Judge Baum Makes a Decision… or NOT

Forced to make a choice between one $250 million bid from Jim Balsillie that would force the Phoenix Coyotes to move to Hamilton, and another $140 million bid from the NHL that excluded certain creditors from receiving any compensation, Bankruptcy Court Judge Redfield T. Baum chose the only option he could. He rejected both offers

The Balsillie bid, while presenting plenty of compensation to the city and creditors, was rejected because it took the decision of the franchise relocation out of the NHL’s hands. He said in his statement, “In the final analysis, the court cannot find or conclude that the interests of the NHL can be adequately protected if the Coyotes are moved to Hamilton,” intimating that the league need to have control over where it’s teams are located.

On the other side, the NHL’s bid to buy the team excluded Jerry Moyes and Wayne Gretzky from the list of creditors that would be paid. Essentially, the NHL would buy the team without a penny being given to two of the largest shareholders, and then attempt to resell it, pocketing the profits for itself. With the result of Wednesday’s ruling, the NHL will continue to look for another ownership group, but they will be acting as the middleman in the transaction, not the owner and seller.

During the process, Judge Baum did appear at times to be dragging out the proceedings, as we had originally hoped for a decision in mid-July. In the end, however, in a case with such complexities, he was wise to take his time to carefully examine both bids. What’s scary is that, in the end, the person who made the best decision for the good of the league and it’s owners was not the commissioner or NHL executive committee, it was an outside council, whose job it is not to save the league.