Statement from Men O'War on Hockey's Future in Lexington
April 19, 2003 - ECHL (ECHL)
Burlington News Release
Lexington, KY - Today, with a great deal of frustration and sadness, we are sorry to report a breakdown in negotiations to continue with the operation of the Lexington Men O' War professional hockey franchise.
For the last three months, Micadco, USA, Inc. Micadco President Michel Cadrin and his Executive Vice-President, Paul Webb, have authorized us to enter into negotiations with DJK Properties, LLC and it's President/CEO, Mr. Daniel Kanabroski, for the purpose of pursuing and securing a combination of business agreements enabling professional hockey's continuation in Lexington, as a viable member of the East Coast Hockey League.
On Friday, April 4, 2003, we were informed by Micadco and provided with a copy of a written agreement by Micadco, submitted by Kanabroski and signed by both parties, that secured Kanabroski's purchase of Micadco's assets. This asset purchase agreement included all rights to the Men O' War copyright and logo, all front office hardware and software and other various tangible hard assets, including locker room equipment, etc.
A direct clause in this signed agreement included Kanabroski's requirement to provide a significant portion of the asset purchase price on April 4th, with the remainder due at closing. However, despite his verbal and in person commitment to provide these funds via a wire transfer on April 4, this transfer did not occur.
Further, on Tuesday, April 8th, Kanabroski verbally committed, in the audible presence via conference call of his attorney, Mr. Carlo Wessels, that this wire transfer would take place prior to the close of business on Tuesday, April 8th. This conversation took place at 1:30 p.m., and a public press conference was held, in good faith on behalf of Kanabroski, at 2:00 p.m. that day, indicating the asset purchase agreement as inclusive of a multi-tiered announcement.
However, for the second time in a span of four days, Kanabroski's verbal commitment resulted in no activity. The following day, Micadco legal counsel served Kanabroski and Wessels with paperwork nullifying this transaction as a result of multiple defaults, and we have been asked by Micadco to retain Kentucky legal counsel to pursue damages as a result.
Though it was not indicated as a requirement in the signed asset purchase agreement, Kanabroski and Wessels suddenly indicated on Wednesday April 9th, after twice defaulting on the signed agreement, that the wire transfer would not occur until Micadco could provide a letter of tax clearance from the Kentucky Revenue Cabinet. This information was provided to Kanabroski/Wessels on Wednesday, April 15th. This was after written correspondence from Kanabroski on Monday, April 13th of his continued intent to close in full on the asset purchase agreement upon being shown this clearance letter. Again, Mr. Kanabroski failed to fulfill his commitment.
Further, Mr. Kanabroski submitted and received a signed letter of intent to purchase an existing ECHL membership, with a clause allowing him to pull out in the event of his inability to secure a lease with Lexington Center Corporation (Rupp Arena) and it's president, Mr. William Owen.
Mr. Kanabroski was advised during his initial meeting in early March with Mr. Owen that he would have to present a verifiable personal financial statement as a requirement of good faith negotiations. Instead, according to Owen, Mr. Kanabroski provided an unsigned and unverifiable personal financial statement.
Mr Kanabroski was informed that his personal financial statement was unacceptable, and has in good faith been provided with three weeks to present additional information inclusive of banking references, but was either unwilling or unable to do so.
In a written letter from Owen to Kanabroski on April 14, 2003, Owen indicated to Kanabroski that his failure to present a verifiable personal financial statement was a dominant factor in Rupp Arena's inability to consider Mr. Kanabroski's proposal.
Further, ECHL President Brian McKenna was advised of the aforementioned proceedings and negotiations, and also personally advised Kanabroski of his requirement to provide the ECHL Executive Committee with a verifiable personal financial statement. Despite Mr. Kanabroski's statement on Monday, April 7th, that he had indeed provided this documentation to the league, Mr. McKenna wrote to us on the evening of Friday, April 11th that he had not received any information from Kanabroski pertinent to his request.
In conclusion, on Thursday, April 17th, Mr. Kanabroski informed us, McKenna, Owen and the aforementioned ECHL franchise owners alluded to in this statement, of his intent to withdraw his membership purchase agreement letter of intent, on the grounds that he was unable to secure a lease with Lexington Center Corporation a transaction that Owen informed us was never seriously considered as a result of Kanabroski's repeated failure to provide a verifiable personal financial statement.
We are stunned by these recent developments considering the good faith in which we negotiated with Mr. Kanabroski and the trust in which we placed his intentions.
In closing, we will pursue hockey's existence in Lexington with various other existing leagues. Micadco has been an honorable business partner with many Central Kentucky companies, and will agree to a sale of the Men O' War copyright and logo to any worthwhile entity who wishes to pursue the continuation of hockey in Lexington. Micadco has retained over $500,000 in business pledges from Central Kentucky individuals and corporations during our drive in early 2003. This drive generated the equivalency of over 1,000 season tickets, prior to the ECHL membership that Micadco leased and operated in 2002-03 being granted a voluntary suspension by the ECHL at the request of the membership owner, David Elmore.
Our warmest regards to all that supported the Men Oâ War during it's 2003-03 season.
• Discuss this story on the ECHL message board...
ECHL Stories from April 19, 2003
- Falcons Aim to Clinch Finals Berth - Fresno Falcons
- Statement from Men O'War on Hockey's Future in Lexington - Burlington
- Falcons Grab Stranglehold on Series - Fresno Falcons
- Taylor Cup Finals Dates Announced - San Diego Gulls
- Gulls Advance To Taylor Cup Finals With 3-1 Win - San Diego Gulls
- Gulls Eliminate Condors - Bakersfield Condors
The opinions expressed in this release are those of the organization issuing it, and do not necessarily reflect the thoughts or opinions of OurSports Central or its staff.
