Sports

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, spoke to the Kansas City Business Journal about how the impending maturity of a loan could position the Kansas City Royals to take control of the Aspiria campus if the team pursues a stadium in Overland Park. 

According to the article, the owner had an August 9 due date to fully repay the loan secured by the campus, which is when a Royals affiliate bought the debt. Property records did not show new mortgages tied to the campus, which would be filed if Occidental secured new debt to repay its loan. The article reports that the Royals previously confirmed that Aspiria was among several sites it had "negotiated with or made investments in" for a potential new stadium. Other sites the Royals have purportedly considered include Washington Square Park in Kansas City and North Kansas City in Clay County, as noted in the article.

Under current mortgage terms, the current owner would not be relieved of loan obligations if the Royals did not "insist upon strict performance." That means the team could take more time choosing among ballpark sites in Missouri and Kansas and, barring a different resolution, pursue foreclosure later to advance a stadium in Overland Park. "Alternatively, if the Royals choose another site, the team could accept a discounted payoff of Aspiria's loan or sell the note." 

"There are so many different potential ways this could play out," Irwin said. "It's hard to predict which way this ultimately winds up. I would tell you, at least in my opinion, that the Royals thought about these things before they put in, and they've made their own calculations."

Read the full article in the Kansas City Business Journal here. Access may require a subscription.