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How to Steal a Hockey Team: Boots and the Preds, a Match Made in Court

William Del Biaggio III was a man with a lavish lifestyle, a fixture at NHL events around the country and someone who for years had tried to buy a hockey team. He negotiated a deal to buy the Pittsburgh Penguins with his "friend" Mario Lemiuex back in 2005, but that deal never materialized. Later, he tried to bring the team to Kansas City, but again the deal fell apart. Most recently, he bought a 25% interest in the Nashville Predators as part of a group of mostly local Nashville businessmen who bought the Predators last year from then owner Craig Leipold.

This is where the story really starts to get interesting. You see, Biaggio needed $25 million to buy that 25% share. The only problem was he didn't have it. According to the Securities and Exchange Commission, since 2003, he has defrauded investors of $19 million to finance his lavish lifestyle and pay his gambling debts. Since August, 2007, he forged documents to obtain $45 million to purchase his interest in the Preds and pay off gambling and other debts.

Biaggio's 25% interest in the Predators is tied up in bankruptcy proceedings in California and will eventually be auctioned by the bankruptcy court. The current ownership group is interested in purchasing the interest as is RIMM co-founder (maker of the Blackberry) Jim Balsillie.

The whole sordid affair kind of makes you wonder just what kind of screening do these owners really do before they approve a sale?

Full post as published by Sports Biz on December 06, 2008 (boomark / email).