http://sports.yahoo.com/nba/news;_ylt=Audt4_V8lrP1Pgf2bkQCB268vLYF?slug=ap-perotvscuban ALLAS (AP)—A company run by former Dallas Mavericks owner Ross Perot Jr. is suing the club, alleging that it’s insolvent or verging on insolvency.” According to The Dallas Morning News, Hillwood Investment Properties III Ltd. sued Dallas Basketball Ltd. Monday, alleging the Mavericks lost $50 million in the fiscal year ended June 30. Hillwood also alleges the club has lost $273 million since Mark Cuban bought a majority stake in the team in 2000 from Perot, who retains a minority stake. The lawsuit also alleges the Mavericks company has an interest-bearing debt of more than $200 million, an equity deficit of $289 million and negative working capital of $75 million. Cuban didn’t respond to messages Monday from the newspaper or The Associated Press.
even for cuban, thats a big loss. one thing that you have to like about him (and there isnt much) is that he really cares about winning at all costs. however, the last few seasons he has reigned in the spending and now we know why. i think this year should've been the last with the current nucleus. dirk, kidd, and terry aren't getting any better. they are all on the decline. time to move them while they are worth something got good young (cheaper) players, picks and cap space.
Those are some staggering numbers if true. I never understood why someone would try to build a basketball empire in Dallas.
Wow. It is one thing for Cuban to toss his own money down the rabbit hole, but I forgot that he had minority ownership with Perot. I wonder if anyone else owns a bit of the team? Seems like they would also be bent out of shape. Great news, OP, and thanks!
Yes they're old, but they can still win 50 games a year & make the playoffs. They just can't compete for a finals spot. Cuban won't be as free a spender as he has been, but he won't blowup the team. They can still finish 1/2 in the Southwest division & max out their revenue.
I dont think its good news at all to learn about an NBA Franchise in financial trouble, cause I thoroughly enjoy when the Rockets beating up on the Mavs, and I would love to see more games between the teams. If this financial problems means there will be willing to trade some valuable assets to us, then that would be good.
They are not in trouble, the minority partners are pissed that they are not getting a return on their investment because the majority owner is keeping the franchise in debt to avoid paying the minority partners. DD
I never understand how the Mavs made any money. Bloated payroll and their tickets aren't sold at a premium.
Maybe Cuban will go Bruce Wayne, put on a suit, and actually do something to save his company? Maybe transfer ownership to Popeye Jones.
Exactly, as the article says, Cuban is budgeting above the team's income level and covering any and all of the losses the organization suffers with his personal funds. So, the organization isn't in any real financial trouble, it's just not turning a profit (and the minority shareholder isn't getting a dividend). Not sure what Perot thought he was signing up for... did Perot really think Cuban was going to run the Mavs like an actual for-profit business and try to turn a profit instead of treating the Mavs as his toy?
