Memphis Redbirds default on stadium bonds
The Memphis Redbirds, the AAA farm club of baseball’s St. Louis Cardinals, are in default on their stadium bonds.
The team issued $50 million worth of bonds in 1998 to pay for the acquisition of the team and the construction of AutoZone Park. A default notice from US Bank, the trustee for the bonds, says the Memphis Redbirds Baseball Foundation failed to make a $1,625,000 payment on March 1.
The payment was funded out of a debt-service reserve, but the foundation remains on the hook for the money. The failure to pay constitutes an “event of default” according to the notice, which is dated April 20. The default also is mentioned in a Bloomberg story today.
In January, the Cardinals cancelled an agreement to buy the Redbirds from the nonprofit foundation.
(5 votes, average: 2.8 out of 5)
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
apparently no one is immune from the scourge of foreclosure…
Beer prices just went up at AutoZone Park!
Its a great stadium, but no one ever seems to go. There is consistantly 30% - 50% of the place empty whenever I’ve gone. Even when Rasmus was there and healthy.
They’ll be alright, but from a Realtor’s perspective, USBANK is the worst when it comes to dealing with a late notice or forclosures. They don’t care because they are way to big. Just like Bank of America!
Their investments to pay the the bonds probably have suffered like the rest of us. The cascading effect is not over yet.
Don’t blame the economy on their failure to pay their bills. They’re no better than the rest of the deadbeats who got kicked out of homes they couldn’t afford.
Hey, Jake, did you ever think that maybe some of those “deadbeats” who couldn’t afford their homes were maybe 15 to 20 years into a 30-year mortgage and suddenly they lost one or more jobs and just couldn’t pay? I agree that people shouldn’t buy more home than they can afford but not everyone who got foreclosed on is a “deadbeat”. Maybe you should think a little before you write - and no, I am still in my home - for now.
royearl–that problem is rising, but the primary source of foreclosures is from subprime borrowers. Many of them never had a very good chance of ever paying off their loan. Look at the delinquent loan data posted today in the building blocks blog.
Move the Memphis Redbirds to Forest Park!
The bank should foreclose on it. Level it and build some affordable housing.
Jake, I hope and pray you never have to experience losing your home after the company you and your wife worked for suddenly closed their doors WITHOUT WARNING one Friday night.