More legal headaches for Mark Cuban.
The billionaire founder of Broadcast.com and owner of the Dallas Mavericks has been sued by partner Ross Perot Jr., a minority owner of the Mavs, on grounds that reckless treatment of the team has left it insolvent.
As the New York Times notes, Cuban acquires the Mavericks from Perot for $265 million during hte 1999-2000 season, but left him as a minority owner.
Perot wants damages, wants the team put into receivership, and would like to see a forensic accountant appointed to examine the teams finances.
“The Mavs operations and debt are guaranteed by me. There is no risk of insolvency. Everyone always has been and will be paid on time… being in business with Ross Perot is one of the worst experiences of my business life. He could care less about Mavs fans. He could care less about winning.”
Note he doesn’t appear to directly refute the claim that the Mavs are in bad financial shape, but then that appears to be the norm.
The NBA’s deputy commissioner told the Times:
“We are in the process of addressing our teams’ ongoing losses through the collective bargaining process with our players.”
This also isn’t the first time Perot and Cuban have been at odds legally.
Last summer, another Perot company, Hillwood centre Partners, sued Cuban, accusing him of wrongfully diverting millions of dollars from the NBA franchise’s home arena to help make up for cash shortfalls incurred by the team. Cuban accused Perot at the time of “trying to find nickels in the sofa cushion” in an attempt to recapture losses stemming from the Victory project, a retail and office development surrounding the The American Airlines centre
We’ve pinged Cuban for comment, though if history is any guide, there’s probably going to be a post at Blogmaverick.com before too long.
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