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More Details Emerge Regarding TNA Wrestling's Financial Issues

Posted By: Kenny Williams on Oct 15, 2016

More Details Emerge Regarding TNA Wrestling's Financial Issues

As previously reported, TNA Wrestling is currently in the midst of some major financial issues due to lawsuits from not only Eric Bischoff and the company's current President, Billy Corgan, but also from Audience of One Productions LLC, TNA Wrestling's former production company.

PWInsider.com reports that the AO1 lawsuit specifically names TNA Wrestling, Impact Ventures LLC, Aroluxe LLC, TNA Chief Financial Officer Dean Broadhead, and Ron Harris. The lawsuit, which was initially filed back on September 27th in U.S. District Court, Eastern District of Virginia, asks for a total of $223,000 plus interest for what's described as a "breach of contract, fraudulent inducement on the behalf of Harris and Broadhead, torturous interference on behalf of Aroluxe, and for TNA violating Virginia code."

The lawsuit notes that AO1 was first contacted back in 2015 in regards to what they describe as "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,' among other things." That same year, AO1 was hired to produce TNA's Bound for Glory event, and TNA Wrestling was billed a total of $223,000, which the company is said to have not paid for a period of over a month. Once this occurred, Broadhead contacted AO1 and assured them that TNA Wrestling "was on the verge of a landmark deal" that would see the company be put into over 80 million homes. Additionally, Broadhead also promised AO1 that TNA Wrestling would be better than ever before and that if the production company could "hang on," the relationship could be more prosperous.

AO1 also notes in their lawsuit that they sent an invoice containing a 1.5% late penalty that was added to the initial figure, which led Ron Harris to ask for an itemized invoice. From there, TNA Wrestling is said to have continued to stall on their original payment to AO1, which led to the production company deducting a total of $29,001.57 from the original total due to TNA Wrestling paying several independent contractors so that AO1 wouldn't have to. AO1's lawsuit alleges that TNA Wrestling did this in order to ensure that the contractors would continue working with them once they ceased working with AO1. From there, TNA Wrestling set up a monthly payment arrangement that was scheduled to begin in March of this year and end in August; however, the company never made their first payment due to their constant financial strain. The lawsuit also states that this was around the same time that Aroluxe LLC began to finance TNA Wrestling, which AO1 alleges "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." Following this, communication between TNA Wrestling and AO1 is said to have stopped completely, and the lawsuit alleges that Broadhead and Harris are the two main parties responsible for failing to pay AO1 the money that is owed to them because of a conflict of interest in terms of TNA Wrestling's overall financial stability.

It has also been revealed that the last-minute funding for this year's Bound for Glory event came from Canada-based MCC Acquisition Corporation, who is also affiliated with Anthem Sports & Entertainment. Anthem is the parent company of The Fight Network, TNA Wrestling's Canadian broadcast partner. Incidentally, Anthem also owns some of the rights to the video archives of Impact Wrestling, which Vince McMahon is reportedly believed to be heavily interested in purchasing for the WWE Network.

It was also previously reported that the Tennessee Department of Revenue had filed a tax lien on TNA Wrestling back on September 8th due to unpaid taxes with the Davidson County Register of Deeds. According to the tax lien, TNA Wrestling also owes a total of $3.4 million to Anthem, Aroluxe, and MCC - debts of which do not include what Dixie Carter and/or the company owe Corgan for the Impact Wrestling television tapings that he personally funded.

Source: PWInsider.com, CagesideSeats.com
Tags: #tna

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