Trans-National Communications

Trans-National Communications, Inc. was an American holding company established in 1968 by Ellis E. "Woody" Erdman, a radio-station owner, and William Creasy, a television producer associated with CBS Sports. The company was conceived as a broad investment vehicle that would combine media assets with celebrity-backed financing. Erdman sought to involve former professional athletes as investors and use their public profiles to help promote the enterprise. Pat Summerall, Whitey Ford, Dick Lynch, and Jim Katcavage were among the sports figures associated with the company as celebrity investors. The business pursued an unusually diverse portfolio rather than concentrating on one operating sector. Its holdings reportedly included more than 100 radio stations, radio broadcast rights for the New York Jets and New York Giants, the Bank of Philadelphia, film companies, and agricultural properties. This combination reflected the founders' backgrounds in broadcasting and sports, but it also created a complex financial structure in which the performance of many unrelated investments affected the company's ability to meet its obligations. Trans-National Communications became particularly visible through its ownership of professional sports teams. On March 2, 1969, it acquired the Oakland Seals of the National Hockey League from Barry Van Gerbig. The transaction was valued at $4.5 million. The company's control lasted only one season, however, after it missed a payment to Van Gerbig and entered default. The episode showed the financial strain developing within the wider holding company. On August 13, 1969, Trans-National Communications purchased the Boston Celtics of the National Basketball Association for $6 million, then a record price for the franchise. The company and Erdman, who served as its president, reportedly hoped that income from the successful Celtics could help offset losses from other investments. Instead, the team's finances became increasingly difficult during the ownership period. The Celtics struggled to pay bills, some suppliers declined to accept the team's checks, and general manager Red Auerbach personally covered certain expenses. Auerbach later characterized Erdman's ownership in exceptionally negative terms. Control of the Celtics returned to Investors Funding Corporation in 1971 after Trans-National Communications fell into financial default. The company subsequently filed for Chapter 11 bankruptcy in 1972. The bankruptcy marked the end of its attempt to operate a large, celebrity-oriented, multi-industry investment group. Trans-National Communications is therefore chiefly remembered for its short-lived ownership of the Oakland Seals and Boston Celtics, as well as for the financial difficulties that accompanied its ambitious diversification strategy.

Trans-National Communications emerged in 1968 from a partnership between Ellis E. "Woody" Erdman, a radio-station owner, and William Creasy, a television producer connected with CBS Sports. Their plan was to build an investment organization that used media relationships, professional sports properties, and the promotional value of celebrity investors. Former athletes and sports personalities including Pat Summerall, Whitey Ford, Dick Lynch, and Jim Katcavage were associated with the venture. Rather than operating as a focused media company, Trans-National Communications assembled a broad collection of businesses and rights. Its reported portfolio included more than 100 radio stations, radio broadcast rights involving the New York Jets and New York Giants, the Bank of Philadelphia, film companies, and farms. The range of assets gave the company visibility across broadcasting, sports, finance, entertainment, and agriculture, but it also exposed the organization to the risks of managing investments with very different revenue patterns and capital requirements. The company entered professional sports ownership in 1969. On March 2, it purchased the Oakland Seals of the National Hockey League from Barry Van Gerbig for $4.5 million. The relationship was brief. After Trans-National Communications missed a payment to Van Gerbig and went into default, its control of the Seals ended after one season. The company then made a larger and more prominent sports investment. On August 13, 1969, it acquired the Boston Celtics for $6 million, at that time a record price for the franchise. Erdman served as president and appears to have viewed the Celtics as a valuable operating asset whose profits could help absorb losses from other investments. The strategy placed the basketball team within the financial structure of a troubled diversified holding company rather than treating it as an isolated sports business. During the Trans-National Communications ownership period, the Celtics experienced serious payment problems. Some businesses reportedly refused to accept Celtics checks, and general manager Red Auerbach paid certain bills personally. Auerbach later described Erdman as the worst owner he had worked with. These accounts illustrate the extent to which the company's financial difficulties affected the day-to-day operation of one of professional basketball's most established franchises. In 1971, after Trans-National Communications fell into financial default, control of the Celtics reverted to Investors Funding Corporation. The company filed for Chapter 11 bankruptcy in 1972. No later operating history is established in the cited reference, and the enterprise is treated as defunct. Its historical importance rests primarily on its ambitious attempt to link celebrity promotion with a highly diversified investment portfolio and on its short, financially troubled ownership of the Oakland Seals and Boston Celtics.

• 1972

  Chapter 11 bankruptcy filing

  [1]Trans-National Communicationsen.wikipedia.org

  Trans-National Communications filed for Chapter 11 bankruptcy protection.

• 1971

  Celtics control reverts to Investors Funding Corporation

  [1]Trans-National Communicationsen.wikipedia.org

  After Trans-National Communications defaulted financially, control of the Celtics returned to Investors Funding Corporation.

• 1969

  Oakland Seals acquired

  [1]Trans-National Communicationsen.wikipedia.org

  Trans-National Communications bought the Oakland Seals from Barry Van Gerbig for $4.5 million.

• 1969

  Boston Celtics acquired

  [1]Trans-National Communicationsen.wikipedia.org

  The company purchased the Boston Celtics for $6 million, then a record franchise price.

• 1968

  Company founded

  [1]Trans-National Communicationsen.wikipedia.org

  Ellis E. "Woody" Erdman and William Creasy established Trans-National Communications as a diversified investment holding company.

A diversified, celebrity-backed American investment holding company combining broadcasting, sports, finance, entertainment, and agricultural assets.

• Broadcasting assets

  Radio stations

  Radio broadcasting was a central part of Trans-National Communications' portfolio. The company reportedly controlled more than 100 radio stations, giving it a substantial operating footprint and an advertising-supported media business alongside its sports and financial investments.

• Sports broadcasting

  New York Jets and New York Giants radio rights

  The company held radio broadcast rights associated with the New York Jets and New York Giants. These rights connected its broadcasting operations to professional sports and complemented its later ownership of major sports franchises.

• Professional sports franchise · 1969

  Boston Celtics

  The Boston Celtics became Trans-National Communications' most prominent sports holding when the company acquired the NBA franchise in August 1969. The team remained under the company's control until financial default led to a transfer of control in 1971.

• Professional sports franchise · 1969

  Oakland Seals

  Trans-National Communications purchased the NHL's Oakland Seals in March 1969. Its ownership lasted approximately one season and ended after the company missed a payment to the previous owner and entered default.

• Financial investment

  Bank of Philadelphia

  The Bank of Philadelphia was among the financial-sector holdings attributed to Trans-National Communications during its period of diversification.

• Diversified investments

  Film companies and farms

  The company's reported portfolio also included film companies and farms, demonstrating the breadth of its investment strategy beyond broadcasting and professional sports.

• 1972

  File for Chapter 11 bankruptcyOther

  Background

  The company's diversified investments and defaults left it unable to maintain financial stability.

  Action taken

  Trans-National Communications filed for Chapter 11 bankruptcy protection.

  Aftermath

  The filing followed the loss of control of the Boston Celtics and marks the final major event documented in the cited account.

  Source

• 1969

  Acquire the Oakland SealsM&A

  Background

  The company expanded into professional sports ownership as part of its broader strategy of combining media interests with high-profile sports assets.

  Action taken

  Trans-National Communications purchased the Oakland Seals from Barry Van Gerbig on March 2, 1969.

  Aftermath

  The ownership period ended after one season when the company missed a payment to Van Gerbig and fell into default.

  Acquisition price. $4.5 million (March 2, 1969)

  Source

• 1969

  Acquire the Boston CelticsM&A

  Background

  Trans-National Communications sought to use the Celtics' potential profits to help cover losses from other investments in its diversified portfolio.

  Action taken

  The company purchased the Boston Celtics on August 13, 1969.

  Aftermath

  The team experienced difficulty paying bills during the ownership period, and control reverted to Investors Funding Corporation in 1971 after Trans-National Communications defaulted.

  Acquisition price. $6 million (August 13, 1969)

  Source

1. 1Trans-National Communicationsen.wikipedia.org