Craig Ferguson Investigates

And for the next Christmas present, the Ice Edge boys were the last on the mat to pin this one down! A succesful tag-team victory to save face for the American economy and the Canadian, er sorry, American game!

As Michael Moore asked a banker in his latest movie to explain what a ‘derivative’ is, the complicated reasoning for any entity to want to take on the financially troubled Phoenix Coyotes is equally head scratching.

The darlings at Research Edge/Ice Edge have connections past or present with Onex, MSD Capital, the Carlyle Group, and dare we say Mubadala. Would this suggest they are a  sheer coincidence as the  found solution for Glendale and the National Hockey League?  Not likely. As suspected, it suggests who you know that is ’safe’ has been and always will be the solution when industry is tied to government, on levels of municipal, state, and country.

To hypothesize based on the facts presented so far could only lead us to one logical conclusion – there is a business reason and equally important a “damage control” reason to come forward as the  new Coyotes’ owners.  This notion makes Ice Edge’s Daryl Jones’ comment from the past truer than ever, and now understandable.

A business reason?  Yes, and it is not just some nice Canadian/American company doing the people (fans) of Phoenix a favor. The Phoenix Coyotes have always represented a financial challenge that transcended hockey and most certainly the National Hockey League. We have learned that there could be several issues at play, making the issue of who offered the most money to Jerry Moyes seem at this stage almost ’silly’. For that, I would have to argue with Gary Bettman who remember said that this team was never in jeopardy, and the notion of which was, well, you know, “silly”. Bettman also told us this was not an issue of Balsillie against Bettman, or anyone else. I would at this stage also agree with Gary Bettman.

We had Abu Dhabi investment, specifically Mubadala visit our site on numerous occasions, and it became clear they were likely not hockey fans just checking out how the team was doing. No, more than likely Mubadala had or has major interest financially in either the arena bonds, or other aspects of investment in the Glendale area. Moving the hockey team would likely not sit well with Mubadala if they were the bondholders expecting city growth, and sales tax revenues related to that growth. CityNorth in Phoenix, as we keep coming back to is the sample point. Sales tax growth is what the revenue streams are based on, and that is why that expensive ($480,000) parking spot is being used as an example. We could have the same level of expectation from Mubadala on the Jobing.com (nee Westgate arena) bonds.

Mubadala is also the common denominator as is Michael Dell of MSD Capital/SOF Investment. We also learned that Michael Reinsdorf is a player in the development of Glendale area sports, and the band of merry men including Alan Leventhal came into play as Beacon Sports assessed Jobing.com for Glendale at Reinsdorf’s calling. As the Phoenix New Times refreshingly pointed out in their unlike-mainstream reporting, the $48,000 charge from Beacon did not have to be reported, suggesting there is more than a little palm greasing going on at City Hall in Glendale, and God knows where else.

The sad reality is that the lawyers for Glendale that seemed silly in their arguments could have saved a lot of legal fees had we just listened to them.

The lawyers defended and fought an issue so entrenched  and hopeless that padding their bank accounts is like the Wall Street bailout. A big difference I would support is that the lawyers working this case actually made it seem like Jim Balsillie was going to stand a chance – and for that they deserve every penny earned. We even must unfortunately question the abrupt ‘cease fire’ attitude of Judge Baum, who had spent plenty of time in reflection of this case, and no doubt was giving it due diligence. Either a deal was worked out or politics played a great role. We may never know, but in fairness and hope for us in Canada, Jim Balsillie went away equally as quickly. Two men (judge and financial vigilante) going outside of character and abruptly walking away.

That didn’t make sense adding to the situation. When Balsillie said that Canada is that much closer to getting a Canadian team, my money is that we can take that as a sign of a potential deal. What we witnessed in court was what I would call a ’silent deal’, where a few truths were made known to back off the dogs, and what we are seeing now is the playing out of the plan that has been arranged. Canada might just get another team, just not one so entrenched in International politics that includes Arabian investment in America in land, banks, military spending, etc. No those people you don’t get upset at you, wink, wink, nudge, nudge.

Why the case took so long to come to its conclusion is a mystery however. That is unless more Canadians learned how America’s economy “really works”, and it took us Canucks a little while to clue in.

Some of us (me at the top of the list) learned a lot of the issues of America, a cause that I have continued to look into, and I would suggest we all do the same – from the current wars, to the economy, to the Federal Reserve, to the Bilderberg Group, to the Carlisle Group, to Obama’s front men from Wall Street occupying the Treasury seats, etc, etc. I was never much for politics, but the case for hockey in Canada has made me learn that the National Hockey League is an entrenched part of the financial issues that the entire United States suffers from, and taking a piece of that pie to Canada was not likely to happen.

So, if you are wondering why we in Canada could not simply bid the highest amount of money, helping Jerry Moyes recoup some of his sustained losses, this is the wake up call. What will happen in the coming months and years will not only affect hockey, but will have an effect on the rights and other privileges we in Canada have today.

Back to Ice Edge – how might they fit?

See Keith McCullough in video explaining perceived upturn in the housing market: from CNNMoney.com . McCullough as you will note was the ‘hedge’ expert at the Carlyle Group that Mubadala and the Bush family have great interest in. Terrific coincidence or closer to the reason this group was standing when the dust has settled, and as the municipalities’ and hockey team dilemma is worked through?

McCullough supports a low dollar? Let’s not get into the  Ben Bernanke dilemma and the fact the Fed does not want to disclose where the money goes, and has not had an audit since it’s inception over 90 years ago. With the way things are going, how about a “collapsed” dollar?  How would that help the U.S. and the world?  We digress, back to the issue at hand..

Let’s look at the possibilities for a business solution (partnership) that would work for Ice Edge, the City of Glendale, and the arena bondholder (Mubadala?).

Let’s say the economy continues to go south, and more Arizonans continue to struggle financially, losing their homes, not being able to pay property taxes, etc. We would have the City of Glendale’s operating deficit rising to continued nightmarish proportions. Just throwing this thinking out to you.

So, the brilliant young men at Research Edge would come in and either import Canadians as LeBlanc alluded to or perhaps they would find investors to otherwise buy tax paper to bail out Glendale on property tax collection, or more likely a combination of the two.

Research Edge if they do this will stand to gain large! The National Hockey League will pale in comparison in bad times. As the rink continues to empty in proportion to the homeowners and property tax payments taking a dive, the Edge boys can effect the “business reason”, and help the City of Glendale out in the tax department. Should the economy improve,  disposable income will come back, and hopefully the good folks of Phoenix will start to have more disposable income.

But, the likely next couple of years will be a down economy, and Research Edge will kick in the plan with the City of Glendale, and the Phoenix Coyotes will be a tax write off for the parent company. Hedging the bet with a derivative of sorts – that counters the economy and hockey ticket sales. Brilliant really! Michael Moore may be calling to find out how that one works too.

Mubadala, if they are indeed the bondholders will reap their share of revenues as prescribed because the City will look to reducing or eliminating the budget crisis with the aid of the only boys capable of helping and everyone wins. Well, everyone except the struggling taxpaying voters in Arizona that have been sold down the river by the Wall Street driven Federal Reserve, the Bilderberg Group, and the state  and municipal politicians. We had better keep a close eye on this group in Canada or our economy may go into the gutter too.

But that is another story isn’t it? When we in Canada question why we couldn’t just get another hockey team, we should start to look at the bigger picture – the much, much bigger picture!

More on Bilderberg Group and Canada: 

•  CTV video
• Prime Minister Harper and Bilderberg
• More video on Bilderberg
• Jones examines Bilderberg

Past articles related on Ice Edge:

• Research Edge’s Keith McCullough hints at company vision and opportunity seeking
• Never just about hockey
• Not really in, not really out
• Done like dinner
• “Muckety” possibilities
• “Done like dinner” reheated

Every once in a while I get a little soft, and write something that is sappy and boring. Then I think of the injustices suffered in this case. Then, I put those sappy articles back in mothballs and get back to business.

Before I begin, I want to make a personal salute to a ranter on Makeitseven.ca.  His name is Patrick Romanoski, and he has to be one of the most persistent diggers of information that I have ever witnessed. He is a wealth of information and wisdom. Patrick, thank you. And, there are several more contributors that I want to mention. Perhaps we can do this over the next while.

For the bullet summary, please go here.

Is it over yet?

No?

OK, where are we now?

We are at the part where the NHL grovels so low that they what? They put their own bid in? No way! Get out! Really?

They say real life is stranger than anything we could possibly think up ourselves. Real life is stranger than fiction.

Did anyone think this case could get any more bizarre than it has? Is it close to over? Is it going to get any stranger?

Let’s think of the fans in Phoenix right now.

They must be suffering some kind of disbelief of what has happened.

At first, the NHL looked like their best friends. What must have been part of their thinking? How about this:

 Isn’t Gary wonderful. Go Gary Go! Save the Coyotes! Game On Arizona!

Look, Gary sent us a memo to our rally! He supports the franchise, and says he sees us surviving long into the future.

Hey, did you hear? Jerry Reinsdorf is coming in with a bid, and the NHL supports Reinsdorf. He’s good. He’s got lots of experience and he knows how to make teams succesful. Jerry will be our white knight! Yeah Jerry!

Boy, that Jerry Moyes. He sure ran this team into the ground with poor management. That was it. Just poor management. The other Jerry will show Moyes how it’s done. What? He wants to get $104 million out of the team when he sells? Forget it! He doesn’t deserve it. Go Reinsdorf go! We’re with you! Save the Coyotes!

That was likely pretty close to the thinking of the Phoenix Coyotes fans at the outset of this case.

The NHL had found the white knight.

Now, the white knight is gone. He bowed out under what is described as a negative publicity campaign:

“We have faced an organized publicity effort designed to provide negative and misleading information to interested parties,” it said. “Not only has this stymied negotiations, but it has eroded local market demand for Coyotes tickets, luxury boxes, and sponsorships.”

Okay? Where is the negative publicity effort exactly? Did anyone see a negative PR campaign? Anybody?

I’d like to know how exactly the Balsillie group did this, and where it was from. How did they do it exactly?

Would this be about the collusion accusations from Moyes? Is that it? If so, those were justified accusations.

When it is claimed they had made great inroads in negotiations, would that have included the $23 million in annual concessions requested from a city already laying off staff to suck up the $14 million deficit? Is that it?

I’m sorry, but I do not see any favors to anybody in the negotiations. And the negative publicity? Don’t confuse that with any uncovering of truth that was presented. Don’t bother. Please.

As for the NHL’s promises to the fans of the Phoenix Coyotes.

I feel sorry for the fans in Phoenix because, let’s be real as Dr. Phil, you were fed a lot of snow.

The proof is in the realities that are now apparent.

Fact: Jerry Reinsdorf had incredibly high concession demands, and the city of Glendale would be on the hook for any team financial failures. Not a lot of risk there for anyone but the taxpayers of Glendale.

Fact: The Reinsdorf offer had a five year out clause despite the taxpayers liability. No amount of confidence or risk.

Fact: The NHL’s bid is even less supportive with a one season out clause.

So much for Bill Daly’s press conference where he claimed this in early July:

Daly stressed the new terms would not allow the Coyotes to break the lease in a year or two and move elsewhere.

The NHL must fight for the bankrupt Coyotes to stay in Glendale long-term, he said, to send a message to other cities that have spent money attracting or retaining hockey teams.

 Yeah Bill! Go NHL go!

Sorry Phoenix, that was a snowjob!

This week, the NHL has filed it’s own offer with the bowing out of Reinsdorf, and the out clause as you know, is one season. No long term. Not even two years.

What happened to the ‘message’ the NHL wants to send? That was so last month, eh Bill?

This is late August and things are now a lot different. It’s snowing in August in Arizona.’Snow job’ that is.

Well, at the end of the day the NHL has to get it’s act together and get organized. 

 

To that end, we thought we’d throw in this pic of the boys trying out the his and his Blackberries. Do you think they were compliments of RIM?

 

 

Anyhow, back to the issues…

What really bothers me is no matter how much exposure of the NHL’s shortcomings are made known, they continue to point the finger at others.

The NHL also cited ongoing harm to the franchise as the bankruptcy proceeding drags on.

“The bankruptcy petition and subsequent events have been incredibly damaging to the club’s business,” Daly said, “and the sooner the club can be extricated from the bankruptcy process, the sooner club personnel can begin to restore the team’s vitality and local fan base.”

Oh, Daly said ‘vitality’ not ‘viability’. OK, I can live with that. In July he said ‘viability’. I get it. Well, at least he is not saying long term viability anymore, especially with the huge lack of confidence the league has shown with that whole one year and out idea in their bid.

How did I get so off track? Well, this case has become a farce. Let’s call it. It’s officially a farce. A sick as all get out joke. A joke that is far from funny, really.

I actually feel sorry for mainstream media. They have to report the facts and the events as they occur.

“OK, now we have the NHL in, and Reinsdorf out, and Ice Edge also filed their bid, and yada, yada, yada”.

Come on! We all know they want to grab a blog and say “what the _____.”

We all want to say, come on!

But, let’s get back to reality for a moment. I will finish with this summary and opinion.

The Coyotes were never just about hockey. The city of Glendale colluded to get rid of Moyes, and they were assisted by certain parties in Glendale and this case, and they were helped also by the NHL. No doubt.

Jerry Moyes was stripped of his money and spat out like a used piece of gum.

The NHL has snowed the fans of Phoenix with a false sense of loyalty, and only now do the true colors of the NHL become obvious.

The NHL and the Reinsdorf group were looking to relocate this team either now, or within five years to another centre that fits the plan of the NHL.

The NHL has painted Jim Balsillie any way they can to avoid him putting a team in southern ontario because of the MLSE objection, and also because they would not get an expansion fee.

The NHL is looking really bad, and really dishonest. Who can trust the heads of this league anymore?

The NHL has shunned the fans of Canada, and is quickly shunning the fans of Phoenix.

Jim Balsillie has a brighter future in the NHL than Gary Bettman, and let’s see who is around in 10 years.

Jim Balsillie, despite being voted against, has been approached by other struggling franchises, and is the true white knight to help the destitute owners.

And, because I can, I have this to add. I hope Jerry Moyes gets his $104 million, and Jim Balsillie gets to move the franchise to Hamilton. I hope Jerry Moyes becomes an honorary lifetime member of the new team. It took great courage to bring this team in to court for the ride we are experiencing.

I hope those involved in hanging Moyes out to dry pay the piper.

I hope the league gets torn to the ground and is rebuilt with true, caring hockey people.

I hope we all learn that it is not OK to treat another human being with utter disrespect.

I hope one day some grown men will grow up and be able to take responsibility for their actions, and admit when they were wrong.

I hope the less than ethical officials at Glendale city hall find themselves not getting re-elected for the abuse of the taxpaying voters.

I hope the rich folks involved in this case learn that money and the quest for more is not what is important in life.

But, to start, let’s get this team to Hamilton, and get Jerry Moyes some money back.

It’s been snowing in Glendale long enough.