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Meet Reinsdorf's inside man

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I can't say for sure what's happening — Glendale officials are using the specter of litigation to dodge key questions. But I can tell you this: It smells pretty damn bad.

The record suggests, in fact, that Glendale City Manager Ed Beasley is trying his best to hand over the Coyotes to his friend, lobbyist John Kaites, and Kaites' Chicago buddy, Jerry Reinsdorf.

Another new wrinkle in a case that hardly needed one, and another player in the form of weatherman turned politician turned lobbyist John Kaites — seen above posing with the current U.S. secretary of homeland security back in January of 2007.

When Jerry Reinsdorf first emerged as a suitor for the Coyotes, it was with Kaites's name attached as a potential partner, and at the time, I wasn't able to find all that much worth noting on the local lawyer. He has a blog here, with two entries pulled straight from the local newspaper and with his own quotes in bold, and has quietly been connected to Reinsdorf in one way or another for more than a decade.

He seemed nothing more than potential legal help, a friend in the desert on the scene to lend a hand.

That he's also friendly with Glendale city manager Ed Beasley, however, connects many of the dots that bring us to the how and the why Reinsdorf — a well-known professional sports icon in Chicago with seemingly little interest in a faraway money-losing hockey team — got involved.

Star-divide

According to current owner Jerry Moyes's camp, that happened long, long ago:

"While there is no doubt the Reinsdorf bid is full of material contingencies," read one recent filing, "the Court should not lose sight of the fact that Reinsdorf first started this process in the spring or summer of 2008 — essentially one year ago. The Reinsdorf Group is hardly new to this party — it has been circling this transaction for a year."

Moyes, too, asked last week why Kaites and Co. have been able to negotiate potential concessions when none were offered as the former ownership group sunk into the deep end while trying to alert the city (through Beasley):

"The current structure of our agreements with Glendale and other parties is a money loser no matter how well the team plays," Moyes said in a statement. "Simply put, the Reinsdorf bid wants to only assume the team's debt and then restructure all agreements, which is what I have been trying to do for the last year."

Moyes questioned why Glendale would make concessions for another owner but not him.

We've heard very little about Kaites to this point, but I imagine that's about to change. The optics certainly aren't good that, when the Coyotes needed a lifeline a year ago and didn't get it, a friend of the agent in charge served to benefit.

How can that be explained away?

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The Coyotes saga is amazing. Last summer’s Mats Sundin watch had nothing on this. Part of me is expecting new to leak tomorrow that Balsillie is dating Bettman’s daughter.

On a serious note, I love what’s happening with this. The media is all over this and it’s great. You’ve got to imagine that, with the history of Wangs and DelBiaggios, the craziness surrounding the sale of other franchises would have all been this interesting. But the NHL managed to slip it through.

Kudos to you James and the others following this for bringing these shady and iffy deals to light.

by Gusinabox on Aug 4, 2009 9:32 AM CDT reply actions   0 recs

its amazing, and entertaining, but not surprising. When you have sports like this becoming such a huge financial enterprise, these connections become even more important. I wouldnt be surprised to see a picture of all these guys standing on a golf green somewhere at some golf tournament.

Glen Sather is a Hockey Genius.

http://glensathersucks.com/
http://twitter.com/ThGeneralissimo

by poploser on Aug 4, 2009 11:52 AM CDT up reply actions   0 recs

One of the interesting things is that sports aren’t a huge financial enterprise. If you took the NHL as a whole, it has about $2.7 billion in annual revenues. That would place it around 720 on the list of Fortune 1000 companies, with businesses such as Pride International, Beckman Coulter, and CF Holdings as comparably sized. In terms of franchise value, I’d bet that the whole NHL would be among the very smallest companies on the list. Business wise, a franchise like the Coyotes is barely a blip on the radar.

That’s one of the most frustrating things about the subsidies (oops, not supposed to use that word) that local governments give to sports teams. Even if you like the idea of chasing growth and business through them, sports teams don’t provide much bang for each buck, compared to what subsidizing other companies might get you.

by J. Michael Neal on Aug 4, 2009 2:26 PM CDT up reply actions   0 recs

How about a substitution for that word in its many forms?

Cal it a hoodle.

So: “One of the interesting things about the hoodles..”
Or: “…compared to what hoodling other companies might…”

That way everyone knows what you mean but no one can complain.

A rose by any other name…

Just a thought.

by William Daniels on Aug 4, 2009 2:41 PM CDT up reply actions   1 recs

Save you’re nitpicking for Gerald ;) A $2.7 B enterprise is a big enough business to get my point – we’re a long way from “sport” these days. Sports franchise, including the low-end NHL ones like the Coyotes, are more often then not a means to a larger business end – real estate development, cable TV control, etc.

Glen Sather is a Hockey Genius.

http://glensathersucks.com/
http://twitter.com/ThGeneralissimo

by poploser on Aug 4, 2009 9:52 PM CDT up reply actions   0 recs

Sorry. Just bitching about one of my general frustrations with all of this.

by J. Michael Neal on Aug 4, 2009 10:33 PM CDT up reply actions   0 recs

This whole thing stinks to high heaven. No one looks good in this situation. No winners here, the only losers are the Coyotes and their fans.

Being a Leaf fan here requires one to be sufficiently lubricated... and truculent!

by stucky on Aug 4, 2009 9:54 AM CDT reply actions   0 recs

Thanks...

we certainly feel like the losers out here…and receiving mailings from the Moyes’ group on a weekly basis regarding my potential claims against the team doesn’t help…I have no claims against the team, I just want them to stay put.

And Mirtle, the answer to why Reinsdorf may be interested in the Coyotes’ success is that he just sunk a couple tens of millions into building a brand spanking new spring training facility for the White Sox less than 2 miles from Jobing.com Arena…there are big signs throughout Glendale regarding it’s sports attractions (Cardinals, Coyotes, White Sox and Dodgers spring training)…so he is invested in seeing Glendale succeed already…

World Ph*cking Champs! That was fun - let's do it again...

by Moridin417 on Aug 4, 2009 10:49 AM CDT up reply actions   0 recs

Moridin417

It is sad that there are not more fans like you in Phoenix who care about their team. It’s also sad that the politicians “appear” to have taken sides in this because it is putting Moyes in a position where he’s not going to play fair anymore as he stands to lose the most. If anyone else were in the same position as he was, I don’t think we’d be blaming him one bit.

The side deals that the politicians in your town were working out were obviously not supposed to come to like because it makes them look like they were dealing in bad faith.

It also makes the NHL look bad (Bettman and the BOG) because they are giving approval to “wink wink” deals and that’s a lesson they still have not learned.

I’m not saying I want Balsillie to win here. I’m saying this again calls into question the judgement of the league.

by oilerdago on Aug 4, 2009 10:54 AM CDT up reply actions   0 recs

Yeah corrupt politicians suck at everything...

and we have a dearth of them in Phoenix – we’ve impeached our governor almost as many times as Illinois…and the local legislators are completely crazy…but I try not to get too worked up over it…

The problem with Moyes is that he has been using the Coyotes as a siphon for his other losses (or it would appear that way) and he is trying to claim himself as a creditor, but it really doesn’t appear to work that way in other sports. I don’t think if the D-backs spent more money than they earned this year and the ownership group had to keep paying salary and expenses and everything, they would claim that excess money as a “loan” to the team – it’s just the cost of operating the franchise. The problem here is that Moyes is simply not rich enough to own a sports franchise…

World Ph*cking Champs! That was fun - let's do it again...

by Moridin417 on Aug 4, 2009 2:07 PM CDT up reply actions   0 recs

Just as an FYI

The New Times is regarded here to be just slightly above the Onion in terms of actual news reliability.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 4, 2009 11:53 AM CDT reply actions   0 recs

Was the Onion nominated here?

Phoenix New Times writers won top honors for column writing and blogging at the Arizona Press Club’s annual awards banquet, held Saturday at Arizona State University’s Cronkite School in downtown Phoenix. In all, New Times brought home seven first-place awards. Sarah Fenske won the Don Schellie Award for feature column writing.

Just because a publication is a weekly or community paper doesn’t mean it’s less worthy or unable to unearth key details. What do you find untruthful about what I’ve written here as referenced in the article?

I read all the Coyotes fans trashing this article around the ‘net and few address the merits of what is discussed. There’s some asinine group think going on in Glendale these days, your crew included.

Blogging on hockey at fromtherink.com

by James Mirtle on Aug 4, 2009 12:05 PM CDT up reply actions   0 recs

Nothing.

I was just letting you know how the paper was regarding in general here James. I’m not trashing a thing I was just giving you perspective on the paper chill out.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 4, 2009 12:13 PM CDT up reply actions   0 recs

Odin, the paper itself may or may not be exemplary, but what was published there certainly fits with what Brahm Resnik posted on his blog two and half weeks ago. Is he a hack as well? The back room stuff reported is also in character with Reinsdorf’s past sports dealings. Anyone unfamiliar with how US Cellular field in Chicago came about should do some research. Reinsdorf was perfectly willing to play Chicago and St.Petersburg off each other to garner some pretty major financial concessions. This stuff may end up as a major PR problem that Reinsdorf can’t be bothered to tolerate.

by Robert Cleave on Aug 4, 2009 12:37 PM CDT up reply actions   0 recs

I’m not naive enough to think there aren’t backroom dealings going on. A multi-million dollar deal isn’t going to have them? That would be more shocking to me. I’m sure ANY deal of this magnitude would have them.

Brahm isn’t bad except that he’s a Habs fan. That should disqualify him from a lot of things ;-) KIDDING!

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 4, 2009 12:53 PM CDT up reply actions   0 recs

If I were a Glendale taxpayer, I’d be more upset with the idea that Reinsdorf’s demands largely amount to socializing the losses and privatizing the profit, but I’ve also always believed that taxpayer funded dealings deserve more sunshine focused on them than strictly private financial matters. I’m funny that way.

In any event, my sense of all this is that the non-legal obstacles for the Reinsdorf bid are growing. The news coverage of the concessions will make it harder for Glendale’s city manager to do anything without scrutiny, and the objections of the Bidwills are another hurdle. Everyone is fixated on the courtroom issues and the Balsillie involvement, but what guarantee is there that some neat resolution of the legal matters wraps this up? If the end result of all this was no qualified or accepted bidder, a lame duck season propped up by the league and a flurry of lawsuits, would anyone be surprised at all?

by Robert Cleave on Aug 4, 2009 1:27 PM CDT up reply actions   0 recs

Not only would it not be surprising, this is more and more what it looks like is going to happen.

by Habs on Aug 4, 2009 1:37 PM CDT up reply actions   0 recs

I think what's more likely

And again, qualifying it by the fact that i’m a fan of the team and wanting them to stay, is that one of the two local bids wins since the NHL won’t approve anyone else at the moment, but that “winner” will be tied up in a legal mess from challenges to begin the year. As much as I want this to be over it’ll likely just drag on and on for whoever “wins” further damaging the team and the fans.

Support Your Local Coyotes Blog! -
Five For Howling

by Travis Hair on Aug 4, 2009 1:42 PM CDT up reply actions   0 recs

The legal challenges are going to be a problem...

And this is where Baum needs to lay down the law if one of the local bids wins…the creditors need to get secured promissory notes that have defined payoff periods and Reinsdorf should probably be required to put down some up-front “good faith” money. Now I don’t know if Baum has the authority to do this (no bankruptcy attorney here, just general litigation and what-not), but if Reinsdorf is allowed to buy the team, but then has to sink a ton of $$$ into defending creditor claims, that is not going to do anything to help those creditors ever get paid by making the team profitable…

World Ph*cking Champs! That was fun - let's do it again...

by Moridin417 on Aug 4, 2009 2:12 PM CDT up reply actions   0 recs


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