Post by archiseek on Feb 12, 2010 16:05:04 GMT -5
Nashville Predators lead owner David Freeman has less than one month to cure his federal tax lien, or else the Metro Sports Authority is prepared to enact sweeping provisions that would prevent the team from leaving the next two years.
The Sports Authority announced its response to a $3.3 million tax lien against Freeman at its Friday meeting. Freeman appears to be in default of his personal guaranty to the city due to the lien, which was first reported by The Tennessean in November.
According to recommendations proposed by board member Lauren Brisky and adopted by the entire Sports Authority, Freeman has until March 5 to cure his lien. If the lien is not taken care of, the remaining Predators owners must provide the city with guarantees that they can cover Freeman’s personal guarantee to Metro.
Brisky disclosed that she had met multiple times with Freeman and NHL Commissioner Gary Bettman on the issue of the tax lien. Bettman requested that the Authority provide the Predators with more time before taking any action against Freeman or the team.
Additionally, Brisky’s recommendations included a provision that the Predators would provide written acknowledgment that they waive their early termination rights for 2010 and 2011. If the team exercises its early termination clause, Metro would be due $20 million.
Although Freeman has still not cured his tax lien, which stems from 2007, he did provide the Sports Authority with a letter certifying that his personal net worth is greater than $29.8 million, which is twice the maximum amount defined in his personal guaranty.
The Sports Authority was also provided with a letter from the accounting firm Carr, Riggs & Ingram detailing Freeman’s efforts to cure his lien. According to the letter, Freeman is waiting on a ruling from the Internal Revenue Service about his lien.
Freeman has deposited funds with the IRS necessary to satisfy his 2007 tax obligations, if he receives a favorable ruling, according to the letter.
Predators owners signed guarantees totaling $50 million to the city in 2007, when the team and Mayor Karl Dean’s administration agreed to more favorable lease terms at the Sommet Center.
www.tennessean.com/article/20100212/NEWS02/100212044/Metro+tells+Predators+owner+Freeman+to+pay+taxes+or+face+consequences
The Sports Authority announced its response to a $3.3 million tax lien against Freeman at its Friday meeting. Freeman appears to be in default of his personal guaranty to the city due to the lien, which was first reported by The Tennessean in November.
According to recommendations proposed by board member Lauren Brisky and adopted by the entire Sports Authority, Freeman has until March 5 to cure his lien. If the lien is not taken care of, the remaining Predators owners must provide the city with guarantees that they can cover Freeman’s personal guarantee to Metro.
Brisky disclosed that she had met multiple times with Freeman and NHL Commissioner Gary Bettman on the issue of the tax lien. Bettman requested that the Authority provide the Predators with more time before taking any action against Freeman or the team.
Additionally, Brisky’s recommendations included a provision that the Predators would provide written acknowledgment that they waive their early termination rights for 2010 and 2011. If the team exercises its early termination clause, Metro would be due $20 million.
Although Freeman has still not cured his tax lien, which stems from 2007, he did provide the Sports Authority with a letter certifying that his personal net worth is greater than $29.8 million, which is twice the maximum amount defined in his personal guaranty.
The Sports Authority was also provided with a letter from the accounting firm Carr, Riggs & Ingram detailing Freeman’s efforts to cure his lien. According to the letter, Freeman is waiting on a ruling from the Internal Revenue Service about his lien.
Freeman has deposited funds with the IRS necessary to satisfy his 2007 tax obligations, if he receives a favorable ruling, according to the letter.
Predators owners signed guarantees totaling $50 million to the city in 2007, when the team and Mayor Karl Dean’s administration agreed to more favorable lease terms at the Sommet Center.
www.tennessean.com/article/20100212/NEWS02/100212044/Metro+tells+Predators+owner+Freeman+to+pay+taxes+or+face+consequences