Trace
05-24-07, 08:39 AM
Preds owner sells team
Leipold ready to cut deal with Canadian billionaire
http://cmsimg.tennessean.com/apps/pbcsi.dll/bilde?Site=DN&Date=20070524&Category=SPORTS02&ArtNo=705240400&Ref=AR&maxw=220
Craig Leipold has said he wants the team to stay here. By BRAD SCHRADE,
DAVID CLIMER
and JOHN GLENNON
Staff Writers
Published: Thursday, 05/24/07 Nashville Predators owner Craig Leipold intends to sell the hockey team to Canadian businessman Jim Balsillie and an announcement could come today, according to sources familiar with the deal.
Word of the sale sparked talk that the team would move, ending the uneasy residence of hockey in Music City — where football is king. Team supporters have long bemoaned a lack of the corporate support that buoys teams elsewhere in the league.
The Predators just finished year two with attendance averaging less than 14,000 per game. Their contract says they can leave if next season falls below that number as well. The Predators would have to give notice next month, but executives have denied they intend to do so — and just signed a new naming-rights deal for their home arena.
Still, the sources said the sale has been in the works for weeks, and Leipold has signed a letter saying he intends to sell.
"Both parties intend for it to happen subject to final" documentation, said one source, who spoke to The Tennessean on condition of anonymity. "The purpose for the letter of intent is to demonstrate the degree of seriousness of both parties."
Leipold called team employees together in Nashville on Wednesday to inform them of the impending sale.
A sale to Balsillie would raise the question of whether the team would stay in Nashville. The sources did not know the answer.
Balsillie is co-CEO of Research In Motion, the Waterloo, Ontario-based company that makes Blackberry handheld devices.
He tried to buy Penguins
Last fall, Balsillie offered
$175 million for the Pittsburgh Penguins. Balsillie dropped the offer when NHL Commissioner Gary Bettman attached a long list of conditions to the sale, including a commitment not to move the team out of Pittsburgh for seven years regardless of financing for a new arena. It's not clear if any conditions are involved in a deal for the Predators.
"He has until the end of June to go through due diligence and to close the deal," one source said. "What I've been told is that's pretty much finished and they're not anticipating any problems."
The Predators were saying little last night.
"We're not going to confirm or deny any reports or speculation at this time," club spokesman Gerry Helper said.
Balsillie could not be reached for comment.
Mayor Bill Purcell was not contacted by the Predators' management about a sale, which he learned of from news reports, spokeswoman Molly Sudderth said.
News shocks fans
Fans were startled as news of an impending sale circulated.
Nashville's Patty Cavanah wept.
"Devastation. Absolutely. I'm a season ticket-holder. Die-hard fan. ... I'm in shock," said Cavanah, who has been a season-ticket-holder since the second year. "The guy who supposedly is buying them is a billionaire who has tried to buy other NHL franchises and move them to Canada.
"If that happens, I blame the current administration of the city. I blame the local media for non-positive support. And I blame corporate for non-support."
Tom Romanoff, a season ticket-holder who goes to the games with his nephew, Chris Baumann, 16, said: "Wow. It's kind of amazing. It's kind of a shock. I hope they don't move."
Just last week, Leipold and the team signed a multi-year naming-rights deal for Nashville's hockey arena with Franklin-based Sommet Group. The revenue from that agreement goes to the team.
On Jan. 11, Leipold said he was looking for one or more local investors to buy up to 40 percent of the team in the hope that local owners could boost attendance.
No local buyer or buyers stepped forward.
When asked last month about potential new investors in the Predators, Leipold said keeping the team in Nashville was a requirement for anyone interested. Leipold brought the expansion team to Nashville in the fall of 1998.
"When I'm talking with people, it's all under the provision that this team is staying in Nashville, and if you're interested, come on and we'll continue to talk. Those people are the ones I'm restricting it to, the ones who have an interest in maintaining a team in Nashville.''
Ticket sales fall short
The NHL Board of Governors, which includes a representative from each of the 30 NHL teams, must approve the sale or relocation of any franchise. As recently as last month, Bettman told a media gathering in San Jose, Calif., before a Predators-Sharks playoff game that there were no plans for league expansion or relocations.
The announcement comes as the Predators are in a season-ticket drive. The team sold slightly fewer than 9,000 season tickets last season, up from the previous year.
The Preds averaged 13,815 in paid attendance last season, below the 14,000 benchmark.
If paid attendance does not average 14,000 next season, the team could pay an exit fee of approximately $18 million and leave Nashville. The money is to help cover the expenses the city paid to bring the team to Nashville.
However, Metro could pay the difference between revenue from the actual paid attendance and 14,000 to hold the team to the lease.
The owner must give the city a one-year warning before leaving. He has until 60 days after the end of 2006-2007 season to declare whether he would consider exercising the out option after next season. The Preds' last playoff game was on April 20, which means that notice would have to come by around June 19.
At last week's announcement of the naming-rights deal, Leipold had taken off the table the possibility that he would exercise the option.
Leipold couldn't be reached for comment on Wednesday. Someone who answered the phone at Leipold's home in Racine, Wis., said he was not expected to return before today.
Published: Thursday, 05/24/07 http://www.tennessean.com/graphics/1pix.gif
Leipold ready to cut deal with Canadian billionaire
http://cmsimg.tennessean.com/apps/pbcsi.dll/bilde?Site=DN&Date=20070524&Category=SPORTS02&ArtNo=705240400&Ref=AR&maxw=220
Craig Leipold has said he wants the team to stay here. By BRAD SCHRADE,
DAVID CLIMER
and JOHN GLENNON
Staff Writers
Published: Thursday, 05/24/07 Nashville Predators owner Craig Leipold intends to sell the hockey team to Canadian businessman Jim Balsillie and an announcement could come today, according to sources familiar with the deal.
Word of the sale sparked talk that the team would move, ending the uneasy residence of hockey in Music City — where football is king. Team supporters have long bemoaned a lack of the corporate support that buoys teams elsewhere in the league.
The Predators just finished year two with attendance averaging less than 14,000 per game. Their contract says they can leave if next season falls below that number as well. The Predators would have to give notice next month, but executives have denied they intend to do so — and just signed a new naming-rights deal for their home arena.
Still, the sources said the sale has been in the works for weeks, and Leipold has signed a letter saying he intends to sell.
"Both parties intend for it to happen subject to final" documentation, said one source, who spoke to The Tennessean on condition of anonymity. "The purpose for the letter of intent is to demonstrate the degree of seriousness of both parties."
Leipold called team employees together in Nashville on Wednesday to inform them of the impending sale.
A sale to Balsillie would raise the question of whether the team would stay in Nashville. The sources did not know the answer.
Balsillie is co-CEO of Research In Motion, the Waterloo, Ontario-based company that makes Blackberry handheld devices.
He tried to buy Penguins
Last fall, Balsillie offered
$175 million for the Pittsburgh Penguins. Balsillie dropped the offer when NHL Commissioner Gary Bettman attached a long list of conditions to the sale, including a commitment not to move the team out of Pittsburgh for seven years regardless of financing for a new arena. It's not clear if any conditions are involved in a deal for the Predators.
"He has until the end of June to go through due diligence and to close the deal," one source said. "What I've been told is that's pretty much finished and they're not anticipating any problems."
The Predators were saying little last night.
"We're not going to confirm or deny any reports or speculation at this time," club spokesman Gerry Helper said.
Balsillie could not be reached for comment.
Mayor Bill Purcell was not contacted by the Predators' management about a sale, which he learned of from news reports, spokeswoman Molly Sudderth said.
News shocks fans
Fans were startled as news of an impending sale circulated.
Nashville's Patty Cavanah wept.
"Devastation. Absolutely. I'm a season ticket-holder. Die-hard fan. ... I'm in shock," said Cavanah, who has been a season-ticket-holder since the second year. "The guy who supposedly is buying them is a billionaire who has tried to buy other NHL franchises and move them to Canada.
"If that happens, I blame the current administration of the city. I blame the local media for non-positive support. And I blame corporate for non-support."
Tom Romanoff, a season ticket-holder who goes to the games with his nephew, Chris Baumann, 16, said: "Wow. It's kind of amazing. It's kind of a shock. I hope they don't move."
Just last week, Leipold and the team signed a multi-year naming-rights deal for Nashville's hockey arena with Franklin-based Sommet Group. The revenue from that agreement goes to the team.
On Jan. 11, Leipold said he was looking for one or more local investors to buy up to 40 percent of the team in the hope that local owners could boost attendance.
No local buyer or buyers stepped forward.
When asked last month about potential new investors in the Predators, Leipold said keeping the team in Nashville was a requirement for anyone interested. Leipold brought the expansion team to Nashville in the fall of 1998.
"When I'm talking with people, it's all under the provision that this team is staying in Nashville, and if you're interested, come on and we'll continue to talk. Those people are the ones I'm restricting it to, the ones who have an interest in maintaining a team in Nashville.''
Ticket sales fall short
The NHL Board of Governors, which includes a representative from each of the 30 NHL teams, must approve the sale or relocation of any franchise. As recently as last month, Bettman told a media gathering in San Jose, Calif., before a Predators-Sharks playoff game that there were no plans for league expansion or relocations.
The announcement comes as the Predators are in a season-ticket drive. The team sold slightly fewer than 9,000 season tickets last season, up from the previous year.
The Preds averaged 13,815 in paid attendance last season, below the 14,000 benchmark.
If paid attendance does not average 14,000 next season, the team could pay an exit fee of approximately $18 million and leave Nashville. The money is to help cover the expenses the city paid to bring the team to Nashville.
However, Metro could pay the difference between revenue from the actual paid attendance and 14,000 to hold the team to the lease.
The owner must give the city a one-year warning before leaving. He has until 60 days after the end of 2006-2007 season to declare whether he would consider exercising the out option after next season. The Preds' last playoff game was on April 20, which means that notice would have to come by around June 19.
At last week's announcement of the naming-rights deal, Leipold had taken off the table the possibility that he would exercise the option.
Leipold couldn't be reached for comment on Wednesday. Someone who answered the phone at Leipold's home in Racine, Wis., said he was not expected to return before today.
Published: Thursday, 05/24/07 http://www.tennessean.com/graphics/1pix.gif