Glendale, Arizona tries to block Jim Balsillie Coyotes purchase

15 Comments

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Jim Balsillie, Co-CEO of RIM is making an aggressive move to get a 32-year lease for Copps Coliseum, buy the Phoenix Coyotes and move them to Hamilton, but the city of Arizona is trying to block his slapshot.

The city of Glendale, Ariz., laid out its legal objections to the proposed sale of the Coyotes, saying a bankruptcy court judge shouldn’t consider the sale of the team “based on the false premise that (the winning bidders) are legally capable of relocating the Phoenix Coyotes hockey team.”

The Glendale believes that their bankruptcy doesn’t allow the Coyotes to break their “Non-Relocation Covenant” that prohibits them from relocating, and requires the team to play all of its home games at the arena for the full term of the 30-year lease.

“The city believes that it has the right under applicable law to prohibit any relocation of the Phoenix Coyotes,” say the city’s documents signed by lawyer Cathy Reece. “The city believes and therefore asserts that its right to enforce the Non-Relocation Covenant under applicable law shall survive these Chapter 11 cases, including any sale of the (team).”

Obviously Arizona is not keen on the idea of losing their hockey team which generates revenue for the city. Even though the team is bankrupt, if they relocate, the city loses any potential of saving the hockey team as a revenue stream.

Although Arizona is upset about the deal, Hamilton couldn’t be happier about a team relocation. The city is expecting a surge in local spending as well as visitors from the surrounding cities for big games and events. Balsillie signed a deal which was approved unanimously by the council, promising Balsillie a long-term lease if he secures the Phoenix Coyotes. The deal includes a $5 million injection of cash from Balsillie to help upgrade the 17,000-seat arena by 2010.

[Via]

  • http://twitter.com/BlackBerryCool/statuses/1807735320 BlackBerryCool (BlackBerry Coo

    Arizona city tries to block Jim Balsillie Coyotes purchase http://bit.ly/18Nz6

  • http://twitter.com/azstar165/statuses/1807800799 azstar165 (Samantha)

    RT @BlackBerryCool: Arizona city tries to block Jim Balsillie Coyotes purchase http://bit.ly/18Nz6 we won’t go watch them or let them leave!

  • JoRgE

    Is the State of Arizona or the city of Glendale AZ???? As far as I Know there is no city called Arizona where the Coyotes are the hockey team

  • JoRgE

    Is the State of Arizona or the city of Glendale AZ???? As far as I Know there is no city called Arizona where the Coyotes are the hockey team

  • http://twitter.com/RentToOwnHomes/statuses/1808169654 RentToOwnHomes (Pete Olsen)

    Arizona city tries to block Jim Balsillie Coyotes purchase http://tinyurl.com/pb7h9b

  • Joshua

    Well, after what BaldSillie tried to do to my Penguins, I don’t blame Glendale one bit.

  • Joshua

    Well, after what BaldSillie tried to do to my Penguins, I don’t blame Glendale one bit.

  • Jer

    If Balsillie’s bid falls through he should challenge the franchise Law. Capitalism doesn’t allow monopolies and the NHL sure has one. TV rights could be challenged next. Forget Hamilton, why not downtown Toronto?- seems like a good market. He could ignore the cap and buy up the NHL’s best talent, bring Winnipeg back, etc. Teams like the Vancouver Giants get no respect and never will because they can never write their names on the cup- even if they had the best players in the world. No one should be squeezed out of a free market.

  • Jer

    If Balsillie’s bid falls through he should challenge the franchise Law. Capitalism doesn’t allow monopolies and the NHL sure has one. TV rights could be challenged next. Forget Hamilton, why not downtown Toronto?- seems like a good market. He could ignore the cap and buy up the NHL’s best talent, bring Winnipeg back, etc. Teams like the Vancouver Giants get no respect and never will because they can never write their names on the cup- even if they had the best players in the world. No one should be squeezed out of a free market.

  • Jer

    If Balsillie’s bid falls through he should challenge the franchise Law. Capitalism doesn’t allow monopolies and the NHL sure has one. TV rights could be challenged next. Forget Hamilton, why not downtown Toronto?- seems like a good market. He could ignore the cap and buy up the NHL’s best talent, bring Winnipeg back, etc. Teams like the Vancouver Giants get no respect and never will because they can never write their names on the cup- even if they had the best players in the world. No one should be squeezed out of a free market.

  • Jer

    Audacity wins cups and, after all, that is what people want. We crave Tournaments, playoffs, the Russians vs the Flyers, something that means more than the regular season and whats more, a way to measure the greats of today vs those of the future. Here’s a dumb idea: While keeping the same number of games, have more tournaments. One cup would be fine but the great teams would win two or three and the truly amazing ones sweep all four.

  • Jer

    Audacity wins cups and, after all, that is what people want. We crave Tournaments, playoffs, the Russians vs the Flyers, something that means more than the regular season and whats more, a way to measure the greats of today vs those of the future. Here’s a dumb idea: While keeping the same number of games, have more tournaments. One cup would be fine but the great teams would win two or three and the truly amazing ones sweep all four.