International Law

The battle for control of the Phoenix Coyotes has simmered for the moment, but will pick up with a vengeance when the opposing sides re-convene in the United States Bankruptcy Court for the District of Arizona on May 19th. If Judge Redfield T. Baum rules that the Coyotes belong to Jerry Moyes, and can therefore file for Chapter 11 bankruptcy protection and be sold to the highest bidder [Jim Balsillie], the NHL will surely appeal the decision, delaying not only the potential movement of the franchise, but the timely completion of a schedule for the 2009-10 season.

It?s anyone?s guess as to how the dispute will be won, but I am most intrigued by Balsillie?s accusation in a separate claim that the NHL is running an ?illegal cartel?. For many years, I have wondered about the unilateral declaration of territorial claim that is common in all professional leagues, but doesn?t appear to be constitutional. In a free-enterprise system, competing factions are encouraged to exist in proximity to one another; it?s the reason a Burger King restaurant can set up shop across the street from an existing McDonald?s franchise. Such an arrangement satisfies anti-trust regulations by discouraging monopolistic tendancies.

Professional sport, however, is largely built on monopolizing lucrative territory; its clubs command astronomical indemnification from groups that wish to invade turf that is already ?owned?. It is believed that team and league executives liberally collude to prevent competition ? a charge, in the NHL, that is frequently brought against the Maple Leafs and the commissioner?s office. This appears to contravene the rules the rest of our society lives by and it isn?t clear how it might withstand a vigorous legal challenge. What is clear is that such a challenge could be fashioned by money-bags Balsillie, and there?s no telling how it might impact the accepted rule in pro sport. 

The reversal of such a long-term practice could affect the most routine elements of sport ? those which are overlooked in legal circles for being internally policed...

- Garry J. Wise, Toronto

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