A flood of court documents have cast doubt on whether the NHL’s Phoenix Coyotes can be sold in Wednesday’s scheduled auction.
US Bankruptcy Court Judge Redfield Baum on Friday set an emergency hearing for tomorrow to decide on a request by the NHL that sale be postponed until next month, allowing bidders more time.
The judge had set Wednesday as the auction for a buyer to keep the team in Arizona. So far, the only local offer is a US$148 million bid by a group headed by Jerry Reinsdorf, owner of baseball’s Chicago White Sox and the NBA’s Chicago Bulls.
PHOTO: AP
Questions about the legitimacy of Reinsdorf’s bid were raised in several filings on Friday as the complex case grew ever murkier.
Coyotes owner Jerry Moyes opposes any delay. He asked the judge to reject Reinsdorf’s offer, charging that it provides no cash to debtors — headed by Moyes — and would leave some creditors empty-handed.
Rejection of the local bid would clear the way to sell the team to a buyer who would relocate it.
“The current motions are clear recognitions that the only real ‘bid’ that has been received [the Reinsdorf bid] is woefully deficient on many levels,” Moyes said in court documents.
Meanwhile, SOF Investments, the largest secured creditor — who is owed some US$80 million — said it could not consent to the Reinsdorf bid because their payment hasn’t been worked out, although negotiations have begun.
A committee of unsecured creditors also objected, on the grounds that Reinsdorf’s offer is “contingent and illusory.”
The committee contested Reinsdorf’s offer to assume up to US$148 million in liabilities, putting the figure at about US$121.5 million.
Moyes wants to sell the team to Canadian billionaire Jim Balsillie, who has offered US$212.5 million to move the team to Hamilton, Ontario.
On Friday, attorneys for Balsillie’s PSE Sports and Entertainment told Baum: “PSE is still here and its bid still stands.”
Balsillie’s bid is opposed by the NHL’s board of governors, which has approved that of Reinsdorf. Canadian Balsillie has been thwarted by two previous attempts buy US-based teams and move them to Canada.
The NHL said on Thursday that Balsillie is no longer a “viable purchaser” of the Coyotes and any possible relocation of the team could not occur until after the 2009-2010 season.
The NHL said in its filing that Balsillie has repeatedly “turned his back on commitments ... he made” and acted in “disregard to established league rules,” causing “significant damage to the league.” The NHL also said Balsillie indicated in a meeting with owners on Wednesday that he would legally challenge any decision not to approve his ownership application.
Balsillie’s filing said his interview with the NHL board “consisted of a strong and rather hostile interrogation by persons whose minds appear to have been made up before the meeting began.”
“It is clear to Mr Balsillie that commissioner Bettman and a number of the governors have a personal grudge against Mr Balsillie, and that the root of the problem is Mr Balsillie making prudent business decisions, in each case within his contract terms, instead of spending vast amounts of money for an unprofitable team with no right to apply for relocation,” the filing said.
The NHL, which has been funding the club, wants the team to stay in Arizona, where it has lost tens of millions since moving from Winnipeg in 1996.
A potential third bidder, Ice Edge Holdings, asked the court to delay the sale to allow it time to finalize its offer.
Its 112-page document laid out terms of a purchase but did not specify an offer price.
The city of Glendale, a Phoenix suburb where the Coyotes play, also asked Baum to delay the Aug. 5 auction.
Glendale requested the auction be postponed to the beginning or middle of next month.
The NHL and Ice Edge asked the judge to shift the date to Sept. 10, which is currently reserved for a second auction open to bidders who could move the team if the court deemed the initial round of bids inadequate.
Glendale said it is close to agreements with Reinsdorf and Ice Edge that would allow the Coyotes to remain in Jobing.com Arena in Glendale with “strong economic essentials and support from all necessary constituencies.” No details on those talks were provided in the filing.
Moyes’ attorneys said in a Friday filing the Reinsdorf and Ice Edge offers do not meet court requirements and the auction should be opened to those who may want to move the team.
Balsillie’s spokesman said after the decision on Wednesday that the onus is on the NHL to prove his client is no longer a viable owner after previously approving him in 1996.
SSC Napoli will have to wait one more week to seal the Serie A title after on Sunday being held to a goalless draw at Parma, while closest rivals Inter drew 2-2 in a dramatic game with SS Lazio. Antonio Conte’s team stayed one point ahead of Inter and were unfortunate not to win after twice striking the woodwork through Andre-Frank Zambo Anguissa and Matteo Politano, while Scott McTominay also had a free-kick tipped onto the crossbar. The away side thought they would be handed a chance to take the points from the penalty spot in the 96th minute when David Neres
Omar Marmoush’s stunning long-range strike on Tuesday upstaged Kevin de Bruyne on the Manchester City great’s Etihad farewell. Marmoush let fly from about 30m to put City ahead in their 3-1 win against AFC Bournemouth in the Premier League. The victory moved Pep Guardiola’s team up to third in the standings and left qualification for the UEFA Champions League in their own hands heading into the last round of the season. “It’s really important. To be in the Champions League after what happened [this season] will be really nice,” the City manager said. De Bruyne was making his final home appearance for City before
TIGHT FINISH: Napoli only needed to do the same as or better than Inter, who won their game against Como 2-0 on the same day, leaving Napoli with a one-point lead The two players who Antonio Conte wanted more than any others secured Napoli their second Serie A title in three years on Friday. Scott McTominay scored with an acrobatic bicycle kick before halftime and Romelu Lukaku doubled the lead with a solo goal after the break in the decisive 2-0 home win over Cagliari. Conte became the first coach to win the Italian championship with three different teams. “Everyone contributed to this — but the coach most of all,” Napoli captain Giovanni Di Lorenzo said. “Napoli needed him to get back on top. He’s phenomenal.” Comparing it to his three Serie A titles won
Brighton & Hove Albion’s Jack Hinshelwood on Monday sealed a dramatic 3-2 victory against Liverpool to leave the English Premier League champions without a win since clinching the title. Arne Slot’s side took the lead through Harvey Elliott’s early opener before Yasin Ayari equalized at the American Express Stadium. Dominik Szoboszlai restored Liverpool’s advantage just before halftime, but Brighton staged a late fightback as Kaoru Mitoma leveled before Hinshelwood came off the bench to net with his first touch. Liverpool have taken just one point from their three matches following the title-clinching rout of Tottenham Hotspur on April 27. The Reds have lost at
RSS