AEG Has 5 For Idea Of Possible LA Move

((HT: ESPNLosAngeles))

The cat is now, somewhat, out of the bag...

The HQ knows that AEG is looking to build a 72,000 seat NFL stadium next door to Staples to be part of the LA convention Center campus-megaplex.

They've talked to five separate teams about the idea of moving there if and when the stadium is built: San Diego, Minnesota, St. Louis, Jacksonville, and Oakland...

Chris McKendry asks Adam Schefter about the idea...
Hey, Schef...


The HQ could see the San Diego gambit working if the stadium idea falls through down there. We also could see Jacksonville with their disappointing efforts at the gate before the other three.

Scott Reid broke the news from his beat at the OC Register. But there's a huge hook in all of this for AEG...

From Reid:

He (Leiweke) reiterated AEG's July 31 deadline for reaching a memorandum of understanding with the Los Angeles City Council in order for AEG to move forward with the project. The council is expected to adjourn for the summer between July 31 and Aug. 15. AEG hopes to have a deal finalized with the city by May 2012.

Leiweke said the MOU is vital if AEG is to break ground on the project next June, which would enable it to open the stadium in September 2016.

"If it (the council) goes away for the summer without the MOU we've got to rekindle this again in mid-September and we're not going to make 2016," Leiweke said. "If we get the MOU by July 31st, what it proves to the NFL is that we could in fact get a deal done here."

But the larger question is: Which of those above teams could wait to 2016 to file their moving papers for downtown LA (or Ed Roski's City of Industry site which seems like it's been planned since the Raiders moved back to Oakland)...???

Jacksonville...? Could Wayne Weaver hold on that long...???

Minnesota should have its new stadium built by then...

San Diego would need to have their plans finalized one way or the other by the end of their current lease...

St. Louis is up to the Kroenke's by the time we hit 2016...

And, Oakland...? Hell, the HQ reminds everyone we're talking Al Davis here...

Where's Ol' JR again...???

One step closer: L.A getting support for stadium, will team follow?

Stadium Project Rendering/Gensler

((ht: latimes))

This may get interesting. A Los Angeles City Council committee meeting turned into a bit of a love fest for the AEG group and their plan to bring football back to L.A.

The group made their initial presentation and proposal to the committee, telling them what they plan to do and what they would need in order to make their ambitious stadium plan and acquisition of a team happen.

And apparently, the committee liked what they heard. AEG is promising to foot most of the bill for all of this and is claiming they'll create a ton of new jobs.

More from Lance Pugmire of the LATimes RIGHT HERE

There are still a ton of questions to be answered here. A lot of the costs for the $1 billion project is supposedly going to be paid back by ticket taxes. AEG is claiming they will be paying for shortfalls and other incidental costs. Quite frankly, don't believe that for a second.

It will also be interesting to see which team AEG president Tim Leiweke can actually convince to come play in his palace. We aren't saying he won't. There are plenty of teams out there who are struggling financially. And there are a handful who are having attendance problems. More than one of them are trying to bleed more money out of their financially strapped cities to help curb the fact that nobody wants to pay a kings ransom to see them play anymore (see: Bengals, Cincinnati).

We will continue following this story. While it may not be an issue in a strike shortened year such as the one we have to look forward to in late 2011, it will be as we move forward from there. We'll just have to wait and see who's going to be the first one's to say "Okay, I'm in".

The only video we could think of to fit. Madness--"One Step Beyond"!

BREAKING: Anschutz To Purchase Piece Of Chargers

((HT: FAN590 Toronto))

THE FAN 590's Bob McCown, on his afternoon "Prime Time Sports" program is reporting that billionaire Philip Anschutz either has or will be purchasing up to 35% of the NFL's San Diego Chargers, with the intent of moving the Chargers to Los Angeles.

The Spanos family announced their intent to sell that portion a while back, and now it looks like the first stage of removing the Chargers from the Qualcomm Stadium lease issues in the past years.

Here's some sound from 2009 involving California assemblyman Nathan Fletcher and his attempts to ask AB 81XXX be amended to forbid the City of Industry's environmental regulations exemption from being leveraged to lure any existing California-based professional sports team to the new City of Industry stadium.

His amendment failed by a vote of 29-22...


And an interview with The Voice of San Diego's Liam Dillon on KPBS-TV's "The Reporters" discussing the legal issues of a new San Diego stadium last football season...


More when we know more...

His Boots Are Headed For Prison

((HT: GlobeSports))

A federal judge on Tuesday sentenced Silicon Valley financier William “Boots” Del Biaggio III ((pictured, thanks Nashville Post)) to more than eight years in prison for bilking investors and banks — including one he helped launch — out of millions of dollars in a desperate attempt to buy a pro hockey team.

Boots is to report to prison in January.

Del Biaggio pleaded guilty to one charge of forging financial documents to obtain $110 million in loans from several banks and two NHL owners — Craig Leopold of the Minnesota Wild and Los Angeles Kings owner AEG. Del Biaggio used the money to purchase a controlling interest in the Nashville Predators.

Del Biaggio set his crime in motion by turning to David Cacchione, a financially strapped stockbroker at Merriman Curhan Ford Group Inc. who owed him $2 million. According to federal prosecutors and the SEC, Cacchione e-mailed Del Biaggio account statements from several wealthy Merriman clients showing tens of millions of dollars worth of stock holdings.

Del Biaggio then doctored the account statements by cutting out the clients' names and pasting in his own and presenting them to the banks and NHL owners as collateral. Auditors examining Merriman's books uncovered the fraud last year. Cacchione has pleaded guilty to one fraud charge and is scheduled to be sentenced Sept. 29.

Henry Tang, Merriman's chief financial officer, on Tuesday told U.S. District Court Judge Charles Breyer that the scam cost the San Francisco-based company $10 million in legal fees and forced it reduce its staff from 188 employees to 85. Tang said the publicly traded company's share price has tumbled because of Del Biaggio's action, wiping out $43.4 million in market capitalization.

Breyer ordered Del Biaggio to pay back eight banks and the two NHL owners a combined $47.5 million. One of the victim banks is Heritage Bank of Commerce, which Del Biaggio co-founded with his father nearly 20 years ago. The judge ordered Del Biaggio to pay the bank $4.8 million.

Besides the fraudulent loans, the Securities and Exchange Commission has filed a lawsuit seeking to recover roughly $20 million of individual investments the agency accuses Del Biaggio of spending on personal expenses. Three of those investors on Tuesday urged the judge to mete out a lengthy prison sentence, complaining that Del Biaggio squandered their retirement funds and children's education nest eggs.

Several other victims, including childhood friends and longtime business associates, wrote the court with similar sentiments. Although those losses weren't included in the indictment, Breyer still ordered Del Biaggio to also pay back those victims. In all, Del Biaggio has to repay a total of $67.4 million.

“A betrayal of trust is an awful thing,” Breyer said. “I don't care if you can pay back everything — this will never leave you and that's the real punishment here.”

Breyer said Del Biaggio's cooperation with investigators once his fraud was discovered spared him a longer prison sentence of more than 10 years.

He filed for bankruptcy and many of his assets, including his Nashville Predators stake, will be sold by court order.

On Tuesday, while his weeping parents and friends looked on, Del Biaggio tearfully apologized and vowed to pay back everyone.

“I was blinded by pride and ego,” he said. “Everyone makes mistakes. I will come back from this and I refuse to let this define my life.”

Those of us at OSG HQ would like to remind people that the NHL let this happen as well- by not performing due diligence necessary to make sure someone like Del Biaggio couldn't be an owner...

And that Jim Balsillie could...

Coyotes Auction Unlikely Wednesday

((HT: GlobeSports/Shoalts, Waldie))

On a day that saw Phoenix Coyotes owner Jerry Moyes and would-be buyer Jim Balsillie ((pictured, thanks GlobeSports file)) intensify their legal war with the NHL and a third – albeit incomplete – bid for the team finally emerge, the only near-certainty at the end of a blizzard of court filings is that the auction sale planned for next Wednesday is unlikely to proceed.

Almost all of the parties involved asked the U.S. Bankruptcy Court to either postpone or cancel the sale, which is restricted to bidders who want to keep the Coyotes in the Phoenix suburb of Glendale. By late last night, the only major party which did not make the request was the bidding group led by Chicago White Sox and Chicago Bulls owner Jerry Reinsdorf.

A hearing is tentatively scheduled for Monday afternoon in Phoenix for Judge Redfield T. Baum to hear arguments about delaying or even cancelling Wednesday’s sale.

Ice Edge Holdings LLC, a group of Canadian and American businessmen, filed a $150-million (all currency U.S.) offer for the Coyotes with the court yesterday and it included a request to postpone the sale until September. The group said it needs time to complete its due diligence, finish lease negotiations with Glendale, convince the Coyotes’ major creditors to accept new terms and to find more investors.

Ice Edge and Reinsdorf, whose bid is for $148-million, are the only bidders who promise to keep the team in Glendale. Balsillie, the only other bidder, wants to move the Coyotes to Hamilton. The Ice Edge bid was quickly followed last night by filings from Moyes and Balsillie that said both the Reinsdorf and Ice Edge bids failed to meet the qualifications demanded by the court and should be rejected. They want the court to proceed directly to the auction planned for Sept. 10, which is to consider bids for relocating the team if the Glendale bids were not accepted.

One of the oddest filings during the busy day was one from the NHL which appeared to object in part to Reinsdorf's bid, one which the league has been championing for months. In its filing, the league objected to proposed settlement amounts for various contracts owed to NHL and people or companies connected to it.

However, the filing was made to ensure the league's rights were protected because negotiations with Reinsdorf have not been completed.

Balsillie, the co-CEO of Research In Motion, also filed a new version of his $212.5-million bid. The key difference in this one is that a provision that would have paid Coyotes head coach and minority owner Wayne Gretzky as much as $22.5-million was removed. Instead, all of the purchase price will be in cash with no designated amounts.

Like Moyes, Balsillie charged that neither Reinsdorf nor Ice Edge offered any cash for the creditors and their bids should not be considered by the court. His filing also accused NHL commissioner Gary Bettman of having a personal bias against him and that the league governors’ rejection of him as a potential owner was a sham.

“It is clear to Mr. Balsillie that commissioner Bettman and a number of the governors have a personal grudge against Mr. Balsillie,” the filing said, “and that the root of the problem is Mr. Balsillie making prudent business decisions, in each case within his contract terms, instead of spending vast amounts of money for an unprofitable team with no right to apply for relocation.”

The court document went on to say Balsillie believes his rejection by the NHL was connected to a last-minute dispute in 2006 over his right to move the Pittsburgh Penguins that caused him to withdraw an offer for the team.

As for the league approving Reinsdorf as an owner and not him, Balsillie’s filing said, “It is telling that the NHL conditionally approved the Reinsdorf transfer application even though the individuals comprising the Reinsdorf group have not been determined. It appears to PSE [the company Balsillie formed to handle the sale] that the outcome of the NHL’s deliberations was scripted to advance the NHL’s objectives in relation to matters before the court.”

Daryl Jones, one of the leaders of Ice Edge, said his group’s offer differs from Reinsdorf’s in three key areas. Ice Edge is offering to modify Gretzky’s employment contract where as Reinsdorf has excluded Gretzky’s contract from his bid. Ice Edge will also pay off more secured creditors – including Moyes – Jones said. And the group has pledged to cover the costs of winding down the Coyotes once the Chapter 11 process is over. While Jones declined to provide an estimate for how much that could cost, it typically runs into the millions.

“This is another positive step forward for us,” he said. “Our constraint has always been time and with this we’re sending a real signal to the court that we’re serious.”

Another condition of the Ice Edge offer is that Glendale agrees to allow up to five regular-season and additional NHL playoff games to be played elsewhere. The group hopes to receive NHL approval to play those games in Saskatoon.

The Coyotes’ largest creditor, meanwhile, broke its silence yesterday. SOF Investments Ltd., a fund owned by computer tycoon Michael Dell and that is owed at least $80-million by the Coyotes, also filed an objection to Wednesday’s sale.

Lawyers for SOF joined Moyes and Balsillie in saying neither bid consists of any cash but only the assumption of debt and a condition that new deals be worked out with some creditors while others would be left out in the cold. Both Moyes and Balsillie pointed out neither bid put up a $10-million deposit by yesterday, which was part of the court’s terms.

The SOF filing noted that only Balsillie’s offer would pay the investment fund in full. However, SOF also reserved its right to accept a bid from Reinsdorf or Ice Edge if an acceptable deal could be made.

Also joining the fray was AEG, the company owned by Los Angeles Kings owner Philip Anschutz, and the Goldwater Institute, a conservative watchdog group that may sue Glendale if it feels too much money is given away in lease concessions.

AEG, which has the contract to manage Jobing.com Arena, objected to Wednesday’s sale because of a dispute with Reinsdorf over how much money AEG is owed. The Goldwater Institute, which lost a bid in another court yesterday to make public all of the arena lease negotiations, asked the judge to keep the interests of Glendale taxpayers in mind concerning the Reinsdorf and Ice Edge bids.

Islanders-Kings Set For Kansas City

Darren Dreger of TSN reports that a match-up has been set up between the LA Kings and the New York Islanders for the Sprint Center in Kansas City in September.

We all know that exhibition games are played all the time in cities that don't have NHL franchises. That's the easy part...

The operator of the Sprint Center, which is still begging for a primary tenant, is the Anschutz Entertainment Group ((AEG)). AEG's Chief Operating Officer is Tim Leiweke. Leiweke is also the governor of the Kings.

No, the Kings aren't going to be the ones moving any time soon. AEG is also the operator of Staples Center- the home of the Kings, Clippers, and the Lakers. It might be the Islanders, though, if owner Charles Wang doesn't get his way.

The Nassau Coliseum on Long Island is a pothole. I really can't put it any nicer. All you have to do is ask any of the rats or plumbers that have taken up residences over the years. Wang has tried to float his "Lighthouse" project to improve the area- taking the 100 surrounding acres and converting it into an arena, mall, multi-purpose facility. The politicos in the area haven't quite given Wang any answers as to the Lighthouse's future.

Obviously, Wang doesn't like that... and what this is turning into is a warning shot across Long Island's bow on the whole. AEG has always looked for a primary for the building. They promised the Pittsburgh Penguins everything short of wives and mothers of children to move there before the new arena deal was reached.

So, now it's the Islanders turn. And they just moved to the front of the dance card.

Other franchises in trouble ((unless, of course, you listen to the NHL front office)) like Phoenix, Nashville, Miami, and Atlanta may have to move quickly and kiss up to AEG if they want a way out of their current situation in the attempt to improve it.

If Kansas City is taken off the map, then what is left for the other three...? Jim Balsillie's interest could take a franchise north of the border- which is where it should be in the first place. Waterloo, Hamilton, or Toronto II shouldn't matter- except in the perpetually, short-sighted eyes of the league office.

That takes care of another market... then what...? You're really stretching it, then.

And Charles Wang, through all of this, just became the belle of the ball.

Boots Kicked Again

Pete Carey in the San Jose Mercury-News adds another name to the list of folks the former San Jose Sharks/Nashville Predators part-owner William "Boots" Del Biaggio can't keep on any Fave 5 list for the forseeable future...

Former Los Angeles Kings superstar Luc Robitaille...

Robitaille has sued Del Biaggio for fraud stemming their involvement in a bank loan that Robitaille claims was used, partly, for Del Biaggio's "extravagant lifestyle."

The pair had done business before everything fell apart for Del Biaggio- including the joint purchase of the United States Hockey League ((USHL)) franchise in Omaha, Nebraska- the Omaha Lancers.

((Unrelated sidebar- the Lancers and Robitaille are putting corporate sponsorship opportunities for the upcoming USHL season on Ebay through the 29th of September))

((Go here if you're interested- http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=170263970189))

Robitaille and Del Biaggio apparently picked up a US$2-million line of credit to invest in real estate and some other things. Now Robitaille says Del Biaggio "tricked him" in to signing for the credit line, and is asking to be relieved of his part of the full amount credited since he "received no benefits" from it.

It is also Robitaille's belief that Del Biaggio maxed out the credit line at the end of 2008 without telling Robitaille he had done that.

Remember who owns the Los Angeles Kings ((the team Robitaille played for most of his career))...?

AEG...
Remember what AEG has to do with all of this...?

Just thought we'd remind you...

Tear Down The Bulin Wall...???

Darren Dreger of TSN in Canada is reporting that the Chicago Blackhawks are looking to move goalie Nikolai Khabibulin- and fast.

As of right now, the Blackhawks are two-and-a-half million dollars over the newly minted US$56.6-million number and need to move some freight. Dreger maintains, and those of us at OSG HQ have agreed for a while now, that the LA Kings is the likely destination. Khabibulin ((pictured, thanks yahoosports.com)) is set to make US$6.75-million in the last year of his current deal, and has told anyone willing to listen that he wants to play the lion's share of the games for whatever team he plays for in 2008-2009.

With Cristobal Huet:
A)Also in net,
B)Making a million dollars less and,
C)Under contract for three more seasons

That ain't happening...

With Khabibulin in Los Angeles, the Kings get:
A) A Number One goaltender, which Jason LaBarbera is not...
B) Closer to US$32-million which is STILL seven million dollars short of the NHL-imposed floor-level number for salary cap purposes...

((Ed. Note- Seems like an Atlanta/Nashville move trying to underspend, but we digress))

But, then who do the Kings move to Chicago...?

The Hawks need a winger that can stay with Jonathan Toews and Patrick Kane. The answer, to the chagrin of Kings fans ((if there are any left)) would be Young Star Anze Kopitar. Kings fans would, then, disappear if Kopitar left the building. The level of "care" Kings' owner AEG would have is, probably, slight.

Kopitar is still under his entry-level deal where, with bonus money thrown in, he will make close to US$900,000. He is set to be a restricted free agent at the end of the 08-09 season.

Salary figures in LA also lean toward a Raitas Ivanans or a Matt Ellis, but neither has the pop a Kopitar does.

Six weeks ago, the Toronto Sun reported on the possibility of a three-way dance among the Kings, Hawks, and Senators. Kopitar goes to Chicago. Andrej Meszaros and Martin Gerber go to Los Angeles. The Sens get Khabibulin and either Brent Seabrook or Cam Barker. Meszaros, however, may have thrown a monkey in that wrench by signing an offer sheet with an undisclosed franchise Thursday for US$5-million per season. The Sens, acknowledging a contract negotiation impasse, could match and then pull a sign-and-trade if the Sun's info was anywhere close to correct to keep this paragraph accurate.

Choose your dance partner and start the carnival music...
Here's a sample of what someone could be getting very soon...

NHL Looking Into AEG

What would happen if you owned more than one franchise at once...?

That scenario almost happened when Anschutz Entertainment Group ((AEG)) dropped a $7-million loan, and Craig Leipold sent $10-million into the pockets of "Boots" Del Biaggio to make sure his Forecheck Holdings could pick up 31-percent of the Nashville Predators when Leipold wanted to leave and buy the Minnesota Wild.

Got all that...?

Had this all gone down AEG would have had pieces of the LA Kings and the Preds. Leipold would have had pieces of the Wild and the Preds. Del Biaggio admitted, in his prospectus for possible Forecheck investors, that he thought after two seasons there would be enough of a loss to move the team from Nashville. He also admitted Kansas City had shown interest in gaining a tenant for its Sprint Center ((pictured- Isn't it pretty??)). "Boots" also admitted NHL Commissioner Gary Bettman didn't perform standard due diligence research on his finances to a California business associate Doug Bergeron. Bettman disputes Bergeron's version of events.

By the way, guess who owns the Sprint Center...?
Yup... AEG...

Larry Brooks work in New York City at the Post going over all this is hyah
Current Wild, and possible current-partial owner of the Preds, Craig Leipold is now "disappointed" in learning Del Biaggio is chasing bankruptcy protection in the St. Paul Pioneer-Press;

"Mr. Leipold is disappointed to learn of these developments regarding Mr. Del Biaggio. Mr. Leipold has been pursuing his legal remedies, and he will continue to assert his claims against Mr. Del Biaggio in accordance with the applicable bankruptcy court procedures.

"In deference to the judicial process, Mr. Leipold prefers not to comment on the pending litigation against Mr. Del Biaggio at this time."

Leipold failed to address the idea of loaning Del Biaggio the money...
Shocking...

Preds Sale Hinged On Leipold Loan

The Tennessean's Brad Schrade is at it again...

He has come across the confidential agreement that got old owner Craig Leipold ((pictured, thanks thetennessean.com/George Walker IV)) out of owning the NHL's Nashville Predators and got the local consortium in as the owners.

There's one problem... Leipold and AEG, the parent company of the Los Angeles Kings, loaned "Boots" Del Biaggio 17 of the 30-million dollars that he pitched in to be part of the new sandbox.
Del Biaggio and his Forecheck Holdings outfit was in possession of 31-percent of the franchise until it was disclosed that Del Biaggio had apparently falsified financial records to make himself a bigger ((and more solvent)) player in the owning game than he was. Del Biaggio is currently chasing bankruptcy protection.

The Bettman is receiving a fair amount of flak these days because he was persuaded in some form or another not to perform his normal due diligence to check Del Biaggio's financial records before he was to become part of the frat.

Leipold also put in another $10-million in the form of a seller's note, and the new owners wanted Leipold to throw more money in ((or find another owner for the group)) if Del Biaggio's involvement disappeared. His original $10-million could have become $40-million.

And it ain't over...

"In contrast to the Del Biaggio loans, Leipold's $10 million seller's note to the Predators was disclosed in the purchase documents. That loan, which Freeman described as seller financing, along with an additional $20 million put in by the local owners, was intended to be a short-term loan.

The bank involved in the deal, CIT Group, had withheld $30 million in financing, pending the changes to the team's Sommet Center lease with Metro. But even after the more favorable lease terms were approved by the city in April, the $30 million didn't come through. So those notes to Leipold and the local group are still outstanding, though they were disclosed in the purchase documents."

The remainder of the Schrade article can be found hyah