Billy Corgan won’t be controlling TNA Wrestling just yet, but reports suggest he isn’t giving up after a Nashville judge ruled Monday against his bid to take over the company from chairwoman Dixie Carter.
According to The Tennessean, Chancellor Ellen Hobbs Lyle ruled that TNA president Corgan wasn’t able to prove with certainty that the company was insolvent, also ruling that his loan agreement with Carter was not valid under Tennessee law. For now, this effectively puts the kibosh on the Smashing Pumpkins frontman’s hopes of controlling TNA.
Corgan’s lawsuit shows that he had loaned money thrice to TNA in 2016, with the most recent one coming with a proviso that would strip Carter of her 92.5 percent voting rights on the board of directors and give them to the rock star-turned wrestling official, essentially putting him in charge of the promotion. The Tennessean also cited redacted legal documents where Corgan saw TNA as a company owing millions of dollars to its creditors and investors, owing even more money to the state of Tennessee and consistently in the red with a negative cash flow.
For my new wrestling followers, here is story from yesterday's TNA hearing: Billy Corgan: TNA savior or loan shark? https://t.co/LCXcCgJQf7— Nate Rau (@tnnaterau) October 27, 2016
TNA’s alleged insolvency was refuted by the promotion’s lawyer Travis Parham, who maintained that TNA does have several potential suitors interested in purchasing the company. He added that Corgan is a “predatory lender” who bullied Carter into agreeing to a loan that only would benefit him in the end, while giving him control of TNA.
Parham’s argument had convinced Hobbs Lyle to reject Corgan’s temporary injunction, but in a series of tweets, the erstwhile TNA president said he has no problems with the ruling.
“For those asking, I’m in no way disappointed in the judge’s ruling regarding TNA. Rather, I’m grateful the judge considered the case. It’s important to note is these proceedings have brought forth facts which illuminate business practices I have fought against for a reason. And I suggest that a careful reading on the judge’s ruling supports there can be no claim of victory by anyone in a position of authority.”
A report from Pro Wrestling Sheet also shed some light on Dixie Carter’s alleged refusal to inform Billy Corgan about TNA’s potential sale to WWE. Hobbs Lyle’s ruling shows that this doesn’t necessarily add up to a breach of contract, as both Carter and Corgan “submitted competing and disputed versions” of this story.
Given these recent developments, are these big enough setbacks for Corgan to back down? In a report on the case, PWInsider stressed one key takeaway from Monday’s court proceedings – it’s too early to close the book on the legal wranglings between Corgan and Carter/TNA. The publication’s Mike Johnson wrote that anyone who claims this is the end of Billy Corgan’s TNA takeover attempts is “100 percent incorrect,” as the suit remains active and has yet to be withdrawn. Johnson added that Corgan’s secured loan to TNA has yet to be paid back, which could mean more trouble for the struggling wrestling company.
“As of right now (and until the loan is paid), Corgan could chose to turn that debt into a 36 percent ownership of Impact Ventures, something that obviously would not go over with the other owners given all the legal wrangling.”
News, any news doesn't ever tell the whole story. It will be an interesting next couple months.What I know is I am leaving wrestling soon.— MariaKanellisBennett (@MariaLKanellis) November 1, 2016
At the moment, this isn’t good news for TNA’s wrestlers and personalities. WrestlingNews.co said that “many people” weren’t happy with the developments, and two wrestlers – the husband-and-wife team of Mike Bennett and Maria Kanellis – took to Twitter to express their disappointment. A tweet from Bennett said that it’s “back to bad business” as the ruling means Dixie Carter won’t, for the meantime, be ceding control to Billy Corgan. Former TNA Knockouts Champion Kanellis went even further, not directly mentioning the ruling, but saying that she plans to retire from wrestling “soon,” ostensibly to focus on her studies.
[Featured Image by Christian Palma/AP Images]