Nonsense in Arizona

To me, the NHL’s position on the Phoenix Coyotes has never been as preposterous as some would believe.

It wants a team in that large U.S. market, or more specifically, believes that a successful, efficiently run club would do just fine and be of benefit to the league.

You and I and the NHLPA may not agree, but it’s not a preposterous position.

That said, the latest NHL maneuver, to buy the Coyotes itself, try to sell them to a third party or relocate the team for (hopefully) a profit is such an extreme manipulation of the process that it exposes the NHL to the three most damaging charges its harshest critics would hurl in its direction, such as:

1. The NHL is willing to do anything to stop Phoenix moving to Canada, but wasn’t willing to do the same thing when Winnipeg and Quebec City were pulling up stakes and heading south.

Why didn’t the Bettman administration buy the Jets or the Nordiques to make sure they wouldn’t move? Why was the league less worried about decreasing the number of Canadian teams to six from eight than it is about maintaining a position in a large market that appears to have a limited appetite for the sport?

“The fact is, the biggest litmus test ultimately was nobody wanted to own a team there. And when the marketplace decides that it doesn’t want to own a team there, it has no future,” said Bettman back in ’96 when the Jets were leaving Manitoba.

To those who would accuse Bettman of being anti-Canadian, this is useful stuff.

2. It makes the league appear to be carrying water for the Maple Leafs, acting as the burly security guard blocking the door at a swanky club so the Leafs can dine on sushi inside without having to deal with the riff-raff.

It’s like 1991 all over again, with Hamilton suspiciously rejected while smoke-and-mirror expansion bids from Ottawa and Tampa Bay were accepted. Hamilton at least had an arena, and its interesting now that one of the reasons the NHL is carting out to explain the difference between the Phoenix situation and that of Quebec City and Winnipeg is that there’s a state-of-the-art arena in the desert built largely at taxpayers expense and the league has a responsibility to that. Well, so did Hamilton.

Then and now, it appears, at least, that the NHL will do anything – anything – to protect the Leafs’ turf.

3. The sense that this is an ABB (Anybody But Balsillie) exercise grows. Its sort of like when Ken Dryden went out to search for a new GM for the Leafs and discovered himself. The NHL, faced with a situation in which Balsillie might be the only bid, suddenly believes it should own the team itself.

Imagine the potential conflicts if the league is successful and operates the team for the 2009-2010 season. Say Shane Doan decides to club Mike Modano, and after a hearing the league rules that Doan shouldn’t be suspended. Or imagine a disputed Coyotes goal late in a game that is reviewed back in Toronto and is ruled legal and decides the match. Or lets say the Coyotes are suddenly able to swing a lopsided trade with the Minnesota Wild, owned by Bettman loyalist Craig Leipold.

All these legal and financial gymnastics just to keep Balsillie out. Just more ammunition for Bettman’s critics.

Comments

[Jason R Parks]

Well put, Damien. What started as a farce has know become a full fledged three ring circus with Bettman starring as the ringmaster. Bettman's comments re: The Winnipeg fiasco should be hung on him like a scarlet letter. I can't wait to see the weasel like way he backtracks when confronted with them on the record. Canadian hockey fans can only hope the hole he's digging in the desert will ultimately be his professional grave.

[spike]

GB has taken the definition of hypocrisy to whole another level. am surprised that other teams (except for the leafs) dont stop this lunacy, its nothing but detrimental to NHL and its business.

[Moe Green]

Intersting Damien. Do you suppose Bettman would have agreed to allow Basillie to relocated the Oilers to Hamilton under similar circumstances?

[snowcrash]

Damien, to most Americans, having a team in places like Winnipeg, Quebec City, and even Calgary and Edmonton, is akin to baseball having teams in Terre Haute or Toledo. Unfortunately, to have the optics of being a a majorleague comparable to baseball and basketball, you need a roster of cities like Phoenix and Atlanta.

Otherwise, you might as well throw in the towel and admit that you're peddling a niche product to a limited market.

[James Ballswin (Realizar)]

The "Fight for Phoenix" controvery is/will be as damaging to the NHL and the Betteman Administration as the steroid controvery was to MLB and the Selig Administration.

The Betteman-era NHL has lost all credibility.

I cannot support the Betteman-era NHL, or the Maple Leafs, any longer. This is our beloved Canadian game and has been sold and ruined to a foreign-based comptroller.

This is a spectacular tragedy of generational-demographic proportions.

[Cory]

Great blog Damien. But also to add more to your point: Isn't the NHL itself listed as one of the creditors that are still owed money? So if the NHL is awarded the franchise, then do they just pay themselves? What happens to that money? Correct me if I'm wrong, but I thought I read some where that the NHL is owed upwards of $30 million by the Phoenix franchise. If Bettman keeps up this game, the NHL will never see that money re-paid, and he'll probably counter that by lowering the salary cap citing that league revenues are down.
Will someone please fire this man!!

[Mike Wilkins]

I don't know why you are so against this. After all it worked wonderfully in baseball with the Montreal Expos. Maybe Omar Minaya could be the GM.

[Mike Boyle]

Damien:

You've finally hit the nail on the head. I don't like the way Jim Balsillie is going about getting into the NHL clique. However, the truth of the matter is that the NHL is now put into a corner essentially opposing its position when the NHL left Winnipeg and Quebec high and dry. There are lots of other similarities which somehow have got overlooked. Seattle Pilots to Milwaukee by none other than Bud Selig. I realize Gary Bettman is trying to get some stability and it would be incorrect to label with anti-Canadian. But as the famous Ricky Riccardo said ... " Gary, you've got some splainning to do".

[Out West]

Does Bettman have any idea (or even care) of the resentment that Canadian fans have towards him now.
As for Waterloo Jim, I can understand why there is some hostility between the league and his bids, as he is a tad aggressive.
As for the Leafs, so what if Bettman is protecting them. MLB protects the Yankees and Red Sox (no cap), the UEFA protects teams like Man U, Barca and Chelsea (no cap, Champions league), the NBA protected the American teams by not allowing the Grizzles or Raptors to have the 1st pick in their inaugural season, it happens.

[Jason R Parks]

Well put, Damien. What started as a farce has know become a full fledged three ring circus with Bettman starring as the ringmaster. Bettman's comments re: The winnipeg fiasco should be hung on him like a scarlet letter. I can't wait to see the weasley way he backtracks when confronted with them on the record. Canadian hockey fans can only hope the hole he's digging in the desert will ultimately be his professional grave.

[Garmo]

Also Damien, isn't this going to hurt them (NHL) in the upcoming hearing in which they want to argue Basilille shouldn't be allowed in the auction? How can the judge rule in favour of one potential bidder trying to forbid other potential bidders? If that is the case, couldn't the NHL also vote against Ice Edge and then there would be only the NHL bid left. I think they screwed themselves (NHL) with this move.

[Matti Lilleberg]

Right On Damien!

[Oscar Fellini]

Is it me, or is there also a huge conflict of interest as well? Some of the money poured into the Coyotes over the past few years, specifically the cash supplied by SOF Investments and the other Dell group, are closely linked to the NHL. Isn't it almost like the NHL is paying itself back the money "they" lent to Phoenix?

[Sandy T.]

The possibilities for conflict of interest and charges of conflict of interest exist on so many levels counting them isn't worth the bother.

Even if the NHL finds this magical "third party" on whom to offload the franchise one day, the potential for duplicity and favouritism are enormous.

For a smart guy, Gary Bettman can sure be stupid. If the NHL *were* as popular as he'd like it to be in the US, he couldn't carry on as he has because the media would be all over him and his machinations in the NHL front office. He and his cronies get away with what they do because to the main stream media, even in American "hockey towns", Gary Bettman works in near anonymity.

[Matthew]

I would counter you're first point that GB wants a successful team in the US. More revenue for the league means a higher salary cap, something most of the teams in the US are having trouble paying already. He'd much rather have a money loser in Arizona (or somewhere else) than a money-maker in Canada.

[Alysha]

The fact remains that there is no explanation to Bettman's behaviour. His ONLY goal is to snub Jim, which is even more clear with this stunt. One can only hope the judge looks at this BLATANT conflict of interest, laughs at Bettman and gives Jim the tools he needs to win the auction. I am certain that MLSE is behind this somehow, which is disappointing, but without proof, I will just rule Bettman as a vindictive pr*ck. I am glad that Jim has been as aggressive as he has been. He is a consummate businessman and Bettman has done everything and anything possible to get him to walk away. Jim's response has been to be more aggressive than ever. I hope that when he wins the auction he flips Bettman the bird.

[Ron W]

I had always understood that GB's mandate was to maximize profit for the stakeholder's in the league? So you do that by bidding lower than anyone else? Once their "saviour" Jerry Reinsdorf backed out, the league hierarchy are now tripping over each other to keep Balsillie from securing the team. Great way to run a business.

As far as where the team's are located and what American's think, the reality is the NHL has ALWAYS been a niche sport in the US in limited markets and that will continue. Since they will NEVER secure a television contract of any consequence in the US, you place the teams in markets where they have the best potential for consistent gate and corporate revenue. The "quest" for that magical television contract has been unattainable for over forty years!

[Garmo]

Snowcrash: Why do we as Canadians care if Americans like hockey. I couldn't give two craps whether they do or not. How does it benefit me as a Cdn hockey fan if it does well in the States. How does it benefit me if they get a better US TV deal. Doesn't help me one bit. I could care a less if it ranked lower than lawn bowling in the states. Maybe there would be less teams and even better product as far as I am concerned.

[paul hayward]

I was so sick and tired of reading and watching the local news...then i stopped watching and reading the national news...and then i decided to only care about "sports'.
However - sports these days are just so negative...issues with Vick...issues with Bettman and NHL...drunk driving caught for the third time for ex-KU hoop coach last night...Louisville hoop coach shagging a mistress and denying...NFL rookies getting at least $15 million guaranteed...Stallworth spending and ultimately buying his way out of years in jail and spends only 20 days for killing with his vehicle while drunk and stoned...Burress shooting himself while trying to be a gangster...the courts stating the government is at fault for releasing the 104 names of corrupt steroid cheaters...
and i could write pages after pages...it is endless issues with sports and the idiot athletes today...
It is ALL insane in sports these days...
The athlete is just so arrogant - we have made them feel and think they are invincible and above all others...
i use to stick up for them and hammer back at press sport writers but now i can honestly FEEL the frustration and angst against such punks - generally speaking.

[John L]

If Bettman keeps this up, with Balsille's deep pockets, is it even fathomable to consider an alternate Canadian professional league like the old WHL from whence the Jets came from. I guess that there already is close to pro hockey in the Junior A ranks without the stink that goes with most NHL teams these days.

[Bold Bravado]

Damien, You are so dead on with this and I can't begin to express my disappointment with the separation of the NHL and integrity, not that they were ever that close to begin with. Bettman is working with 2 mandates, 1 to ensure that every major US city has an NHL team and 2 that Leafs, the most profitable franchise, continue to fleece the public. I also have little respect for Balsillie and quite frankly the 2 B's are a match made in heaven. Little known fact that during the first NHL lockout there was a push by an extremely prominent CDN businessman for a new Canadian only league. There is a long story that goes along with it, funding was raised ($100 million) through various streams and the concept was outside of the box. Had this happened and been successful, I wonder if Bettman would have been so quick to ignore the birth place of hockey for future expansion or placement. We have let our game go, to the greedy and ignorant.

[Cory Smith]

Well said. And why is that when I read the Keebler Elf's quotes I can hear that nauseating, nasal drone in my head?
I don't think this is as much about protecting the Leafs (as if they need any) as it is Bettman's mission to not look silly in putting a team in Phoenix in the first place, as well as the anti-Balsillie sentiment.
I would love for someone to read his quote back to him in an interview and make him squirm like the rat he is.

[opinion]

The NHL Has every right to monitor who owns a team and to run the league by votes from the ownership of the majority of teams, If you have an issue with that thewn you are the ones with a problem.
Personally, the NHL should have sold him the team with the understanding that the team cannot and will not be moved to Ontario, pick another spot JB. You do not dictate to us we dictate to you, you are not in charge here JB, we are.
Enough of JB already, they do not want you in their group, get over it and move on. Now all of Canada thinks they have all the answers. Backoff and let the players deal with it.

[opinion]

One more thing, I am sick and tired of the treats of "I wont support the NHL or The Maple Leafs anymore" Please dont, I dont believe you supported them to begin with.
Absolute nonsense, whine, whine. JB is not your Canadian hero as you would like everyone to believe, he is in this for himself not for hockey or you, so give this crap a rest.
I agree with Toronto or Buffalo for not wanting this team in their area, if this is their position, financially it makes no sense to flood areas while there is nothing elsewhere.
Enough already please.

[Jacob]

I think what the NHL is trying to do, upon purchasing this club, is to try another avenue for new ownership for this club. As Balsillie is no wanted as an owner, this would give the NHL the option to sell the club to anyone, regardless if it was in another city. Who knows? Maybe they'll try and sell it to Balsillie for $500M to get a nice chunk of revenue from an aggressive buyer.

Phoenix's days are numbered as an NHL city.