The possible fate of the Phoenix Coyotes hangs in the balance today as their bankruptcy case goes to court today.
We brought you the Coyotes story a few weeks ago, and here is the latest on the ongoing fight:
Darren Dreger on TSN has a look at the 4 questions Bankruptcy Judge Redfield Baum must decide:
- Who controls the Coyotes?
- Is the bankruptcy petition admissible?
- How will the selling of the Coyotes proceed?
- Is there really a Jerry Reinsdorf offer?(The White Sox and Bulls owner reportedly made an offer on the team right before they went into bankruptcy protection. Reinsdorf's ownership would presumably keep the team in Phoenix.)
Jerry Moyes is contending that the money the NHL loaned him to run the franchise does not give the league ownership of them team. Filings by Moyes' lawyers say he did sign documents giving the NHL some controlling rights to the team, but they do not extend to daily operations.
The NHL begs to differ. The league contends that it gained control of the franchise through a proxy signed by Moyes in November in exchange for a financial bailout of the team.
The league is also accusing of Moyes of secretly altering documents to make it appear he was still in control of the team so that he could arrange a sale to Blackberry Billionaire Jim Balsillie. Balsillie wants to move the Coyotes to Southern Ontario.
Balsillie stated yesterday that if he is allowed to purchase the Coyotes, he will keep the team in the desert for one more season, provided the NHL covers all losses he incurs in Glendale.
Meanwhile, 500 fans turned out for a "Save the Coyotes" campaign in Glendale yesterday. You can read more about that at Save the Coyotes.com
There probably won't be much more on this until much later in the day, if at all. The hearing doesn't begin until 4:30 EST, so any decisions may not come until tonight or tomorrow.