NHL Acquires Phoenix Coyotes

Skadden is representing the National Hockey League, which acquired the Phoenix Coyotes on November 2 when a U.S. Bankruptcy Court judge approved the sale of the franchise. The league, which acquired the team for approximately $140 million, plans to find a buyer that will keep the Coyotes in the Phoenix area.

Skadden has been representing the NHL in U.S. Bankruptcy Court for the District of Arizona regarding this matter. On September 30, the league received a favorable ruling as the court rejected the proposed sale of the Coyotes to an entity that planned to move the team to Ontario, Canada. The court threw out the bid with prejudice because it did not properly account for the NHL rules and procedures that give the league the power to determine who owns its clubs and where the teams will be located and could not adequately protect these NHL interests as required by Section 363(e) of the Bankruptcy Code. A tentative agreement to purchase the Coyotes franchise out of bankruptcy was reached on October 26.