Carolina Hurricanes Owner Peter Karmanos Jr. Is Facing a Legal Dispute with His Three Sons
Carolina Hurricanes Owner Peter Karmanos Jr. is immersed in a legal battle with his three sons in what’s being deemed a family dispute.
The civil case is reported to be worth over more than $105 million dollars.
via Sportsnet,
The case, which rests with the Oakland County Circuit Court, centres on Karmanos’s will. Karmanos is said to have borrowed millions of dollars from trusts promised to his sons in order to fund the Hurricanes.
Karmanos wrote a loan contract for more than $100 million, agreeing to pay interest using installments until June 29, 2022, or one year after his death.
Karmanos’s sons claim their father “failed to timely cure such defaults and accordingly, on or about May 25, 2016 the entire balance of the June 2013 note… more than $105 million… would become immediately due and payable.”
The sons filed a civil case in circuit court, instead of probate court, calling this a contract dispute.
It has been rumored for a while now that Carolina Hurricanes Owner Peter Karmanos Jr. has been looking to sell his majority stake in the club.
According to Forbes, the Hurricanes are worth roughly $225 million dollars.
You can find the complete lawsuit here (PDF file), courtesy of ClickonDetroit.
This is merely speculation based on the limited information publicly known. There may be facts that severely change this case, but on the surface this family dispute seems a little absurd.
Definition: Trust Fund via Investopedia,
A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The trust fund is established by a grantor to provide financial security to an individual, most often a child or grandchild – or organizations, such as a charity or other non-profit organization.
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Carolina Hurricanes Owner Peter Karmanos Jr., 73, worked a lifetime to be a successful businessman.
Why do his son’s feel obligation to the money their father earned? It’s an unfortunate situation, but life happens. This seems like nothing more than a case of greed.
This type of story can boggle the mind for the vast majority of us that work hard to make a living. Without growing up in the lifestyle though, it’s difficult to put ourselves in their shoes.
Plus, we don’t know exactly what’s happening behind the scenes, or how involved the three Karmanos’ sons have been in the business side of things.
It’s not worth speculating much further until more details come to light, but perhaps this family dispute helps Peter Karmanos Jr. to sell his majority stake in the Carolina Hurricanes a little sooner?
Next: Hurricanes Hire Ulf Samuelsson to Coach AHL Charlotte
Peter Karmanos Jr., his Compuware Partner, and Jim Rutherford purchased the Hartford Whalers back in 1994. The team was later renamed and moved to Carolina in 1996-97.
Karmanos also bought the expansion OHL Plymouth Whalers back in 1990. He sold the team in 2015, and they were renamed and moved – now the Flint Firebirds. Peter also owns stakes in the Florida Everblades hockey team (ECHL).
Peter was also named to the Hockey Hall of Fame in the Builder Category in 2015, the US Hockey Hall of Fame in 2013, and has received several awards/trophies for his dedication to our sport.