the Sonics. It seems natural for hockey to fit in well in a city that has ONLY baseball and football. The seasons don't really conflict.
San Diego, Kansas City, Seattle, Cleveland... all options. Not necessarily viable options, just saying... places with baseball and/or football but no basketball.
|
|
|
Post by Zipper14 on May 7, 2009 9:52:33 GMT -5
Yea, Ohio loves their College hockey. I wonder if Cleveland would take to having a hockey team. What about Milwaukee? They've got a bigger population than Colorado. Seattle might work, but owners always seem to be skeptical about towns that have lost franchises. I think hockey would have a better chance at working there than in Atlanta or Nashville.
Still, after years of empty seats in these places, you'd think the NHL would be more open to moving to a place that would buy tickets, guaranteed.
|
|
|
Post by Zoom Waffles on May 7, 2009 12:54:06 GMT -5
as i said at the end of this new article that's on the home page now... i think eventually bettman will give in. but if an investor comes along and says "i'd like to buy the coyotes and move them to seattle", i'm sure bettman would jump at the chance.
I just don't see that happening in today's economy.
|
|
|
Post by Zoom Waffles on May 7, 2009 17:45:38 GMT -5
we're getting miles ahead of ourselves here, but it has been confirmed that the Coyotes would be moved to Hamilton, ON, at least initially, if Balsillie were to purchase the franchise. The team would play in Copps Coliseum in Central Hamilton.
Copps Coliseum is... 40 miles from Air Canada Centre (Toronto Maple Leafs) 65 miles from HSBC Arena (Buffalo Sabres) 192 miles from Joe Louis Arena (Detroit Red Wings)
Copps Coliseum is currently home to the Hamilton Bulldogs, farm club of the Canadiens. I wonder what would happen to them... doesn't seem likely for a team to share an arena with a farm club that ISN'T their own.
|
|
|
Post by Zipper14 on May 7, 2009 22:20:31 GMT -5
If Hamilton gets a team then I think the Bulldogs are out. Toronto is the only city that is big enough to handle an AHL and NHL team. A suburb of Vancouver is getting Calgary's AHL team, but I don't think that will fly. British Columbia is very passionate about loving the WHL and hating the Flames, a bad combo for that team.
On thing's for sure though, the Leafs and Sabers will be voting against any movement to get a team in Southern Ontario.
|
|
|
Post by fukufuji on May 8, 2009 8:35:04 GMT -5
Yea, Ohio loves their College hockey. I wonder if Cleveland would take to having a hockey team. What about Milwaukee? They've got a bigger population than Colorado. Seattle might work, but owners always seem to be skeptical about towns that have lost franchises. I think hockey would have a better chance at working there than in Atlanta or Nashville. Still, after years of empty seats in these places, you'd think the NHL would be more open to moving to a place that would buy tickets, guaranteed. I would love to see a team in Cleveland but I dont see a market for it. Since I've worked here the city has failed to keep 3 semi pro teams alive. Also there are many people here that don't even know about the blue jackets or that they made the playoffs. Its a real bummer after having grown up in detroit but thank goodness for the internet where I can keep up on news. To put things in better perspective Cleveland broadcasted a regular season Indians game on 3 chanels the day of game 3. We had to stream wings / jackets over the internet. When I asked cable about center ice the said whats that then laughed when I explained. But like posts above its not always interest that fuels a move so will be interesting to see. I think economy will force the move to a receptive market in Canada.
|
|
|
Post by Zoom Waffles on May 8, 2009 9:18:31 GMT -5
you know, if i'm understanding the whole situation right (and I think I am), it very well could come down to two options...
1) Sell the team to Balsillie and let it move to Southern Ontario 2) The NHL loans Phoenix $15-20 million to support them in Arizona assuming that when they're more successful they'll attract more fans.
Option 2 seems like it would be a conflict of interest though -- the NHL would desperately want Phoenix to be successful on the ice, and that can be dangerous as far as calls and what not. So at this point, there's only one reasonable option.
|
|
|
Post by Zoom Waffles on May 9, 2009 12:41:20 GMT -5
|
|
|
Post by Wolfpack on May 9, 2009 15:59:31 GMT -5
Wow, this thing is really ramping up quickly. The Yotes are set to sue the NHL per Rotoworld...
The Phoenix Coyotes are ready to sue the NHL because the league will not allow owner Jerry Moyes to sell the team to Canadian Jim Balsillie. This is turning into a mess and the NHL has to be wary of a possible lawsuit if Moyes cannot sell the team to Balsillie who wants to move the team to southern Ontario. The Coyotes are prepared to sue and cite that the NHL is breaking state and federal anti-trust laws. The Coyotes are preparing its case for the court and they state in their case that Phoenix is not a viable hockey market according to the Arizona Republic. The team has lost $73 million in the last three years. Sounds to us that this is not a viable market. Stay tuned. May. 9 - 8:39 am et
|
|
|
Post by kingsfan24 on May 9, 2009 18:23:50 GMT -5
It's an extremely ugly situation and the longer this drags out the worse the Coyotes are going to be because the uncertainty will creep into the players if it hasn't already. I say move to them to Canada to regain stability because I don't think anyone will fork up the amount of money Balsillie will dish out. Honestly, Phoenix is a terrible market because they will turn their back to teams quickly and the only way they hype up the Coyotes is through an improbable playoff run where they get past the 1st round which I don't see happening until a few more seasons which will be too late by then. If memory serves me right they had trouble selling tickets during the Roenick/Tkachuk glory years in Phoenix and at this point I think Coyotes are a lost cause.
|
|
|
Post by Zoom Waffles on Jun 15, 2009 22:02:28 GMT -5
The Coyotes are staying in Phoenix. www.nhl.com/ice/news.htm?id=425756A judge has ruled against selling the franchise to Balsille. Apparently the third time isn't the charm, after all.
|
|