The future of the Phoenix Coyotes has turned into an offseason public relations nightmare the National Hockey League hoped to avoid.
This past spring Coyotes owner Jerry Moyes filed for bankruptcy, allowing Canadian billionaire Jim Balsillie the opportunity to purchase the money-losing team with the intent of moving the Coyotes to Hamilton, Ontario.
Balsillie had been rejected twice by the NHL in efforts to purchase the Pittsburgh Penguins in 2006 and the Nashville Predators in 2007, so this move was an obvious attempt by Balsillie (with Moyes' blessing) to circumvent league rules governing approval of sale and the relocation of franchises.
His efforts, however, appeared dashed in June when Judge Redfield Baum ruled against his $212 million bid, citing that the billionaire's deadline of June 29 to purchase the club was insufficient to deal with the issues rising from this case.
But over the course of this summer, the Coyotes' situation took more twists than Chubby Checker.
Despite a lesser but league-approved bid of $148 million from Chicago White Sox owner Jerry Reinsdorf and the unanimous rejection of Balsillie's bid by the NHL Board of Governors (with three abstentions), Judge Baum nevertheless ruled for a Sept. 10 auction of the Coyotes, open to all bidders.
The league is arguing against Balsillie's inclusion, citing the Board of Governors' rejection and claiming the court had no right to overturn it, calling him untrustworthy.
Citing NHL bylaws, Boston Bruins owner and chairman of the NHL Board of Governors Jeremy Jacobs said his colleagues "voted to deny approval to Mr. Balsillie because we concluded he lacks the good character and integrity required of a new owner."
