Judge Speeds Up Phoenix Coyotes Lawsuit

The Judge in the Phoenix Coyotes bankruptcy battle has decided to speed up the process.

In a hearing on Wednesday, Judge Redfield Baum referred to the situation as "the 10,000-pound elephant in the room" and said it needed to be resolved quickly. 

He set a hearing for June 9 and promised a ruling shortly thereafter.

All briefs and declarations must be submitted no later than June 5.

The hearing was originally scheduled for June 22.

Research In Motion CEO Jim Balsillie has said he will withdraw his US $212.5 million offer to buy the team if the sale is not completed by the end of June.

His offer is also conditional on moving the franchise to southern Ontario.

The NHL is looking for buyers who are willing to keep the team in Glendale, AZ, and deputy commissioner Bill Daly said the League is confident in a ruling in its favour.

In the event they lose, Daly stated that the NHL will appeal if it loses at the bankruptcy court level.

"We're confident in what the law says, and the law is pretty clear with respect to our rights to control both the identity of our owners and the location of our franchises," he said outside the courthouse on Wednesday.

Daly also indicated that the league favoured speeding up the process, and that having the franchise in it's current status further damages an already bankrupt business that lost $74 million over the past two years.

"This is a franchise that obviously needs to improve its revenue streams to be viable," Daly said.

"So this is an important time period right now—and that's why today's ruling in terms of moving up the date for determination on the relocation issue is a good ruling."

Lawyers for Balsillie and Coyotes owner Jerry Moyes argue that blocking the move violates antitrust law, and that Baum has the authority to force the move under bankruptcy statutes.

They also supported the judge's decision to accelerate proceedings.

"It seems to clear the way for closing within the time frame contemplated by our offer, should we win the relocation motion," Balsillie's spokesman, Richard Rodier, said.

"Really, that's what it depends on, and I think Judge Baum made a very good decision."

Judge Baum also set two tentative dates for the auction of the team, depending on how he rules on the relocation issue June 22 if a ruling is in favour of Balsillie and Sept. 10 if the NHL prevails.

If the NHL wins the relocation fight, then the league's owners would approve the sale of the team before the auction occurs.

Baum also has to factor in the city of Glendale, which contends the Coyotes cannot not break their lease to play in Jobing.com Arena without paying a significant penalty.

Daly also said that any sale to keep the team in Arizona would be contingent on reworking the lease agreement with the city.