Post by WJG on Mar 4, 2010 11:29:39 GMT -5
Predators Chairman Freeman Steps Down
Tuesday, March 02, 2010
Posted By Ben Valentine 11:30 AM
A shakeup is coming for the Nashville Predators, but this time the changes haven't been brought on by something hockey-related. Minority owner David Freeman resigned his club chairmanship over the weekend in light of continuing tax problems, according to the Tennessean. After two years in charge, Freeman, the club's largest minority owner, will hand the reigns of the day-to-day operations to owner Tom Cigarran.
The Internal Revenue Service placed a $3.3 million lien on Freeman's house after he failed to pay his 2007 taxes.
For those think it sounds like just a PR nightmare for one owner, albeit Nashville's most prominent one, it's actually much worse. Freeman's tax problems could cause the Predators to default on their lease with the city of Nashville.
Freeman owns 32 percent of the Predators after this ownership group purchased the team from Craig Leopold in 2007. Nasvhille's Metro Sports Authority has asked for additional guarantees if the lien is not released by this Friday. However Cigarran insists it's not an issue. From the Tennessean:
"We want to get that behind us and move on. It's been sort of a bogus issue because there never was a time when the ownership group — as a group — didn't have the wherewithal to stand behind the guarantees that were made and when they weren't willing to do that. So the city was never really at risk."
This is the second time a member of this ownership group has had money issues. William Del Biaggio III filed for bankruptcy less than two years ago and pleaded guilty to security fraud. His stake of 31 percent is still in limbo as bankruptcy trustees decide how to sell it.
If Freeman also is forced to declare bankruptcy, that would leave the majority of the team in bankruptcy limbo.
The Predators owners have made a bid to buy Del Biaggio's shares and will likely do the same with at least some of Freeman's. However Cigarran insists they will not allow someone outside of Middle Tennessee gain a majority position, most likely out of fear they would move the team away from Nashville. Hockey fans may remember the Predators were a target of Blackberry mogul Jim Balsille, who wanted to move the team to Hamilton, Ontario.
This comes on the heels of the Predators announcing a sponsorship deal last week with Bridgestone Americas Inc. for naming rights to their arena.
With 71 points, the Predators reside in the 7th spot in the Western Conference playoff chase. They added defenseman Denis Grebeshkov for a 2010 second round pick on Monday.
www.sportingnews.com/blog/The_Grinder/entry/view/57838/predators_chairman_freeman_steps_down_
Tuesday, March 02, 2010
Posted By Ben Valentine 11:30 AM
A shakeup is coming for the Nashville Predators, but this time the changes haven't been brought on by something hockey-related. Minority owner David Freeman resigned his club chairmanship over the weekend in light of continuing tax problems, according to the Tennessean. After two years in charge, Freeman, the club's largest minority owner, will hand the reigns of the day-to-day operations to owner Tom Cigarran.
The Internal Revenue Service placed a $3.3 million lien on Freeman's house after he failed to pay his 2007 taxes.
For those think it sounds like just a PR nightmare for one owner, albeit Nashville's most prominent one, it's actually much worse. Freeman's tax problems could cause the Predators to default on their lease with the city of Nashville.
Freeman owns 32 percent of the Predators after this ownership group purchased the team from Craig Leopold in 2007. Nasvhille's Metro Sports Authority has asked for additional guarantees if the lien is not released by this Friday. However Cigarran insists it's not an issue. From the Tennessean:
"We want to get that behind us and move on. It's been sort of a bogus issue because there never was a time when the ownership group — as a group — didn't have the wherewithal to stand behind the guarantees that were made and when they weren't willing to do that. So the city was never really at risk."
This is the second time a member of this ownership group has had money issues. William Del Biaggio III filed for bankruptcy less than two years ago and pleaded guilty to security fraud. His stake of 31 percent is still in limbo as bankruptcy trustees decide how to sell it.
If Freeman also is forced to declare bankruptcy, that would leave the majority of the team in bankruptcy limbo.
The Predators owners have made a bid to buy Del Biaggio's shares and will likely do the same with at least some of Freeman's. However Cigarran insists they will not allow someone outside of Middle Tennessee gain a majority position, most likely out of fear they would move the team away from Nashville. Hockey fans may remember the Predators were a target of Blackberry mogul Jim Balsille, who wanted to move the team to Hamilton, Ontario.
This comes on the heels of the Predators announcing a sponsorship deal last week with Bridgestone Americas Inc. for naming rights to their arena.
With 71 points, the Predators reside in the 7th spot in the Western Conference playoff chase. They added defenseman Denis Grebeshkov for a 2010 second round pick on Monday.
www.sportingnews.com/blog/The_Grinder/entry/view/57838/predators_chairman_freeman_steps_down_