NHL commissioner Gary Bettman gave the Phoenix Coyotes and owner Jerry Moyes US$38 million of the league's money to help the team maintain operations and as a result holds an "irrevocable proxy" according to documents filed in an Arizona court, reports the Toronto Star.
The League has taken issue with Moyes' attempt to place the franchise into Chapter 11 bankruptcy and accept an offer to buy the team from BlackBerry billionaire Jim Balsillie.
According to the Star the NHL argues in the court documents that Moyes does not have the authority to file for bankruptcy.
"As a condition to providing this support, the league required Mr. Moyes . . . to execute proxies in favour of the commissioner of the NHL to control the equity and operation of the (club)."
"Moyes asked that he be allowed to retain his titles to avoid public embarrassment, and the league so agreed, but with the express understanding that he had no authority . . . to take any action outside the normal course of business, including filing for bankruptcy."
According to the Star, Moyes and his legal have countered the NHL's claims in the court documents by saying the NHL was only given voting powers on certain matters and that bankruptcy is not included because it is not a voting matter.