Preds Given Extension To Replace $9.8M Gap Left By Del Biaggio
The Nashville Metro Sports Authority "took no action to place" the Predators in default of their Sommet Center lease "in the wake of financial and legal troubles" of the team's Minority Owner William "Boots" Del Biaggio III, according to Brad Schrade of the Nashville TENNESSEAN. The authority "appeared willing to give the team at least until" August 4 to replace the $9.8M that Del Biaggio had pledged as his part of the guarantee under a new lease agreement. The lease agreement gives the team 60 days to replace Del Biaggio's guarantee or the team "could be placed in default." The authority could have begun default proceedings on Friday because of Del Biaggio's "misleading actions," but Nashville attorney Larry Thrailkill said that "waiting provides no exposure to the city." Authority Chair Kevin Lavender said that if it "doesn't hurt the city, it pays to try to help the local owners group try to find a remedy for Del Biaggio's problems." Thrailkill added that the authority could "extend deadlines for default proceedings beyond" August 4 if it wanted. Predators Chair David Freeman said, "I can assure you the allegations surrounding Mr. Del Biaggio were as much a surprise to us as they are to you." Freeman said that the team "plans to meet with the trustee once one is named in Del Biaggio's bankruptcy case, to address Del Biaggio's stake." Schrade noted Del Biaggio's problems have "dampened the team's offseason and sent concerns through city hall as it monitors potential cracks in the plan to stabilize hockey in Nashville for at least the next few years." Nashville Mayor Karl Dean Friday said that he was "concerned, but said he thought the situation was under control" (Nashville TENNESSEAN, 6/14).
WHO'S TO BLAME? In Nashville, David Climer wonders, "Why didn't somebody see this coming?" Maybe Freeman "should have been more diligent before bringing Del Biaggio aboard." However, the NHL "doesn't exactly turn over every stone to see what crawls out of a prospective owner's brokerage account. If you have a pulse and a decent credit limit on your Visa, the NHL welcomes you with open arms." Vanderbilt Univ. economist John Vrooman, who specializes in sports business, said that the NHL is "'behind other leagues' when it comes to checking the backgrounds and financial status of its owners." Vrooman: "In a league like the NHL that doesn't share very much revenue, you just want that team to be viable" (Nashville TENNESSEAN, 6/16).
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