Phoenix Coyotes Play Despite Bankruptcy

The Phoenix Coyotes dropped the puck on a new NHL season this week in front of a sold-out hometown crowd and under the spectre of bankruptcy and possible relocation.

Back in May, the Phoenix Coyotes owner Jerry Moyes decided to file bankruptcy protection. The Coyotes have been in Phoenix since 1996, but have failed to be profitable. Moyes plan, according to the Wall Street Journal, was to sell the team to Jim Balsillie, the mogul for popular PDA maker BlackBerry. Balsillie would then move the team back to Canada.

But a bankruptcy judge rejected the plan. Then, when the NHL tried to buy the team, the same judge rejected that plan.

All this leaves the franchise in limbo. But, at least right now, they’ll keep playing the games.

To start the regular season ticket prices were slashed – some by as much as $300 – in an attempt to bring out a crowd. Last year the Coyotes, who have not been to the playoffs in several years, struggled to attract crowds to their home games.

The plan worked, and the Coyotes were sold out for their home-opener, and everyone in attendance was given a white T-shirt as part of a “Welcome Back White-Out,” reports the WSJ.

But despite all the cheers and shirt-waving, the future is still cloudy for the franchise. For their next home game ticekts that cost as little as $35 for the opener will go back to normal prices. For some seats, this is an increase of hundreds of dollars, report CBCSports.ca.

But where the money goes – and where the team goes – is anyone’s guess.

USA Today reported that the bankruptcy judge overseeing the case has no timeline for reaching a new deal. The bankruptcy judge said the NHL may make another attempt to buy the team if the offer is more fair. The NHL had planned to buy the team and then re-sell it to an owner who wished to keep the team in Phoenix. Balsillie said he would not make another attempt to purchase the team.

Until further action, the team will play on in the middle of bankruptcy.