June 17, 2010: Ice Edge Holdings “met the proof of financing deadline set by the city of Glendale as part of the investment group’s effort to buy the Phoenix Coyotes hockey team,” according to the Phoenix Business Journal.
And just when we thought it was over….
June 30 the NHL fired team president Doug Moss. If the team’s sale was on course, then you’d think the league would have let Ice Edge Holdings fire the president. Red flags, anyone? Especially after Ice Edge CEO Anthony LeBlanc said he liked Moss’s work.
Then, in late July, the city of Glendale said Ice Edge no longer had exclusive negotiating rights. What happened in between, nobody seems to know. The city paid for the arena (Jobing.com arena) and paid $25 million to cover the Coyotes losses.
The deadline for the city of Glendale is Dec. 31 to get the team sold. Here in late August, enter: Mystery Buyer. The city’s efforts to sell the team have already been deplorable at best, now they won’t say who the next owner will be. Those who paid $25 million in debts to the NHL to keep the team must be thrilled that Owner X will save the franchise.
“Details of the new ownership group are very limited, though Glendale and the NHL could announce details and developments soon, according to sources familiar with the situation. The ownership group has asked for the city and league to keep negotiations private. The new buyer would keep the Coyotes in Glendale and is not a household name. In addition, sources say progress on the purchase is serious and substantial.”
Since Ice Edge is now focusing on an ECHL club, the mystery person/people are on their own. One can’t help but think, if the team had only gone with Chicago sports mogul Jerry Reinsdorf from the beginning, they’d be under solid ownership by now. But, Reinsdorf wanted an out clause (and who can blame them). It’s hard to think the Coyotes will stay in Glendale. They’ll more likely end up with a city in debt and an arena being used for juniors tournaments.
Matthew Coller is asenior staff member of the Business ofSports Network, and is a freelancewriter. He can be followedonTwitter
During Donald Fehr’s tenure as MLBPA head, the average player’s salary went from $330,000 to more than $2 million. The minimum salary went from $40,000 to $200,000. According to Roger I. Abrams' Legal Bases: Baseball and the Law, it took more than 25 years of free agency for the players' percentage of baseball revenues to return to the amount they kept in the 1870s.
These types of accomplishments are exactly why the NHLPA has named Fehr as its new executive director, according to an AOL Fanhouse report (though the NHLPA has yet to confirm). In late June, The Hockey News’ Ken Campbell discussed the Fehr Effect , he wrote:
“First, he essentially had the agents eating out of his hand when he addressed them in March. Then he blew away the executive committee – which consists of each of the 30 player representatives and holds the balance of power – in urging the players to approve the five percent growth factor for next season’s salary cap and to extend the current CBA to the summer of 2012. He was also on hand when the league’s competition committee met recently to discuss head shots and was – to his credit – completely silent. One person who attended the meeting said it was the first time it seemed the players were free to speak in their own interests instead of acting as extensions of the NHLPA.”
NHL deputy commissioner Bill Daly asks us to keep our eyes on the ultimate prize of avoiding a work stoppage,
"Look, I'm not looking forward to Armageddon, that's for sure," said Daly. "The sport will be well served by dealing with its issues in a reasonable, insightful way, through the negotiation process, and that's what we're looking to do."
Clearly, leadership is going to be an important step forward," said Daly. "They've been without a leader and working by committee for a year. Clearly, it's not as quick, efficient and effective as it otherwise might be. We're looking forward to that decision being made and that position being filled."
Either way, a man as smart and talented as Fehr must understand the importance of avoiding a stoppage, we can only hope that all involved find a way. Biz of Hockey will be watching NHLPA developments closely as we approach the end of the CBA agreement in Sept. 2012.
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The President of the United States wore FDNY on his cap. The way we viewed the people who work every day to make our lives safer changed. We no longer took firemen, police and ambulance workers for granted. On Sept. 11, 2001, we learned what a hero really is.
That day, John Feal lost half of his foot. Thousands of pounds of steel crashed down, leaving Feal in the hospital for months. He beat gangrene and won the battle for his life, but was thrown into financial warfare. He defeated that too, but knew many of his fellow injured responders were on the same battlefield. So, Feal decided to help. He started the Fealgood Foundation to provide financial assistance to 9/11 responders and their families.
“I started out selling T-shirts over the internet,” Feal said in a gruff Long Island accent. “I have raised over $250,000, which sounds like a lot, but it really isn’t when you think about these people’s needs."
Feal’s plan extends beyond giving away money, the Fealgood Foundation lives up to its name. The foundation teamed up with the New York Islanders' “Charity of the Game” program to send struggling 9/11 responders to an Islanders game for free.
“These people are forever part of a fraternity,” Feal said. “9/11 responders need one day of not worrying about how their going to pay their bills. It (the Islanders game) gives them a chance to enjoy their family and enjoy each other.”
The Islanders began “Charity of the Game” four years ago with a handful of charities, they now have 41 - one for each home game. The team sells hundreds of tickets at a 45 percent discount, then the charity elects to either sell the tickets as a fundraiser or, as Feal did, give them to those they assist.
“You know, 9/11 didn’t end that day,” Feal said. “More than 7,000 responders are still being treated. Some have died. We have between eight and 12 widows (who are assisted by Fealgood Foundation), these people are still struggling. We gave gas cards to some people so they could afford to drive to the game.”
Fealgood Foundation raised near $2,000 during the game with a 50/50 raffle, were featured on the Jumbotron and Feal was given stick signed by Islanders’ players to auction off.
Stories like Feal’s happen every night at Nassau Coliseum. The Islanders employ a 12 person team to handle sales and create a unique experience for each charity.
“Each charity tells their own story every day, “director of group sales Rose Barre said. “While these charities bring their organizations out to support the Islanders, our goal is to help them continue to tell their story through our Charity of the Game program. We tailor each program to fit their mission.”
The standard package includes a concourse table to promote the featured organization, the Islanders community Events Tour (ICE) at an event upon request, a formed partnership to ensure the charity receive donation items.
Other charities who partake in “Charity of the Game” include Autism Speaks, Musella Foundation, Wounded Warriors, Chabad of West Hempstead, American Red Cross, Knights of Columbus, Fealgood Foundation, Histiocytosis Foundaiton and the John Theissen Foundation.
“Each of the charities motives differ,” Barre said. “Some will purchase the tickets as a way to provide an opportunity to their families. This supports the Fealgood Foundation's mission. Some organizations enjoy the exclusive Charity of the Game partnership and exposure with the Islanders.”
The tickets, the hot dogs and rooting hard for "the beloved Islanders," Feal says, is what was most important to his organization.
“I would never sell those tickets, I don’t really know about the recognition we got from it and we didn’t earn a ton of money or anything like that, but I know I would never take that away," Feal said. "I’ve gone to a lot of funerals and held a man’s hand while he died, trust me every one of them is a hero.”
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Yesterday, arbitrator Richard Bloch ruled that the NHL’s rejection of Ilya Kovalchuk’s 17-year, $102 million front-loaded contract will be upheld. NHL Deputy Commissioner Bill Daly released this statement:
“We want to thank Arbitrator Bloch for his prompt resolution of a complex issue. His ruling is consistent with the League’s view of the manner in which the Collective Bargaining Agreement should deal with contracts that circumvent the Salary Cap.”
Storyline 1: So, now what? Well, the NHL can fine the New Jersey Devils up to $5 million and punish them via taking away draft picks, but that is unlikely. They can also fine Kovalchuk, but neither of those options would make much sense.
Storyline 2: How will this affect future contracts? Plenty of super-stars are unrestricted free agents after next season including Joe Thornton, Zdeno Chara and Zach Parise. The Kovalchuk decision means these guys will have to play by the rules. What is unclear is what those rules are. General managers will want to sign these big-name players to long term contracts, but now the ambiguity begins. How long-term is too long-term, how front-loaded is too front-loaded? Are we going to end up with 10 contracts going in front of an arbiter next off-season? The can of worms is officially opened.
Storyline 3: Did the NHLPA blow this on purpose? This one might have been like missing a 3-foot gimme put so you don’t beat your boss. There could be several lines of thinking here: A. If we let the NHL have this one, they’ll be easier to deal with come CBA time. B. If we win this, several players are going to take a ton of money away from average players. The NHLPA released a statement today saying they were disappointed and had no further comment. Doesn't sound that riled up to me.
Storyline 4: Will the Devils still sign Kovalchuk? USA Today reportedthat Devils GM Lou Lamoriello said the team will “do everything possible” to sign Kovy. That could be pretty tough because the Devils only have $3.7 million in cap space according to CapGeek.com.
Storyline 5: Will the NHL overrule other long-term front-loaded deals? ProHockey Talkreported that NHL Senior VP of public relations Gary Meagher confirmed that the league is “looking at” the long-term contracts of Marian Hossa, Chris Pronger, Roberto Loungo and Marc Savard. The Bruins and Canucks said they would cooperate, but the flyers were not so thrilled, saying that Pronger’s contract is structured differently and is compliant. If anything is clear, it’s that things are about to get hairy.
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David Haugh of the Chicago Tribune wrote this week that the Chicago Blackhawks planned all along to sell off players after the 2009-10 season and transfer the cap hit of bonuses awarded to Jonathan Toews and Patrick Kane on to next season. "Perceptions are, 'Geez, the Blackhawks mismanaged the salary cap, but I'd say we did the opposite — we managed the hell out of it,'' Bowman told the Tribune. "We exploited it in a way.''
To channel my inner Joe Pesci: exploited how? The Blackhawks knew all along they would have been at least $10 million over the 2010-11 cap, so Bowman chose gamble, knowing he’d have to trade players such as Dustin Byfuglien and Kris Versteeg immediately after the cup was raised. Fortunately for Bowman, Byfuglien and Versteeg were the ones doing the raising.
But Bowman’s plan goes deeper than a post-season fire sale. The GM battled with the agents of stars Toews, Kane and Duncan Keith over nickels and dimes in negotiating long-term deals for all three. Eventually the deals were all worked out and announced on Dec. 3, 2009.
As Bowman carefully carved up the cap, the Blackhawks’ coach Joel Quenneville was left in the dark. "I didn't want to take away any focus from Joel's job, which he did masterfully," Bowman said. "Then when it was time to bring him into it, he was understanding."
We’re not sure how understanding Quenneville was when the ‘Hawks walked away from an arbitration ruling to re-sign cup-winning goalie Antti Niemi. But options were limited, partially due to the San Jose Sharks. Sharks’ GM Doug Wilson offered restricted free-agent defenseman Niklas Hjalmarsson a four-year, $14 million offer sheet which forced Bowman to commit $3.5 million to Hjalmarsson one year before he planned. Wilson claimed he was trying to replace Rob Blake, but Bowman suspected the Sharks of forcing Chicago into a decision between the young defenseman and Niemi.
Bowman isn’t out of the woods yet. He’s filled most of the open spots, but will still have to deal with ridiculous Christobal Huet and Brian Campbell contracts.
"People ask are you enjoying the Cup?" Bowman said. "In time I will. But because of all we've had to do, I haven't really enjoyed it, per se. Ever since we went back to work that following Monday, it has been a mad dash."
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Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at
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Any goodwill Gary Bettman had built up from the Olympics and incredible Stanley Cup playoffs just got taken out back and shot. The league rejected Ilya Kovalchuk’s 17-year, $102 million contract on the basis of the likelihood the winger won’t complete the 17 years, TSN reports:
"TSN Insider Darren Dreger explains that the deal was rejected due to the fact that the NHL does not believe that either Kovalchuk nor the Devils expected the 2004 Rocket Richard trophy winner would be playing near end of the contract and that it is a case of artificially lowering the annual average value of the contract. The Devils must now either file the contract once again or the Players' Association can file a grievance.
Should the NHLPA decide to file a grievance, the contract would remain dead until an arbitrator determines otherwise."
As I wrote on Biz of Hockey yesterday, the deal beyond ridiculous, especially because Kovalchuk will earn more than 95 percent in the first 11 years, but in an earmark of ridiculousness that makes the scoring system and Southern expansion look ingenious, Betteman is cutting down essentially the same contract he allowed for other NHL stars.
Marian Hossa would have to play into his early 40s as would Chris Pronger, both at less than $1 million if they played out their entire contracts. Likelihood of that is equal to the chance Tom Hicks is given a statue in Dallas.
Admittedly, the NHL warned teams to quit with the front-loaded long-term deals, but now comes the fuzzy part: How long is too long-term? How front-loaded is too front-loaded? Every area of the rejected contract is a gray area. Will others like Joe Thornton try a front-loaded long-term deal, but not so front-loaded as Kovalchuk? My guess is that they sure will, especially if the NHLPA wins a grievance (which has a fair chance because nothing the Devils did violates the collective bargaining agreement).
If you call a foul on Kobe on one end, you’ve got to blow the whistle on Garnett and if you don’t, then you can’t. Betteman essentially said some may and some may not have front-loaded long-term contracts. Now just disallow NHLers in the next Olympics, bring a team to Mexico City and Betteman’s all set.
Matthew Coller is a staff member of the Business of Sports Network, and is a freelance writer. He can be contacted at
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Donald, meet Gary. Gary meet Donald. Now, you two meet Ilya and Lou. Donald, meet Gary, Lou and Ilya. Now guys, work this nonsense out.
Let’s start in July, 2009. ESPN.com’s Scott Burnside reports the NHL is “concerned” with front-loaded long-term contracts. Marian Hossa signed a 12-year deal with the Blackhawks paying him $7.9 million for the first seven years and $1 million for the final four.
Makes sense, right? He won’t be very good 11 years from now, so why should he make top dollar? Hossa will be 42-years old by then and won’t be able to score on a high schooler, and nor will he have the chance to. Hossa won’t see 42 in the NHL, in fact, near one percent make it past 38, but what will happen is his cap hit will be reduced to $5.275 million and he’ll still make $7.9 million assuming he retires by age 37.
An NHL executive told Burnside the contract makes sense because 40-year olds never make much more than $1 million, so all is fair. Yeah, and I’ll sell you my magic hat and golden-egg-laying goose.
Hossa was not alone in July, 2009. Chris Pronger’s monster contract beings at $7.6 million and ends just above the league minimum. Huh, Great minds?
Well, if they think alike, then so does another great mind: Lou “ca Brasi” Lamoriello. The Devils GM Lou Lamoriello wasn’t concerned with bad blood over signing superstar Ilya Kovalchuk to another Lou-dacris contract. Kovalchuk signed with the Devils for $100 million over 17-years. Kovy, 27, will peak at $11.5 million, yet earn just over $3 million in the final six years of his contract. Years he’s more likely to be Yachting than skating.
If Kovy plays until 2021, he’ll be 38-years old and have earned 96.5 million of the $100 agreed upon. Yet, his team will take significantly less in a cap hit. Textbook loophole: The CBA says the cap hit will be the average of the total contract. And nobody saw front-loaded long-term contracts coming?
Don’t worry, NHL commissioner Gary Betteman warned everyone to play nice. The Minnesota Wild did with Mikko Koivu’s contract. He’s got a $6.75 cap hit for seven years, Kovalchuk has only $6 million for 17 years.
The worst part is this can’t be corrected until the next collective bargaining agreement, which will likely feature ace-in-the-hole Donald Fehr, who may argue with the same “who, us?” tactics as owners and GMs. The NHLPA wants its players paid, the GMs don’t want the cap hit, but the commish is calling shenanigans.
But, just in case, big-name unrestricted free agents of next year will be waiting with bated breath for their day to come. These front-loaders are likely to be grandfathered in after the next CBA, which was extended for another year. Stars like Brad Richards, Zdeno Chara and Joe Thornton will all have their shot at a 29-year, $300 million contract with $297 million in the first 6 years. Currently Richards’ cap hit is $7.8 million, but odds are his salary goes up, but cap hit goes down. What a mess.
Keep investigating, Gary. But, at this point, there’s nothing the league can do but watch.
Here's the complete breakdown of Kovalchuk's contract via the Star Tribune:
2010-2011: $6 million
2011-2012: $6 million
2012-2013: $11.5 million
2013-2014: $11.5 million
2014-2015: $11.5 million
2015-2016: $11.5 million
2016-2017: $11.5 million
2017-2018: $10.5 million
2018-2019: $8.5 million
2019-2020: $6.5 million
2020-2021: $3.5 million
2021-2022: $750,000
2022-2023: $550,000
2023-2024: $550,000
2024-2025: $550,000
2025-2026: $550,000
2026-2027: $550,000
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LeBron’s staying! No, he’s going to Chicago. No, he’s going to Maimi! No, New York. Wait, that’s over. Now several hockey reporters are squirming in their chairs over whether the Dallas Stars will be sold to Calgary billionaire Bill Gallcher for $225 million.
The Hockey News columnist Ken Campbell reported this morning that Tom Hicks (who is also wrapped up in a messy bankruptcy and sale of the Texas Rangers as highly covered on Biz of Baseball) will sell the team despite his original $350 million asking price (the team is worth $247 million according to Forbes.) Campbell only says that THN “learned” of an “agreement in principle,” but does not say how. Sounds like Report-a-Bron Syndrome, huh.
No problem if Campbell’s right, but those who cover the Dallas Stars are calling shenanigans. Mike Heika of Dallas News says he talked to two sources who say the report is inaccurate. Heika said in his Stars Blog, “They say the sale process is ongoing and that Gallacher is a candidate to buy the team, but that they have not gotten as far in the process of agreeing to a price with any buyer. One said the reported price was too low.”
Former ProHockey Talk editor Brandon Worley was just plain puzzled by the conflict. Worley tweeted: “Ok...it seems that the THN report may be grossly inaccurate. Which is....odd, to say the least.” And then 40 minutes later: “I just can't see how Campbell would write a report that is this....off. Something isn't adding up.”
Stars fans probably feel like they’re in “Bill and Ted’s Excellent Adventure” and have been warped through time to Cleveland. Since Hicks ran into money problems, they have run into winning problems. The Stars have missed the playoffs for two straight seasons (in a league where everyone with a functioning Zamboni makes the playoffs) and as of right now have $13.3 million in cap space. Stars fans would give Brett Hull’s Cup ring for a new owner.
Don’t start thinking Mark Cuban. Heika said he contacted Cuban and the spunky, tight-T-shirted Mavericks owner wasn’t even giving Stars ownership a shot. That’s LeBron to Miami. Any franchise would love an owner with Cuban’s passion for winning. However, even if he was interested, Cuban was turned down for a minority ownership spot with the Pittsburgh Penguins by the NHL Board of Governors last year, so if they won’t let him sit in the dark for the Pens, they aren’t going to let him bang the glass for the Stars.
One person begging for Campbell’s report to come to fruition is Stars GM Joe Nieuwendyk, who is probably spending his days making paper airplanes while waiting on an ownership change. Only then will Nieuwendyk be able to start improving the Stars.
The obvious question is if not Gallacher then who? But, the lingering question is: If Campbell’s report isn’t true, who can fans follow for Stars sale information? At least Stephen A. Smith had Bron-Bron going to South Beach. Campbell is one of the most respected in the business, so for his sake and that of Stars fans, hopefully Gallacher buy the team.
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The President of the United States wore FDNY on his cap. The way we viewed the people who work every day to make our lives safer changed. We no longer took firemen, police and ambulance workers for granted. On Sept. 11, 2001, we learned what a hero really is.
The Islanders began “Charity of the Game” four years ago with a handful of charities, they now have 41 - one for each home game. The team sells hundreds of tickets at a 45 percent discount, then the charity elects to either sell the tickets as a fundraiser or, as Feal did, give them to those they assist.
