DALLAS - A federal bankruptcy judge is expected to make a quick decision on whether the Phoenix Coyotes National Hockey League team can leave its bond-financed Glendale home for Canada after hearing arguments from creditors, stakeholders and potential owners yesterday.
U.S. Bankruptcy Judge Redfield Baum yesterday heard arguments for and against moving the team from Glendale, where taxpayers backed a $180 million bond-financed arena that carries the corporate name "Jobing.com."
The loss of the team would not endanger the debt, which is backed by sales taxes.
In addition to Glendale, professional sports leagues are watching the court decision closely because it could have implications for their teams as well. The key issue is whether an owner can sell a team that would move to a different city without league approval.
Majority owner Jerry Moyes agreed to sell the team to Canadian businessman Jim Balsillie for $212.5 million before filing for bankruptcy. Balsillie wants to move the team to Hamilton, Ontario, a suburb of Toronto, but Glendale and the NHL are opposing the move. NHL Commissioner Gary Bettman told the court that he has four potential buyers willing to keep the Coyotes in Glendale.
Attorneys for Moyes told the court that Balsillie's bid would provide the most money for creditors, including $104 million to Moyes for loans he made to keep the team in business.
But Bettman said that selling to a buyer willing to keep the team in Arizona could satisfy all secured and unsecured creditors except Moyes. Glendale hired an outside consultant, Gerald Sheehan of Beacon Sports Capital Partners to study the arena's viability. The Coyotes expected a $29 million loss, before debt service, Sheehan said.
