Golden Knights make final payment to NHL ahead of trade deadline
After more than 300 flicks of majority owner Bill Foley’s pen and an electronic money transfer in nine figures, the Golden Knights officially joined the NHL on Wednesday as its 31st team.
“Mission accomplished,” Foley, a West Point graduate, said Wednesday afternoon at the team’s offices in Summerlin after the NHL gave its final approval about 11 a.m.
Foley had to sign numerous documents and make the third — and final — payment of the team’s record $500 million expansion fee to the league to conduct business.
How big was the paperwork? Foley held his hands almost 3 feet apart to indicate the voluminous documentation.
“We got all the documents signed late Monday and then sent everything to the league,” Foley said. “Then we had two banks working on wiring the rest of the money, and we had to wait for those transactions to clear (Wednesday).
“But this is the most extensive transaction I’ve ever done, and I’ve made $5 billion deals. Even my wife (Carol) had to sign 20 documents. That’s the one I was worried about. But I’m very excited, and I feel like I’m part of the club now.”
Foley said he received congratulations from six NHL owners and commissioner Gary Bettman.
Gavin Maloof, whose family owns 15 percent of the Golden Knights, said: “It’s a great moment for everyone and the city of Las Vegas. We’ve known Gary for 40 years, and we’re proud and honored to officially be part of the NHL.”
The money cleared just in time for general manager George McPhee to actively participate in transactions as the NHL’s trade deadline had arrived. When the deadline hit at noon, the Knights were still talking to teams. But they didn’t make any deals.
“I probably talked to five or six teams,” McPhee said. “But we think it’s in our best interests to wait so we can make better decisions as we get closer to the (June 21) expansion draft.”
As the deadline passed, 20 trades had been announced, but none were blockbusters.
Along with allowing the team to pursue trades, the closing of the deal allows the Knights to participate in all NHL functions, including next week’s general manager meetings in Boca Raton, Florida, and April’s Board of Governors meeting. The Knights also can sign college free agents who have not been drafted, along with undrafted free agents from Europe whose seasons have concluded.
“I recognize that I’m riding the bus,” Foley said of being one of the 31 NHL governors. “I’m in the back of the bus, and Gary is driving the bus. I’ll be supportive. But it will be interesting to be in those meetings and see how the league is run and be a very minor participant.”
Foley initially was scheduled to make his final payment April 5. But with so much league activity taking place, he accelerated the timetable. By doing so, he shrunk the amount of time he had to process the paperwork.
“We’ve been working on this for the last six months,” he said. “But when you’re dealing with different banks and different entities and there’s so many parts to owning a professional sports team, it just takes a lot of time.
“We had our lawyers working around the clock — and I mean 24/7 — the last few days to get this done. But we managed to get it done, and now we can move forward.”
Contact Steve Carp at scarp @reviewjournal.com or 702-387-2913. Follow @stevecarprj on Twitter.
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TRADE RULES FOR GOLDEN KNIGHTS
The NHL announced Wednesday the scenarios in which the Golden Knights can participate in trades and other transactions leading up to the June 21 expansion draft:
Bona Fide Transactions: Effective Wednesday, Vegas may now enter into trades and waiver transactions or sign players to NHL standard player contracts in accordance with CBA section 50.8(d) or a player transfer agreement (a “bona fide transaction”). Any bona fide transactions involving current players must specify the identity of each and every such player(s) at the time the transaction is entered into.
Eligibility for Bona Fide Transactions: Only players who have completed their 2016-17 season (except UDCs) can be included in a bona fide transaction completed between today’s date and the conclusion of the expansion draft (on June 21). A player whom Vegas has agreed to claim or not claim in the expansion draft as part of a bona fide transaction will similarly be required to have completed his 2016-17 season before the transaction can be completed and approved. A player will be considered to have completed his 2016-17 season if he played under an NHL contract for an NHL club or one or more of the NHL club’s minor league affiliates during the 2016-17 season, and he is no longer eligible to play for his NHL club or any of its minor league affiliates in 2016-17.
Waiver Priority Order: Vegas will be placed in between the second and third to last-place clubs in the waiver priority order from until Oct. 31, inclusive (although waiver claims by Vegas only can be made with respect to otherwise eligible players).
Continued Compliance with Expansion Agreement: A club that has agreed which player it will lose in the expansion draft pursuant to a bona fide trade transaction shall continue to be obligated to comply with all other aspects and requirements of the expansion draft rules (e.g., protection and exposure rules, compliance with critical dates, etc.).
Transfer of Players between Reserve Lists: All players who are traded or claimed on waivers in connection with a bona fide transaction will be placed on the appropriate club’s reserve list immediately. Players who are selected in the expansion draft pursuant to a bona fide trade transaction will be placed on Vegas’ reserve list only after all expansion selections have been approved by Central Registry.
Disclosure: For purposes of transparency, any bona fide transaction will be subject to the league’s usual disclosure procedures in the context of player trades (i.e., all trade and waiver-related details must be fully disclosed to the league and the NHLPA, but clubs will maintain the discretion whether to disclose those details publicly).
Penalties for Noncompliance: Any club, including Vegas, that acts in violation of these provisions will be subject to the penalties set out in Article 26 of the CBA (“No Circumvention”).
