Peter Pocklington, one-time owner of the NHL's Edmonton Oilers, was expected to be released on bail Friday after the former coach of the team said he would put up the bail.
In a California courtroom, Glen Sather put up a $1 million piece of property as security to allow Pocklington to be released on bail.
"Mr. Sather worked for Mr. Pocklington for approximately 25 years and he felt that Mr. Pocklington should not have to sit in jail while he awaits his day in court," said Gabriel Colwell, who represented Sather in court.
"Mr. Sather then contacted the Edmonton Oilers to ask them for assistance in facilitating the bond process and the Oilers out of respect for Mr. Sather agreed to make counsel available in the form of me."
Thom Mrozek, a public affairs officer for the U.S. Attorney's Office, said there are conditions attached to Pocklington's bail.
"He'll be subject to home detention, which is sometimes called house arrest, and he'll be subject to electronic monitoring," he said.
Pocklington, who appeared in court in handcuffs and shackles, wearing an orange jump suit, has been in jail since being arrested on bankruptcy fraud charges on Wednesday.
The two-count indictment, which was unsealed Wednesday, accuses Pocklington of making false statements in bankruptcy and making false oaths and accounts in bankruptcy.
Sather, who is currently the president and general manager of the New York Rangers, worked for Pocklington during Sather's stint in Edmonton.
Sather led the team to four Stanley Cups in five final appearances as coach from 1979-80 until the 1988-89 campaign.
Pocklington sold the Oilers in 1998 to a group of Edmonton business people who banded together to keep the team in the city, an arrangement that remained in place for a decade until pharmacy billionaire Daryl Katz took over ownership last year.
But Pocklington is still remembered by many fans in Edmonton as the man who traded Wayne Gretzky to the L.A. Kings in 1988.