Entries Tagged as 'Jim Balsillie'

History, Will Teach Us Nothing

My apologies to Sting.

The remarkable issue from last night’s game against the Ottawa Senators is not the fact the Coyotes have a four game winning streak, second one of the season, or that they finally beat the Senators (the last time coming in 2002), or that they are six games above .500 (sixth in the conference), or even the fact that this time last year they were a measly 13-14-2.  No, it’s not any of those things.

What we had was that a team that has been in financial trouble twice in their history, playing against another that has had the same misfortune.

Can you guess which one is which?

Well, if you are aware of history (see the link above – whether the song fits, I don’t care, I just liked it), the Ottawa Senators, as a hockey franchise has been around a long time.  Sure, the new version was the result of expansion (some say southern) of 1992 that brought the Tampa Bay Lightning into the NHL at the same time.  However, the Ottawa Senators has been around for many, many decades.

Starting with the NHL in its inception, as history will tell us, that the Senators were around long before the NHL was a figment of anyone’s imagination; the Ottawa Senators helped found the league back in 1917.  They were a pretty successful franchise having won multiple Stanley Cups between 1918 – 1927.

Then, disaster struck.  In the first expansion to the United States, coupled with an economic depression, the Ottawa Senators could not turn a profit and ended up closing the team in 1934, and would not be resurrected until 1992.

The economic conditions still did not improve, even with the newly formed Senators.  The Senators were a very competitive team, but then it turns out that they filed for bankruptcy protection in 2003.  It looks like they were having attendance issues then as well.  It didn’t matter if the team was winning or losing, people just didn’t want to come see the Senators play.  The team was a complete financial mess.

Eugene Melnyk rescued the team by purchasing them soon after the club entered bankruptcy, and the links between these two franchises, the Senators and the Coyotes, continue to grow thicker.

Jim Balsillie, the Canadian businessman who wanted to uproot the Coyotes and transport them to Canada, had thoughts about the Ottawa Senators as well.  We learned this summer that Balsillie tried the same tactics that he used with the Coyotes with the Senators.  Eugene Melnyk felt then that Balsillie was not conducting himself properly noting,

“And I told him right off the bat that I thought it was … that it’s not the way you go about things. There’s a professional way. You meet other owners, you get to know the business, but you don’t … I don’t think you knock the door down to try to get a team.

“I think the way they have gone about it has got to be the most bizarre way of trying to enter professional sports.”

quoted in The Star

So, what happened?  Four years later, the Senators went to the Stanley Cup Finals only to lose in five games to the Anaheim Ducks.  Could that happen here?  Not sure, but anything is possible.  The best part is the Coyotes have been playing excellent hockey and may be the NHL’s best kept secret.

What still persists is the perception that the market does not work down here.  Well, it initially didn’t work in Ottawa either, but that team didn’t move anywhere.  It would have been extra painful if it had.  For some reason though, the critics don’t seem remember those times, the time when the Canadiens were struggling, the Senators, the Canucks, and so on and so on.

When the Coyotes arrived here, they were in the playoffs, the building was full (even when it wasn’t built very well for hockey), and people had a buzz about the team.  Now?  Losing breeds contempt and the casual fans don’t want to be jilted again.  Couple that with a horrible economy that Arizona has, the situation gets even more bleak.

Canada lost two of their teams to the lower 48, the Quebec Nordiques and the Winnipeg Jets.  Now, with a franchise that had history, that had a renewal, it looked very bleak and it could have changed the business of hockey.  Commissioner Gary Bettman didn’t wrangle the Ottawa Senators from the market, he waited until the situation resolved itself.  With Melnyk, it had.

These articles north of the border documenting the attendance woes of the Coyotes franchise doesn’t help matters in changing the perception (of course, fans filling the building would help more).  What’s lacking down here is an owner because thanks to Balsillie and company, they wrecked what was already a challenging market.  The fans need to know that they are staying here and the only way to insure that is to have an owner to purchase the team with that commitment in mind.

The best thing that the players can do is to continue winning hockey games.

More on the Nashville Situation

As I wrote last night, Wayne Gretzky had some interesting comments regarding the Nashville Predators sale to Jim Balsillie and their potential move to Hamilton, Ontario Canada.

Others have written extensively about the subject regarding the move, and I would encourage you to read what they have written. If you are already caught up to speed, the only developments are that technically, there isn’t an application for ownership from Balsillie regarding the Predators, it seems that NHL Commissioner Gary Bettman wants the franchise to stay put, and the sale isn’t close to being finalized even though it has been reported that June 30 seems to be some sort of deadline for the sale, ableit non-binding.

Given the history of the franchise here in the desert, Gretzky’s comments had some interest for me. I’m not too concerned at this juncture if a similar fate could befall the Phoenix Coyotes, but anything is possible. However, the lease situation with the arena is substantially different.

For instance, the city of Glendale put forth $180 million on the new arena and the city is not tied to the Coyotes economic swings. The rent on the building is among the lowest in the league, and the team gets all the revenue from the building for 30 years.

Even though I had written some negative things about the Nashville Predators in the playoffs (that were most likely hastily written and if I had thought about it first, the content would have been different), I don’t wish the team to move away and want them to stay in Nashville.

The often talked about “escape” clause, that if the Predators do not draw an average 14,000 fans a night that the owner can take the team elsewhere, could very well keep the team in place if the fans and the corporations do the right thing and support the home team. There is a loyal fan base there, but I guess not enough of them, and that is exactly the argument our friends north of the border make regarding the move of the Predators to their part of the country.

Hamilton, and the surrounding cities, would support the team and they have already shown it. However, as those who live in Winnipeg can attest, when a franchise departs (to me, the length of time in a city does not matter), it’s hard on the fans that watch their team(s) leave. I know I would be disappointed.

I have ranted before about supporting the home franchises by attending games, and not just when the former team that one rooted for previously is in town. It’s no secret about my background – I still support the local teams here and that obviously includes the Phoenix Coyotes.

I’m not sure how the events will play out, or whether it’s good for the game or bad. I know that if the situations were reversed, everyone’s positions would change (if the team in Southern Ontario left for the States and vice versa). Professional sports are big business.

Even though I have personally benefited through a franchise moving, I still have empathy for the fans that are left behind. It’s disappointing that it has to happen at all.

Wayne Gretzky Weighs in on the Nashville Situation

Wayne Gretzky shares his thoughts about the potential sale of the Nashville Predators to Canadian billionaire Jim Balsillie and the possibility of the franchise relocating to Southern Ontario.

Read more here if you’re interested.

More later…