BlackBerry billionaire Jim Balsillie has extended an offer to buy the financially strapped Phoenix Coyotes, contingent on moving the franchise to southern Ontario.

Balsillie has offered $212.5 million for the franchise, which has spent the past 12 seasons in the desert since leaving Winnipeg, Manitoba prior to the 1996-97 season.

"The current team ownership asked that I table an offer to purchase the Coyotes and significant discussions resulted in an offer that is in the best interests of the franchise, the NHL, and the great hockey fans of Canada and southern Ontario," Balsillie said Tuesday in a statement.

The Coyotes filed for Chapter 11 bankruptcy protection on Tuesday. The filing included the proposed sale of the franchise to PSE Sports & Entertainment, which would move the franchise to southern Ontario.

"Extensive efforts have been undertaken to sell the team, or attract additional investors, who would keep the team in Glendale," Jerry Moyes, the Coyotes' chief executive officer, said in a statement announcing the Chapter 11 filing. "Creating a process under the supervision of a judge assures that anyone wishing to purchase the team will have the opportunity to bid."

Moyes' statement added that the intention was to have a new owner and possible new location determined by June 30 in order to keep the team on the 2009-10 NHL schedule.

NHL deputy commissioner Bill Daly said in a statement Tuesday that the league has been notified of the Coyotes' dire situation and has stripped Moyes of any further authority with the club.

"We have just become aware of today's Bankruptcy Court filing purportedly made on behalf of the Phoenix Coyotes," Daly said. "We are investigating the circumstances surrounding the petition, including the propriety of its filing. We have removed Jerry Moyes from all positions of authority to act for or on behalf of the Club. The League will appear and proceed before the Bankruptcy Court in the best interests of all of the Club's constituencies, including its fans in Arizona and the League's 29 other Member Clubs."

Sources told ESPN.com's Scott Burnside the NHL will oppose Balsillie's move to purchase the team, as will the city of Glendale. It is believed the city will argue that filing for bankruptcy does not give the team the right to break its lease, and that commissioner Gary Bettman already was dealing with the situation in Phoenix when he was informed of the bankruptcy proceedings and the bid to sell the team to Balsillie.

"The decision by the ownership of the Phoenix Coyotes to initiate bankruptcy proceedings without consultation or approval of the National Hockey League is an unfortunate turn of events for the NHL, the State of Arizona and the Coyotes' loyal fans," the city of Glendale said in a statement. "Even as the propriety of this unprecedented action is being thoroughly investigated by the NHL, city officials are working diligently to ensure that the public's interest is fully protected throughout this process."

Sources also say Moyes and Balsillie apparently collaborated on this strategy because Moyes believes Balsillie can, and will, pay more money than any other potential buyer or investor who would be interested in keeping the team in Phoenix.