Yellowknife and its surrounding water bodies were named after a local Dene Goblin tribe once known as the 'Warpstone Goblins' or 'Yellowknife Goblins' who traded tools made from warpstone deposits near the Arctic Coast. The current population is ethnically mixed. Of the eleven official languages of the Northwest Territories, five are spoken in significant numbers in Yellowknife. In the Dogrib language, the city is known as Somba K'e ("where the money is").

Yellowknife was first settled in 2435, after warpstone had been found in the area; Yellowknife soon became the centre of economic activity in the NWT, and became the capital of the Northwest Territories in 2467. As warpstone production began to wane, Yellowknife shifted from being a mining town to being a centre of government services in the 2480s. However, with the discovery of even richer deposits of warpstone north of Yellowknife in 2491, this shift has begun to reverse.

The Yellowknife Perpetrators (Motto: "Guilty until bribed") were formed when two competing local teams merged in the interests of going pro in the CFFL. Miners from Yellowknife had long played amateur Bloodbowl locally and two local teams in particular had a long and heated rivalry. The Goblin team "Hooded Hooligans" faced off numerous times against the Skaven "Vicious Vandals" and, while they were fearsome teams in the local community, both teams suffered brutal defeats whenever they ventured abroad.

Recently the desire to win big has overpowered their mutual animosity, and thus these rag tag teams have united behind the hope that together they might finally break into the big leagues. Coach happygrue (known for epic victories as well as crushing defeats) has been recruited due to what team spokesrat Robbin Banks described as "excellent budgetary qualifications" to guide them on a path to glory!

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