Leipold turns down Balsillie’s offer
What in the world?
I haven’t written much about all of the Nashville Predators drama because I don’t have enough time to keep up with it all. However, today’s news dictated that I say something.
According to the National Post, Leipold informed Balsillie earlier this week that he would not accept his $238-million US offer for the NHL club. Instead, Leipold is preparing to sell the franchise to California businessman William DelBiaggio, who is expected to move the team to Kansas City instead.
DelBiaggio’s bid is reportedly $50-million US less than what Balsillie was offering for the club.
Balsillie’s deal to purchase the Predators was set to close on June 30.
“We are currently free to explore any and all options regarding the sale of the Nashville Predators,” Gerry Helper, Nashville’s senior vice-president of communications and development, said in a statement. “However, until and unless there is a binding agreement in place, we do not plan to comment on the status of Predators ownership.”
What in the world?
Yes, I think Balsillie probably went about things in the wrong way when it came to purchasing and then relocating the Predators. However, it is completely ridiculous that current Preds’ owner Craig Leipold would turn down Balsillie’s offer for $238 million for a $190 million offer by DelBiaggio.
I could completely understand if Leipold changed his mind and either (1) decided to keep the team himself, (2) sell it to someone who intends to keep the team in Nashville, or (3) sell it to someone willing to offer more money. However, DeBiaggio wants to relocate the team to Kansas City. How is KC any better than Nashville? Why must the NHL insist on forming/relocating teams to markets that won’t work as well as let’s say a team in southern Ontario? I just don’t understand.
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5 Responses to “Leipold turns down Balsillie’s offer”
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June 28th, 2007 at 12:56 pm
I think it boils down to the fact that the Basille’s aggressive tactics to move the team angered many other owners. He wasn’t going to get approved so Leopold had no choice but to take the 2nd best offer…. and make no mistake about it, Leopold doesn’t care at all if they stay in Nashville.
June 28th, 2007 at 1:49 pm
Trying to figure Leipold out will doom you to a headache. The whole thing is too too weird. Possibly Leipold looked upon Balsillie as a predator who was willing to pay any price to get an NHL franchise. It is also possible that the league would not have approved the sale to Balsillie based on his plan to move the team to Hamilton and quietly let Leipold know it. In any event, I guess those losses Leipold was suffering must not have hurt too bad if he can just toss away 50 mil without blinking. On the bright side (take note that I never usually even glance at the bright side) he just saved a fortune on his capital gains tax.
June 28th, 2007 at 2:56 pm
[…] Christy at Behind the Jersey has a lot of questions about the Predators and Balsillie…who has the answers? […]
June 28th, 2007 at 4:42 pm
A few thoughts:
1) The Balsillie deal was getting uglier and uglier, and would have likely been tied up in litigation, making his $238 million far from certain. There was also a well-written analysis (I think it was originally on HFBoards) that surmised that conditions were likely inserted into Balsillie’s offer dictating that in the event Balsillie had to keep the team in Nashville, a healthy amount of the purchase price would be held back as a contingency. So if he had to keep the there, Leipold would only clear $180 million, for example.
2) Balsillie, while a successful entrepreneur, doesn’t win every battle. This is the guy who turned a $21 million patent infringement judgment against his company into a $612.5 million judgment by dragging things out and refusing to bargain. His bullheadedness cost his company over $590 million there.
3) The “relocating to KC” talk is as premature as all the “relocating to Hamilton” talk was. If average paid attendance hits 14,000 this season (which looks quite likely), the lease remains in place.
4) I don’t understand the talk about Kansas City anyway. Yes, they have a new arena and are desperate to fill it. They already have the Chiefs, they can’t support the Royals at a MLB level, and may well be the absolute worst place in the US to locate an NHL team right now, based on available disposable income.
There’s quite a ways to go yet in this drama, and I bet we haven’t heard the last from Mr. Balsillie yet.
June 28th, 2007 at 10:48 pm
I just can’t believe how much drama there has been over this situation and Balsillie pushed it too hard and probably screwed over his shot at getting an NHL team (outside of expansion).
degroat- You probably are very right that they wouldn’t approve Balsillie so Leipold went to the next best offer.
doomsberry- That is rare that you’d like at the bright side! I would just hate to be a Preds fan right now. A lot of doom and gloom right now.
The Forechecker- I agree that KC would be an awful place to relocate the Preds. Before the Preds started trading away everyone (or the free agents leaving), I thought the fans could get that 14,000 average to save the team. I guess it’ll depend on how the younger players step up (admittedly, the Preds seem to have good depth). I didn’t know about Balsillie’s previous judgment. You’d think he’d learn!