- Bankruptcy Judge Recommends NHL Not Recoup Fees From Coyotes Purchase
- March 13, 2015
- Law Firm: Goldberg Segalla LLP - Buffalo Office
On Wednesday, January 21, a U.S. Bankruptcy Court judge recommended that the NHL not be allowed to collect the majority of the $145.9 million it claims from ex-Phoenix Coyotes owner Jerry Moyes.
The lawsuit stems from the NHL’s 2009 purchase of its member team, then named the Phoenix Coyotes. The Coyotes were first purchased in 2006 by Jerry Moyes who realized after two years of operating at a $50 million loss that he could not afford the team. Moyes filed for Chapter 11 bankruptcy and the NHL purchased the team out of bankruptcy protection. The NHL brought suit against Moyes for around $145 million in legal fees and amounts paid to the Coyotes’ creditors. In 2013, the bankruptcy court threw out most of the claims against Moyes.
The case, now before a the US District Court, was submitted to the same bankruptcy judge for a recommendation. The bankruptcy judge reiterated its previous holding and also recommended the district court find Moyes not liable to the NHL. While this is only a recommendation to the District Court, it will likely go a long way in helping the judge decide. The NHL will have the right to appeal if a decision is entered against it.