By BRENDAN CASE and GARY JACOBSON / The Dallas Morning News
bcase@***BANNED-URL*** gjacobson@***BANNED-URL***
The Dallas Mavericks are “insolvent and and/or in imminent danger of insolvency,” according to a lawsuit filed Monday by a company controlled by Ross Perot Jr.
Dallas Basketball Ltd., which does business as the Dallas Mavericks, had a net loss of $50 million in the fiscal year ended June 30, the lawsuit said. The team has lost $273 million since Dallas billionaire Mark Cuban took over as majority owner in 2000, Perot alleged.
DBL had interest-bearing debt of more than $200 million as of Dec. 31, the lawsuit alleged. The team had an equity deficit of $289 million, and negative working capital of more than $75 million, the lawsuit said.
“DBL currently does not have revenues sufficient to pay its operating costs,” according to the lawsuit, which was filed by Hillwood Investment Properties III Ltd.
“Without additional borrowings, DBL will not be able to fund its projected operating losses or to pay its obligations as they become due,” it said.
Cuban was not immediately available for comment.
The lawsuit marked an escalation in a legal spat between Perot and Cuban. Perot sold a majority of the team to Cuban in 2000, but retains a minority stake.
Perot sued Cuban in July over profits from the company that operates American Airlines Center. At the time, Cuban accused Perot of “trying to find nickels in the sofa cushion.”
