PHOENIX -- A U.S. Bankruptcy Court judge has expanded bidding for the Phoenix Coyotes to include potential buyers who would move the team.
Judge Redfield T. Baum ruled Wednesday that all bids, those to keep the team in Arizona or to move it elsewhere, would be accepted for the Sept. 10 auction.
He specifically said the $212.5 million offer from Canadian billionaire Jim Balsillie would be considered. That sets up another showdown between Balsillie and the NHL, because the league's board of governors has unanimously rejected him as an owner.
Balsillie's bid is contingent on moving the team to Hamilton, Ontario.
Balsillie spokesman Bill Walker praised the judge's for creating a "fair and transparent" sales process.
"It's the best outcome for creditors and for the future of the franchise," Walker said. "We think Jim Balsillie's bid will emerge the winner because it offers the best financial terms and the best market in Hamilton, where hockey fans are thirsting for this team."
But Balsillie's bid faces several major hurdles.
The NHL has made it clear it doesn't want Balsillie as an owner, and the league hasn't ruled on whether it would allow the team to move or what fees would be included to enter territory now claimed by the Toronto Maple Leafs and Buffalo Sabres.
Additionally, Baum has not ruled whether Balsillie can escape the lease the Coyotes have with the city of Glendale to play at Jobing.com Arena.
Baum scheduled a hearing next Tuesday to consider issues that have been raised by his ruling.
An auction had been set for Aug. 5 for potential buyers who would keep the team in Arizona.
But the NHL, Glendale and the two apparent local bidders asked for a postponement to Sept. 10. That raised the possibility of adding bids from buyers who would relocate the team.
Balsillie's bid is by far the biggest.
A group headed by Jerry Reinsdorf -- owner of baseball's Chicago White Sox and the NBA's Chicago Bulls -- has offered $148 million to buy the team and keep it in Glendale but is still working out details with the city and other creditors.
A third group known as Ice Edge, headed by Canadian and American investors, told the court it intends to submit a bid of about $150 million but was still gathering financing.
Earlier Wednesday, Baum delayed a hearing on whether to find the owner of the Coyotes and his lawyers in contempt of court for publicly filing documents that were supposed to be kept confidential.
Team owner Jerry Moyes opposes the Reinsdorf deal, which would give him little or no money. He supports Balsillie's proposal, which would give him about $100 million.
Attorneys for Moyes posted confidential documents to the public docket last week. The documents were later removed, but Glendale sought the contempt order on Monday, saying the city was "absolutely outraged" by the release of the information.
The Arizona Republic saw the appendix before it was removed.
It showed that Reinsdorf has asked for a special taxing district to be created near the arena that would pay the new owners as much as $23 million next year. And if the team was still losing money after five years, Glendale would have to pay Reinsdorf $15 million for each year of losses or allow the team to be sold and moved without penalty, according to the newspaper.
Glendale contends the release of confidential negotiations would discourage potential buyers from participating and have a "chilling effect" on the sale process.