Owner of the NHL team the Dallas Stars, Tom Hicks, found himself facing tough decisions in May of this year. After struggling for nearly a year to keep up with payments Hicks sought bankruptcy protection to help resolve the team’s financial troubles.
The Stars had been facing lawsuits from creditors after defaulting on several loans and missing interest payments. In May of this year, Hicks reported that, “The creditors seriously misjudge how professional sports work.”
What The Future Holds
Despite tension between Hicks and the creditors, the plan has been set for an auction to take place in which the highest bidder can take ownership of the team. Creditors voted in favor of the auction, in hopes of recouping their otherwise lost money.
So far the top bid goes to Tom Gaglardi, a Canadian businessman that is president of a company that operates Sandman Hotels and is the majority owner of the Western Hockey League’s Kamlopps Blazers. If Gaglardi wins the auction he stands to inherit nearly $500 million in debts, about $100 million more than originally set forth in the petition.
But don’t feel bad for Gaglardi yet, he will also walk away with the rights to a historically championship team that has been valued as the 10th most valuable team in the NHL, as well as a 50% stake in the American Airlines center. The decision about when and where the auction will be held is expected by the end of the day.