Phoenix Coyotes file for Chapter 11 bankruptcyPosted: Updated:
Updated at 7:30 p.m.
GLENDALE - Angered by the Phoenix Coyotes' bankruptcy filing, the NHL stripped owner Jerry Moyes of the authority to run the club.
A few hours after Moyes announced Tuesday that the team had filed for Chapter 11 bankruptcy protection, the NHL said it would represent the team in bankruptcy court.
Filing bankruptcy could allow the cash-strapped franchise to be sold and moved to Ontario.
NHL deputy commissioner Bill Daly said in a statement, "We are investigating the circumstances surrounding the petition, including the propriety of its filing."
The league then removed Moyes from all positions of authority to act for or on behalf of the club.
Earlier, BlackBerry boss Jim Balsillie announced a plan to buy the Coyotes and move them to Ontario.
The co-CEO of BlackBerry maker Research In Motion said that his $212.5 million offer is conditional on the Coyotes relocating to Canada.
GLENDALE - The Phoenix Coyotes have filed for Chapter 11 bankruptcy. They have until June 30 to find a new owner.
There is a possibility that the Coyotes will leave Phoenix depending upon who purchases the team.
3TV Sports has learned that there are offers on the table for the team, one of them that could take the team out of state.
The one offer that has been sent to the NHL is from BlackBerry boss Jim Balsillie who would move the team to Ontario.
The co-CEO of BlackBerry maker Research In Motion said his $212.5 million offer is conditional on the Coyotes relocating to Canada, where they existed as the Winnipeg Jets before moving to Phoenix for the 1996-07 season.
"The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and Southern Ontario," Balsillie said Tuesday in a statement to the Associated Press.
This is not the first offer Balsillie has made to purchase a current NHL team.
The team has lost about $30 million last year and the NHL has been involved in loaning the team money.Statement from the city of Glendale: The decision by the ownership of the Phoenix Coyotes to initiate bankruptcy proceedings without consultation or approval of the National Hockey League (NHL) is an unfortunate turn of events for the NHL, the State of Arizona and the Coyotes' loyal fans.Even as the propriety of this unprecedented action is being thoroughly investigated by the NHL, city officials are working diligently to ensure that the public's interest is fully protected throughout this process.The City appreciates the decision by the NHL to assume control of the Coyotes and we are confident that every effort will be made to honor all contractual commitments.It is our hope that the NHL action will provide immediate stability to the franchise and allow the Coyotes to remain an important part of the Arizona community.