TNA Wrestling has been dealing with a lot of issues over the course of the past few years, ranging from simple to extreme. The talent wasn’t being paid on time, and some big-name superstars were leaving for WWE or Japan. Now, there are much bigger matters at hand, and they include Dixie Carter, Billy Corgan, and yet another lawsuit being brought against TNA from a company that is suing for hundreds of thousands of dollars.
Once a budding and blooming promotion, TNA Wrestling has had a lot of financial issues, and things are only getting worse.
— Jim Cornette (@TheJimCornette) October 24, 2016
According to WrestleZone via F4W Online, BankDirect Capital Finance LLC has filed a lawsuit against TNA as of the end of September. The lawsuit was filed in Cook County, Illinois, and it has BankDirect suing TNA for the sum of $207,612.29 not including legal fees, late charges, and interest.
BankDirect also states that back in November of last year, they entered into an agreement to pay $400,146 to TNA so that insurance premiums could be paid. A payment plan was then set up and agreed upon, which would have TNA make 10 consecutive monthly payments of $41,032.45 to pay off their loan/bill.
By September 29, 2016, TNA had paid BankDirect close to half of the amount of money they were loaned, but they still weren’t close to meeting the terms of their agreement. TNA still owed $207,612.29 near the end of September, which was the end of the 10-month period.
This is far from the first problem that TNA has had to deal with in the financial world.
Billy Corgan, the frontman of the Smashing Pumpkins, was a producer for TNA for a while and then became the president of Impact Ventures in August. Impact Ventures is the parent company for TNA, and Corgan was actually looking to become a majority owner of the wrestling organization.
Not long after Corgan had taken this route, things changed drastically. Corgan sued Impact Ventures last week and actually asked for a temporary restraining order, but details as to this whole situation were sealed.
According to Cageside Seats, some of the information in that lawsuit and restraining order have now become public knowledge, and it’s rather interesting.
The restraining order was put in place so that Corgan could stop Impact Ventures from “taking any action without (his) consent.” When referring to “action,” that includes the sale of TNA, the assets of the company, and the tape library that is extremely valuable to other wrestling organizations such as WWE.
In the lawsuit filed on October 19, Corgan filed something called a written discovery request, which leads to some interesting situations.
If TNA ends up defaulting on its loans or becoming insolvent, it is the claim of Corgan that he gains the voting rights to the shares of TNA Chairman and Chief Strategy Officer Carter Salinas per an “equity pledge agreement.” Should that happen, it would give Corgan the authority to remove the managers of Impact Ventures. Should that happen, Corgan could then put in any replacements he chooses.
— Michael O’Brien (@AusInsolvency) October 24, 2016
Impact Ventures has since denied all of these claims. Until the court makes an order, neither Billy Corgan nor TNA can do anything with the company’s tape library and that includes selling it to anyone per Pro Wrestling Sheet.
In the meantime, Corgan has demanded TNA to turn over any documents between them and WWE regarding a possible sale. Neither side has ever actually admitted that sale talks took place, but if Corgan’s lawsuit has enough power, it would have to come out.
Billy Corgan really wanted to become a part of TNA Wrestling and have it turn into a huge success. The company being in place for as long as it already has shows that it has done well and had the ability to survive. The recent lawsuits, impending possible sale to WWE, slow pay to wrestling talents, and other issues have put the future of the company in doubt.
[Featured Image by TNA]