We’ve finally gotten a chance to check out the complaint filed by Dallas Mavericks minority owner Ross Perot Jr. against the team’s billionaire majority owner Mark Cuban. (Thanks to the Dallas Morning News for posting it and making it available.)
It’s not wildly complicated.
Perot claims that under Cuban — who bought his majority stake during the 1999-2000 season — the team has racked up huge debts paying for player salaries and whatnot and that it lacks the ability to pay such debts.
Here’s the gist of that:
So this part seems pretty straightforward.
The more interesting part is Perot’s allegation that Cuban has engaged in various related-party transactions with his own entities that have been to the detriment of the Mavs (DBL).
This is an intriguing claim, since in essence Perot is claiming that Cuban has saddled the Mavs with debt, and that the resources of the team have gone to the benefit of Cuban’s other businesses
For this, Perot wants an ironclad guarantee that Cuban will satisfy DBL’s financial requirements going forward (Cuban has already told the Dallas Morning News though that this is nonsense because he’s the largest debt holder, and because he guarantees the rest). Perot also wants damages, a receiver to take control of the organisation, and a forensic accounting done of the team’s finances.
We await Cuban’s volley, which we’re confident will be every bit as aggressive as the complaint.
The complaint is embedded here.
Business Insider Emails & Alerts
Site highlights each day to your inbox.