We Got Nothin'

We waited all that time to get to this point. Ever since May 5, 2009 when Jerry Moyes announced to the world that he was placing the Phoenix Coyotes franchise into Chapter 11 bankruptcy protection, there has been much speculation as to who would eventually own da Chiefs the Coyotes. Judge Redfield T. Baum - a name that seemed like it came from a Hollywood script - turned this one-ring circus into a full-fledged carnival with all the sideshow antics from the parties involved, but it still remained his decision as to whether Jim Balsillie or the NHL would emerge as the owner of the Desert Dogs. And so it came to pass today that Judge Baum handed down his decision.

Are you ready for this? This decision could change the sports landscape for all eternity. Singlehandedly, Judge Baum could transform how sports franchise ownership is attained, and how franchises are awarded and relocated.

Except he didn't.

Option A: Jim Balsillie came away with... nothing.

Option B: The NHL came away with... nothing.

The Coyotes remain in Chapter 11 limbo.

Five months of time and piles of money on legal teams for nothing? Are you kidding me? What was the point of this whole exercise? It seems this was nothing but a lesson in futility for the parties involved, and a point of academia for the legal world. Never one to shy away from the details, however, let's take a look at the details that led to this decision. For those of you who are fluent in "legalese", here is Judge Baum's entire 31-page report.

What I do appreciate is that Judge Baum did exactly what he was supposed to do: he did what was best for the creditors in this situation. Judge Baum's ruling on Jim Balsillie's $242.5 million offer was that he could not "find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton without first having a final decision regarding the claimed rights of the NHL and the claims of the debtors and PSE". Essentially, the rights of the NHL and the creditors outweigh any reasonable reason for the forced sale and relocation of the franchise to go through. Balsillie's bid was denied with prejudice, meaning he cannot amend his bid to continue in the process.

Secondly, he took aim at the low-ball NHL offer of $140 million. Judge Baum found that because the NHL is opting to only pay "all legitimate creditors", he was "not inclined to approve a sale based upon critical, ambiguous evidence". Essentially, because the NHL could decide who to pay and who not to pay, and how much to pay each of the creditors, the NHL's application would be rejected since all creditors have equal rights to the money being used for the purchase. As stated in the findings, "[o]ne of the prime policies of bankruptcy is equality of distribution amongst the creditors". The NHL's bid was denied without prejudice, meaning that they can amend their bid, and continue to pursue ownership of the Phoenix Coyotes.

Judge Baum decided on Option C, which was to award the team to no one. His statement, written in hockey-esque form, read as follows: "In hockey parlance, the court is passing the puck to the NHL, who can decide to take another shot at the sale net or it can pass off the puck". The message? Amend your bid or let someone else own the team.

The biggest shark in the water, Jim Balsillie, is no longer a threat. The NHL has an open net if it is simply willing to pony up some additional cash. Isn't this exactly what the NHL wanted? All they have to do is put the puck in the net.

Whether or not they do that is now entirely up to them.

Until next time, keep your sticks on the ice!