Since the Phoenix Coyotes owner Jerry Moyes opted for bankruptcy protection, and tendered an offer from RIM co-CEO Jim Balsillie for $212 Million, there has been strong debate about the future of the team.

The NHL instantly claimed that Moyes had no legal authority to file for bankruptcy after requesting financial help and signing away his rights essentially passing control of the team to the league. They want the filing tossed out, as well as Balsillie’s offer to purchase and relocate the Coyotes to Southern Ontario (a major stipulation in his offer). A hearing is scheduled for May 19th, 2009 to determine who actually controls the team.

But would the league be better off with a team in Hamilton, staying put in the Phoenix area, or relocating to another venue in the United States?

Most Canadians probably choose the first option. Canada still feels the sting of losing the Winnipeg Jets and the Quebec Nordiques. While a return to Quebec City seems highly unlikely at this time, there have been glimmers of hope for Winnipeg. On seperate occasions, Bettman has said that a team could survive here under the new CBA, and more recently, he’s been quoted as saying he would rather see the Coyotes back in Winnipeg instead of Hamilton. That’s not saying he wants a team in Winnipeg, but it does open up the possibility.

Obviously, the fans of the Coyotes would choose for the team to stay. While the team is in serious financial trouble at this time, it might be due more to mismanagement than anything. The Coyotes are among the league’s lowest attendance, but that’s partially due to the current product on the ice. In order for this franchise to continue to exist here, a new owner will need to bring financial responsibility as well as improve the standing of the team.

The last option is the biggest question mark. Las Vegas, Seattle and Oklahoma City seem to be the hot spots of conversation. While the NHL would be the only major professional team in Vegas, the fact that the local economy is still in a massive tailspin should be a red flag. The city is currently in planning stages for a 20,000 seat multi-purpose arena, and the project has gone through investor and location changes. Seattle could be an attractive option, but the fact that Key Arena needs updating and the city and/or state governments are reluctant to help out might be problematic. Now that Oklahoma City has a major sports team (also a reason Seattle is attractive), it’s unknown if the population could support two teams.

So the NHL has these two choices. Does it make financial sense to try to maintain the team in Phoenix, hoping that a fresh face can revitalize the franchise, with the distinct possibility they face option two in the next two years, or do they look at all the viable options on the table for a new home for the Coyotes? Recent history suggests the NHL will do all they can to stabilize Phoenix as it is. In any case, Coyotes fans should prepare for 2009-10. Logistically, it’s highly unlikely the team will be relocating before the start of the next NHL season. Even if Moyes and Balsillie are victorious in winning the legal right to file bankruptcy, the NHL is still within its legal right to deny relocation of a franchise.

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