Bill Walker, spokesman for Balsillie's PSE Sports and Entertainment group, released a statement on Monday.

"Jim Balsillie's bid to bring a seventh NHL team to Canada continues. We're still here. The Phoenix court confirmed Mr. Balsillie was approved as an NHL owner in 2006 and remains so. We believe he has made the best offer and Hamilton remains the best location for this team.

"The court did not approve either our approach or the NHL's. Judge Baum did state he does not have time to decide all the relocation issues. But the court still controls the sale process. As a result, we look forward to hearing from the NHL soon on its view of our relocation application and an appropriate relocation fee, so as to allow the court to determine if that fee is reasonable. We still think there is enough time for the NHL to approve Mr. Balsillie's application and move the team to Hamilton by September. The court invited mediation on these issues and Mr. Balsillie is willing to participate in such mediation if the NHL is also willing to do so."

NHL Deputy Commissioner Bill Daly also released a statement following the ruling on behalf of the league.

"We're pleased the Court recognized the validity of League rules and our ability to apply them in a reasonable fashion. We will turn our attention now toward helping to facilitate an orderly sales process that will produce a local buyer who is committed to making the Coyotes' franchise viable and successful in the Phoenix/Glendale area. We are confident that we will be able to find such a buyer for the Coyotes and that the claims of legitimate creditors will be addressed."

Steve Roman, the spokesman for Coyotes owner Jerry Moyes, told TSN on Monday evening, "We are disappointed in the ruling and will evaluate our options."

the NHL is still in trouble though. they still cannot try to control who buys the team. from what i am hearing this issue is not over yet. but the team coming to Hamilton is

If find the indignation about the rules interesting. A good bit about this in another forum:

Those rules are what prevented Ottawa, Buffalo, Pittsburgh, and Edmonton from moving. People quickly point out failures (Quebec, Winnipeg), but just as easily or conveniently forget the measures taken to retain franchises in their location even when they were losing money. The NHL took over the sabres and ran them until they found a suitable owner that kept them in Buffalo, and no one ever questions whether or not its a viable franchise.

Ditto with Edmonton when the NHL in accordance to these rules held back the creditors and allowed an investor group from the community composed of over 100 individuals to retain control of the team until Mr.Katz purchased it last year, something that was unprecedented in professional sports. Or in Pittsburgh holding off Balsillie who wanted to move the team because they didn't have the arena or a commitment for a new arena, and look at where we are now. They've placed that franchise on secure footing, they've secured a commitment to build a new arena, and they are now the Stanley Cup champions, where half a decade ago the franchise was bleeding money and selling off players like crazy.

Or do people quickly forget the program instituted by the NHL that saw money from the American teams go to the Canadian teams in order to ease the burden of salaries which need to be paid in USD when the loonie was at $0.60 to the dollar a move that effectively allowed Ottawa, Edmonton, and Calgary to stay where they are.

People also conveniently ignore the fact that two American teams were also forced to move (Hartford & Minnesota) under Bettman's watch.


And the NHL hasn't ruled out relocation for Phoenix. However, Balsillie never made an attempt to legitimately relocate Phoenix by asking the NHL to do so. Instead, he made a back door deal that would circumvent league rules and tried to get the courts to force the NHL to give him the franchise and allow him to move it to Hamilton. This may or may not be the right move for the Coyotes or the NHL, however what is certain is that had the judge ruled in Balsillie's favour, it would mean that any franchise that would fall under hard times could potentially be moved at the decision of the courts, and not the NHL, regardless of whether the original market is viable or not, and regardless of whether the new market would be viable or not. That's what's called a legal precedent, and that's why not only the NHL, but the NBA, the NFL, and MLB all supported the NHL 100% on this issue since it would mean any sports franchise could be moved at the decisions of the court.

Forget this is about Phoenix for one second. Imagine the hypothetical scenario where Eugene Melnyk was found to have massively defrauded investors, did some insider trading and cooked the books on his company. He would be effectively broke, and would have to declare bankruptcy. If that judge had ruled in favour of Balsillie, that would mean that someone like Bill Gates for example could say to himself "hmm...I've always wanted to own an NHL team", so goes to the courts and offers to pay off the creditors under the condition that he can move the team to Saskatoon. Now on the other hand, there is this local group of business men led by Jeff Hunt (hypothetical) who have more than enough money to actually run an NHL franchise, however they would simply be outbid by Bill Gates and the franchise would be moved. Now everyone knows that Saskatoon would be a disaster for the NHL, but the judge doesn't consider this. However, because the judge sided with the NHL in this case, that means the NHL would be able to choose the Jeff Hunt group to purchase the Sens, keep the franchise in Ottawa, despite the fact that Bill Gates could offer substantially more money to the creditors.

From a financial perspective, let's examine things:

1) There are very few sports franchises in NA that can boast having a losing record for 12 years and still draw a large number of fans. In the NHL, only Toronto, Montreal, and the NYR will sellout all the time regardless of how good the teams actually are. Chicago, an original six franchise prior to the death of the previous owner probably averaged less than 9,000 fans in their arena, and had no tv viewers.

2) The Coyotes are reportedly losing 30 million dollars a season. By that same token, the Coyotes are paying Gretzky approximately 9.6 million dollars for "coaching". One third of the Coyote's debt over the last few years has been tied to Wayne Gretzky.

3) The Coyotes have a horrible lease agreement that sees them pay additional money to the city of Glendale for effectively every fan that comes to the game. That's right, the more people come to the games, the higher the team's expenses are. Ottawa would be bleeding money if it had an agreement like that with the City of Ottawa.

4) The Coyotes are not eligible for revenue sharing, meaning the Canadian teams are not "supporting" a team like Phoenix. Some owners legitimately do not want to see another team in Southern Ontario because the increase in revenue might actually drive the salary floor up higher than they can afford at this present time.

5) To get approval to move to Hamilton, the NHL would need assurances beforehand that Copps Coloseum would be retrofitted to match established NHL standards for their arenas. Balsillie is not committing that money and has asked the government for approximately 150 million dollars to do so, something neither the Federal, nor the Provincial governments have come forward and agreed to do.

So the trial was about ensuring the NHL (along with all other major sports) retain the right to choose where they want their franchises to be located. Whether or not you agree on the locations where they decide to put these franchises is a whole other discussion, but a decision by the judge against the NHL would have meant that any franchise which is going through tough financial times for whatever reason could be sold to whoever and moved wherever they want without the NHL, and that community having any say in that decision whatsoever.

Excellent post spensar.

You hit pretty much every nail on the head. Coyotes "losses" are misleading. The team claims to lose $30million a season, of which $8 million is above market rate for a coach. The team allegedly spends $15 million per season on marketing with nothing to show for it. Those two line items alone reduce the losses to less than $10 million a season. The reality is that, as long as Swift Transportation was making money hand over fist, Moyes was more than happy to lose money on the Coyotes to benefit his personal tax situation. He appears to have structured Coyotes finances deliberately to assist his tax situation. However, when Swift when in the tank with the US economy, he's no longer prepared to accept those losses. In my view ... tough. Take the best offer to keep the team where it is and walk.

As far as Phoenix goes, remember, the team moved from downtown to a completely different suburban area. That requires a complete rebuild of the season ticket base. When Washington did it (moving from Landover to downtown) it took several seasons, a trip to the Cup Finals, and Overchkin/Semin/Backstrom to finally establish a complete new ticket base. All Phoenix has done, since the move, is see losing hockey from a bad team. The fans who have supported that team deserve a winning team before the rug is pulled. If the team has on-ice success and the fans don't come ... fair enough ... relocate, but until there is some measure of on-ice success, then you cannot fairly assess Phoenix as a hockey market.

Hamilton is maybe the fourth best market for a new/relocated team (Houston/Seattle/Winnipeg are all superior). Judge Baum affirms the NHL's right to make those decisions. If you read the actual decision, not the media reports, his comment as to Balsillie's acceptability as a purchaser is based on the NHL's BOG approving him in 2006 as a prospective purchaser of a different franchise. The NHL did not argue that he was no longer acceptable so Judge Baum drew the reasonable conclusion that he remains an acceptable purchaser if the other elements of the purchase meet a reasonable test. He did not, in any way, undermine the authority of the NHL to approve or not approve prospective owners. That suggestion is a complete misread of his award.

Houston is a Superior market for hockey? really? might as well leave them bleeding money in Phoenix if Houston was the only option

Not to debate potential franchise locations in detail, but Houston is a phenomenal opportunity for the NHL. Texas is hockey mad with one NHL team (Dallas), three AHL teams (Houston, San Antonio, and Texas (Cedar Park)), seven CHL teams (Allen, Amarillo, Corpus Christi, Laredo, Odessa, Rio Grande Valley, and Texas (N. Richland Hills)), with one CHL team in limbo (Austin Ice Bats) because of arena issues.

The Houston Aeros were very successful WHA franchise. After the WHA there were the Houston Apollos of the CHL and then the Aeros name was used when Houston rejoined the IHL and were merged into the AHL when the IHL folded. There is a long history of successful professional hockey in Houston.

They have an NHL ready arena (the Aeros currently share it with the Rockets of the NBA).

They significantly outdraw the Hamilton Bulldogs. For 2007-08, Hamilton drew 182,991 fans and for 2008-09 it was 184,952. Houston was 251,191 and 239,281 respectively.

Hamilton will hurt the Buffalo Sabres. Houston would be a fresh market and would not negatively impact another NHL team.

Separating emotion and the notion that Canada is a better home for hockey franchises, any rational analysis leads to the conclusion that Houston is a superior location for a future NHL franchise.

JohnnyCanuck and spensar: Thank you for bringing some sanity and logic to this discussion. Too much of it has been based on emotion. This whole controversy was a legal one from day 1 but it got bogged down by Basillie in calls for patriotism and assumptions that were dubious (i.e. government aid was a given).

spensar, thanks for pointing out how the NHL has helped Canadian and other small market teams to remain in business (yes on Bettman's watch). It amazes me how so many in Canada either don't realize or want to ignore the fact the the NHL could simply have said tough luck and moved all the Canadian franchises south except perhaps for Montreal and Toronto.

Southern Ontario will get another team eventually. Mostly because contraction isn't happening any time soon, so it's a fallback place to stick a team. Also, when a team does come here, the NHL will hold an open bid in some way to make someone pay $500M or more. Also, in the bidding process, Hamilton may not even be the best choice.

If Balsillie just wants to stick a team in Hamilton no matter what, he'll need to pay for that right. I'm so glad he didn't get his way with my Penguins.

ust a reminder that RIM Jim is still holding a rally this Friday in downtown Hamilton.

A Rally in Hamilton? Henceforth known as Sillie Balls .

Note to any city wanting an NHL franchise. Do not under any circumstances have Jim Balsillie involved in your bid. He is toxic. He has tried backdoor manouevers behind the NHL's backs once too often. If I was a businessman, I would not want him as my business partner, and I'm sure most NHL owners feel that way, regardless of their sympathies about another Canadian franchise. The only way Jim Balsillie could get anywhere with a franchise in Hamilton is to re-start the WHA.

Southern Ontario will get another team eventually. Mostly because contraction isn't happening any time soon, so it's a fallback place to stick a team.
I could see contraction coming in 2010, unless the economy improves significantly in the next 3 or 4 months. If there isn't sufficient season-ticket money in the bank, it's possible that 3 or 4 teams could fold. Save a team or 2 by relocation, and the NHL could move to 4 divisions of 7 teams each. That would greatly improve the level of play in the league, and also drop salaries somewhat.

I could see contraction coming in 2010, unless the economy improves significantly in the next 3 or 4 months. If there isn't sufficient season-ticket money in the bank, it's possible that 3 or 4 teams could fold. Save a team or 2 by relocation, and the NHL could move to 4 divisions of 7 teams each. That would greatly improve the level of play in the league, and also drop salaries somewhat.

this will not happen because good ol Gary keeps saying the NHL is financially sound. he was even saying there were no problems in phoenix before this whole mess started

A Rally in Hamilton? Henceforth known as Sillie Balls .
RIM JIM took out a 4 page wrap around ad in the front section of today's Spec.

this will not happen because good ol Gary keeps saying the NHL is financially sound. he was even saying there were no problems in phoenix before this whole mess started

The league is financially sound. Are there some franchises that might not be? Atlanta? Miami? Tampa Bay (current ownership)? Long Island (current Building)? Sure. But the league as a whole is in pretty good shape.

As for Bettman admitting there was a problem ... why would he? It's not in the NHL's interests and neither the Coyotes or the league are publicly traded. When was the last time a sports league or team admitted a problem unless they had an agenda (wanting to move a team or get public funding for a new arena/stadium, etc)?

I don't think Bettman wants to admit that moving from Canada to Phoenix was a bad idea. It's an ego thing.

The team moved pretty early in his term (less than three years in) and pretty much had to go. Whatever we think of Winnipeg as a market, the Arena was wholly unsuited to be the home rink of an NHL team and ownership in Winnipeg had done everything imaginable to get a new arena.

Moving the team was inevitable and the Coyotes did fine in Phoenix (considering the building they were in) until the move to Glendale. The Coyotes were supposed to wind up in Scottsdale, not Glendale, and I don't think anyone looking at it in the mid-90's would have seen it as a flawed plan.

And, as per my post #106, the current "failures" of the Coyotes are debatable. The paper losses do not reflect the overall state of the franchise but are engineered that way. In real terms, the losses should be way under $10 million per year ... covered by revenue sharing ... and eliminated with any sign of a winning hockey team.

From RIM Jim:

"Make It Seven day is all about providing a voice to Canadian hockey fans, while raising money for minor hockey teams across the country. Canadians have proven themselves to be the best hockey fans in the world. They need to be heard," said Jim Balsillie, who also urged area fans to attend a noon rally Friday June 19 in Hamilton.

Make It Seven Day can be celebrated by any hockey fan, anywhere in Canada on Friday June 19. And by celebrating, fans will be helping raise money for minor hockey programs in their communities. The rallying cry is being supported by corporate partners Home Hardware, Prime Restaurants, Labatt Blue, DEWALT, and FirstOntario Credit Union.

Make It Seven day plans include:

• A City of Hamilton fan rally from 12-1:30 p.m. EST at Jackson Square in downtown Hamilton, directly behind the proposed new home of the team, Copps Coliseum.

• Home Hardware (www.homehardware.ca) stores across Canada will help raise funds for local minor hockey. Consumers will be invited to make a donation to a local minor hockey program and will receive a "Make it Seven" window sign to show their support for the cause;

• FirstOntario Credit Union (www.firstontariocu.com) is holding barbeques at 17 branches Friday and Saturday to raise money for minor hockey teams, while distributing T-shirts and pins to fans who participate

• All guests who order a Labatt Blue at a participating Prime Restaurants (www.primerestaurants.com) location (e.g. Casey's Grill * Bar, East Side Mario's, Fionn MacCool's, Darcy McGee's, Paddy Flaherty's and Tir Nan Og) will receive a colourful "Make It Seven" bumper sticker;

• The Labatt Blue Facebook Contest (www.facebook.com/labattblue) offers fans a chance to win season tickets for team's inaugural season;

• Prizes and gift cards from DEWALT (www.dewalt.com), Prime Restaurants and Home Hardware are available to win on select radio stations across the country;

• FirstOntario Credit Union, DEWALT, Prime Restaurants, Labatt and Home Hardware are supporting the rally in Hamilton.

"It all adds up. We have a market that is crying out for an NHL franchise, great fans, a plan for a state-of-the-art arena and tremendous corporate support from Home Hardware, Labatt Blue, Prime Restaurants, DEWALT and FirstOntario Credit Union," said Jim Balsillie.

In addition, Make It Seven Day offers fans a chance to "pick their starting lineup" through an interactive e-card available at www.dreamline.makeitseven.ca to send to friends, family or co-workers. Fans can play the part of GM and coach as they build their own team of beer-leaguers and all stars.

Fans can draft six friends and forward them the customized e-card with a picture of their friends' names emblazoned on Make It Seven hockey jerseys, to mark Make It Seven Day in Canada.

Not sure what all these events really mean to the NHL Board of Governors. Sure they are a strong show of public support but the board is not a body who owes or has any responsibilties to the Hamilton "electorate". What the public wants has nothing to do with it. I doubt if the NHL governors will be swayed by any of it. In any case all these events should be a lot of fun to the participants. Reminds me of similar campaigns in the past to get the Olympics and World Fairs for Toronto. They certainly didn't work.

Well, events like this keeps the story in the news which is something the NHL doesn't like. They want the story to fade away.

SillieBalls wants the government to pay $150 million to upgrade Copps, and maybe I'm to cynical, but I see this Hamilton PR work as at least partially an effort to put heat on the province and feds to pay for this. He would like to have a facility that is at the NHL standard ready to go when he takes another run at relocation.