The situation with TNA and Billy Corgan had a few twists and turns this morning stemming from a New York Post article by Richard Morgan.
The key to the story at this point is that even though TNA is being controlled and funded by Anthem Sports & Entertainment, for reasons of saving money based on the Corgan contract, they are claiming they haven't been sold, even though for all real purposes they have.
The point to this is that Corgan's deal with TNA when fronting them $1.8 million (a figure Corgan has now confirmed) is that if the company was sold, he was entitled to a 50% transfer fee, meaning the company would owe him $2.7 million. Anthem Sports has been willing to pay Corgan $1.8 million, or at times $1.9 million (claiming they were willing to pay six
percent interest), but not $2.7 million, and also insist on him dropping his lawsuit against them before they would pay him.
Corgan is asking for the money, but refuses to drop the lawsuit, and claims that if they don't pay him he has the right to convert the payment into 36 percent of TNA stock. It would be a minority interest. Anthem is clearly avoiding the term purchase of TNA and going through with an actual purchase, in order to avoid the transfer fee.
In court they had said they would pay the amount of $1.9 million (they said the number owed plus six percent interest) on November 1st. As of today, it had not been paid. TNA is demanding that if they paid the money, that Corgan sign a release, breaking all ties between the company which would mean that he would have to drop the ongoing lawsuit and could not sue the company going forward.
In the Post article, a TNA source claimed that the judge (Ellen Hobbs Lyle of Nashville Chancery Court) ruled that the company had not been sold.
"Billy's saying the company was sold and he's owed $2.7 million," said an unnamed source. "But the court has already determined the company was not sold."
Technically in company papers Dixie Carter is still listed as owning 92.5 percent of company stock, even though the agreement privately in the new organization of the company would be that Anthem would own 85 percent, Aroluxe would own 10 percent and Carter would own the remaining five percent.
Corgan then started tweeting after the article came out:
"YEP: Just published NY Post article asserts that judge in case ruled against my receiving 2.7 in Anthem swap deal. This is FALSE. Case OPEN."
"Today I'm FORMALLY requesting repayment of my 'so-called' loan by TNA, which I'm told stalled because they didn't know where to FIND ME."
"Laughs aside, I'd put up 1.8mil for express purpose of becoming equity stakeholder and helping talented roster. Any other assertion is FALSE."
"So if I'm not repaid today in full and without conditions attached, I'll be forced to once more pursue remedy by taking TNA stock via court."
"Remember it was Anthem and not I who stood in open court and told judge they were prepared to PAY and in turn FUND good ol solvent TNA."
"A Company which they claim they have no business deal for behind-the-scenes yet have released 2 press releases saying they are TAKING OVER."
"So far be it from me to accuse someone I don't know of bending truth to win a case. That just wouldn't be nice, and I believe in being nice."
"Last thing: Despite being called a lender by every arm of TNA propaganda, I can still convert to a 36 percent stockholder or sell option to highest bidder."
"And that option if you will to convert my boo-hoo-hoo loan to 36 percent stock or auction it off to a PW titan doesn't require a court order."
The implication here is that Corgan would attempt to sell his percentage if they don't pay him to WWE, but I'm not sure what WWE would want with a minority interest in a rival company. WWE has had talks with existing companies about becoming a stockholder, but always insisted on 51 percent, which is why deals haven't been made.