Del Biaggio's Ties To Preds May Be Cut After Latest Lawsuit
Predators Minority Owner William “Boots” Del Biaggio III “may soon see his role with the hockey club coming to an end” after being “targeted by three multi-million dollar lawsuits over the past few days,” according to John Glennon of the Nashville TENNESSEAN. Sources said that “all interested parties are helping Del Biaggio divest himself of any interest in the club.” Del Biaggio owns about 27% of the Predators, the “second-largest percentage” behind Chair David Freeman. N.Y.-based Modern Bank Monday filed a lawsuit against Del Biaggio, his wife, Kristen, S.F.-based investment bank Merriman Curhan Ford (MCF) and MCF Managing Dir Scott Cacchione, seeking to recover $10M from a loan the bank said that the Del Biaggios “obtained to acquire an interest in the Preds.” Meanwhile, Nashville Legal Dir Sue Cain said that the city is “reviewing agreements including personal guarantees signed by Del Biaggio and other members of the Predators’ ownership group for leasing and operating Sommet Center ... to determine whether any action is needed.” Glennon writes the situation is “producing unwanted publicity for a league that is focusing on a Stanley Cup final and for a Predators organization that is seeking stability after last year’s chaotic ownership saga.” Sports Business Group President David Carter: “When you hear about these developments, it takes the ability to simply sell or market the sport away because (the Predators and the NHL) have to measure a defense. Even though (Del Biaggio) is a minority partner, it raises business issues at a time when everyone should be focusing on what’s going on on the ice” (Nashville TENNESSEAN, 6/4). One NHL team official "wondered what effect Del Biaggio's difficulties will have on the Predators: Did Del Biaggio make good on his roughly $60[M] investment in the team and will his legal woes have any bearing on the Predators' long-term credibility as they try to gain sponsors and sell season tickets?" (GLOBE & MAIL, 6/4).
OWNERSHIP ISSUES: Several high-ranking NHL sources indicated that the NHL is "'going crazy' over the allegations" against Del Biaggio. In Toronto, Rick Westhead notes when RIM co-CEO Jim Balsillie in '07 offered $220M for the Predators to move the team to Hamilton, then-Predators Owner Craig Leipold "instead accepted a $193[M] offer from a group that included Del Biaggio." An NHL source said, "Boots was [NHL Commissioner Gary Bettman's] hand-picked guy. No question Gary's got a permanent migraine over this right now." But Westhead writes it is "hard to fault Bettman for Del Biaggio's alleged shenanigans," as current and former NHL owners "insist the league puts prospective owners through a grinder." Meanwhile, the SEC has said that it is "probing the business dealings" of Ducks co-Owner Henry Samueli and Senators Owner Eugene Melnyk. Westhead: "What other major pro sports league has had so many owners mired in public relations disasters?" (TORONTO STAR, 6/4).
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