posted June 11, 2009 at 14:30 EST in NHL Articles
The Phoenix Coyotes Relocation Saga
by Tim Furious
If you’re reading this article on a Blackberry, then you may be funding one of the reasons that Jim Balsillie, the founder and CEO of RIM which produces the device, can afford the ridiculous taxes that he’ll have to pay to bring the Phoenix Coyotes back to Canada.
The relocation tax, or fee, that Balsillie would have to pay is a standard thing in the NHL wagering. You move a team from one locale to the other, then you have to pay. Along with purchasing the team itself, the relocation fee and any other taxes associated with it, Balsillie has been warned that he will have to pay what’s called an indemnity fee.
What exactly is that, you ask? It’s really simple actually. Since Hamilton, ON is already in the territory claimed by both the Toronto Maple Leafs and Buffalo Sabres, Balsillie will have to simply pay a fee for encroaching on that territory. Makes sense, right?
So add it all together and you get a price tag of $400 million or more for a second hockey team in Southern Ontario. That’s $212 million for the team itself, $100 in relocation taxes and another $100 in indemnity fees. Considering that the Coyotes have lost nearly $300 million since moving from Winnipeg to Phoenix 12 seasons ago, that’s really not a bad deal.
It’s obvious that the Coyotes aren’t working in Phoenix. Move the team to an area that loves hockey, is begging for affordable tickets (Leafs tickets are notoriously expensive, and a large reason the Leafs make so much money every season despite sucking) and a fan base that can legitimately support a franchise. Honestly, did we ever think that hockey in the desert was going to work? Really?
Canada loves hockey. Jim Balsillie loves hockey. The NHL hates Jim Balsillie. Well, get over it, NHL. It’s time to do the right thing. Get Canada another hockey team and get over your hatred of the entrepaneur who could do wonders for a league that is bleeding money faster than the U.S. treasury. More hockey teams in Canada, and less hockey teams in the freaking desert, is a good thing.
