For those of you not entirely up to date on what’s going on with our beloved Winnipeg Jets-turned-Phoenix Coyotes, here’s the latest. The Coyotes are bankrupt and Blackberry billionaire Jim Balsillie wants to buy the franchise and move it to Hamilton, ideally before the National Hockey League season starts in October.

NHL commissioner Gary Bettman and his Old Boys Club of current NHL club owners unanimously voted that Balsillie would not be allowed to join their precious club. The bankruptcy judge in the case, Redfield T. Baum, didn’t seem to care what the NHL owners thought and in August decided that Balsillie should be allowed to bid for the team in the auctioning of the Coyotes. The auction is scheduled to take place today (Sept. 10).

The NHL appealed Baum’s ruling, sending the issue back to the courts again. This new court case is the crucial battle since the NHL knows full well that if the team goes to auction with Balsille in the mix, they don’t stand much of a chance. This is because Balsillie has made by far the highest bid at $212.5 million (all figures U.S.). In contrast, the NHL placed their bid for the team at a slightly pathetic $140 million.

On Sept. 3, Baum was supposed to make his decision but after hours of debate, decided to reserve his decision.

Another issue simmering just below boiling point is that the Toronto Maple Leafs’ owner’s fear that placing a team in Hamilton – less than two hours away – would cause a substantial loss of support for the only NHL franchise in Canada’s largest hockey market.

In court on Sept. 3, Balsillie’s lawyer stated that the reason the NHL is afraid of Balsillie owning the Coyotes is because if he moves the team to Hamilton, Toronto could theoretically file a lawsuit against the NHL.

However, immediately after court proceedings ended NHL deputy commissioner Bill Daly stated that the Leafs do not in fact hold any veto power regarding team relocation and that all it would take to move a team to somewhere close to Toronto would be a majority vote by NHL owners.

A Balsillie victory in this case will have major implications for professional sports franchises beyond the NHL. This case would set a precedent that a league’s approval will not be necessary in order to own a sports team.

Previously, in 2006, the NHL rejected Balsillie’s attempt to purchase the Nashville Predators franchise. The reason being that the NHL felt he lacked “good character and integrity.”

If Balsillie wins his current battle with the Old Boys Club, it would mean that anyone who has enough money will be allowed to purchase any team, regardless of what the existing owners think of the bidder or the terms of the bid. You can see now why Baum is taking his sweet time in making a decision.

This is because a ruling in Balsillie’s favour would send North American sports franchises into panic as to how to keep the owners they want and not the owners they get. Such a scenario would mean the beginning of the end for the Old Boys Club.

Melanie Murchison is a University of Winnipeg student.

Published in Volume 64, Number 2 of The Uniter (September 10, 2009)