LA Kings, 1995
On May 12, 1995, Los Angeles businessman Bruce McNall put his holdings of the LA Kings into bankruptcy protection.
McNall was facing fraud charges at the time, and would later serve four years in prison. He owned the entire franchise, but sold 72 per cent for $60 million a year before the filing.
Businessmen Philip F. Anschutz and Edward P. Roski, Jr. bought the Kings in October 1995. They attempted to rebuild the club, but lost superstar Wayne Gretzky to the St. Louis Blues the following February.
The Kings missed the playoffs for the next three seasons, and have not made the playoffs since 2002.
Pittsburgh Penguins, 1998
The Pittsburgh Penguins franchise was worth around $100 million US in 1998, but was shouldering more than that amount in debt.
The team lost $37.5 million US over the previous two seasons, forcing the ownership of the team, led by Roger Marino, to file for bankruptcy. Marino also requested permission from the federal bankruptcy court to attempt to shop the franchise to another city.
Hall-of-Famer and former player Mario Lemieux, along with California entrepreneur Rob Burkle, stepped in and bought the team in September 1999.
A year later, Lemieux announced he would return to the team as a player, and skated in his first game since retirement on Dec. 27, 2000, beating the Toronto Maple Leafs in Pittsburgh.
That bankruptcy filing was not the first in Penguins history. The team filed for Chapter 11 in 1975 after the IRS padlocked the team’s offices.
Former owners Tad Potter and Peter Block couldn’t pay $6.5 million US in debt, including $500,000 in federal taxes, leading the IRS to seize the club’s assets.
Ottawa Senators, 2002
The Ottawa Senators filed for bankruptcy protection in January 2002, saddled with more than $160 million in debt.
Owner Rod Bryden expressed concern that the Senators would leave Ottawa, and encouraged fans to purchase tickets to keep the team afloat, and hopefully, in the city.
Canadian businessman Eugene Melnyk, CEO of the pharmaceutical giant Biovail, stepped in and bought the club in May of 2003, for $71.8 million.
The Senators did not make the playoffs in the most recent NHL season, but have made the playoffs every other year since the filing.
Buffalo Sabres, 2003
In early 2003, the Buffalo Sabres owed creditors more than $206 million US. The largest debt holder of the team, cable TV company Adelphia, was owed $157 million US by the franchise.
Owner of the Sabres and Adelphia, John Rigas, was indicted on fraud charges in July 2002, along with his two sons, for allegedly “using the company as the Rigas family’s personal piggy bank,” according to prosecutors.
Adelphia slid into bankruptcy protection, and the NHL took over operation of the Sabres.
Less than a week after the Ottawa Senators declared bankruptcy, the Sabres followed suit.
In April of that year, billionaire B. Thomas Golisano bought the team for $92 million US. Golisano founded and chaired Paychex, the United States’ second-largest payroll-processing company.
The Sabres emerged as one of the most competitive teams in the league after the lockout season of 2004/2005, advancing to the Eastern Conference finals in 2006.
Nashville Predators, 2008
On June 6, 2008, minority owner of the Nashville Predators William (Boots) Del Biaggio filed for bankruptcy in the Northern District of California.
The filing listed more than $67 million US owed to 20 creditors and an investment fund. Del Biaggio owned 27 per cent of the team, purchased along with a group of businessmen the year before from former owner Craig Leipold.
Del Biaggio was facing four separate lawsuits at the time, and was under investigation by U.S. federal authorities.
Weeks before Del Biaggio and fellow investors bought the club, Leipold had entered into a letter of intent to sell the Sabres to Research in Motion executive Jim Balsillie. But the deal fell through after Balsillie expressed interest in moving the franchise to Ontario.
The remaining owners of the Predators have also submitted a bid for Del Biaggio’s 27-per-cent share.
Recent reports say Calgary billionaire Brett Wilson has a deal to buy a small stake in the Predators, but it has not been finalized.
Wilson is a founder of FirstEnergy Capital Corp. in Calgary, and is reportedly interested in buying less than five per cent of the team from the existing ownership consortium, but none of Del Biaggio’s share.
It will be up to bankruptcy trustee R. Todd Neilson to ultimately sell the share to the highest bidder. Forbes.com values the 27-per-cent stake at $143 million.
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