NEW YORK -- The Atlanta Thrashers' sale and relocation to Winnipeg will clear its final hurdle on Tuesday at the NHL's Board of Governors meeting. The approval of the deal between the Atlanta Spirit and True North Sports and Entertainment will be the official end of the franchise after 11 seasons in the city.
On Monday NHL Commissioner Gary Bettman, in an exclusive interview with Atlanta Journal-Constitution Thrashers beat writer Chris Vivlamore, talked about a variety of issues including what went wrong in Atlanta, the city as a hockey market and the relocation fee the league receives as part of the deal.
Q. You made several trips to Arizona to deal with ownership issues and the possibility that the Coyotes could relocate. Did you ever make a trip to Atlanta in an effort to resolve the ownership issue in a manner that would keep the team in the city? If so, what did the visits entail?
A. Over the last few years I've been in Atlanta a couple of times. The situation is not comparable to Phoenix because the league actually owns that franchise. Also, Atlanta had retained the services of a widely respected investment banking firm (the Raine Group) in an attempt to secure a buyer. In Phoenix, we were acting as the owner.
Q. Even as talks between the Atlanta Spirit and True North were ongoing, you were quoted as saying the NHL had a "covenant" with its fans, that the league wanted to avoid relocations and stories about the Thrashers moving were false or premature. Did you feel that gave a false sense to Thrashers fans about the future of the team?
A. No. That was consistent with what we have always said and done. We try to avoid relocation and in this case it was unavoidable. It was announced within hours of the agreement being reached. It was possible a deal would not have gotten done by next season.
Q. Were there failings on the part of ownership in what turned out to be the fate of the Thrashers? If so, what were they?
A. What is the old saying, success has many parents and failure is an orphan. Obviously, lots of factors came into play. I don't want to suggest that ownership wasn't one of those factors. However, I don't think it is fair to suggest that it was the only reason.
Q. How big an impact do you think the Steve Belkin litigation had on the failure of the Thrashers?
A. I don't think it helped. I don't think you can point to one thing and say that was the cause. I don't think it's fair to say that the ownership situation wasn't a problem. Again, I also don't think it's fair to say it didn't have an impact. As evidence of that, no one stepped up who wanted to own this club.
Q. At what point in the Atlanta Spirit's tenure as owner did the league become aware there were issues that could lead to a sale and relocation?
A. It became clear over the past couple of years that it wasn't working and that ownership was concerned about its future prospects.
Q. The NHL got $80 million to put a team in Atlanta (as an expansion franchise) and $60 million to move it out of Atlanta. What do you say to Thrashers fans who feel the league had an inherent conflict of interest and motives because it got $60 million for allowing the move?
A. The purpose of the $60 million relocation was an attempt to encourage a local sale at a lower price. Obviously, it benefits the league. However, the practical effect would be to encourage a sale at a lower place. By requiring such a relocation fee, we were creating a lower than market value price for an NHL franchise for someone to buy it and keep it in Atlanta.
Q. The league still owns the Coyotes and could have received the entire purchase price had that team been sold to True North and relocated. Do you consider that situation solved? Or could the league face another relocation in a year or two?
A. The reason the situation in Phoenix didn't go forward (in relocation to Winnipeg) was that the city of Glendale stepped up and absorbed the team's losses. They wanted to try it for another year. I don't think it will go much beyond that. When the city of Glendale was willing to step up and pay $25 million we thought that was the appropriate thing to do under the circumstances.
Q. Did the developments in keeping the Coyotes in Phoenix, from a governmental intervention standpoint, surprise you? How soon in the process of trying to keep the Thrashers in Atlanta were you aware there would be no government help?
A. No, they did the same thing last year. The city of Glendale owns the building. They were compensating us for running it. I would speculate that is why they stepped up. The Atlanta mayor made clear in public statements that that wasn't going to happen. I had a conversation with the mayor. Also in Philips Arena we are not dealing with a public building. (Jobing.com Arena is owned by the city of Glendale).
Q. Why do you think the NHL has failed in Atlanta twice?
A. I don't know enough about what happened the first time (when the Flames left for Calgary in 1980) to say why it happened twice. I don't know that the situations were comparable. In this case, the franchise wasn't economically viable. We are not happy about it. The litmus test is: Does someone want to own the franchise? The Raine Group and current ownership were completely unsuccessful in their efforts to find a local buyer.
Q. What do you think of Atlanta as a hockey market? Does that differ from 1997 when the city was awarded the expansion franchise?
A. We had high hopes in 1997. This is obviously not the result we envisioned or we wouldn't have come. How we got to this position involves a number of issues and that's why we find ourselves in the current situation.
Q. Atlanta has now lost two NHL franchises. Can you close the book on the city ever getting another team? Why or why not?
A. I try to never say never about anything. You never know what life has in store. I don't want to build false expectations, but I never say never.
Q. There seemed to be a number of alleged "bidders" without the financial ability to actually buy the team. Does this always happen when teams are for sale? What do you think is behind that?
A. Every now and then in any sale situation you get someone interested but that does not have the wherewithal. It doesn't happen a lot but that seems to be the case here.
Q. Is the relocation of the Thrashers a black eye on the league?
A. We haven't moved a franchise in 14 years. I think every other league has relocated a team in that span. Sometimes, as much as you hate to do it, it's a reality. I don't think it is a black eye on the league. I don't think it's a black eye on Atlanta.
Q. Finally, what do you say to Thrashers fans?
A. We are really unhappy that it came to this point for our fans in Atlanta.
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