Preds Owner David Freeman (Oak Hill Citizen) Acknowledges Cash Flow Problem

Preds Owner David Freeman (Oak Hill Citizen) Acknowledges Cash Flow Problem

By Brad Schrade • The Tennessean • November 30, 2009

Predators lead owner David Freeman acknowledged today that he has had a personal cash flow problem, and is having to sell off assets to pay a $3.3 million lien placed on him earlier this year by the IRS for not paying his taxes.

"I am toward the end stages of liquidating additional assets and paying my tax obligations in full and with the knowledge and cooperation of the IRS," Freeman said in an e-mail this afternoon addressed to "Senior Staff" of the Predators. Freeman forwarded the e-mail to The Tennessean which started inquiring about the tax lien last week.

Although Freeman said the matter is "very complicated" he alluded to problems brought on by the William "Boots" Del Biaggio scandal. The Silicon Valley financier was a one fourth owner in the team before filing for bankruptcy last year and later pleading guilty to defrauding lenders out of millions in an effort to buy his share of the team in late 2007.

Freeman said he lent the Predators several million dollars in 2007 to complete the sale of the team. That was supposed to be a short-term loan but it didn't work out that way.

"Due to subsequent events eventually culminating in the bankruptcies of parties associated with the team, it has become appropriate for me to convert my loan into an additional permanent investment in the club.

"Stabilizing the Predators was never envisioned as an easy task, a quick task, or a task without personal sacrifice," Freeman said in his e-mail. He said the process is "proceeding well."Freeman has declined interview requests since last week to discuss the lien, which came out after the team filed a lawsuit against the Sommet Group. The team accused the Franklin-based company of failing to pay its naming rights fee, starting several months ago.

The naming rights deal for the Metro-owned downtown arena was supposed to run through the middle of next year, but has unraveled. The naming-rights fees are an important revenue for the team.A special meeting has been called for Thursday in which the Metro Sports Authority is expected to approve a name change to the Sommet Center, which will be called the Nashville Arena.