By MIKE SUNNUCKS
Phoenix Business Journal

Canadian billionaire Jim Balsillie won't move the Phoenix Coyotes to Southern Ontario this season even if he wins the U.S. Bankruptcy Court fight and is given the green light to buy the team.

Balsillie's attorneys said in U.S. Bankruptcy Court in Phoenix Wednesday that they have ditched plans to move the team to Hamilton, Ont., this season, should Hon. Redfield Baum rule in his favor. Balsillie is CEO of Research in Motion, manufacturer of the BlackBerry wireless device.

Balsillie attorney Jeff Kessler did leave the door open to moving the Coyotes to Hamilton during the National Hockey League's break in February 2010 during the Winter Olympics in Vancouver, but said that possibility was slim.

Wayne Gretzky, a minority owner in the team, quit as Coyotes head coach Thursday. The hockey icon has missed all of the Coyotes' preseason games, avoiding the controversy over the team's Chapter 11 bankruptcy and whether it will be sold and moved to Canada or kept in Glendale, Ariz.

"This was a difficult decision that I've thought long and hard about," Gretzky said on his Web site. "We all hoped there would be a resolution earlier this month to the Coyotes ownership situation, but the decision is taking longer than expected.

"Since both remaining bidders have made it clear that I don't fit into their future plans, I approached General Manager Don Maloney and suggested he begin looking for someone to replace me as coach. Don has worked hard and explored many options. I think he has made an excellent choice, and so now it's time for me to step aside," Gretzky said.

Kessler said Wednesday that new terms were being added to Balsillie's bid for the team. They include offering $25 million to $50 million to Glendale to drop a potential $500 million legal claim accusing the Coyotes of breaking their lease at the city-owned Jobing.com Arena. Kessler also said that in exchange for Glendale agreeing to the $50 million buyout, Balsillie would be willing to give the NHL and Glendale until the end of the year to find an owner who would keep the team in Arizona. Glendale has previously shunned Balsillie's settlement offers, including at a Tuesday City Council meeting.

The NHL's $140 million bid for the team calls for an owner to be found by the end of the year with the deal closing by the end of June. The league wants to keep the team in the Phoenix market.

The Wednesday hearing also dealt with a request by Coyotes owner Jerry Moyes and Balsillie asking Baum to order mediation in the five-month-old Coyotes' Chapter 11 bankruptcy. Baum started the mediation program at the federal bankruptcy court in Phoenix and talked about its merits during the hearing.

The NHL, Glendale and creditors to whom the team owes money oppose mediation, saying it will delay the process further and reinvent the wheel.

Baum is also starting to get some pressure to make a decision on the fate of the Coyotes. NHL attorneys said Wednesday that the lack of a resolution is hurting ticket sales, resulting in employees leaving the organization and creating uncertainty for fans as well as potential bidders to buy the team. Baum held hearings on the fate of the team Sept. 10 and 11 but has yet to make a ruling on who gets the team and if they can move it to Canada.

"That's killing this team," said NHL attorney Alan Meda. Meda said the Balsillie camp is trying to delay a decision that could go against them.