Local Group Fails To Complete Binding Agreement For Preds
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Freeman Says Banks Will Not Fund Bid
For Predators Without Amended Arena Lease |
The group of local investors looking to buy the Predators “failed to complete a binding agreement with owner Craig Leipold on Friday as hoped, but believes it will wrap up the extensive paperwork” this week, according to John Glennon of the Nashville TENNESSEAN. The group's letter of intent and its purchase agreement with Leipold expire in October, at which point Leipold “could explore other options.” 36 Venture Capital CEO David Freeman, who is leading the group, said, "We would no longer have any kind of agreement in place if the sale doesn't occur by then.” Glennon noted Freeman's group is “seeking three significant changes from the status quo” -- $3M in taxpayer money that would be used to help minimize past losses; responsibility for incentives to improve the financial performance of Sommet Center; and a guarantee from the city of an average of 14,000 in paid attendance per game each season, “in exchange for eliminating any right for the team to ever leave Nashville.” Freeman said, “We've had some issues come up the last 24 hours that will take a few days to assess and address” (TENNESSEAN, 8/18). Freeman is “confident that if the group's bid is on the docket" at the NHL BOG meeting next month, "it will be approved by the league.” But he said that it is “essential for the group's purposes that the lease changes are approved shortly thereafter by the city.” Freeman: "Our banks will not fund the deal without the amended lease because our banks have looked at the deal and said this team won't survive financially without it.” The TENNESSEAN’s Glennon today notes Freeman’s group has also insisted on including provisions in a new lease that would forbid new ownership from raising ticket prices above the league average, mandate a team payroll at least $5M above the NHL salary minimum if paid attendance averages 16,000 per game and call for "all excess positive cash flow" up to its $3M request to be donated back to local organizations (TENNESSEAN, 8/20).
TICKET SALES: In a separate piece, Glennon reported the Predators on Thursday reached 8,764 season tickets sold, surpassing last season's year-end total of 8,758 and about 14% ahead of the 7,709 that were sold through the same point last year. Ron Samuels, Chair of the "Our Team Nashville" grass-roots ticket drive, said that “one reason for the increased sales is that many of the businesses close to the Sommet Center recently purchased season tickets” (TENNESSEAN, 8/18).
EXPANSION: In K.C., Pete Grathoff wondered if rumors of expansion teams in K.C. and Las Vegas “make sense for a league that is trying to find its footing" after the lockout canceled the '04-05 season. Toronto Globe & Mail columnist Allan Maki said, “I’m not sure putting a team in Vegas or Kansas City solves any of these questions [facing the league].” Sports Business Group President David Carter said the NHL expanding is "a little bit troublesome, because you could argue that’s what got them in trouble many years ago.” Maki: “The best thing for Kansas City would be for [prospective Predators investor William] Del Biaggio after two years in Nashville to say I’m buying my buddies out and I’m taking this team to Kansas City” (K.C. STAR, 8/18).
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