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TNA Wrestling / Impact Ventures vs Billy Corgan Trial Thread

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K

Kaladin

Member
impact-wrestling.jpg


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Lawyers presented their cases today.....here's a couple of good rundowns:

An attorney for Billy Corgan on Wednesday painted the picture of a dysfunctional company as he described Nashville-based TNA wrestling as insolvent, unable to pay its bills and negotiating with its investors to stave off failure.

The Smashing Pumpkins frontman is suing TNA seeking an injunction that would give him control of the company. TNA has argued that it has offers to sell which prove it is not insolvent.

The company has owed money to contractors, at least two of which have become partners by turning debt into equity in the wrestling firm. Corgan must prove TNA is insolvent, which would kick in a clause that would give him control of TNA's operations.

His attorney, Nashville-based Scott Sims, said TNA fails the "cash flow" test. He says TNA's debts have risen 52 percent since June and it is facing more cash problems over the next nine months.

Attorneys for Anthem, the Toronto firm that owns licensing rights to TNA's video library is also here. Anthem has an offer on the table to buy out Corgan and take over TNA.

Chancellor Ellen Hobbs Lyle pressed Sims on TNA's insolvency. She asked whether the fact that it has had offers to sell, including at least one from top professional wrestling promotion WWE, proves it is solvent. Sims said no, and argued that TNA didn't disclose full financial details to list all of its liabilities including its tax bills. The state put a tax lien on TNA earlier this year.

Sims said all of the partners have been negotiating with each other, and at one point Carter even asked Corgan to buy her out of the company.
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http://www.tennessean.com/story/money/2016/10/26/corgan-makes-case-take-over-tna/92720672/

and the presentation from the TNA side....

TNA's attorneys argued that Corgan's loan to TNA was predatory and that the contract between Carter and Corgan is illegal under State laws. He claimed that Carter's management rights cannot be transferred to Corgan by law. They denied Corgan has suffered harm and stated he was trying to force TNA to default so he could gain control of the company. TNA's side also denies that any of the company financials were hidden from Corgan.

TNA's attorney claimed that the company is willing to pay him back his loan, but not the bonus that would be included for corporate transactions (i.e. for a sale of the company) and argued that the company is popular and has suitors that want to purchase it.
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http://www.pwinsider.com/article/105607/tna-court-update.html?p=1

Basically, Billy Corgan loaned TNA money 3 times, back in June, July and August of this year to keep the company running. TNA has not payed Corgan anything for his loans. At the time of the August loan he was made President of the company, but not given access to everything the position entitled like relevant financial documents. Corgan was in very public talks to buy the company in September / October before their taping then, but TNA found another creditor in Anthem Media and has since ignored Corgan's contacts. Corgan is suing because he claims the company is insolvent and can't pay their debts with their income. He also claims that because of this he is owed Dixie Carter's shares of the company to give him full ownership.

The court heard both sides arguments today, a ruling will come on Monday.

The future of this company definitely hangs in the balance. I personally think this is the end of the road for Dixie Carter and TNA will belong to Billy Corgan this time next week.
 
T

Toki767

Member
I don't even know why Corgan would want TNA at this point. The guy is better off starting from scratch with how badly the brand is damaged.
 
G

geomon

Member
As far as I'm concerned, if everything Corgan says is true, Dixie committed fraud. She took his money and made certain promises all while negotiating behind his back to sell off TNA assets to WWE and Anthem.
 
K

Kaladin

Member
Toki767 said:
I don't even know why Corgan would want TNA at this point. The guy is better off starting from scratch with how badly the brand is damaged.
Click to expand...

The video library (assuming he can get it), contracts and the multi-year TV deal at a time when wrestling is a hard sell for anyone is worth it.
 
K

Kaladin

Member
As for the argument that Corgan's third loan was predatory......if you loan someone money twice and see no payment of that money and they ask you for a third loan, you'd be an idiot to not load it with interest and clauses to make it worth it to you.
 
V

Violence Jack

Member
I feel like this would make for an excellent Judge Judy case.

Let it go Dixie. You've been killing TNA for what seems like an eternity.
 
K

Kaladin

Member
Boy Wander said:
I thought WWE had bought the video library?
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Nope, WWE has been in negotiations, but nothing farther than that. Anthem Media who owns The Fight Network in Canada bought either a part of or all of the licensing rights to the library as part of their funding the October PPV and TV tapings.
 
EYEL1NER

EYEL1NER

Member
This definitely seems like an interesting case. It surprises me that Bill Corgan would want to own a wrestling company. Seems like the Pear-Shaped Boy may win this one.
 
K

Kaladin

Member
Toki767 said:
Pretty sure Pop TV does not have a multi-year deal for TNA. They go every year.
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http://www.wrestlinginc.com/wi/news...esident-says-tna-will-be-on-pop-in-september/

Quotes from Pop TV saying it's a multi-year deal.

EYEL1NER said:
This definitely seems like an interesting case. It surprises me that Bill Corgan would want to own a wrestling company. Seems like the Pear-Shaped Boy may win this one.
Click to expand...

Corgan is a huge mark for wrestling to the point that he founded a smaller Chicago based promotion called Resistance Pro in 2011 and was with them till 2014.
 
K

Kaladin

Member
Another good rundown of today's events from Live Audio Wrestling.....


When Sims was presenting Corgan’s case, he stated that Corgan had saved the company on three occasions with infusions of cash and that Corgan and Dixie Carter (who was at the hearing) entered into a pledge agreement. Corgan’s side is arguing that TNA is “insolvent” and therefore, Corgan’s financing of the company should turn into equity in the company. Sims stated that TNA has 52% more liabilities today than they did on a June balance sheet and there have been five separate instances this year of frantic calls to raise capital. Corgan’s most recent loans were made in July and another in August and was seeking 22.5% of the company after the August loan.

Sims also brought up negotiations that occurred between TNA and the WWE and stated that the WWE made one offer and then lowered the offer, which also included non-compete clauses. Sims continually brought up dialogue and negotiations between the WWE and TNA, which was being disputed prior to today if they occurred as Corgan alleged he was never informed of those talks directly.

The breakdown of TNA’s ownerships today looks to be Dixie Carter with the majority control and 92.5% of the company, Aroluxe with 5% and Anthem with 2.5%.

When Parham was arguing TNA’s case, he stated that Corgan is not looking for buyout and wants his loan converted into 92.5% equity in the company and added that Corgan made an attempt to buy the company in September. Parham also denied any financial details being hidden from Corgan. Parham then went on to argue that the contract signed between Carter and Corgan is illegal under Tennessee law regardless of whether Corgan could prove TNA’s insolvency.

Parham also dismissed the tax lien that was issued on TNA as an “accounting mistake” and classified it as a non-issue.

On the Anthem Sports & Media Entertainment side, it was revealed that Anthem has company has put $1.8 million into TNA and are willing to pay off Corgan’s amount and then install Jason Brown of Aroluxe as the new C.E.O. of the company.

The hearing concluded with Chancellor Hobbs Lyle stating that a ruling would be made on Monday.
Click to expand...

http://fightnetwork.com/law/oct-26-news-update-notes-from-billy-corgan-v-tna-hearing/
 
C

crackhead_bob

Member
What would Billy Corgan bring to TNA? Given how damaged the promotion has been for the past few years, it would probably be in his best interest to change the name, start from scratch, and center the promotion around TNA's most talented workers, while attracting the best talents -- both indy and international, as well as keeping an eye out for any WWE, Lucha Underground, and ROH castaways they can find.
 
P

Professor Beef

Banned
crackhead_bob said:
What would Billy Corgan bring to TNA? Given how damaged the promotion has been for the past few years, it would probably be in his best interest to change the name, start from scratch, and center the promotion around TNA's most talented workers, while attracting the best talents -- both indy and international, as well as keeping an eye out for any WWE, Lucha Underground, and ROH castaways they can find.
Click to expand...

That's what he's been hinted at wanting to do.
 
C

crackhead_bob

Member
Professor Beef said:
That's what he's been hinted at wanting to do.
Click to expand...

Man, such an uphill battle. How much is Billy Corgan worth? Has he ever spoken to Bob Mould? He'd probably have alot of interesting stories to tell in terms of how a wrestling promotion is run from an outsider's point of view. This almost sounds like a hobbyist project for him.
 
Rest

Rest

All these years later I still chuckle at what a fucking moron that guy is.
Kaladin said:
The video library (assuming he can get it), contracts and the multi-year TV deal at a time when wrestling is a hard sell for anyone is worth it.
Click to expand...
This is important. Even if he starts a new promotion having a TV deal in place will help make sure that it's able to get off to a good start.
 
F

Freddy=Legend

Member
Rest said:
This is important. Even if he starts a new promotion having a TV deal in place will help make sure that it's able to get off to a good start.
Click to expand...

This right here. That's likely the main reason Corgan wants TNA rather than put the effort into a new company. I remember Bischoff saying something to the effect of he would've bought WCW but they were giving him the rings, the tapes, the talent, but not the TV time. Without TV, it's not worth anything.

Even if POP is an obscure network, it's still TV time.
 
C

crackhead_bob

Member
Rest said:
This is important. Even if he starts a new promotion having a TV deal in place will help make sure that it's able to get off to a good start.
Click to expand...

He's not trying to beat WWE, I hope. Not that I care, but it would be folly to think he has the wherewithal to outdo McMahon. But at the same time, WWE has been so awful these past few years that a decent competitor would be nice to tune into, if for no other reason than to watch solid programming, even if the production values don't end up being top of the line.
 
L

LiquidSolid

Member
Professor Beef said:
Feud of the decade right here. Dixie is more of a carny than I thought.
Click to expand...

Nah, carnies know to move on when a well has run dry. Dixie's just a fucking idiot, clinging onto the one thing that makes her slightly relevant, even though her stupid decisions are what drove the promotion into the ground.

Rest said:
This is important. Even if he starts a new promotion having a TV deal in place will help make sure that it's able to get off to a good start.
Click to expand...

Plus it comes with the roster, staff, ring gear and production gear.
 
K

Kaladin

Member
funkystudent said:
Tna is going to be broadcasting exclusively on daily motion before Dixie ever let's go.
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You joke, but they were broadcasting exclusively via torrent download and Real Media Player streams back in the day when they were between TV deals. This was before Dixie Carter and even before Spike TV.
 
S

Sir_Crocodile

Member
Kaladin said:
You joke, but they were broadcasting exclusively via torrent download and Real Media Player streams back in the day when they were between TV deals. This was before Dixie Carter and even before Spike TV.
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Dixie still had final backstage say at that time. She had it ever since september '02 I believe.
 
A

abundant

Member
Kaladin said:
You joke, but they were broadcasting exclusively via torrent download and Real Media Player streams back in the day when they were between TV deals. This was before Dixie Carter and even before Spike TV.
Click to expand...

Interestingly enough, that was also one of the few times TNA was actually worth watching.
 
DKehoe

DKehoe

Member
Considering Billy Corgan seems to be a big fan of Vince Russo's booking philosophies I'm not sure he's going to be the guy to turn TNA around.
 
R

Ronin Ray

Member
I have an honest question what is Billy Corgan fighting for? Wouldn't it just be cheaper to start a company from scratch ? Are the TNA over sea television contracts worth that much? Hasn't the TNA video library already been sold off?
 
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