Not in Reinsdorf's position with my desire to win basketball games, but in Reinsdorf's position with his prioritization of cost, flexibility, loyalty and winning, I'd be thinking hard about what the new CBA is gonna look like.
I've been mulling over what the likely effects are of the CBA negotiations coming down the pike. Everything I read seems to indicate the owners are going to push hard for a smaller cap, a hard cap, shorter contracts and probably smaller contracts. I've seen lots of folks that suggest the new CBA will benefit the owners. I've seen no one suggest the new CBA will benefit the players (versus the current situation).
These facts might make a cautious owner with an eye on the bottom line not want to sign any contracts next summer (under the current CBA) - during the "2010 bonanza" - because they could be especially overpriced under the new CBA.
For that matter, it might also behoove them to make an Okafor for Chandler type trade with Luol Deng. The idea being that Deng's contract, while in line with what a player like Deng could expect under the current CBA and good economic times, is prohibitive and out of line with what you'll pay Deng under the upcoming CBA. Which would be another reason to trade him (in addition to the ones I wrote here, but didn't have the guts to post here after that trade Rose fanpost).
Anyway, since Jerry proclaimed Deng a future all-star, trading him is either exactly what he's thinking or the last thing he's thinking. I guess we'll see. Of course, Jerry's got a lot of other stuff on his mind at the moment. Continue reading after the jump to find out what's up with Jerry's latest adventure...
Glendale and the NHL are desperately trying to salvage an offer for the Phoenix Coyotes that was put in jeopardy after confidential Bankruptcy Court files were leaked that showed the bidder wanted guarantees of millions of dollars from the city and an escape clause to move the team.
Chicago sports mogul Jerry Reinsdorf, who with other investors has offered $148 million for the professional hockey team, was outraged by the leak of court documents Friday and threatened to withdraw his offer. It left Glendale and NHL officials scrambling over the weekend to repair relations with one of the few potential buyers wanting to keep the Coyotes in the Valley
This went down on Monday. What's really interesting to me is there's another ownership group that has apparently bid significantly more, and plans to move the team to Ontario (where, you know, they actually like hockey).
Moyes' attorneys had indicated to Glendale before filing that they planned to submit the documents to the judge under seal.
Glendale and the NHL, however, painted it as a ploy by Moyes to undermine Reinsdorf's bid, which does not include money to repay $104 million Moyes said he loaned to the team.
Moyes prefers a $212.5 million offer from Canadian businessman Jim Balsillie that would move the team to Ontario and put some money back
in Moyes' pocket.
One document was removed from the Web site by the court clerk. Another document containing a brief summary of the sealed facts remains.
Glendale City Manager Ed Beasley asked Baum to hold in contempt Moyes' counsel at Phoenix-based Jennings, Strouss and Salmon.
So basically it seems to me that the Canadian guy is offering $60M more dollars, plus he's not asking for millions of dollars of subsidies from the city of Glendale, AZ, population 250,000, to support hockey in a place where no one gives a shit about it.
This seems to me like a pretty classic case of the local government throwing good money after bad. It's spent an ass-load to build a hockey arena, and there's just not much of a market for it in Phoenix. The team is pretty much bankrupt. Shouldn't they just let it go instead of wasting more money on it (Yeah, if the Coyotes leave, they don't get any money from leasing them the arena, but if that's offset by paying out millions in subsidies, they're pretty well screwed there anyway. From the documents, Reinsdorf's proposal mostly seems to center around getting more revenue from the city by imposing taxes on restaurants and hotels servicing Arizona Cardinals fans.
U.S. Bankruptcy Court Judge Redfield T. Baum ruled Wedneday that PSE Sports and Entertainment, led by Jim Balsillie, will take part in the highly anticipated Sept. 10 auction, along with other qualified bidders, looking to take over the Phoenix Coyotes.
That ruling is a blow to the city of Glendale and the National Hockey League, which have animatedly voiced disapproval of moving the team to Hamilton, Ontario, as proposed by Balsillie.
"From the time his bid was launched, Jim Balsillie has said that all he is asking for is a chance to bid for the Coyotes at auction through the bankruptcy court process on a level playing field and let the best bid win," Bill Walker, Balsillie’s spokesman, said in a statement. "That’s fair and transparent. It’s the best outcome for creditors and for the future of the franchise."
Attorney Gary Husk, who is representing the city of Glendale, said the west suburb is supportive of having a "Glendale-only option," so that "reduces the risk a little bit."
Glendale built Jobing.com Arena, where the Coyotes play.
Husk said the ruling expedites the process and will provide for a side-by-side comparison, but it isn’t detrimental to Glendale.
"The side-by-side analysis will be very positive to determine which bidder has the more favorable proposal, not only for the city of Glendale but for all the creditors."
National Hockey League owners on July 29 voted to back Jerry Reinsdorf’s $148 million bid to buy the Phoenix Coyotes hockey team from owner Jerry Moyes. Reinsdorf owns the Chicago White Sox and Bulls.
The Coyotes are in Chapter 11 bankruptcy reorganization and the NHL and Moyes are battling over who can buy the team. Moyes wants to sell the Coyotes to Research in Motion CEO Balsillie for $213 million.
Reinsdorf’s $148 million bid to buy the Phoenix Coyotes hockey team includes little or no cash from him or any of his investors. Instead it centers on assuming and reworking debt. His offer is a stark contrast with the $213 million all-cash bid tendered by Balsillie. Balsillie would use part of his personal fortune to buy the Coyotes.
In short, Jerry's business accumen basically amounts to getting an incedibly sweet deal from powerbrokers who are willing to ignore $60M in cash. Score!