The federal bankruptcy judge who will rule on the future of the Phoenix Coyotes has called an emergency hearing for Wednesday.
The hearing is based on a request by JerryMoyes, the owner of the National HockeyLeague franchise who placed it in bankruptcy. Moyes wants the judge to require the NHL to enter into mediation over some of the key issues in the sale of the team.
Among the issues are the NHL’s continued refusal of Canadian billionaire Jim Balsillie as a team owner.
Judge Redfield T. Baum has scheduled the 30-minute hearing for Wednesday at noon ET.
Meanwhile, Balsillie continued his fight for the Coyotes on Monday, filing court documents that contradict the NHL’s stand on territorial and veto rights.
The documents, filed by Balsillie’s PSE Sports & Entertainment in U.S. bankruptcy court in Arizona, claims a radio interview by Ottawa Senators owner Eugene Melnyk with Toronto’s FAN 590 provides evidence that the veto rights still exist.
In previous testimony, the NHL has denied this rule exists.
“Mr. Melnyk admitted the continued effectiveness of the illegal NHL Constitutional territorial veto that the NHL has persistently denied exists,” claims the document. “Moreover, his remarks confirm that the real reason for the rejection of Mr. Balsillie’s ownership application is this veto and the NHL’s animus towards bankruptcy proceedings, rather than any alleged “˜character’ issues.
“Thus, his remarks support PSE’s motions demonstrating that PSE’s ownership application and refusal to consider its relocation application were not in good faith.”
In the interview, Melnyk was asked if it he could block the placement of a team in Hull, Que., which is just across the river from Ottawa.
“I believe we do. Yes, we have territorial rights. Yes, absolutely,” said Melnyk.
The NHL and Balsillie have both submitted bids for the Coyotes and are awaiting a ruling from Baum on the winner of an auction for the team.
Balsillie’s US$242.5-million bid is contingent on moving the franchise to Hamilton, while the NHL has offered $140-million to keep the team in Glendale, a suburb of Phoenix.
The NHL has also said that if it wins the franchise in bankruptcy, it would flip it to another owner.
Comments