Interesting news out of Phoenix today, as the Coyotes have apparently filed for Chapter 11 bankruptcy and are awaiting a sale. Before the ink dried on the bankruptcy filing, Blackberry billionaire Jim Balsillie made an offer for $215 million - provided the Coyotes leave Phoenix and take up residence in Hamilton, Ontario. And the craziest part is, all of this could be happening before next season. The bankruptcy filing indicates that the Coyotes need to either be moved or be assured of staying by June 30, 2009 for purposes of next season's scheduling.
Most hockey fans know Balsillie has been in the business of buying NHL teams in the past. In 2006, he attempted to buy the Pittsburgh Penguins, a deal that fell through when it became known he intended to move the team. Undeterred, he made a deal to purchase the Nashville Predators a year later. Balsillie went as far as to procure deposits from 12,000 fans in Hamilton who would buy season tickets if the team moved. Again, plans to move the team became Balsillie's undoing, and the deal didn't work out. Now, he's at it again, this time with Phoenix.
Personally, I'd love to see this deal go through. Hockey is a Canadian game and there should be more than six NHL teams in Canada. The Copps Coliseum in Hamilton holds some significant history, as the greatest hockey ever played took place inside the building during the 1987 Canada Cup. In fact, Hamilton has been clamoring for an NHL team for decades; it'd be nice to see the city achieve its goal. Now, this isn't to say hockey can't work in Phoenix. But the truth is, the team is awful, the fanbase has become jaded and, while their arena might be new, Coyotes fans say it's in the middle of nowhere and is hard to get to. Clearly, this is not the best formula to develop a loyal fanbase.
So, what does all of this have to do with the Islanders? Quite a bit, actually.
- First and foremost, this is going to be a test of Gary Bettman's "I like all 30 clubs where they are" proclamation. If a team is going to move, it's the Coyotes. Conversely, if they stay put, odds are good the Islanders will remain on Long Island as well.
- Second, this will determine the going rate for a team with a ton of young stars, but has struggled on the ice and in the stands over the past decade. In addition, Balsillie's $215 bid doesn't take into account the 30-year lease the Coyotes have with the city of Glendale, who owns the Jobing.com Arena; the lease is said to include a $750 million payout to the city if the Coyotes leave town.
- Lastly, speaking of arenas, it shows that new arenas don't mean much if the team under-performs and fans don't show up. Remember, the Jobing.com Arena is the centerpiece of the developing Westgate City Center, which features malls, restaurants, office space, and housing. Sound familiar?
Islanders fans, pay attention to how this unfolds. The Coyotes are hemorrhaging money. They are a historically bad team with a bad lease and a dwindling fanbase. They have no stars to lure in casual fans (aside from their coach/owner, Wayne Gretzky), but have plenty of top prospects that will blossom sooner rather than later. Their arena is part of a developmental project, albeit one that was already approved, but even the surrounding area hasn't been able to draw fans. There's a lot to be learned from the story of the Phoenix Coyotes. If anything, Islanders fans should be ecstatic that this is happening so that they know what to expect if Charles Wang is forced to move or sell the team. And again, if the Coyotes end up staying in Phoenix, it stands to reason that the Islanders will be sticking around as well.
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