Well bankruptcy proceedings are tedious. You gotta love Judge Baum though, the man is a pistol.
Got there early and went into the court room around 12:30. At 12:50 the lil mad dog room monitor made us turn off our cellies. Not just on vibrate… OFF! which sucked big time. Luckily Art.Vandelay aka Kash2112 filled in from the viewing room overflow on Twitter. Way to go Art!
So basically here is the day…
12:45 the room is court staff, 12 Canadian media types, 4 of us and 8 of the Coyotes staff or arena personnel (including Moss and Jim)
Lawyers begin arriving in droves. Mostly NHL and City of G
1:00 Moyes legal beagals start arriving.
1:05 main legal teams for bothe sides start filling in the front rows, reams of papers being dragged out
Mr. Moyes enters
1:10 Ulfie squeezes into our row
1:15 all seats are full and no more room to squeeze
1:28 teleconference roll call (Ivan Kallich – ticketmaster, Jeff Freund – NHLPA, Barry Pupkin – Moyes rep) (Later in the day one of these nitwits forgets about the mute button and bellows out effin A! or something quite like it. Baum was seriously not amused and someone will probably get royally reamed)
1:30 Judge Baum enters the courtroom and everyone comes to attention
First order of business… transfer of funds to ticketmaster so that Taylor Swift concert can proceed w/ out hitches on 5/21 (AEG apparently is worried about getting paid) Motion passed and included Drawbridge Special Fund getting the same ticket protection as City of Glendale.
Second order of business… an extention for dates to file statements and motions (now due on 5/27) City of G only asked that there be no more extentions… over 600 pages of filings already… (good grief isn’t that enuff?) Motions started coming in at around 3:45 on Wednesday morning, Judge Baum was not pleased about it.
Third order of business… Who the hell owns this team?
Everyone agrees that they don’t want a 341 meeting, because it will mean involving district court.
NHL lawyer Clark starts the proceedings with golf story comparison between accepting mulligan not being fair during his trip to Ireland and the current proceedings not being fair to all parties…yaawnnnn. States that proxy document is completely clear and precise.
Baum questions that assumption ad nauseum. Brings up clever question why the words sole and inclusive powers weren’t used in the wording instead of the run on sentence that uses voting rights… says document never says Moyes has NO rights at all. Next line of questions from Baum include serious grilling on rights exercised VS rights owned… scary!
2:05 after many questions and concerns about document and its intent. Baum declares that he will definitely NOT rule from the bench on this matter today.
Moyes group opens with exhibit 4, the operating agreement for Coyotes Hockey LLC. Much the same result, as Baum questions about a billion things. Topic drifts into relocation issue. Baum says there will be problems if this is taken as a 363F bankruptcy in which there must be a clear dispute. Moyes never asked the NHL about Balsillie buying the team and was never turned down so there is no dispute yet. Cited the Coliseum case (Baum says the case was won because there was a request to vote and the vote setup a clear dispute), the Sullivan case was brought up and Baum said the case was lost because there was no dispute (he never asked for nor was denied a vote…so no dispute). Baum making sure the sides all know what will be needed if they go the 363F route.
Fourth order of business… divulging the Reinsdorf offer. Baum argues with Freeman and Salerno quite vociferously about the request and ultimately denies their motion to divulge. Since there is the possibility of an auction and any bidder knows how to contact them, Baum sees no value to this motion.
The next few hours included:
The city explaining its position on the Coyotes not having to be insolvent if they stay in place due to the fact that much of the debt is incurred through the city’s lease, eliminate the need to pay the city all that dough and the rest of the debt can be restructured quite easily.
PSE lawdawg Freeman gettin nasty about the Yotes true value.
Judge Baum lays down the law and tells all sides to put on their big boi panties and work out who owns the team through mediation. They have until the 27th to make progress on this or he will deccide for everyone.
Clark from the NHL makes a really good distinction between and owner and a league… the owner of a team can only sell the team in the location in which he purchased, the league can sell a franchise in any location.
A representative for the other major sports leagues makes his presence known and their position that this case could set a precedence that affects others beyond the scope of a single team and owner. (like anyone didn’t see THAT coming)
Moyes group brings up break fee for Balsillie in the amount of 4M , Baum isn’t happy about that. Says it will take money away from crditors. Much debate ensues about the PSE offer being the stalking horse offer and that it may drive away other bids.
Much discussion on bid procedure and an accelerated timeline for getting to the auction if indeed an auction is deemed necessary.
More discussion on what exactly IS for sale. A team in Arizona? or A team with the right to move. Obviously one is worth more than the other.
The NHL brings up the fact that the team was selling tickets (over 1 million $ in the 10 days b4 the filing) and only $20k since the bankruptcy announcement.
The City of G discussed its 2 main concerns: gating issues. Concern that the proceedings must not completely free the team from liens it holds (penalty for moving before lease expires) and the right to service in which it was agreed that all Coyotes home games would be played at Jobing.comArena (of which 26 years remain on the contract).
SOF’s lawyers spent a few minutes preserving their rights as this progresses. Bringing up things like credit bids and restructuring VS outright sale (for those who get any of that lingo)
And thankfully that was all she wrote. The main points seemed to be:
- Baum making sure the sides knew what he expected of either a 365 or a 363F route.
- Get mediating by 5/27 or else.
- Relocation issue to be filed and possibly ruled on by 5/27.
It got a bit heated in spots, a lot boring in spots and very educational in spots. Would love to be the fly on the mediation wall! Guess we’ll have to wait until the 27th to see who owns the boys and if all this shite is going to really have to be gone thru.
It was probably as clear as mud for yout too but
As always… Go Coyotes!