In yet another twist in the unwieldy saga of the Phoenix Coyotes, the NHL submitted a bid to buy the franchise just as sports mogul Jerry Reinsdorf withdrew his own.

Reinsdorf's group said it wasn't able to meet Tuesday's deadline for handing in a firm offer. The group also said its plans were complicated by an "unwilling seller" and growing negative publicity around the sale.

Chicago White Sox and Chicago Bulls owner Reinsdorf was heading a group that had offered $US148 million to buy the team and keep it in Phoenix.

Earlier, NHL deputy commissioner Bill Daly issued a statement, saying the league had filed a bid in U.S. bankruptcy court.

The move will "maximize the likelihood that the club ultimately will be sold to an acceptable purchaser who is committed to operating the franchise in Glendale," Daly said.

BlackBerry billionaire Jim Balsillie has issued what is believed to be the highest bid for the team at US$212.5 million. His bid is on the condition the team is moved to Hamilton.

To say the NHL is against the idea and Balsillie as an owner would be an understatement. The bid suggests the league is willing to go to any length to keep Balsillie to from gaining control of a franchise.

"The bankruptcy petition and subsequent events have been incredibly damaging to the club's business," Daly said, "and the sooner the club can be extricated from the bankruptcy process, the sooner club personnel can begin to restore the team's vitality and local fan base."

The NHL says it still supports any other bids in bankruptcy court as long as they intend to keep the team where it is.

There is a hearing set for Sept. 2 to determine if the NHL's rejection of Balsillie is to be upheld. If bankruptcy judge Redfield T. Baum ignores the NHL's decision, Balsillie can participate in a Sept. 10 auction for the team.

The NHL board of governors voted 26-0 against Balsillie, the co-CEO of Research in Motion. RIM was recently named the world's fastest growing company by Forbes magazine.

The Coyotes first game is set for Oct. 3rd. Balsillie has said he is willing to push the sale date as far back as Sept. 15.

The NHL and Balsillie have been in a bitter battle since May, when Phoenix Coyotes majority owner Jerry Moyes announced the team was going into chapter 11 bankruptcy with the plan to sell the team to Balsillie.