That sounds like what they were saying when Jim Balsillie was trying to buy the Predators and move them to Hamilton Ontario:
Q: Why won't the NHL allow a team in Hamilton?
A: Because then Toronto would want one.
My personal opinion is that it wouldn't have hurt Toronto at all -- in fact, they might benefit from having a geographic rival so close -- but it could've hurt Buffalo as fans from the Niagara area might prefer to drive to Hamilton rather than deal with the hassle of crossing the border.
The Niagara Peninsula is predominantly Leafs territory though. Niagara residents only flood the border the 4 times per year that the Leafs are playing in Buffalo.
Buffalo would block a Hamilton team, but I really don't think it would hurt them much. And the Leafs have blocked every single attempt to put another team in the golden horseshoe, so while you and I can agree that having another Toronto-based team would be beneficial to all involved, we also know that the MLSE will react negatively towards such a move.
Unless - and here's a radical idea - unless MLSE/ Rogers was offered an ownership stake in the new team. Build a new arena in the docklands next to a ballpark for the Blue Jays with Rogers taking a stake and I think they'd agree to sharing the territory.
When they move, it'll be so quick and under the radar, just like Atlanta packing up to move to Winnipeg.
Salt Lake City has an Arena an Owner who has been meeting regularly with The League and Houston is the 4th largest metropolitan area in the US who also has a building available.
Yeah the Winnipeg move wasn't under the radar like the Baltimore Colts packing the moving vans Mayflower moving vans in the middle of the night.
He played some of the toughest minutes last year and their on-ice goal differential was better than expected. Also, 26 points in your rookie season is not bad. This is a great deal for the team and they are still a RFA at the end of it.