There is certainly is some momentum building in Jim Balsillie's efforts to purchase the Nashvillie Predators and move them to Southern Ontario. On the positive side:
The purchase price of $238 million is well above what the franchise is worth and what anyone was willing to pay so the current owner is eager to sell to Balsillie and the NHL governors cannot possibly turn down the sale (requires 75% majority)
Nashville officials have already indicated what they are looking for to let Balsillie out of their lease ($18 million) and he seems to be fine with that. Any Save-the-Predators activity will not be effective because the team receives little support from the Nashville business community. Meanwhile Balsillie has already worked out a 20-lease arrangement for Copps Coliseum. Should the transfer be approved he will use the next year to bring the arena up to NHL standards.
The Leafs have been silent about the move and it is rumoured that they have been offered $50 million as compensation for infringing on the Leafs' territory. I don't see the Teachers' Pension Plan turning down that kind of money since they are guaranteed to continue to sell out the ACC.
Balsillie has been in contact with the federal Competition Bureau which has had concerns that the NHL bylaws contravene the Competition Act.
However, on the negative side:
Gary Bettman is opposed to more franchises in Canada and supports expansion to Houston and Kansas City. He continues to believe that he can land a significant U.S. TV contract despite falling interest in hockey in the U.S.
The NHL governors are resisting dealing with the sale and franchise move at the same time (which is preferred by Balsillie) and have now postponed their June 19 meeting to discuss the sale.
One NHL governor, who requested anonymity, told a Globe reporter that he and a number of his peers are not happy with the way Balsillie is conducting his bid for the team. "This guy is showing he is a pain in the ass before he even gets in the club". Balsillie's likely to succeed in his crusade for the simple reason that he'd be less of "a pain in the ass" if granted his team than if they try to fight this new development.
It's unsure if Balsillie will have sufficient votes for the move and whether certain teams have the ability to veto the move. This is where the Competition Bureau may step in. However, Balsillie appears to be more than willing to go to court if necessary. He fought the U.S. government over access to the U.S. market for his blackberry products so the NHL is small potatoes to him.
12 years ago
