The Toronto Maple Leafs and the NHL appear to be out of step over the process governing the relocation of hockey franchises, according to documents revealed in the ongoing court battle over the Phoenix Coyotes.
While the NHL has stated that a majority vote among franchise owners is sufficient to green-light a team's relocation into the territory of an existing franchise, the court filings suggest that the Maple Leafs disagree.
In a letter to NHL commissioner Gary Bettman, dated Nov. 29, 2006 and filed in an Arizona bankruptcy court last Friday, the Leafs state that a unanimous vote among the league board is needed for any such relocation.
"The Toronto Maple Leafs do not agree that a relocation of another club into their home territory would be subject to a majority vote" of the league board, said the letter.
The letter was filed in an Arizona bankruptcy court by lawyers representing Canadian billionaire Jim Balsille, who wants to buy the Coyotes and bring the team to Hamilton.
The apparent disconnect between the league and the Leafs could serve as a central plank in Balsillie's public battle to win ownership of the bankrupt Coyotes.
Howard Bloom of Sportsbusinessnews.com said southern Ontario can expect a new team -- if not in the near future.
"Mark my words, it's not a matter of if but when there will be a second NHL team in southern Ontario, and there isn't going to be a whole lot Maple Leaf Sports and Entertainment can do to stop that," he said.
On Wednesday, it's expected that Balsillie, the co-CEO of Canadian tech giant Research in Motion, will argue in a hearing that the NHL is barring him from acquiring the Coyotes in order to protect the Leafs' southern Ontario money-maker.
The hearing will also decide if Balsillie's US$212.5-million bid can be included in the Coyotes' Sept. 10 auction.
If Balsillie is allowed to take part in the auction, the ruling would contradict an earlier NHL vote which attempted to bar him from becoming a franchise owner.
Leafs letter to NHL
The 2006 letter followed a meeting between the NHL and the Canadian Competition Bureau, where it was agreed that a majority vote was enough for moving franchises.
However, brass from Maple Leaf Sports and Entertainment did not attend the meeting, and they drafted the letter in protest.
"The statement in the minutes that none of the (NHL) board members objected to the statement about relocation into home territories does not represent the Toronto Maple Leafs' position," the letter states.
The team also signaled that the franchise would be willing to go to court to protect its turf.
"The Maple Leafs ... reserve all rights to take whatever actions are necessary to protect their exclusive rights to their home territory."
However, as a result of NHL's agreement with the competition bureau, officials stated that the league's relocation policies did not contravene the Competition Act.
