WKRN, Nashville, Tennessee News, Weather, and Sports |Sports Authority says 'wheels not coming' off Preds' ownership

Sports Authority says 'wheels not coming' off Preds' ownership

The chair of the Metro Sports Authority says "the wheels are not coming off" for the Nashville Predators ownership.

Kevin Lavender made the statement Friday morning as he concluded an emergency meeting of the authority to look at recent financial problems of Predators minority-owner William "Boots" Del Biaggio III. 
 
David Freeman, the lead owner of the Nashville Predators, appeared before the authority saying he was "surprised as anyone" to learn about the Del Biaggio's bankruptcy and legal problems.

Several lawsuits filed in northern California charge him with fraudulently listing accounts that weren't his.

In Del Biaggio's bankruptcy filings, the Predators' minority-owners said he owes $57 million to at least 20 creditors.

Despite last week's developments, Freeman said the mostly-local membership group remains focused on its goals.

"Our goals remain the same this summer as they were last summer; enhance the city of Nashville and protect Nashville's hockey team for any and all who have motives inconsistent our city," he told Sports Authority members.
 
Freeman said his ownership group will first explore making claims against Del Biaggio once a bankruptcy trustee is named.

Beyond that, Freeman would not speculate what the ownership group would do.

Sports Authority members did hear some scenarios from attorney Larry Thrailkill.

The former San Francisco 49ers executive was hired by Metro Government to negotiate a new arena lease agreement for Freeman's ownership group.

The Predators play at Metro-owned Sommet Center in downtown Nashville.

Thrailkill said there is a provision in the lease where the Metro Sports Authority could declare the new ownership's in default if it does not replace Del Biaggio's 27% stake in the team within 6 days.

He said for now, that figure is about $9.8 million.

Most people familiar with the Predators new owners believe they will try to either replace Del Biaggio's financial guarantee with more money of their own or find a new investor.

"The wheels have absolutely not fallen off," said Lavender.  "We got a minority owner in potential default our counsel has advised us we got remedies we can take." 

One of the remedies in the lease agreement is a $50-million payout from the owners to Metro Government, if they can't make on their financial guarantees.

Freeman also said he had received a subpoena from the same Northern California federal grand jury that made similar requests earlier in the week from the Metro Sports Authority and the Metro Council. 

A copy of the subpoena asks for all documents concerning Del Biaggio's role in the Predators sale.

Sports Authority members also asked how Metro or the Predators might have missed Del Biaggio's problems in financial backgrounds.

Thrailkill said the lease agreement required only an independent accountant to certify each of the owner's financial guarantee, and not actual financial records.