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.

If you were an NHL owner, would you support Jim Balsillie’s bid to buy a franchise? He’s got a massive bank account, he’s passionate about hockey, and he has been trying to acquire his own team for many years now, so why wouldn’t you want him? The problem is that he doesn’t want to play by the rules. He is only willing to buy a team if he can move it to Hamilton, and he continues to try pursue every avenue to push this agenda.

While Gary Bettman and the NHL may seem misguided in their attempts to succeed south of the border, the league has a clear idea of where it would like to flourish. In the southern markets where it has had success, as in San Jose, Dallas, Minnesota – a strong fan base has developed. The teams are doing well financially and are a benefit to the league.

In 2005, Balsillie attempted to buy the Pittsburgh Penguins and many surmised that he intended to move the team to Hamilton. When the NHL stepped in to regulate the process, intending to negotiate the deal for a new arena in Pittsburg, and demanding the right to take over the team if necessary, Balsillie balked, walking away from his initial offer. Three years later, the Penguins won a Stanley Cup and Pittsburgh is once again a strong hockey market with a solid future ahead of it. Evidently, the NHL was correct in stopping Balsillie from taking control of the team and potentially alienating this solid fan base.

The league has many aspects to consider when it comes to adding a new team in Hamilton. One is the effect on current teams in the surrounding areas – Buffalo, Toronto, and Ottawa. Ontario can most likely support another NHL franchise, but it will not occur without affecting these teams.

For his part, Balsillie, is not taking no for an answer, and if you are an NHL owner or the Commissioner, that could be scary. If you’re one of 30 partners in a billion dollar company, do you really want one of your fellow associates to be someone who doesn’t follow rules, someone who does whatever he wants no matter how many feathers he ruffles? Sounds like a scary proposition to me, no matter how big his pockets are.

Jim Balsillie, co-CEO of Research In Motion, the company that makes the Blackberry, is trying to bring another NHL team to Canada – Hamilton, Ontario to be exact. This is what the public has heard, and our emotional reaction as patriotic Canadians is, “What a Saint of a man, he’s bringing us another team!” This cleverly orchestrated response is what Balsillie hopes will push forward his movement, putting pressure on the NHL and allowing him to move the team.

All of this is a shroud of smoke that Balsillie has created to cover up what he is actually doing. He is, in fact, attempting to take over the Phoenix Coyotes without NHL approval and relocate the team, again without NHL approval. Coyotes owner Jerry Moyes has reportedly lost $300 million since buying the team 8 years ago, and he has now filed for bankruptcy, with Balsillie offering to purchase the team contingent to relocation. The purpose of the bankruptcy filing is that it circumvents the NHL’s decision making body, taking the power out of their hands and putting it into the courts of America.

Balsillie has created a website, called “makeitseven.ca”, to rally Canadians behind his cause. However, since the issue is not about if Canada wants or could support another team, perhaps his website should be addressed “helpmecircumventNHLrulesbecausethatstheonlywayi’llgetateam.ca”. He'd better check GoDaddy to make sure the domain isn’t taken. Balsillie has tried on two previous occasions to buy American NHL franchises and relocate them, and he has been stopped due to various reasons including encroachment onto Maple Leaf’s territory and the NHL’s commitment to the cities in which it has teams. Perhaps the reasons behind not allowing movement need to be reviewed, but breaking the rules is not the solution. A rogue owner who plays by his own tune is the last thing the NHL needs, and they must look only as far as Mark Cuban – owner of the NBA’s Dallas Mavericks – to see why.