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Coyote Ugly: The NHL's interpretive dance

"The League has been consistent in its view that any proposed relocation into southern Ontario would require only a majority vote of the Board of Governors, and no team would have a veto right.

"While we respect that the Leafs may have a different interpretation (although it's not even clear that they do at this point), at the end of the day, it is the Commissioner and the League that is ultimately charged with interpreting the NHL Constitution and by-laws."

— NHL deputy commissioner Bill Daly

All righty... anyone have the foggiest on how else this can be interpreted?

Constitution_snippet_medium

I've snipped out 4.2, but you can pickup the gist of what I'm talking about by clicking on the image above (full constitution available here). The key passage is at the end and it reads: "No franchise shall be granted for a home territory within the home territory of a member, without the written consent of such member."

Me, I interpret all of this to mean either (a) the constitution isn't worth the paper it's printed on, or (b) the league's full of you know what.

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By-laws...

Of course the league will quote the league by-laws which only indicate a majority vote is required to relocate a franchise but the constitution likely super cedes the bylaws.

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by HockeyAnalysis on Sep 5, 2009 9:06 AM CDT reply actions   0 recs

I’d like to vote answer “C: Both A and B.”

It shouldn’t be that hard to get an answer to the simple question of “can Toronto veto another team in their territory or not?”

"For myself I am an optimist - it does not seem to be much use being anything else." -- Winston S. Churchill

by Baroque on Sep 5, 2009 9:21 AM CDT reply actions   0 recs

Is a club’s territory automatically increased if the city corporate limits are increased by, say, amalgamation? What were the city corporate limits when the Toronto franchise was awarded? Is there a process for re-establishing, for the purposes of the constitution, city corporate limits? And finally, will Sundin play this year?

The answers may be all there in the fine print – I’m too lazy to check.

by hockeycountry on Sep 5, 2009 9:32 AM CDT reply actions   0 recs

Toronto has to provide written consent for any new franchise to be located within a 50 mile radius of the Toronto corporate limits. That seems to be the plain meaning of “territory” here.

It means that the Islanders couldn’t move to Brooklyn and excludes Hamilton as well, subject to wrangling over the actual corporate limits.

by K Marshall on Sep 5, 2009 9:33 AM CDT reply actions   0 recs

The meaning isn’t important if standard practice/convention is different that what is written: if in the past this rule was ignored then the court don’t have to abide by it. I’m guessing that Anaheim didn’t get approval from L.A

by hockeynumbers on Sep 5, 2009 9:59 AM CDT reply actions   0 recs

Actually I believe Anaheim did get approval from LA and McNall made $25m in the process.

http://puckreport.blogspot.com/2009/05/nhl-expansion.html
http://articles.latimes.com/2003/may/31/sports/sp-mcnall31

Given the strength of the Southern Ontario market it’s possible the governors might vote to infringe upon the Leafs territory if the price is right. That said they may first have to amend the constitution to push it through if there aren’t already built in exceptions to 4.3.

MG

by puckreport on Sep 5, 2009 10:57 AM CDT up reply actions   0 recs

McNall actually got $25 Million of the $50 million expansion fee plus his share of the remain $25 million, the Ducks didn’t have to technically pay anything over and above the expansion fee that the Panthers had to pay.

Which was a tad odd in that the territorial rights where ceded without an additional payment over and above the expansion fee. Perhaps the same should be happening in the case of Hamilton ;-)

by Zombie Jesus on Sep 5, 2009 1:59 PM CDT up reply actions   0 recs

Inconveniently, Article XII says that in order to change Article IV, unanimous consent is required. Article XII also requires unanimous consent to change, so there isn’t really any way they can amend the constitution in this way if the Leafs choose to be a roadblock.

by Resolute on Sep 6, 2009 5:15 PM CDT up reply actions   0 recs

Can they really stand in the way of a resolution designed to bring the constitution back into accordance with competition law?

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by Doogie2K on Sep 6, 2009 5:51 PM CDT up reply actions   0 recs

If they don’t have to abide by it, then the constitution isn’t much of a document, is it?

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 5, 2009 11:08 AM CDT up reply actions   0 recs

I think the big question is whether or not the majority vote effectively constitutes a veto. Would other owners ever vote for putting a team within another’s territory against its will? I suspect not. I have no idea whether that makes any difference legally, but I think it’s an important element.

by J. Michael Neal on Sep 5, 2009 6:48 PM CDT up reply actions   0 recs

Apparently it makes a difference for the competition committee in terms of antitrust allegations. Legally? I don’t know.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 5, 2009 7:09 PM CDT up reply actions   0 recs

I’m probably extremely oversimplifying here, but let me know if this sums up the same situation you all see:

1. One of the NHL’s primary issues with Balsillie is his disregard for the written constitutional by-laws.

2. In an effort to appease the Make it Seven cadre, the NHL is blatantly attempting to circumvent their own written constitutional by-laws in a related, though not precisely the same, situation.

the irony is overwhelming me here.

by MileHighAir on Sep 5, 2009 10:57 AM CDT reply actions   0 recs

You are right MileHigh…but more than the irony, is how Balsillie is almost scripting the NHL’s set-up for an antitrust suit. They are basically making his case stronger, by trying to keep that team in Glendale.

'There are 3 sides to every story..Yours, Mine and the Truth'

by Love Em on Sep 5, 2009 11:24 AM CDT up reply actions   0 recs

I think what that last clause(4.3) is refering to, is that for example, the Detroit Red Wings couldn’t host an exhibition game at the Marlies home rink (Ricoh Coliseum?) I don’t believe it has anything to do with a prospective team in Hamilton.

'There are 3 sides to every story..Yours, Mine and the Truth'

by Love Em on Sep 5, 2009 11:20 AM CDT reply actions   0 recs

“No franchise shall be GRANTED for a territory”

When you are relocating an existing franchise, you are not “granting” a franchise. The granting of a franchise occurs at one time and one time only – at the beginning (or, in other words, the expansion process).

Relocation is dealt with elsewhere in the document – specifically in the by-laws. The by-laws (which are themselves also part of the constitution as per Article 10) regulate the process by which teams may relocate (including relocating to the home territory of others).

If you are posting the constitution, James, you need to post the by-laws as well. It is black letter law that a contractual document is to be read and construed in its entirety.

As a further aside, it is also black letter law that documents are to be read in whatever manner is necessary to allow meaning to be given to all of the provisions thereof (in other words, if there is an interpretation of a clause which would make another clause nonsensical, then that interpretation must give way to an interpretation which allows all of the provisions to make sense together – common sense, right?). The manner in which this is done for the NHL Constitution and By-laws is to have the last sentence of section 4.3 refer to expansion and the by-laws refer to relocation.

In any event, though, one does not have to refer to the above canons of interpretation. The granting of franchises clearly means the expansion process and does not refer to the relocation of already-granted franchises. I actually made this point on some board or other some time ago when the constitution first came into the public domain, if memory serves.

In addition, the NHL has a saving clause in the by-laws (the # escapes me) which provides that, if any particular Board approval requirements regarding franchise placement are contrary to the law, then it is a simple majority vote. The NHL’s position is that this clause has effectively overridden clause 4.3. Contractual interpretation rules permit that to be the case.

As an aside, I am really tired with this ongoing meme of “the NHL doesn’t follow its own rules”. In reading a lot of the court-filed correspondence, I am struck by how formally the NHL seems to structure its affairs. It is not all that surprising, since it is run by ex-lawyers, but even in what would normally be less formal “deal” correspondence, they are quite attuned to the rules of the constitution and by-laws. There is little to none of the “oh, those are just fomalities” kind of written correspondence that other businessmen often employ. They are actually pretty anal about it, as far as I have read.

by Gerald on Sep 5, 2009 11:51 AM CDT reply actions   0 recs

Bylaws are available here.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 5, 2009 12:06 PM CDT up reply actions   0 recs

So Gerald, there’s no veto right for a relocation, but there is for an expansion team? That’s an interesting distinction.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 5, 2009 12:16 PM CDT up reply actions   0 recs

I thought that was exactly how they were blurring interpreting it:

The league said the Leafs can veto the addition of an expansion team to Hamilton, but insists a majority of owners could approve a relocation of a franchise to Hamilton.

Strange (absurd even?) distinction, but that’s their story, apparently. Maybe goes with the whole extra consideration for existing members vs. want-to-be members thing.

Lighthouse Hockey: Side effects may include Weight gain and frequent game loss.

by Dominik on Sep 5, 2009 8:53 PM CDT up reply actions   0 recs

I am not sure whether the Commissioner could not override even that, James.

The distinction makes some sense. The league has certain duties to existing members in respect of anti-trust considerations (hence all of the factors that are listed that go into relocation of existing franchises). It is a different consideration in terms of considering NEW members.

The anti-trust considerations are much more relevant in terms of the rights of the existing owner, as opposed to a prospective new member. The law is pretty clear that no one has the right to be granted a new franchise. The law is also pretty clear that, in terms of restricting the rights of EXISTING members, there are a number of relevant factors and the league’s rights are somewhat more circumscribed.

The current case is really more about Moyes’ rights of relocation rather than JB’s.

by Gerald on Sep 5, 2009 9:20 PM CDT up reply actions   0 recs

Does the so-called “veto” line in 4.3 remain simply because it has never actually been used and/or challenged in a court of law? While the league maintains a simple majority is needed in the case of relocation, seems to me if a team wants to assert that 4.3 is the proper application it can file a suit.

If in that proceeding the court ruled 4.3 is anti-competitive in regards to both relocation and expansion, the league’s simple majority position in the relocation case is upheld, and the team’s suit is rejected. And I would think the league would amend the constitution now that there was a legal ruling on the matter, or choose to fight it in regards to expansion.

Am I way off base with my thinking?

by RousselRising on Sep 5, 2009 3:50 PM CDT up reply actions   0 recs

If it doesn’t apply at all in the case of relocation, it should really be reworded to remove any ambiguity. The Leafs were apparently confused at one point.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 5, 2009 4:13 PM CDT up reply actions   0 recs

I’m guessing the Leafs would not be interested in the fine legal distinctions that the League appears to be drawing. If push came to shove – I would be amazed if the Leafs accepted the argument that their is a legal distinction between “relocation” and “expansion”.

The key though is that Push will never come to Shove – the teams, like J. Michael noted, will not likely ever vote for putting a team within another’s territory against that team’s will.

Glen Sather is a Hockey Genius.

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

by poploser on Sep 6, 2009 10:45 AM CDT up reply actions   0 recs

No, the Leafs would be much more interested in what the CCB said about vetos.

It is a source of constant amazement that anyone can think that the Leafs cannot read the CCB opinion and realize that a veto will not pass muster. It is also a source of amazement that the same persons would think that they NHL would not have read the opinion as well and come to the conclusion that they have nothing to fear form the Leafs.

Now, as for the individual owners and the casting of their votes, Michael has a valid point regarding self-interest of the members, but as for a veto is concerned, it died forever the day the CCB issued its ruling. It was arguably dead before, since Bettman has authority to interpret the constitution, but the CCB put a stake through its heart.

by Gerald on Sep 6, 2009 11:53 AM CDT up reply actions   0 recs

“The Bureau may have concerns under the Act if a single team were entitled to exercise a veto to prevent a franchise from entering into its local region within Canada, but such concerns would have to be evaluated having regard to the facts and law applicable at the time such an event occurred.

I had forgotten about the CCB ruling – and that is a good point. Of course even those rulings are case specific, and different facts, in a different time, could lead to a different outcome. If the Leafs felt they were being so damaged by a potential relocation, and the weight of the majority was against them – it wouldn’t be absurd for them to try and craft a wily legal argument.

Glen Sather is a Hockey Genius.

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

by poploser on Sep 6, 2009 3:33 PM CDT up reply actions   0 recs

I am sure they have wily lawyers on call. I went to school with MLSE’s general counsel, and she is not lacking in smarts.

As well, the CCB itself noted (as it must) that its decisions are fact-based. It cannot be considered to pre-judge a case (something that would almost surely lead to judicial review over any decision in this regard).

That being said, when one has a statement of this nature from the quasi-judicial body which holds the decision-making power (even a statement which is only obiter), the prudent counsel would advise to not try it, and instead rely on enlightened self-interest of the other owners (or a policy of mutually assured destruction, if one prefers a militaristic analogy)..

One problem to the Leafs trying to go it on their own in the face of the NHL as a whole would be that they would undoubtedly be taking an antagonistic stance opposite their partners, which might have real-world repercussions for them down the road on other issues. In other words, they would be crapping in their own bed. It might or might not get them what they want, but thereafter they still have to go to sleep every night in a big steaming pile either way.

by Gerald on Sep 7, 2009 1:49 AM CDT up reply actions   0 recs

This idea that Daly and Bettman, you know, LIE...

… yeah. This shouldn’t be news, right? Weren’t the both of them going on about Phoenix was fine financially, how everything in the league is rosy, etc?

If we know anything about the current Commissioner and his Deputy, we know that they will say whatever they think paints the rosiest picture of things, regardless of whether it’s even remotely plausible or not.

by HockeyinHD on Sep 5, 2009 12:57 PM CDT reply actions   0 recs

Well, actually, no, Daly and Bettman didn’t say anything of the sort.

by Gerald on Sep 5, 2009 9:21 PM CDT up reply actions   0 recs

ahh…nothing better than lawyers parsing words! You’re right, Bettman never said the Phoenix was “fine financially”…instead it was “”http://unefilleauquebec.blogspot.com/2009/06/bettman-phoenix-coyotes-were-never-in.html" target="new">never in jeopardy". I mean… it “could have been sold, could have been handed to new ownership, could have moved forward, there would never have been any issues.” Really, Bettman’s right, there were just a few “issues” to “work on” – you know, like “getting some capital infusion for the club” or bringing in “possibly some new partners for Jerry Moyes…” or “even a possible sale.” Oh and don’t worry, Yotes fans, the NHL is “working on bringing this to a conclusion by season’s end.”

Nothing to see here. Move along.

Glen Sather is a Hockey Genius.

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

by poploser on Sep 6, 2009 10:56 AM CDT up reply actions   0 recs

Bull on your parsing words comment. I am not saying Bettman didn’t say those exact words. Bettman stated that the team had problems, and they were working through them.

Which they were.

The y were being funded, payroll was being met, they had a few buyers, one with whom they were negotiating and actually came to a deal.

For those who, if Bettman found the cure for cancer, would fault him for not doing it quickly enough, decide to twist the words that were said, there is no talking to them.

by Gerald on Sep 6, 2009 11:48 AM CDT up reply actions   0 recs

They came to a deal? Does that include one with Glendale? Because that’s the key here, not some assumption of debt agreement.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 6, 2009 1:33 PM CDT up reply actions   0 recs

The court records indicate that they had. They met with the City just before JR signed his letter of intent, which Bettman/Daly were carrying to Moyes on the fateful day.

by Gerald on Sep 7, 2009 1:51 AM CDT up reply actions   0 recs

I wonder where this agreement suddenly went?

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 7, 2009 1:56 AM CDT up reply actions   0 recs

Seriously, you are wondering?

It went down the tubes with the Moyes/PSE razing of the territory. It was then buried by the media campaign and the recruitment of the Goldwater Institute.

by Gerald on Sep 7, 2009 11:48 PM CDT up reply actions   0 recs

What difference would it make? If the deal’s getting done with Reinsdorf, doesn’t it become public at some point anyway?

Goldwater denies it was recruited by anyone, you know that.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 7, 2009 11:49 PM CDT up reply actions   0 recs

I didn’t make my point clear. When I am referring to the razing of the territory, I am not referring to the publicity angle. I am referring to the fact that their actions and PR campaign post-filing have wrecked the already fragile and smallish fan base and the corporate relationships that are necessary for every sports team. The $15 mil or so that Reinsdorf had procured was simply not enough in the newly scorched earth of Glendale.

by Gerald on Sep 8, 2009 4:15 PM CDT up reply actions   0 recs

So Glendale’s not offering concessions because of the bankruptcy? Really?

Plenty of NHL teams have gone into bankruptcy and been just fine afterwards. The fragility of the Phoenix market would always be there no matter how quietly the league handled this.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 8, 2009 4:37 PM CDT up reply actions   0 recs

Where do you get frmo my post a suggestion that Glendale is not offering concessions because of the bankruptcy? They have an MOU in place with Ice Edge. That is a clear enough indication that they are.

What i said (apparently not clearly enough) was that, with the bankruptcy scorching the earth of the already-fragile PHO hockey market, the previously agreed concessions with JR were no longer enough, with the corporate sector opportunities in particular destroyed by the b-ruptcy and resultant non-marketing. You asked where this agreement suddenly went? That is where it went.

by Gerald on Sep 8, 2009 4:56 PM CDT up reply actions   0 recs

Now that makes some sense. I wonder how other NHL teams have rebounded so well from bankruptcy when this one appears to be impossible to recover from?

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 8, 2009 5:12 PM CDT up reply actions   0 recs

Two words...

…Jim Balsillie.

How many other NHL bankruptcies have been so virulently contested in court and how many of them have dragged on so long – right up to the beginning of the season? I confess I don’t know much about previous bankruptcies but this one seems to me to be groundbreaking in a lot of very unpleasant ways.

You are validating my inherent mistrust of strangers.

by zyllyx on Sep 8, 2009 5:45 PM CDT up reply actions   0 recs

Again, I am not sure what you are missing here. Do you not see a difference between the other bankruptcies where the parties were TALKING UP the strength of the market, downplaying the events as simply due to other factors (like owner difficulties, arena difficulties, bad initial capitalization, yadayadayada) and THIS ONE, where there is both an existing owner and a single-minded bidder doing their level best to alienate the market with their every public utterance and court filing? You honestly don’t see a distinction?

by Gerald on Sep 8, 2009 6:48 PM CDT up reply actions   0 recs

As for Glendale, i am aware of their claim, to which I would say to them, “read Rodier’s emails to Scudder”.

by Gerald on Sep 8, 2009 4:16 PM CDT up reply actions   0 recs

Sorry, I said “As for Glendale” but I meant “As for Goldwater”. Argh.

by Gerald on Sep 8, 2009 4:17 PM CDT up reply actions   0 recs

Doesnt change the original poster’s basic point – the NHL will, like all businesses throughout recorded history, paint a rosy picture. Unfortunately, its taken something like a crazy legal end-around by Moyes and Balsillie to shed some real light on the facts. The picture in Phoenix is not as simple as Bettman was suggesting it was.

Glen Sather is a Hockey Genius.

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

by poploser on Sep 6, 2009 3:23 PM CDT up reply actions   0 recs

Also I can’t quite remember but weren’t Bettman and Daly quite dismissive of Dave Shoalts’s first articles pointing out the problems in Phoenix?

by yrmom on Sep 6, 2009 4:51 PM CDT up reply actions   0 recs

Yes, they were. I remember a lot of comments about how this whole thing was just media chatter with no real basis in fact. They got pretty huffy when asked for straight answers about how much support Phoenix was receiving from the league.

At the time I wondered why they (the NHL) didn’t just refute the media claims with facts, since I thought that would put the claims aside, if they were really outrageous and demonstratably untrue. Or at least ask them to clarify any claims about the Coyotes being “on life support” by requesting that the media clarify what they had in mind by that metaphor. There seemed a lot of bluster for a situation that might be worse than they were saying, but I didn’t think it could be as bad as the Shoalts articles painted at the time.

"For myself I am an optimist - it does not seem to be much use being anything else." -- Winston S. Churchill

by Baroque on Sep 6, 2009 5:42 PM CDT up reply actions   0 recs

“Bettman told a gathering of business executives in Toronto on Feb. 4 that journalists writing stories about the club’s troubles were guilty of "irresponsible reporting."

Story here.

Blogging on hockey at fromtherink.com

by James Mirtle on Sep 6, 2009 5:44 PM CDT up reply actions   0 recs

Thanks B, thanks James. The internet and I are not getting along today.

by yrmom on Sep 6, 2009 5:51 PM CDT up reply actions   0 recs

Man, where is my Coyote Ugly GIF when I need it…

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by wrap around curl on Sep 5, 2009 5:33 PM CDT reply actions   0 recs


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