Balsillie not playing by rules, governors say

'What he's doing is not right,' one NHL owner said of the court showdown with Bettman and the NHL

David Shoalts

Phoenix From Friday's Globe and Mail

Jim Balsillie is not without allies among the NHL's governors and owners in his fight to bring a team to Southern Ontario, but most of them ask the same question — why can't he play by our rules?

Because, those close to the co-founder of Research In Motion Inc. say, Balsillie has come to believe the Toronto Maple Leafs will never agree to accept a reasonable amount of money to waive any territorial rights it may have and allow a second NHL team to operate in Southern Ontario. Thus, they say, he and his advisers feel they have no choice but to try to kick the door to the clubhouse down by going to court to force a bankruptcy sale of the Phoenix Coyotes so he can move them to Hamilton.

Balsillie's gamble is that enough NHL governors — 20 of the league's 30 clubs, a two-thirds majority, is needed to approve a franchise move — will love the fact that his $212.5-million (all currency U.S.) offer for the Coyotes will inflate the value of their franchises and therefore vote in favour of his wishes.

But NHL commissioner Gary Bettman is a formidable opponent, one who commands much loyalty among the old guard of the governors and some of the new as well, thanks to favours he has bestowed, such as playing hardball with investment bankers on behalf of some of the financially shaky franchises.

"What he's doing is not right," one NHL owner said of Balsillie's court showdown with Bettman and the NHL. "What's wrong is that the guy was getting to the point where people were warming up to him and then he goes and does this. Why? You've got to play by certain rules."

The Balsillie side counters that the NHL only selectively plays by its own rules. They point to moves such as the Anaheim Ducks landing in the Los Angeles area in 1993 or the arrival of the New Jersey Devils on the New York Rangers and New York Islanders' turf in 1982, both with payments of territorial rights fees negotiated by the league, and ask why the NHL is so opposed to doing the same in Southern Ontario.

None of the governors, even those on Balsillie's side, would speak on the record, considering what is at stake in the court battle. While one governor said Bettman did not send out a specific gag order concerning the Coyotes to the NHL clubs, no one wants to anger him by commenting publicly.

However, one Eastern Conference team did offer its unconditional support when asked about Balsillie.

"You have to have a reason to vote no," one of the team's governors said. "The league needs good owners. What's the problem here? I don't get it."

One source says it became clear to Balsillie that the Leafs will demand upward of $800-million in return for dropping their objections to another team. That is why he made one of the conditions of his offer to the Coyotes that he will not have to pay anything to the Leafs if he is granted the right to move the team.

It is also why Balsillie decided not to try to play by the NHL's rules when he tried to buy the Nashville Predators in 2007. Rather than own the team for a couple of years and then move it after he developed some allies among the owners, Balsillie tried to force the issue immediately and failed because he believed the Leafs could never be convinced to agree.

Richard Peddie, president of the Leafs' parent company, Maple Leafs Sports and Entertainment, declined to comment.

The villain of the piece, according to most of the governors surveyed, is not Balsillie but his Toronto lawyer, Richard Rodier. He has developed a high profile as the BlackBerry tycoon's advocate and legal strategist.

Several governors have said they told Balsillie he would find it much easier to deal with the NHL if he severed his ties with Rodier. But it was Rodier who was here yesterday at the U.S. Bankruptcy Court representing Balsillie.

He, too, declined to comment.

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