Nashville Predators
The Predators said a settlement was reached that will allow the team to buy back the remaining shares owned by Gaylord Entertainment Company. That will be a partial payment on the company's naming rights agreement, which was ended. The Predators are now free to look for a new deal.
"The Predators would not be in Nashville today without the initial local ownership involvement of Gaylord," Predators owner Craig Leipold said in a statement. "Our two parties had a difference of opinion as to resolution of two agreements, and we have worked through those differences to avoid courtroom proceedings. We wish Gaylord well and look forward to having their support as we move forward."
The Predators sued Gaylord in May 2003 when the company stopped making payments on its $80 million, 20-year naming rights agreement. Gaylord countersued in July 2003, claiming the team breached a contract requiring it to buy back the company's ownership stake.
A Davidson County chancellor last March ordered Gaylord to start paying the Predators for the naming rights of the Gaylord Entertainment Center.
In the deal, Gaylord will pay the Predators $4 million and issue a five-year, $5 million promissory note with interest of 6 percent per year to the team. The note will be payable at $1 million per year for five years, and the first payment will be due on the first anniversary of when hockey resumes in Nashville.
Colin V. Reed, president and chief executive officer of Gaylord Entertainment, said the company is trying to shed businesses that aren't in the hospitality industry and focus on the Grand Ole Opry brand. Gaylord will keep its luxury suite, advertising and ticket purchases.
"We recognize the importance of local support to the Predators, and we will remain supporters and fans of the team," Reed said.