Sunday, October 21, 2007

Leipold's losses (and potential gain)

The Tennessean has a detailed look into the financial figures involved in Craig Leipold's ownership of the Nashville Predators, including year-by-year accounts of his losses and the eventual windfall he stands to receive once the team is sold:
Despite millions coming in from naming rights, the team began losing money — half a million during the 2000-2001 season and $5.8 million the next, court records show. All told, Leipold has estimated his operating losses at $70 million.

Gaylord got new top managers and announced in 2002 that it would exercise its option to sell its share of the franchise back to the team. Gaylord asked for $5.4 million as the first installment of that deal.

Ed Lang, the team's chief financial officer, said in a deposition that the team could not pay Gaylord the money without going into default on the $40 million in loans.

"Operation of the team is — doesn't look very good financially," Lang testified.
Leipold apparently walked into the deal with only a $9.6-million initial investment (he's obviously put quite a bit more into the team since then), and the newspaper claims he will walk away with somewhere in the neighbourhood of $30-million if the $193-million sale price stands up.

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At 11:45 p.m., October 21, 2007, Anonymous Rickster said...

It looks like this was set to fail from the very beginning, which is really too bad. It looks like the only people who are really losing money are the taxpayers. The city of Nashville got caught in the pyramid scheme that is the NHL. KC, take note!

At 2:43 a.m., October 22, 2007, Anonymous Anonymous said...

Barry Shenkarow called, he wants his carpet back.

At 4:21 p.m., October 22, 2007, Blogger J. Michael Neal said...

James, the link to the article is bad. I went to the site, but I couldn't tell which article you meant to link to.

At 4:32 p.m., October 22, 2007, Blogger James Mirtle said...

Fixed. I couldn't find it on The Tennessean's site, but it's on a sister publication's.

I don't know if it was removed on purpose or not.


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