By MIKE SUNNUCKS
Phoenix Business Journal

A U.S. Bankruptcy Court hearing Tuesday ended without a decision on whether the Phoenix Coyotes can be sold to Canadian billionaire Jim Balsillie and moved to Hamilton, Ont. A decision was expected as early as yesterday, but none had been made as of press time.

U.S. Bankruptcy Court Judge Hon. Redfield Baum heard arguments from attorneys representing Balsillie, Coyotes owner Jerry Moyes, the City of Glendale, Ariz., the National Hockey League and other professional sports leagues on bankruptcy code, antitrust law, relocation and other issues.

Some of them cited past relocations by the Oakland Raiders, San Diego Clippers, Quebec Nordiques and Baltimore Colts.

Baum focused on whether Balsillie will have to pay the NHL a relocation fee of as much as $100 million on top of his $213 million offer to buy the financially strapped Coyotes from Phoenix trucking-company owner Jerry Moyes.

Baum appears ready to rule that the NHL has the rights to the Hamilton market, and if the Coyotes are moved there, Balsillie will have to compensate the league for loss of an expansion opportunity.

A move into Southern Ontario may impact the Buffalo Sabres. The Sabres draw up to 20 percent of their revenues from the region.

Glendale pressed Baum to consider legal claims and costs that would accompany a move to Canada. That could offset an offer as low as $140 million by parties wanting to keep the team in Arizona, city representatives said.

City officials said they would make a claim for as much as $500 million if the team breaks its lease at the city-owned Jobing.com Arena. Arena concessionaire Aramark Corp. also could make a claim.

Moyes and Balsillie's attorneys argued that a lease claim is subject to various monetary caps and that the court can discharge lease terms and penalties in order to maximize the team's value for creditors.

Moyes urged the court to hold an auction sale for the hockey team June 22. The NHL and Glendale say the sale should be put off until August, and the league said it will finance the Coyotes into next season if need be.

Glendale attorneys also pressed Baum to find out how much money Moyes may have taken out of the team.

The Coyotes have lost more than $300 million since moving from Winnipeg in 1996.