Balsillie Loses the Coyotes to NHL | IXGAMES

The court room drama has reached its final episode with the judge nodding the sale of the Phoenix Coyotes to the NHL.  Six months after the case was brought to the U.S. Bankruptcy Court, Judge Redfield T. Baum finally signed the order for franchise sale, with $140 million in total bid by the NHL.  The actual sale order is $128.4 million, plus a $11.6 million for the purchase claims settlement for unsecured creditors, pushing the numbers to $140 million in bid. The resolution was made in a brief hearing attended by a select few.  The rather quiet ending was a stark contrast to the earlier court drama that has caused quite a stir.  According to Bill Daly, the NHL deputy commissioner, the league looks forward to starting the business operations of the Phoenix Coyotes after the settlement.  Daly also confirmed that the league is hopeful about the possibility of new ownership and that commitment to long-term success is crucial.  The success of the team, says Daly, also requires much support from fans, for the club’s bright future in Arizona. Although Wayne Gretzky, former coach and one of the owners of the team, didn’t enter into agreement with the league, there was no formal objection filed before the court.  Hopefully, the sale will draw the final conclusion to the court battle and any dispute between the NHL and Jerry Moyes, Coyotes owner, and Jim Balsillie, Canadian billionaire. The Chapter 11 bankruptcy filed by Moyes could have paved the way for new ownership by Balsillie, who plans on moving the team to Hamilton, Ontario.  But the league didn’t keep mum about the whole plan and decided to contest it in court. Accusations were thrown against Moyes and Balsillie, who are obviously trying to get around the NHL rules on team ownership. The judge rejected the Canadian billionaire’s bid because of the 26-0 vote by the NHL board of governors, who refused to give ownership to Balisillie.  The league submitted a proposal to the court when it seemed clear that Balsillie could be the only strong bidder. The initial proposal by the league was also turned down by the judge until the NHL revised its offer to buy the team. In the end, the Canadian billionaire lost its claim for team ownership to the league, even though his offer reached up to $242 million dollars, way above the $140 million total bid by the NHL.  Moyes then considered a deal with the NHL than to get none at all.  As part of the deal, the amount Moyes owes will be reduced to half, from $30 million to $15 million. Gretzky, Moyes, and Glendale will take their share from the $11.3 million that was left from the sale.  Considering the attorney’s fees and administrative charge, the rates are likely to drop.  It is too soon to give exact figures for the payout. Based on the purchase agreement, the league will pay unsecured creditors with the exception of Moyes and Gretzky who claims that the team owes him $8 million in deferred salary.  The deal, however, does not include the former coach’s contract in March 2008.