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Gretzky poised to cash in on Coyotes sale

Globe and Mail Update

Hockey legend stands to make as much as $22.5-million (U.S.) if the sale to Canadian businessman Jim Balsillie is approved ...Read the full article

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  1. Northern Boy from Canada writes: Bettman has already said He'll try to stop it. Not good when the league doesn't want you. I would guess this will remain a pipe dream.
  2. max from edmonton from Canada writes: Sounds to me like # 99 is a pretty good business man. As well as hockey player.

    I know plenty of folks love to hate Wayne, and will use this as an excuse to rant against him.

    If I had the opportunity to make this deal, I would do it in a second.
  3. Pudge Canuck from TO, Canada writes: This does not make sense. The Ch.11 is to get the lease obligation off the company's back. But there are no secured creditors or DIP lenders here? How do the equity holders get paid and the secured parties don't. Is Balsille doing the DIP?

    Every company who has a ton of debt or is experiencing losses should do this and be sold. We should any company pay off lenders or suppliers if they can do this (so long as they have a 'stalking horse bid').
  4. Rick Norris from Phoenix, writes: Did it ever dawn on you that Wayne's been a disaster as a coach. He doesn't deserve a dime, for what he's done to this team. He was the highest paid coach in the NHL for the last several years! And a terrible coach at that. He would have been fired 4 yrs. ago, had he not been TGO! He's the Ted Williams & Larry Bird of hockey. Also, are your Leafs and Buffalo happy with this proposed move?
  5. Calgary Gary from Calgary, Canada writes: rumor has it that a consortium comprised of Peter Pocklington, Bruce McNall and Larry Ryckman are putting together a proposal to keep the team in Phoenix which is favored by Betteman
  6. PC Montreal from Canada writes: Rick Norris from Phoenix,

    Hmmm, highest paid coach in the league and poor results but still getting huge $$ even if the team is sold...kind of sounds a lot like overpaid CEO's receiving huge contractual bonuses for sinking their respective companies. Ah, such is the way of the world these days. Seems this flawed business model pervades in every industry.
  7. R. M. from Regina, Canada writes: 99 is far from a smart business man...think Argo's....bankrupt team and he gets $22 million......crazy world!
  8. Jah Nee Kah Sun from Canada writes: Can't wait to see Habs at Kitchener Coyotes ...HHHHHhhoooooowwwwwwwwwwlllllll.
  9. mike sty the Coalition Centrist from Canada writes: Hamilton Steelers .......I like it.
  10. Client 9 from Big, Canada writes: Leave 99 alone. If it wasn't for him there wouldn't have ever been a hockey team in Phoenix to begin with. His deal with the team is his business. It's a private company.

    As a Leaf fan I'm thrilled that a new team is potentially entering the region. It will bring more competition to the fray and hopefully force MLSE to actually invest in a winning franchise.
  11. Jack Rip from Canada writes: I think Gretzky needs to speak out. I can't see him being against the deal which takes him back home. But if he is not on side, he should speak too. Gretzky has cerainly earned that right. If anyone can derail the trainwreck of stupidity that is Gary Bettman, it is The Great One.
  12. J. K. GALBRAITH from Canada writes: Rick Norris: Your reference to Larry Bird is off. Bird had a .687 winning percentage as coach of the Indiania Pacers.

    Remember Gretzky is not getting the payout due to his coaching but because he is a minority owner.
  13. Jack Rip from Canada writes: Calgary Gary from Calgary, Canada writes: 'rumor has it that a consortium comprised of Peter Pocklington, Bruce McNall and Larry Ryckman are putting together a proposal to keep the team in Phoenix which is favored by Betteman'

    Isn't Pocklington about to go to jail for fraud? If so, he's just the type of person Bettman would do business with.
  14. Eric Blair from Canada writes: Janet is betting that this deal goes through. If Wayne wins the $22M payout look for her on the Poker channel.
  15. Bones Monseki from Canada writes: Peter Pocklington, Bruce McNall and Larry Ryckman - all have fraud issues.

    That was part of the joke
  16. Grant Bowen from BC, the real West, Canada writes: I guess Gretzky is not a 'real' Canadian... he's lived and been successful outside Canada. Shame on him. Him and Iggy...
  17. Greg Out West from Canada writes: Northern Boy from Canada writes: Bettman has already said He'll try to stop it. Not good when the league doesn't want you. I would guess this will remain a pipe dream.
    ------------------------------------------------------------
    You could be right but what's wrong is that Bettman says the NHL doesn't want to move teams yet he moved the team out of Winnipeg in the first place. I think it's just sour grapes.
    Besides I'd love to see Ontario get a third team.
  18. Rosehill Avenue from Canada writes: This is just poor journalism by Waldie. He makes it sound like Gretzky is entitled to some sort of excess earnings, or will 'profit' from the sale.

    1st, as someone asked before, Balsillie is providing the DIP financing. IF the bankruptcy petition is approved (not guaranteed, especially if the NHL has its way) then the equity owners are basically wiped out. That includes all Gretzky's equity stake. The unsecured creditors are next in line. This group of ppl includes Gretzky (his $8 million owed to him in comp) AND it includes provisions of his contract which stipulate when the team is sold, Gretzky has the right if he so choses to collect the rest of his compensation (since the would be bankrupt company is essentially in violation of its contract with him).

    This is normal for a bankruptcy. I dont understand why Waldie would use the phrase 'Cash in' as if #99 is going to profit considerbly from this.

    At the end of the day, Gretzky will likey simply get his past due and future compensation under contract, and LOSE his equity stake in the team. This is not 'Cashing in' in my opinion...
  19. Rosehill Avenue from Toronto, Canada writes: I should have said 'Next in line to receive money' as the general bankruptcy pecking order is
    1.) The IRS (taxes)
    2.) Lawyers
    3.) DIP Financiers (Balsillie)
    4.) Secured Creditors (not mentioned in the article)
    5.) Unsecured credits - Anyone owed money for current, past or future compensation under contract... including employees (i.e. Gretzky)
    6.) If there is anymoney after the above (which rarely there is), Equity owners get whats left.

    The current owners are more excited to accept this deal as Balsille is essentially making them whole on their previous equity stake.
  20. Gordon Howe from HockeyTown, United States writes: Pudge Canuck from TO, Canada writes: This does not make sense. The Ch.11 is to get the lease obligation off the company's back. But there are no secured creditors or DIP lenders here?
    ___________________________________________________

    Actually Balsille bought up 17 mill. in debt so he's first in line as a creditor. Plus he's said he'll give 100 cents on the dollar. The Judge can't refuse that.
  21. Rudy Haugeneder from victoria, Canada writes: $212.5 million (US) for a money losing NHL team in a sport that has ratings so low that many major U.S. media won't even assign a reporter to cover the playoffs?
    The AHL and WHL are just as good and I can afford to attend the games. I like it that way and don't care what happens to the Coyotes.
  22. Mr. Green-Jeans from Bug Tussle, AB, Canada writes: Bones Monseki from Canada writes: Peter Pocklington, Bruce McNall and Larry Ryckman - all have fraud issues.
    --------------------------------------------------------------------------------------

    You should have included Nelson Skalbania in that group. I'm sure Betman would go for it then.
  23. Robert MacDonald from Canada writes: Its always okay for a team from Canada to move to the USA, but when a USA team may move to Canada... heaven forbid!
  24. garlick toast from Canada writes: Bettman's vision for the NHL doesn't include Canada.
  25. Norman Petit from Calgary, Canada writes: Chump change - Janet has already bet it on the odds of the sale happening.
  26. belsize park from United States writes: how come The Peg and Kweebeck can't get a team back?
    too many fans? too many hockey players come from there?
    not enuff Lexus's (Lexi?) on the road?
  27. Huey Freeman from Mississauga, Canada writes: Has anyone ever been to downtown Hamilton??? And Copps Coliseum was great back in the Canada Cup in 87 but now?????
  28. Anton Berger from Kelowna, Canada writes: here's an even better idea! move the team back to Winnipeg, and change the name back to Jets!!
  29. max from edmonton from Canada writes: R. M. from Regina, Canada writes: 99 is far from a smart business man...think Argo's....bankrupt team and he gets $22 million......crazy world!
    **************************************************

    I'd say if you can walk away from a dying company with 22 M in you jeans you were a pretty decent business man.
  30. dave charleston from toronto, Canada writes: Gretzky doesn't need any more money. I hope it doesn't go through
  31. max from edmonton from Canada writes: dave charleston from toronto, Canada writes: Gretzky doesn't need any more money. I hope it doesn't go through
    *********************************************************

    Are you his accountant?
  32. Deaf Canadian from Canada writes: Ok guys heres how it really goes ...
    I flew over Phoenix a couple years ago and they had a hockey team at the time but basketball and NFL and College Football was the top attention getter there.
    Americans in the south do not think hockey in the desert.
    Now .. I recently flew back to Ottawa from BC with a stop over in Toronto ... looking out the window from up in the air ... JAWS DROPPING by the sheer size of the market at night GAWD!!!! ... Yeah Toronto can easily support an extra 3 or 4 more NHL teams in the region.
    Kitchener ... Hamilton and what the hey add Brantford for ol Wayne Gretzky???
  33. Greg Out West from Canada writes: max from edmonton from Canada writes: dave charleston from toronto, Canada writes: Gretzky doesn't need any more money. I hope it doesn't go through
    *******************************************************

    Are you his accountant?

    ---------------------------------------------------------------------------
    No, I think he's just jealous of the Great One.
  34. Robert MacDonald from Canada writes: Anton Berger from Kelowna, Canada writes: here's an even better idea! move the team back to Winnipeg, and change the name back to Jets!!

    ---> No point in moving a bankrupt team to a city that has already had a bankrupt team... that's just bad business planning
  35. APP * from Canada writes: I wonder if Gary Bettman owns a BlackBerry?
  36. Anton Berger from Kelowna, Canada writes: Robert MacDonald from Canada writes: ---> No point in moving a bankrupt team to a city that has already had a bankrupt team... that's just bad business planning

    ~~~~~~~~~~~~~~~

    only reason it went bankrupt in the first place was the owners tried to milk too much money out of the system! at least Winnipeg would have loyal fans, fans who know what ice is. so long as greed was kept in check, bums would always be in seats!

    no point in moving it to Hamilton - thanks to the D3 debacle no one there has any money to buy tickets!
  37. don trumper from Calgary, Canada writes: The NHL should sell Bettman to some Siberian League for about 2 cents. This arogant jerk ruined thye league and there will be lots of other teams hitting the financial wall. Typical short person syndrome (Napolean, Addolf Hitler)
  38. Kothar Rumbleg from Canada writes: Not only that but he gets his family name on a new future stadium!
  39. sleazy Silvester from Canada writes: Bettmans fightin tooth and nail not to put a hockey team back in Canada. Maybe he should put one in nashville instead... oh wait he did that, what is his deal?
  40. Rainbow Warrior Aka Aka Crayola King from Canada writes: I would defnitely enjoy seeing the Coyotes in Hamilton or any other city in the south.

    Although, it will just mean more competition for the Sens especially because the Coyotes seems to be piling on a whole bunch of very good, young players.

    Let the Mexican standoff begin in Ontario between the good(Sens), the bad(Coyotes) and the ugly(leaves) !
  41. Hugh Andrew from Canada writes: I don't care if Gretzky makes money or was or wasn't a good manager. What I hate is that here is another scenario in which an American is calling the shots on something Canadian. It really makes me angry !
  42. Steve Church from Canada writes: Hamilton won't draw in other cities any better than Nashville, Miami, or Phoenix. Buffalo would be back on life support. MLSE couldn't care less if another franchise takes a shot somewhere nearby - but they'll want their pound of gold in the approval process. Listen to Bettman's analysis today - Ballsie sold tickets for a franchise that didn't exist; yea, the other owners will really want his cowboy gun around (not). This one is another dead doornail. The NHL walks into the judge and states flat out - we're running the club, and we're not approving any move to Hamilton at this time. The unfolding - the franchise dies under a Chapter 7 (McGown on Fan590 today). Later a new franchise goes out for southern Ontario with a price tag of about $400mil, including $150mil to Toronto and Buffalo for surrendering territory.
  43. A C from Albertario, Canada writes:
    Robert MacDonald writes: Its always okay for a team from Canada to move to the USA, but when a USA team may move to Canada... heaven forbid!

    Nearly true, but not quite.

    The Flames came from Atlanta. They were bought in 1980 in a move to stave off bankruptcy by Tom Cousins and company the Atlanta owners. Nelson Skalbania was the front man for the Calgary group that bought them.

    In short, their is a precedent for exactly this kind of move.

    .
  44. G. Veneta from Canada writes: Why the problem in moving the team? They sure didn't mind when we lost a few Canadian teams!

    Good luck. I hope we get another Canadian team back!
  45. S Lucht from Canada writes: Gretzky is as smart as a lot of other rich people--they make sure that no matter how dismal their performance or that of a business they're involved in, they come out ahead.
  46. I, Alafrate from Canada writes: Don't forget, Hartford was let to move, also. So folks in Raleigh could get a taste of that ice hockey sport that they'd heard about from their northern friends.

    Sorry Glendale, I think you might get hosed here. But then again, the entire concept of Phoenix is absurd... they have to import water for their golf courses. In the desert.

    Also, if Balsillie is so rich, I wonder if he can write a cheque to Bettman to make him retire, set for life? Ha.
  47. D Peters from Alberta, Canada writes: Is this sports news or business news? Either way its a big pile of it.
  48. R Miller from Halifax, Canada writes: Two questions come to mind...

    When is the Hamilton Steelers first game ?

    Who will be the next NHL Commissioner ?

    Make it seven !

    Slainte Mhath
  49. EU Football from United States writes: Pretty smart from Gretzky who used Japanese bank's money to move Coyottes from Winnipeg to begin with with his partner.
  50. Adrian Howell from Toronto, Canada writes: It's a good thing that this team is in bankruptcy court. It means that there's one person (hopefully) that is playing by the rules. And that is the bankruptcy judge deciding the case. We sure as heck no it isn't going to be Bettman and the NHL.

    Now what I want to see is the bankruptcy judge award the team to Balsillie and see what the NHL does after that...;)
  51. Scott Walters from writes: J. K. GALBRAITH from Canada writes: Remember Gretzky is not getting the payout due to his coaching but because he is a minority owner.

    Actually he is getting a payout do to his coaching. Backpay and future salary obligations. 1.5% of $212 million does not equal $22 million.
  52. Gary Dare from Portland, Oregon, Canada, writes: I, Alafrate writes, 'Sorry Glendale, I think you might get hosed here. But then again, the entire concept of Phoenix is absurd... they have to import water for their golf courses. In the desert.' Phoenix had a long history of minor league and WHA hockey, most of those teams were named The Roadrunners. The Coyotes' problem is location, location, location ... the team was used as bait for a real estate development deal that moved them to the opposite side of town from their well-heeled, northern transplant fan base.

    As sad as I was to see the Jets leave Winnipeg, I had figured the Coyotes to work in Phoenix like the Sharks in San Jose (ironically, I was skeptical about that one!).
  53. Steve Church from Canada writes: Gary Dare - The reach for a national network, fourth major pro sports status, hit the wall: the network blind spots were filled in with Miami, Nashville, Phoenix, and ... Columbus and Minnesota. These are the hostages to fortune from that failed attempt. In the Phoenix case, agreed - the bait was he City chipping in big-time for an east-side arena - now it's a giant albatross and a potential killer lawsuit chattel with $700mil on the table. It would be ironic if the NHL wins the court decision, and is forced to keep the franchise in Phoenix, wouldn't it?
  54. M. Overton from Calgary, Canada writes: Funny how all the Gretzky defenders come out of the woodwork whenever he is criticized...I imagine by their posts that they have the mentalities of 14 year old boys and still have his poster up on their bedroom walls...time to grow up kids. The guy is a major reason why this team has no money - he is simply overpaid for the poor job he does and should have been bounced from the league. He was a great hockey player, but this has not translated into one iota of talent behind the bench. He brought nothing to this team but losses. And yes everyone, Janet is no screaming hell either.
  55. Jasper the Black Lab from Vancouver, Canada writes: "Gretzky to be cashed out..." would be more accurate than "poised to cash in." Wayner is one of the millstones that needs to be removed from this franchise.
  56. J. K. GALBRAITH from Canada writes: Scott Walters: Actually the $22.5 million payout would be due to a clause in his contract which indicates he would receive the total remaining value if there is an ownership change. I would suggest though this has less to do on his value and effectiveness as a coach and more on a business transaction but I accept it is open to interpretation.

    Hugh Andrew: Hockey may be Canadian but the NHL has not been Canadian run and operated for almost 30 years. You must always separate hockey in general from the NHL.
  57. Michael Mule from United States writes: Hey Steve Church< The Wild have sold out their last 300 games which is more than a lot of other teams including the Red Wings. I am not opposed to a team in Hellminton or Moosejaw and I don't think the NHL is either. They just don't want Balsillie to own it. A man who lost an intellectual property fight in the Supreme Court to the tune of over 500 million dollars when he could have settled to pay 10 would make anyone a little uneasy. The fact that he has now three times spouted off about buying a team and moving them to Hamilton, once even going as far to sell tickets, without even being approved by the NHL is another red flag for the league. The guy is unstable. The NHL doesn't need another black eye from another bad owner.
    can you imagine Gretzky in Hamilton ? He'd be out of their quicker than you can say Chris Pronger.
  58. max from edmonton from Canada writes: EU Football from United States writes: Pretty smart from Gretzky who used Japanese bank's money to move Coyottes from Winnipeg to begin with with his partner.
    *******************************************************
    You dont know what you are talking about. Wayne Gretzky was a Hockey player in 1996 when the team moved to Phoenix
  59. max from edmonton from Canada writes: M. Overton from Calgary, Canada writes: Funny how all the Gretzky defenders come out of the woodwork whenever he is criticized...I imagine by their posts that they have the mentalities of 14 year old boys and still have his poster up on their bedroom walls...time to grow up kids. The guy is a major reason why this team has no money - he is simply overpaid for the poor job he does and should have been bounced from the league. He was a great hockey player, but this has not translated into one iota of talent behind the bench. He brought nothing to this team but losses. And yes everyone, Janet is no screaming hell either.
    ******************************************************

    Somethings never change. Another whiner from Cowtown still upset the Femmes could never match up to the performance of the Oilers.

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