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Preds Situation Not So Dire, Prof Says
by Forechecker on 10/06/08 at 07:10 PM ET
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While many outlets ran with the news last week that the majority ownership group behind the Nashville Predators was claiming severe damages due to the bankruptcy of Boots Del Biaggio, one local sports economist who is close to the situation offers some perspective.
From today’s Tennessean:
John Vrooman, a Vanderbilt University sports economist who reviewed the federal claim, took issue with some assertions in the filing. For example, he questions the claim that Del Biaggio’s problems have or will cost the team $5 million to $10 million a year in lost revenue in sponsorships, ticket sales or other revenue streams.
“It’s impossible for a franchise to be traded at 193 (million dollars) and the team be losing money,” Vrooman said. “That’s probably not happening.”
One has to remember that the filing last week was related to the Freeman group’s status as a creditor in the Del Biaggio bankruptcy; in other words, just like all the other creditors, they’re looking to position themselves for as much compensation as they can get. Naturally, under those circumstances, they were going to state things in the worst possible light.
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About On the Forecheck
Dirk Hoag is the Forechecker, churner of NHL stats and analysis. Having started over 10 years ago writing for websites like In the Crease and e-Sports, Dirk launched On The Forecheck in 2005 to cover the Nashville Predators as well as apply statistical analysis to NHL hockey.
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The issue is also one that applies to far more teams than just the Predators. Many teams consistently imply they’re on the verge of bankruptcy, despite sold out seats and astonishing gross profits. But it seems like those values are camouflaged to make the asset profitable for them in other ways (like tax reasons, and so on).
That being said, the Predators problems are obviously fairly serious in some ways that other teams aren’t dealing with. And the endless perception of their troubles is probably one of their biggest issues of all. Being constantly portrayed as a sinking ship just isn’t good for any business.
Posted by Alanah McGinley from British Columbia on 10/06/08 at 06:54 PM ET