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-- well wolf one local unlicensed to be scoring in the credit markets the national -- -- me -- anything bought in credit.
Last week Phoenix Coyotes owner Jerry -- filed for bankruptcy making the coyotes the first professional sports team to enter Chapter Eleven.
The CEO of Research in Motion and the black Perry empire Jindal -- thought he -- -- team and move it.
To southern Ontario and he was rebuffed by the NHL commissioner Gary Bettman.
For more on the story I'm joined by Steve Solomon he is the former chief operating officer and executive vice president of the NHL of the founding partner of the venture capital firm -- sports and entertainment ventures.
And in Toronto Peter in -- is a global technology strategist at the financial services firm Canaccord Adams good morning gentlemen good to see you guys.
-- -- morning Steve this is the greatest shook up pretty average at the NHL.
OK so -- There's a bankruptcy proceeding going on let's talk a little bit about the back story here between me and mean and the NHL.
And his co executive at -- chief executive at Blackberry and the -- who's been involved in.
Past -- -- purchasing a team.
And perhaps moving them to.
Ontario tell -- little bit about the back story here well my -- -- -- is that the -- -- has.
Aggressively sought NHL teams he would like to get a team into that cops plaza which is terrible to -- hockey hotbed.
And at this particular moment he's trying to pursue the bankruptcy option through Phoenix to move the Phoenix Coyotes.
To southern Ontario.
Okay instead taking a look let's just bring up this this chart -- someone -- -- explain to people.
These some of the companies that the -- has tried to buy before he tried to by the Pittsburgh Penguins in 2685.
Million dollars and he was rejected he wanted to move them to Ontario he tried for the Nashville Predators in 2007 for 220 million dollars.
He backed out because an existing Nashville least.
And his current -- head for the Phoenix Coyotes is 212.
Now Maurice who initially invest invested 300 million he said best case right now when you -- solve all the deaths associated this.
This franchises that he'd get maybe hundred million Peter.
Tell a little bit about the research in -- that the Research in Motion co-founder.
Co chief executive why isn't so hot to trot in terms of owning a hockey team.
I think it's a bit of a boyhood dream this is a driven and successful man who wants to have NHL Stanley operating.
Unable to get that as a player obviously.
But now as an owner -- this a big possibility form he grew up just outside -- -- Peterborough.
And moving this team to you Hamilton would be a a huge win for him a huge win for the area and I think you -- -- NHL.
That he was treating this as though this would be a black guy on DN HL if in fact the team were to move.
To Canada to Ontario a but the fact of the matter is that's where hockey sort of -- -- where it's incredibly successful why he's so opposed to that.
Well this is a fairly complicated issue but my understanding is first of all the NHL.
And -- had entered into an arrangement which was really designed to have the league take over the operations of the club.
Pay for the operations of the club and maintain the club in Phoenix it's very important to a sports league.
To try as best as they care and to enable teams to stay in the locations where they first started moving -- team is really a last resort effort.
In the case of Phoenix.
The city Glendale spent 300 million dollars to build the Serena -- there's a 25 year lease that's in place.
My understanding is that more -- and the National Hockey League when they entered into the agreement.
For the National Hockey League to pay the costs to keep their business operating.
Also agreed to give -- and the NHL the opportunity to look for an owner -- -- -- in Phoenix and the NHL was ready to go with an owner in Phoenix.
Which would of avoided all of the creditors.
Cost would have paid off all the creditors.
So there really wasn't in my view bankruptcy here because the club was being operated by the NHL.
And I think bankruptcy was really put in place to -- 25 year lease that was in place with Glendale and that's a bit of the share my view.
It's interesting because of Glendale for people who do that and you don't know the backups background story on this Glendale is sort of one of the -- -- in this case as well.
They're actually trying to get a surcharge on the ticket prices to make opt for.
What is I think about a ten million dollar interest payment that the club currently pays.
On on some of those initial investments in that arena but here's a story.
On you know -- a ballot at a guy who's willing to pay.
A lot more money.
Then even Jerry -- suggested he would get out of the team he's aggressively tried to buy other hockey franchise is.
Without any success in this -- you know what.
What is his leg and blood between him and that -- -- -- why can heat.
Several -- up and and and bring it to a hockey town I'm I'm confused about that.
Well so -- we you know when you look at it I don't understand NHL why they wouldn't do this.
The board of governors unanimously approved -- becoming a owner when he tried to bid for the Pittsburgh Penguins.
And it negotiations fell apart last minute.
As as are some building lease issues and again he wanted to move the team.
I'm not sure what that transpired -- when he went after Nash -- It seems blood got a little my begin with business and I think that today might become personal I can't understand why -- Mitchell would want to move this team.
The Toronto Maple Leafs are sold out absolutely every single game -- both seven million people in the area.
They would fill the rafters when Jim was trying to move to the national team he actually pre sold.
The entire -- coliseum which is the arena in Hamilton.
For seasons tickets so why wouldn't the NHL want to have a franchise that's sold out every game.
I'm I don't understand it.
-- -- Steve looked Wayne Gretzky has been managing partner for nine years -- them for the past four now not successfully bought into the playoffs.
But his father Walter Gretzky.
Who lives just outside in this town.
Of a Hamilton and into the -- that a -- -- -- -- name the stadium after him there I mean.
I would assume that those are some compelling reasons to perhaps bring in there what would be such -- content as far as the NHL is concerned.
To to doing I understand belief.
On the stadium in in.
In Phoenix Open what are the other reasons why they wouldn't do.
Well I mean I really think -- the core of it is the fact that they're using bankruptcy as a way to get around maintaining the franchise in the location.
That it originally was established the but it asset so much money.
The the asset that Maurice has is the Phoenix territory in the Phoenix -- he's coyotes.
The NHL had a buyer I am told.
That was ready to step in.
Pay off all the creditors.
Take over the club enter into an arrangement with Glendale that would relieve some of the obligations.
Making it that Sherry and I'm sort of honor of their fight my knowledge -- is I don't -- -- it.
Right so there was owner ready to come in take over the club run the club in the location that.
More a's had established as his market.
His asset is not the rest of the world as asset is the that is the Phoenix market and if the club can.
Maintained itself in Phoenix and operate in Phoenix that's the best thing that you can do though the worst thing for sports league.
Not that it doesn't happen is to move clubs around it's a very important for the stability of a sports league.
To try to maintain their clubs in the locations where they originally although we've seen some good NFL moves that have had some really prosperous franchise -- and we've seen NHL moves -- we -- them in all sports but I think in this particular case he really is about the legality.
And using bankruptcy as a way to get around keeping the team and in Glendale.
All right Stephen -- talent thank you very much and I'm Steve if you talk to Jerry I'd like to have Jerry Reinsdorf on I want you to tell me why he wanted to by the team and he'll still go through it.
-- -- Just imagine I'd like what makes is are you more intriguing -- -- -- Michael Dell through a private equity investment is also one of the investors in the Phoenix Coyotes and you know my step up never announce our.
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