Who really wants to keep the Phoenix Coyotes out of Hamilton, Canada? Let’s explore some of the issues.
The Coyotes lost approximately $30 million last year. Who would want to repeat that this winter? Canadian Jim Balsillie has offered $212.5 million to buy the team out of the deserts of Phoenix, Arizona and into Hamilton. Offers from him have been continuously blocked. It can’t be because of financial instability, since he’s just a billionaire, successful businessman, hockey fan, and co-CEO of Research in Motion. He is also an accountant with an MBA from Harvard.
His offer dwarfs Jerry Reinsdorf’s latest offer of $148 million. Balsillie’s offer is 64 million more.
I thought the money talked. Maybe it’s not Canadian money. Does NHL Commissioner Gary Bettman have anything against Balsillie or maybe a team going to Canada? Is he influencing other NHL owners to go along with his hard line and vote for Balsillie? Is he biased towards teams in American cities?
Canada is the country of hockey. Most of the players are Canadian. In fact, there is some snow in Hamilton. The Greater Toronto Area (GTA) encompasses a population of 3 million people. These hockey hungry fans would enjoy another team. Leaf Stadium has been sold for years. You can’t buy a ticket. There is a huge fan base there. They could easily fill an arena. They could reverse a team’s multimillion-dollar deficit to one of profitability. As of now the owners are subsidizing the Coyotes; throwing cash at it to keep it afloat. What difference would a change of ownership make in Phoenix anyway?
Another factor is an NHL rule that no other franchise may be located within another franchise’s home area. The source area extends for a radius of 50 miles. Hamilton is within the bounds of the Toronto Maple Leaf franchise. But then again, Leaf owners have the ability to waive this clause. Are you afraid of competition? On the other hand, the rivalry could change them and give them that edge to be a true cup contender. Hamilton is a win-win-win for the city, the Coyotes and the NHL.
There are more deals on offer. Whats Next?
