Billy Corgan suing TNA and more Bad news for TNA

[Crimson Cross]

The Wrestling Observer (via WrestlingInc.com) has released an update regarding the ongoing situation with TNA Wrestling and how much debt the company currently owes. As of now, TNA reportedly owes money to Aroluxe, The Fight Network parent company Anthem and MMC Acquisitions. MCC Acquisitions is the company that actually funded the Impact Wrestling tapings after Bound For Glory 2016.

Currently, the total debt TNA owes to the aforementioned companies is currently listed at $3.4 million. This does not include alleged money that TNA might owe to Billy Corgan and Audience of One Productions. As previously reported, both parties filed separate lawsuits against TNA recently

[jimsteel]

FROM LORDS OF PAIN
We've reported recently that TNA seems to be enduring it's toughest financial difficulties to date. As previously noted, TNA secured funding for Bound for Glory and the subsequent television tapings with mere hours to spare, and it's unclear how the company will proceed going forward. We mentioned yesterday that TNA's recent cash infusion was specifically designated to handle production costs, so the question remains regarding how talent is going to get paid.

In addition to the ongoing financial woes, TNA is also dealing with a lawsuit filed by the company's own president, Billy Corgan. We're now learning that things appear to be getting much worse and far more serious as additional lawsuits begin to mount. PWInsider reports TNA's former production company Audience of One Productions LLC, located in Virginia, is suing TNA, their parent company Impact Ventures LLC, TNA minority-owner Aroluxe LLC, as well as TNA CFO Dean Broadhead and Ronald "Ron" Harris. The suit was filed on September 27th in the U.S District Court, Eastern District of Virginia, and seeks $223,000 plus interest for "breach of contract, fraudulent inducement on the behalf of Harris and Broadhead, torturous interference on behalf of Aroluxe, and for TNA violating Virginia code."

According to the suit, AO1 was contacted in 2015 about "a possible long-term, multi-event, production services agreement, pursuant to which AOl would provide a variety of production services for live TNA professional wrestling events, including audio/visual and broadcasting work, lighting, set construction and breakdown, as well as retention and payment of audience "wranglers" (personnel who would patrol the crowd and try to engage audience members with the event), among other things." AO1 was eventually hired to produce Bound for Glory 2015, and billed TNA $223,000. After failing to pay for over a month, Dean Broadhead finally contacted AO1, assuring them that TNA was on the verge of a landmark deal that would put them in more than 80 million homes. He promised that the company would emerge better than it was before, and if AO1 could "hang on," it could be the beginning of a prosperous relationship.

According to the lawsuit, AO1 sent a second invoice with a 1.5% late penalty added to the original figure, leading Ron Harris to request an itemized invoice. TNA continued to stall on payment. AO1 then deducted $29,001.57 from the original total, because TNA paid several independent contractors so AO1 wouldn't have to. The lawsuit claims this was done by TNA to ensure those contractors would continue on with the company after they inevitably cut ties with AO1. TNA then scheduled a monthly payment plan that would begin in March 2016 and conclude in August, but never fulfilled the first payment due to another onslaught of financial duress. This is about the time Aroluxe began financing the product. AO1 alleges this "gave Aroluxe and, by extension, the Harris Brothers, two of Aroluxe's principals, considerable incentive to oversee and coordinate TNA's financial affairs going forward." At this point, all communication between the two primary parties ceased. The lawsuit alleges that both Dean Broadhead and Ron Harris were at fault in failing to pay AO1, due to a conflict of interest regarding the financial stability of the company.

On a related note, the Tennessee Department of Revenue filed a tax lien with the Davidson County Register of Deeds on September 8th for unpaid business taxes. Just a few weeks prior to the lien, Toronto's Anthem Sports and Entertainment filed a statement with the Tennessee Secretary of State, listing TNA as a debtor. As noted before, Anthem is one of several companies to whom TNA owes money, along with Aroluxe and MCC Acquisitions. The total debt owed by TNA to those aforementioned parties is $3.4 million.

[executioner]

I think I can hear the TNAMecca and other hardcore faithful stacking the chairs as the orchestra plays.

[jimsteel]

Dave Meltzer recently reported via the Wrestling Observer Radio that TNA will likely file for bankruptcy in the hopes of absolving their increasingly mounting debt. There's no current indication as to what would happen after that, but as of now chief creditors include Aeroluxe, Billy Corgan, and the Fight Network.

Meltzer also noted that Dixie Carter doesn't want to look bad, which seems almost comical at this point:

"The whole thing is, Dixie is still trying to figure out a way - this is why it hasn't been sold - I don't know if it's to stay in control but the whole thing is, she doesn't want to look bad publicly."

Meltzer did not say if TNA would be filing Chapter 7 or Chapter 11 bankruptcy. It's possible TNA could stay alive if they filed for Chapter 11 but Chapter 7 would likely mean the end of the company. As noted this morning, TNA has scheduled TV tapings at Universal Studios in Orlando for early January.

ALSO
Another Lawsuit this time for traveling costs over $280,000

[TTX]

Looks like Anthem (who is also a minority owner) is offering to pay Corgan's loans. Possibly trying to get full ownership?

[Tournament Master]

TNA is like Jason Voorhees....just wont die!

[executioner]

In the end, any buy out is just good money chasing bad money. TNA is a permanently damaged brand. Should TNA live on, it will still run in to the same problems it has with ever taping (no money to pay for the production or talent).

Truthfully, TNA has a revenue stream that is shockingly slim. Its house show business is dead, it moves little if any merch, and it cannot give away its PPV. ROH has plenty of issues (a.k.a. Delirious being the main problem) but it at least sells merch, draws decent or better crowds to house shows, and has a steady PPV/iPPV business.

[jimsteel]

"According to court documents … Billy wants TNA to admit they have defaulted on a loan they were supposed to pay him back in June on, which would allow Corgan more control over the company. This includes being able to fire the top brass and replace them with his own staff.
The documents also claim that he informed Dixie of the default a few days before Bound For Glory.
As reported by PWInsider, Corgan wants the company to admit that they can’t pay their debts. Carter and Impact Ventures, however, have both filed responses saying they’re not insolvent. No additional documents were given to support their claims and Billy is asking the court to make them prove it.
The Smashing Pumpkins singer also wants TNA to turn over “all documents sent or received from WWE or any of its representatives from January 1, 2016 to present.” This includes emails, letters, correspondence, invoices and “all documents relating to or referencing any negotiations between you and WWE regarding WWE’s potential acquisition of you or any of your assets.
Another interesting note is that Corgan wants to be informed of the location of TNA’s tape library."

[SeahawksFan5867]

I had no idea things had gotten to this point. I mean, I knew TNA was in trouble, but holy poop on a stick!

This is bad.

-Brian

[TTX]

just keeps getting messier and messier.