Carolina Hurricanes owner Peter Karmanos Jr. is facing a hefty legal battle brought on by his own kin.
In a lawsuit filed last week in Oakland County (Mich.) court, Karmanos' three sons are seeking $105 from their father over an alleged unpaid loan.
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The disputed claim, according to Nick, Jason, and Peter Karmanos III, stems from $100 million their father borrowed from a trust fund they shared in order to pay for Hurricanes-related expenses in 2013. Karmanos has failed to pay back the money he took, the brothers said, and the debt has grown to about $105 million after interest.
The lawsuit, obtained by ClickOnDetroit.com, states the elder Karmanos was served a default notice in April from his sons demanding a $4.3 million payment within 30 days. When he did not pay, the brothers decided to pursue litigation.
Karmanos earned his wealth by founding Compuware Corp., a computer services company. In 1994, he purchased the Hurricanes, then the Hartford Whalers, along with two other business partners for $48 million and moved the team to Raleigh, N.C., three years later.
It's been an uphill financial battle ever since as one of the least profitable franchises in the NHL.
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Forbes magazine, in its most recent valuations, estimated the Hurricanes’ value at $225 million. But they lost $11.7 million in operating income last season as attendance again registered near the bottom of the league. Forbes reported Karmanos has been borrowing money from the NHL's credit facility to make ends meet.
In 2014, shortly after the $400 million sale of the New York Islanders, he said he would consider selling the franchise, only if an offer exceeded that amount.
