$$$$$$ Perot Jr. sues Mark Cuban $$$$$$ - Dallas-Mavs.com Forums

mary · 07-20-2009, 06:16 PM

Quote:

Lawsuit Says Mark Cuban Diverted Money to Mavericks From Arena
By Aaron Kuriloff

July 20 (Bloomberg) -- One of Mark Cuban’s business partners accused the Dallas Mavericks’ owner of wrongfully diverting millions of dollars to the National Basketball Association team from its home arena to make up for the club’s losses.

Hillwood Center Partners LP, a company controlled by former Mavericks owner Ross Perot Jr., says Cuban is hiding his team’s cash shortfalls by making more than $29 million in unauthorized loans from the arena to the club instead of distributing the money to his partners.

Since Cuban bought the team, its business side has “suffered substantially, causing the Mavericks to have to rely heavily on borrowings to meet ongoing financial obligations,” the company’s petition said. The Mavericks lost money every year from 2003 through 2006, while doubling the NBA team’s debt.

“It is my understanding that Mr. Perot has received legal notice of the loans since they began,” Cuban said in an e-mail. “I have to tell you that the biggest mistake I made in buying the Mavs was in not completely buying out his interest.”

http://www.bloomberg.com/apps/news?p...=aJYbcTv_xvW4#

Underdog · 07-20-2009, 06:20 PM

rabbitproof · 07-20-2009, 06:27 PM

Where Chum at?

DirkFTW · 07-20-2009, 06:34 PM

Seriously though, I hope the Mavs are okay.

jthig32 · 07-20-2009, 06:34 PM

Quote:

Originally Posted by rabbitproof

Where Chum at?

This is actually very bad for Chum. He's always maintained that the Mavs were very profitable and that Cuban shouldn't be lauded for spending the kind of money that he does.

Underdog · 07-20-2009, 06:41 PM

Does this mean the Bank of Cuban closed for business?

(we need one of them fancy Obama bailouts!)

BGMaverick9 · 07-20-2009, 06:47 PM

I swear...you and your pictures. haha

Thomas86 · 07-20-2009, 06:56 PM

"The more money you make, the more problems you get".

dirno2000 · 07-20-2009, 07:01 PM

Quote:

Originally Posted by jthig32

This is actually very bad for Chum. He's always maintained that the Mavs were very profitable and that Cuban shouldn't be lauded for spending the kind of money that he does.

The caveat is that when he talks about the Mavs profitability he's including Cuban's stake in the AAC limited partnership even though technically that's a separate entity.

dirno2000 · 07-20-2009, 07:03 PM

Cuban's Resonse:

"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 (American Airlines Center/ Center Operating Co.), 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."

Cuban added in his response Monday: "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."

mavs777 · 07-20-2009, 07:39 PM

I'm just waiting for the 1 idiot to go on a huge rant against Mark, I know its coming...

Mavsfan4ever · 07-20-2009, 07:43 PM

I've always thought Mark had a huge target painted on his back. It always seems people are out to get the man.

CapitanObvious · 07-20-2009, 08:24 PM

Does this mean the mavs are f***d?

Justin Credible · 07-20-2009, 08:41 PM

It really is kind of rough, but I honestly can't see Cubes going out and being sly about pushing funds towards the Mavericks instead of the partners. I mean, don't you think that if this were true (or at least how it sounds) that more of the partners would've said something years ago?

Oh well, hopefully he'll just surrender whatever money is decided that he owes and buy out Perot Jr. so there's no more turmoil surrounding this and he can get back to Kamen'ing us up.

chumdawg · 07-20-2009, 08:58 PM

Quote:

Originally Posted by dirno2000

The caveat is that when he talks about the Mavs profitability he's including Cuban's stake in the AAC limited partnership even though technically that's a separate entity.

Exactly. And evidently the operating corp. is doing quite well.

It doesn't matter which of your pockets it is in.

I'm pretty well done with bagging on Cuban about money, though. In retrospect it seems that he was more petty, juvenile, and vindictive than he was cheap.

Mavdog · 07-20-2009, 09:49 PM

it seems to me that ross perot jr wants to sell his remaining 7.5% interest in the mavericks, cuban hasn't offered what perot wants to get, and perot thinks this is the way to get the most $ from cuban.

really cannot see any other rationale for this lawsuit.

with the suit being filed, it's only a matter of time until the partnership agreement is public. that will be interesting to read.

the only thing for certain is the attorneys representing these two adversaries will make a lot of money. a whole lot.

LonghornDub · 07-20-2009, 10:30 PM

Quote:

Originally Posted by Thomas86

"The more money you make, the more problems you get".

Actually, to quote my friends Puff Daddy and the Family, I believe it's, "The mo' money we come across, the mo' problems we see." But I can see how you would make that mistake.

Rhylan · 07-20-2009, 10:32 PM

Perot's a joke. Look at Victory. Horrible planning.. you have a place that really only gets traffic during sporting events and concerts, and plop a bunch of over-expensive boutiques and restaurants in it. Charge a crapload to park even when there aren't events going on. And to make matters worse you go and have almost half the storefronts facing away from the street where a ton ofl the precious and scarce foot traffic actually is. You know, down on the south end where Luna De Noche, etc, across from House of Blues? I have been going to 25 Mavs games a year since 2002 and that stuff was there at least a year before I knew about it. Watched it get built and hardly knew what was there. Horrible planning.

Perot also happens to own the vast majority of the frontage land in Westlake here across 114 from Trophy Club. He has been planning to "develop" stuff over there for the 7+ years I've lived in this area and then some. Still just grass and some buffalo. Which is actually fine by me.

But it's just additional evidence to me that the guy just speculates on locations and relies on some really inept "developers" to get stuff done. Horrible sports owner on top of it. So yeah, dude sucks.

BGMaverick9 · 07-20-2009, 10:34 PM

Quote:

Originally Posted by LonghornDub

Actually, to quote my friends Puff Daddy and the Family, I believe it's, "The mo' money we come across, the mo' problems we see." But I can see how you would make that mistake.

You beat me to the punchline...oh well.
Good job, buddy.

untitled · 07-21-2009, 12:06 AM

Quote:

Originally Posted by LonghornDub

Actually, to quote my friends Puff Daddy and the Family, I believe it's, "The mo' money we come across, the mo' problems we see." But I can see how you would make that mistake.

Actually, Mr. Smalls' quote was, "The more money you make, the more problems you get..." I'm not sure to whom the quote is originally attributable, but I am more familiar with Biggie's quote than the song refrain.

Here's the music video - Biggie's quote at 3:20: http://www.youtube.com/watch?v=-FTRAeycmM0

92bDad · 07-21-2009, 01:30 PM

I read somewhere that there is more fuel to make this awkward.

I believe the attorneys who fought for Don Nelson in his suit against Cuban also work for the Perot Attorney, who are somehow tied to the group that frees up the money for Don Nelson Jr. to acquire players.

I'm a bit fuzzy on the details, but bottom line this appears to be a pretty incestuous relationship. I'll be curious to see who comes out on top?

Underdog · 07-21-2009, 02:47 PM

Quote:

Originally Posted by 92bDad

I'm a bit fuzzy on the details, but bottom line this appears to be a pretty incestuous relationship. I'll be curious to see who comes out on top?

You might want to rephrase this - I just got a nasty visual...

LonghornDub · 07-22-2009, 07:52 PM

Quote:

Originally Posted by untitled

Actually, Mr. Smalls' quote was, "The more money you make, the more problems you get..." I'm not sure to whom the quote is originally attributable, but I am more familiar with Biggie's quote than the song refrain.

You, sir, are in the minority. Clearly the phrase that's repeated 20+ times throughout the song is far more memorable.

xraided199 · 07-22-2009, 09:14 PM

"mo money, mo problems" or not, this whole relationship seems to be a bit shady, as stated by 92bDad. im not totally surprised tho, considering these types of insider relationships are evident throughout any big-money dealings.

by no means do i kno the details or even much of the main situation, but Perot truly seems like a snake. and im in no way just saying that cause i adore my mavs and mr cuban. but i really hope for our team's sake that cuban DOES buy out thesmall percentage that perot has in the team so at least he can stop his stupid whining and be completely out of the picture.

either way, we cannot deny the success of our team year in and year out, the constant sellouts, and the lively crowds that attend the AAC. and cuban really helped make that happen. im not saying it was all him, but he is a HUGE part of it. oh, and that dirk guy that everyone seems to rave about. i guess he is kind of good. kind of.

I LOVE YOU DIRK!!! haha

GO MAVS!!!

M/F/F/L