Phoenix Coyotes majority owner Jerry Moyes says his decision to file for the team's bankruptcy did not require a vote from the NHL. (Ross D. Franklin/Associated Press)Who will be in control of the National Hockey League's Phoenix Coyotes beyond Monday: current owner Jerry Moyes or the league?
That question will be answered in a downtown Phoenix courtroom, with proceedings starting at 4:30 p.m. ET.
In addition to the question of ownership, U.S. bankruptcy Judge Redfield Baum is also expected to rule on whether a team can decide to move without approval of its league.
Earlier this month, Canadian billionaire Jim Balsillie offered to pay $212.5 million US to purchase the Coyotes on the condition the bankrupt team relocate to southern Ontario.
Team ownership filed for Chapter 11 bankruptcy protection on May 5, a move the NHL has asked the court to dismiss, alleging it has been in control of the cash-strapped franchise since last November and that Moyes signed documents to that effect.
Balsillie, co-CEO of BlackBerry-maker Research in Motion, also agreed to provide $17 million in bridge financing to keep the Coyotes operating in advance of the proposed sale.
He also held out to the NHL an olive branch on the weekend, offering to keep the club in Phoenix for the 2009-10 season as long as the league would cover any financial loss and assure him he could eventually move the team.
According to a court filing made Monday, NHL commissioner Gary Bettman acknowledged on April 3 he may have to "start looking at the moving option" if no buyer could be found to keep the Coyotes in Glendale, located about 13 kilometres outside of Phoenix.
Should the judge rule in favour of the NHL, it presumably would run the team until it finds a suitable owner, despite reported losses of more than $200 million since 2001. By selling, Moyes could recoup some of his losses.
Prior to Balsillie's bid, the NHL is said to have been in discussions with a prospective ownership group that includes Jerry Reinsdorf, owner of baseball's Chicago White Sox and basketball's Chicago Bulls.
To keep the team in Glendale, the city likely would be forced to offer major lease concessions and could lose the Coyotes' millions of dollars in rent and parking payments.
According to the Arizona Republic newspaper, one recent filing says the subsidy could reach $15 million a season even though Glendale has been adamant about providing concessions.
The Coyotes apparently played the entire 2008-09 season virtually rent-free at Jobing.com Arena and re-working the arena lease is viewed as vital to luring new investors.
The team signed a 30-year lease with Glendale when it moved from Phoenix. The city maintains the judge cannot revoke it because the Coyotes signed a "Non-Relocation Covenant" that prohibits them from relocating, and requires them to play all home games at the arena for the full term of the lease.
Should the Coyotes move, head coach Wayne Gretzky won't be packing his bags and joining them.
In an exclusive interview with Hockey Night in Canada on Feb. 14, the Brantford, Ont., native told Scott Oake he wouldn't move north, citing family reasons.
"For me, it's Phoenix or bust," said Gretzky, a father of five. "I've made that clear.
"For me, to pick up and move my family to another city is not going to happen."
