Financial disarray seems to be prevalent in the Nashville Predators front office, as the team defaults on payment of a $40-million loan and claims the legal problems surrounding William J. "Boots" Del Biaggio will cost the team up to $10 million in lost revenues.
Financial disarray seems to be prevalent in the Nashville Predators front office, as the team defaults on payment of a $40-million loan and claims the legal problems surrounding William J. "Boots" Del Biaggio will cost the team up to $10 million in lost revenues.
CIT Group Inc., which has been involved in several NHL financing plans in recent years, is owed $40 million by the current ownership group — a group that admits publicly it will not be repaying that debt right now. The reason, they say, is that revenues have been depressed by the presence of Boots Del Biaggio on the ownership roster.
To that end, the owners are asking a California bankruptcy court to award them $100 million from Del Biaggo’s estate. That may be a bit steep, but what they’re really after is Del Biaggio’s minority share of the team, worth $23.5 million or so. We’re guessing the owners would be very happy to have that instead of their projected $100 million in losses.
But there’s a catch: in backruptcy court, everything’s open game, including Del Biaggio’s share of the Preds. Enter Jim Balsillie, whose earlier bid for the Preds was rejected by former owner Craig Leipold. The bankruptcy judge must pretty much accept any high offer that comes his way, and that would include any money above fair market value Balsillie wants to spend on the Preds. And once in the door, you can bet Balsillie will be working to acquire majority ownership.