TNA News: TNA President Billy Corgan Lied To About Company’s Financial Situation
TNA President Billy Corgan recently filed a lawsuit against Dixie Carter and the entire company. He literally sued any and all that one could sue, but many wondered why he would do so as an investor in the business who does own a portion of the company. He has also been attempting to buy the company from the Carter family, but, of course, the lawsuit has been hurting talks.
Many do not know what is going to happen with TNA. They seem to get last-minute funding to get things done, but the favors will eventually run out. Currently, we know The Fight Network claimed they will pay for some upcoming TNA material due to the money they owe Corgan, but this won’t get TNA through 2017. TNA does have international money coming in at the first of the year that will hopefully allow them to pay some of the lawsuits off, as well as the taxes they owe to the state of Tennessee.
The major financial issues are killing TNA. While they are able to turn stuff around at the beginning of the year, this money won’t last them long. They are not turning a profit, and Dixie Carter continues to borrow money and misled people on what TNA Wrestling is funding. While pro-wrestling can be a goldmine, Carter has not done this for years. In fact, TNA has not made much money at all since they were removed from Spike TV.
According to The Wrestling Observer, apparently Billy Corgan was misled at the last set of tapings regarding the TNA financial situation. While he was told he was in charge during the tapings, that was also likely not true. He was told he had full control of things by that point, but it is unlikely that he actually did. This, combined with Corgan finding out he was lied to, must have led to the lawsuit he filed. He very well could have been misled regarding TNA’s financial troubles since he decided to take part in the business.
He was not the last, as various companies came in to do so and the state of Tennessee came to collect tax money as well. All of this happened within the last few weeks. On top of that, a lawsuit was filed a while back that just now made the news due to the fact that TNA tried to bury it. Of course, people eventually figured things out. All of these issues led people to question the future of TNA even more so.
In a recent report, it was claimed that TNA might have to file bankruptcy. Of course, the type of filing they went with would determine if the Carter family got to keep TNA for themselves. The two choices are Chapter 7 and Chapter 11. However, in order for TNA to settle their debt in the best way possible, they may have to go with a bankruptcy filing.
Theoretically, this would force TNA to sell to someone as Chapter 7 would force them to sell off TNA assets to hopefully pay the creditors off that they owe. Meanwhile, Chapter 11 allows them to come to terms with the people they owe money. The real question is which one they will file, but one has to wonder if TNA can file for Chapter 11 if they cannot profit enough to run the company well already.
The business decisions made thus far also do not help the odds of TNA’s survival either. Billy Corgan hoped his lawsuit would allow him the chance to help TNA and possibly push for the sale, which he would ideally want to go to himself. However, Dixie Carter could always sell to someone else like WWE and Vince McMahon. Vince does have an interest in the TNA library at least, but if the promotion ends up being sold with the library, then WWE would buy it all up if the price was within a reasonable price range, which at last check was under $10 million.
[Featured Image by TNA Wrestling]
