Perot v. Cuban: Hillwood Sues Dallas Mavericks
July 21, 2009
According to the Associated Press, Dallas Mavericks owner Mark Cuban is accused of wrongfully diverting millions of dollars from the NBA franchise’s home arena to help make up for cash shortfalls incurred by the team, according to a lawsuit filed by a company controlled by the team’s former owner.
The lawsuit claims Cuban covered the Mavericks’ financial shortfalls by obtaining more than $29 million in unauthorized loans through a limited partnership designed to distribute profits from the arena, the American Airlines Center. It accuses the Mavericks and three other companies controlled by Cuban of breach of contract, breach of fiduciary duty and unjust enrichment.
The company that filed the suit, Hillwood Center Partners, is controlled by former Mavericks owner Ross Perot Jr. and holds a small interest in the arena’s limited partnership, Radical Arena. A related Perot company sold the Mavericks to Cuban in 2000.
Cuban’s poignant response: ”I can only offer my opinion, which is that Ross Perot Jr must be desperate from the losses he has suffered from VIctory and his hedge funds. My lawyers have been open with our minority partners, and in Mr Perot’s case, very minority, about the loans to the Mavericks. The loans have been used to put the best possible Mavericks team on the court, which in turn created the NBA’s longest sellout streak and drove business to the AAC/COC, and to Perot’s Victory development. As best I could tell, he was very happy to take advantage of the traffic when he had an economic interest in Victory to do so. Unfortunately for Mr Perot, he was apparently unable to capitalize on the benefit and is trying to find nickels in the sofa cushion.
It is my understanding that Mr Perot has received legal notice of the loans since they began, right after the Mavs appearance in the Finals as we tried to improve the team further. Only he knows why he has chosen to file a lawsuit and to make it public. The unfortunate reality is that this is the nature of our business relationship with Mr Perot. From all i can tell, he could care less if the Mavs ever win a game. I have to tell you that the biggest mistake I made in buying the Mavs was in not completely buying out his interest.”
And that's how Texans do "bidness" round here. I noticed
Lakers Fan | July 21, 2009 | 10:05 PMAnd that’s how Texans do “bidness” round here. I noticed that the very first time I set foot in the Lone Star State.
Cuban is an imbecile. He got lucky with the Internet
Frustrated Maverick Fan | July 22, 2009 | 10:12 AMCuban is an imbecile. He got lucky with the Internet Bubble and has been an unmitigated failure ever sense. He over spent on the Mevericks in a reckless fashion and did not get an NBA Title out of it. Now the chickens have come home to roost. The Mavericks are a disaster on and off the court. I would expect that you will see a tsunami of lawsuits coming after Cuban. He may have dodged the SEC bullet, but everyone knows he is unethical.
What an embarassment that Cuban is allowed to speak without
kennythepig | July 22, 2009 | 12:58 PMWhat an embarassment that Cuban is allowed to speak without a lawyer present, or at least someone who would have the balls to tell him when to shut up.
But what do you expect from someone who socializes with his stockbroker?