In re Dewey Ranch Hockey, LLC
United States Bankruptcy Court for the District of Arizona
414 B.R. 577 (2009)
The financially struggling Phoenix Coyotes, contractually bound to play all home games in a Glendale-built arena, filed Chapter 11 alongside owner Moyes's Asset Purchase Agreement with PSE (plaintiff), conditioned on bankruptcy court approval of relocating the team to Hamilton, Ontario regardless of the Glendale agreement; the NHL (defendant) rejected PSE's ownership application for lacking requisite "character and integrity," approved a different buyer that later withdrew, and ultimately submitted its own competing bid for the team, leaving PSE and the NHL as competing purchasers with PSE seeking court-ordered relocation approval over NHL objection.
Whether section 363(e) of the Bankruptcy Code requires that a court "shall prohibit" any sale of a sports team where the interests sought to be removed by the proposed sale free and clear of those interests cannot be adequately protected.