Franchise Notes
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TBS Found Guilty For Breach Of Contract
Regarding Sale Of Assets, Including Philips Arena |
In Atlanta, Kristi Swartz reports a Fulton County (GA) Superior Court jury yesterday ruled unanimously that TBS owes Texas businessman David McDavid $281M for a "breach of contract when it negotiated with -- and eventually sold" -- the Hawks, Thrashers and Philips Arena operating rights to Atlanta Spirit in '03. The teams will remain under the control of Atlanta Spirit. The jury claimed that TBS was guilty of "disregarding a verbal deal" it had reached with McDavid, and they also ruled that TBS owed another $35M for "essentially breaking a promise." The two amounts "cannot be added together because of complicated legal reasons, so McDavid's side said it will pick the larger one." However, the jury ruled against McDavid on two other accounts, deciding that TBS "did not share confidential information and did not commit fraud" (ATLANTA CONSTITUTION, 12/10).
WINTER OF OUR DISCONTENT: Maple Leaf Sports & Entertainment President & CEO Richard Peddie said that company has "adopted a 'soft freeze'" on hiring. Peddie: "We've already started cutting costs out there that are not necessary. And if a position is open, there is no rush to fill it, if it is filled at all." Peddie indicated that the "primary challenges are short-term issues such as suite and ticket sales, which will be 'understandably more difficult'" (TORONTO SUN, 12/10).
HOUSE WARMING: The Indians have constructed a community outreach initiative called "Fill The House For Charity." On 13 designated Wednesday home games during the '09 season, the Indians will donate money to various Northeast Ohio charities based on the attendance for that particular game. Groups such as the American Red Cross, United Way and Salvation Army of Greater Cleveland will each have a specific night at Progressive Field to raise funds and promote their mission, with the club donating $5 for each ticket sold by their agency and an additional $1 for every ticket sold to the game (Eric Fisher, SportsBusiness Journal).
NOTES: The Fourth District Court of Appeal in California yesterday said that it would "delay a scheduled ruling" in the legal dispute over the Angels' name for "as long as three weeks." An Orange County (CA) Superior Court jury found that by playing as the Los Angeles Angels of Anaheim, the team "did not violate a stadium lease clause requiring the team name to 'include the name Anaheim therein.'" The city of Anaheim appealed that decision, and the ruling had been scheduled to be issued today (L.A. TIMES, 12/10)....The Chargers yesterday announced they will not increase season-ticket prices for the '09 season, and will lower the price on approximately 1,300 tickets next year, to be set aside in expanded "Family Sections" (Chargers).
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