Hockey Headlines

Monday, 7 September 2009

Jerry Moyes Needs A Gag Order

Animated images are fun, aren't they? They so eloquently explain what one is thinking. As they say, a picture is worth a thousand words, so an animated picture should be worth just as much. And speaking of worth, not to beat a dead horse, I believe it's time for former Phoenix Coyotes owner Jerry Moyes to keep his mouth shut when the press is around. His preposterous claim that the NHL should cough up "an additional $80 million" so that he can recover some of the alleged $300 million he lost is, in one solitary word, idiotic. It's time for Jerry Moyes to sit down, shut up, and let Judge Baum do his work. Especially since he's the one that caused this mess.

According to Moyes, the NHL is short-changing him with their $140 million offer for the club. According to documents filed by Moyes' legal team, he sees the bid by the NHL as a low-ball deal: "The real decision to be made here is hardly a contest: $212.5 million from PSE and $140 million from the NHL. It is $80 million short of the ticket to buy this team".

I don't want to have to point this out to Jerry Moyes, but his asking for more money to be thrown at the Coyotes, while certainly within his power, is absolute insanity. I know of no other business model where the owner of a subsidiary franchise can ask the parent company for a payout more than the net worth of the subsidiary, let alone asking for more money in any way after he bankrupted the franchise. Granted, he lost money. But isn't that the risk that one takes when one buys into a business?

Look, I'm no business lawyer. I get that Jerry Moyes is trying to maximize the amount of money that he gets because he lost money. That makes total sense. However, what of the NHL? Did they not lose money in propping up the franchise last season? Are they not entitled to some sort of repayment as well?

In their efforts to buy the club, the NHL does come in $80 million less than the offer put forth by Jim Balsillie's group (edit: make that $102.5 million, according to Sportsnet). Because of this, the major creditors will be paid first. If Judge Baum grants the club to the NHL, Jerry Moyes gets a grand total of zilch. Nada. Nothing. Zero dollars. The $140 million for the club will go to the major creditors first, and that will dry up the money pretty quick. If the NHL pays the additional $80 million that Moyes is seeking, he is entitled to a large portion of it.

In other words, he's a self-serving jerk who is only concerned with his own bottom line in this proceeding. He doesn't care about the Coyotes at all. All he cares about is his bottom line, and that, to me, is the sign of a businessman with extremely poor business ethics. And I believe he should rot in hell for destroying a franchise and a fanbase the way he has. (As a side note, Wayne Gretzky will also receive zero dollars if the NHL is granted the franchise. However, you don't hear Gretzky crying over what he is owed.)

Jerry Moyes is dead to me, and I will never support any company he is involved with for any reason from this moment forward. Good luck in your future endeavours, Mr. Moyes. Hope and pray that karma doesn't deliver a swift boot to your arse in the future.

Until next time, keep your sticks on the ice!

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