This is what happens when billionaires collide. One always sues the other.
The Dallas Mavericks are “insolvent and and/or in imminent danger of insolvency,” according to a lawsuit filed Monday by a company controlled by Ross Perot Jr.
Dallas Basketball Ltd., which does business as the Dallas Mavericks, had a net loss of $50 million in the fiscal year ended June 30, the lawsuit said. The team has lost $273 million since Dallas billionaire Mark Cuban took over as majority owner in 2000, Perot alleged.
Wow. See, Mark Cuban is the principle owner here but Ross Jr. still holds a minority stake in the team. I guess Ross Jr. isn’t getting paid so that’s the reason for the suit.
My legal question is this. How can you sue a business partner for money when there is no guarantee that the team will win enough games and championships to make a profit?
Also, if I were Perot, I would be thanking Cuban the team didn’t lose more.
On January 14, 2000, Cuban purchased a majority stake in the NBA Dallas Mavericks basketball team for $285 million from H. Ross Perot, Jr. Since his purchase, the Mavericks have gone from long-time league doormats to NBA championship contenders.
In the 20 years before Cuban bought the team, the Mavs had a winning percentage of only 40%, and playoff record of 21-32. The team had never advanced beyond early rounds in the playoffs. In the six years following, the team has won 69% of their regular season games and have reached the playoffs each season. The Mavs playoff record with Cuban is 39 wins and 40 losses, including their first trip to the NBA Finals in which they lost to the Miami Heat.
Sometimes, billionaires need to play together better. And what’s with the owners in Dallas all of a sudden?
Ross Perot Jr. sues Mark Cuban, claims Mavs ‘insolvent’ (DMN)