Coyote Ugly?

This means war

Perspective new Phoenix Coyotes owner Jim Balsillie has launched the website Make it Seven aimed at gathering support for a seventh NHL franchise in Canada, specifically far suburban Toronto or Hamilton. Remember, it was Balsillie who started accepting season-ticket deposits for a proposed team in Hamilton when he was negotiating to buy and relocate the Nashville Predators before he ever had a deal.

Read the Balsillie call to action letter here.

Meanwhile, Balsillie doesn't need to convince Canadian Prime Minister Stephen Harper.

Balsillie has also reportedly made an advance to Coyotes’ coach and limited partner Wayne Gretzky of a 10-15% stake in a potential southern Ontario franchise, in addition to suggesting he’d name a new arena after Wayne’s father. Gretzky told the CBC in February he had no intention of moving his family away from Phoenix should the franchise relocate. But that was before his team filed for bankruptcy and his ownership partners agreed to sell the team to Balsillie on the condition he could move the team to Ontario. Gretzky has made no new comment on this issue since it resurfaced on Monday.

More on Gretzky’s personal dilemma in today's National Post.

On the other side of this issue, Comcast SportsNet last night reported NHL Commissioner Gary Bettman again reached out to White Sox and Bulls owner, and Phoenix-area resident, Jerry Reinsdorf over the past few days in an effort to peak Reinsdorf’s interest in buying and keeping the Coyotes where they are in Glendale, a suburb of Phoenix not far from the White Sox new spring training facility. If you recall, Bettman approached Reinsdorf, as well as a few other groups, earlier this year about the Coyotes and at the time Reinsdorf left the meeting feeling such a move didn’t make business sense. More on Reinsdorf's possible involvement from Dave van Dyck in today’s Chicago Tribune. Reinsdorf's son Michael owns the Stockton, California ECHL franchise (Thunder), one of the most, if not the-most, successful teams in the ECHL.

The potential Reinsdorf deal was rumored to be an asset takeover and not a purchase since the Coyotes aren’t worth much these days since the franchise has reportedly lost 200 million dollars and is more than $80M in debt to creditors. They also owe the NHL for an influx of cash to meet payroll payments this season. Balsillie’s $212M offer was formed specifically to stave off objections from the NHL in bankruptcy proceedings figuring the league would not be able to conjure up a better offer from a party they approved of.

NHL-Moyes-Glendale drama to get Coyote Ugly Arizona Republic

The paper is also reporting in bankruptcy the Coyotes can essentiallly tear up their existing lease with Jobing.com arena and the city of Glendale. That lease was a killer for the franchise since they receive no revenue from area parking facilities (parking is free) and a portion of each ticket sold, in addition to regular entertainment taxes, goes back to the city to repay the cost of building the arena. As reported by the AZ Republic, the Coyotes’ annual lease payments are $4M in addition to the $9M a year the team owes the City of Glendale for building Jobing.com. Should this bankruptcy hold up in court and Balsillie seize control of the Coyotes, the court would satisify any past debts to the city and Glendale would receive just $500,000 per the lease termination agreement. You’d expect the city will be at least as fiercely opposed to this bankruptcy and relocation as Gary Bettman, who can’t stand Balsillie and will do anything seemingly to keep him out of his league.

Also, understand that in bankruptcy court, all financials pertaining to Phoenix Coyotes’ operations will become public record, something that a private business like the NHL, and the other 29 owners, absolutely do not want.

ChrisBlock@TheThirdManIn.com / PuckChatter@gmail.com