Jim Balsillie enters bankruptcy court Wednesday in Phoenix. (Matt York/Associated Press)

The fate of the bankrupt Phoenix Coyotes will be determined at a later date.

Judge Redfield T. Baum heard arguments Wednesday and was expected to rule on whether Canadian billionaire Jim Balsillie can participate in a Sept. 10 auction for the Coyotes.

But court adjourned at 4:18 MT with Baum electing to reserve judgement and take everything "under advisement."

"I totally respect the court process," Balsillie said. "Whatever he rules, and whenever he rules it, I'm going to respect his rulings as I have in the past."

Balsillie and NHL commissioner Gary Bettman, the central figures in the bankruptcy case, were present at the hearing in which lawyers from both sides offered varying viewpoints on future of the franchise.

"The process continues but we're getting closer to a culmination of these proceedings," Bettman said.

Asked if he was disappointed there was no ruling, the commissioner replied: "I don't think that would be a fair characterization.

"A tremendous amount of paper and pleadings have been submitted. I'm sure the judge wants to be completely comfortable he has had ample opportunity to review everything and reflect on it appropriately."

Balsillie, the co-CEO of Research In Motion Ltd., maker of the BlackBerry smartphone, has offered $212.5 million US to buy the Coyotes through bankruptcy court on the condition he can relocate it to Hamilton.

The NHL is vehemently opposed to such a move, so much so that it is willing to buy the Coyotes and keep them in Phoenix for the time being.

"I still think our bid is best, by far the best, for creditors for fans and the long term viability of the team," Balsillie said. "All I wanted from the very beginning is a chance for a level playing field, court-supervised auction where we could participate."

Balsillie set a Sept. 14 deadline to complete the move, but Baum told him Wednesday to reconsider that because it was "reasonably probable" he would not have ruled on all outstanding issues by then.

Jeff Kessler, Balsillie's lawyer, conceded, "We may have to move during the season," adding that "we have confidence, if the league … were to work with us, every one of these obstacles would be overcome."

NHL lawyer Shepard Goldfein scoffed at the notion of moving the team partway through the season.

"Talk about disruption of families and players and the fan base," he said. "I don't think that has ever happened; I'm not aware it has ever happened."

"Of all the things that were argued in there, that one seemed to strike a chord that showed a lack of respect for the game," Bettman told reporters outside the courtroom.

The NHL is demanding Balsillie not be permitted to participate in the auction because the league's board of governors has rejected his ownership application.

The board voted 26-0, with abstentions from the Buffalo Sabres, Pittsburgh Penguins and Toronto Maple Leafs, to reject Balsillie because it considered him an untrustworthy businessman.

Calling the vote "unassailable," Goldfein told the court "this decision was made specifically due to his conduct with the NHL. It did not have to do with the other issues in his life."

Kessler argued that "sports leagues do not need for their owners to love each other" and that the NHL is opposed to moving the Coyotes to Hamilton because it fears a lawsuit from the Maple Leafs over territorial rights.

"God knows what they will sue for," he said. "And the league does not want that battle."

The NHL confirmed in court the Maple Leafs retain the right to veto the insertion of an expansion team in Hamilton, not an existing team seeking to relocate.

"There is nothing more important to any sports league than who owns its franchises, where its franchises are located and the application and enforceability of its rules and procedures and, if you're in this business, you have got to do whatever it takes to enforce your rules." - NHL commissioner Gary Bettman

The issue of territorial rights has little bearing on the ruling expected from Baum, who must decide whether or not to uphold the board's vote as it pertains to the Coyotes' bankruptcy proceeding.

"Either they [Balsillie] have the ability to force themselves into the league, in a simple sense, or they don't," Baum said. "If they don't, then game over."

'We will fight that battle to the highest level'

Balsillie's bid is the most lucrative and contingent on moving the Coyotes to Hamilton, which PSE Sports & Entertainment LP — the company he formed to pursue the Coyotes — claimed in filings "is, irrefutably, the only chance to maximize the value of the debtors' assets and pay off all creditors."

But Balsillie's deal commits $104 million US of the sum total to Coyotes majority owner Jerry Moyes, who filed for Chapter 11 bankruptcy protection on May 5.

A second bid for $150 million US was submitted by Ice Edge Holdings LLC, a group committed to keeping the Coyotes in Phoenix pending a lease agreement and on the proviso they play five games in Saskatoon.

The NHL has bid $140 million US.

The league entered the bidding war last week when Jerry Reinsdorf, owner of the Chicago Bulls and Chicago White Sox, withdrew his $148-million US bid, citing an inability to reach an agreement with the city of Glendale, the Phoenix suburb where the Coyotes play.

Goldfein told the court Wednesday that if the NHL buys the Coyotes and later sells them, profits from the sale will be earmarked for the creditors as well as $2 million US to the state to cover legal costs.

If the NHL fails to land the Coyotes, it will appeal the decision and demand a stay of sale.

"We will fight that battle to the highest level," Goldfein said.

Balsillie previously tried — and failed — to purchase the Penguins and Nashville Predators so he could move them to Hamilton.

Balsillie struck a tentative agreement with Mario Lemieux to purchase the Penguins for $175 million US in 2006, but Bettman intervened and reportedly imposed restrictions to ensure the team would stay in Pittsburgh.

Balsillie later agreed to purchase the Predators for $238 million US from Craig Leipold in 2007 and began accepting deposits for season's tickets in Hamilton when Leipold had second thoughts and scuttled the deal.

With files from The Canadian Press