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SAN JOSE, Calif. — William (Boots) Del Biaggio III declared bankruptcy yesterday, which means his 27-per-cent stake in the NHL's Nashville Predators is now for sale — and that just might catch the eye of a certain Canadian billionaire.
The troubled Del Biaggio filed for personal bankruptcy in a Northern California court, listing $56.8-million (all currency U.S.) owed to his top 20 creditors. He filed a second bankruptcy for his investment fund, which owes $10.6 million to dozens of additional creditors.
A court-appointed trustee is expected to seize control of Del Biaggio's assets (chief among them his minority share in the Predators) then oversee their sale. That's where BlackBerry maker and hockey lover Jim Balsillie could re-enter the picture.
Balsillie tried to buy the Predators last year so he could move them to Hamilton. He tried to buy Del Biaggio's share last month. Both times, the NHL and commissioner Gary Bettman spurned him.
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Unless the NHL has consent rights in any bankruptcy, which would allow the league to steer or influence the sale of Del Biaggio's interest in the team, Balsillie would be able to make an offer for the second-largest stake in the Predators.
Sources said Balsillie might make such a pitch if he could inherit Del Biaggio's deal with the rest of the Nashville ownership group.
Under terms of their arrangement, Balsillie could still pursue a majority or outright interest in another NHL team while owning a minority stake in the Predators. If Balsillie were to purchase another club, the Nashville owners would have to buy out his 27 per cent.
Asked if the league had any rights or ability to work with the trustee in determining who can buy Del Biaggio's share, NHL deputy commissioner Bill Daly replied in an e-mail: "As a result of a bankruptcy filing, the ultimate disposition of the asset will be in the hands, initially of the Trustee, but ultimately of the bankruptcy court. Everything the Trustee proposes to do will be subject to approval of the bankruptcy court."
It has been reported Balsillie was recently informed he would not receive the identical terms Del Biaggio did when he bought his share of the team. The NHL, whose governors must approve of any new owner, is reluctant to do business with Balsillie, who began taking season-ticket deposits in Hamilton when he entered into a purchase agreement with the Predators' former owner, Craig Leipold.
One NHL source speculated Balsillie might buy the Del Biaggio share "just to put the heat on the NHL. The trustee has to turn Del Biaggio's assets into cash [for the creditors]. The NHL could be vulnerable."
Daly added that the NHL is "working with the Predators' current ownership group — not necessarily on a new investor, but on how Mr. Del Biaggio's interest in the Predators will be liquidated and dealt with going forward."
Predators' chairman David Freeman issued a statement last night that described the developments of the last few days as "shocking and disappointing. … This is an unfortunate distraction for the NHL, the city of Nashville, our fans, and our business partners."
Freeman added Del Biaggio's problems were personal and that "his minority ownership stake and its final disposition will not impact the operation of the club."
Once a prominent California financier, Del Biaggio was rocked this week by a number of lawsuits claiming he owed more than $17-million in unpaid loans.
Del Biaggio is being investigated by U.S. federal authorities for allegedly falsifying documents to obtain his loans. His wife has also filed for legal separation.
Some of the money Del Biaggio borrowed was to pay for his share in the $193-million deal that sold the Predators to a group of mostly local owners.
