L.A. Kings Ltd., the 28% of the franchise controlled by
Bruce McNall bankruptcy trustee R. Todd Neilson, filed suit
yesterday alleging tha the 72% of the team transfered to Jeffrey
Sudikoff and Joseph Cohen is voidable, as is Bank of America's
lien on the team, according to today's L.A. TIMES. In addition,
Neilson objected to terms of the proposed financing of a deal
between Sudikoff and Cohen and CO billionaire Philip Anschutz and
developer Edward Roski. Neilson's attorney, Leonard Gumport:
"The terms of the financing needlessly give Anschutz a
competitive edge over other potential bidders." Court papers
also say that Sudikoff and Cohen have failed to fulfill an
alleged obligation to put additional money into the Kings.
Sudikoff, Cohen and Bank of America say the lawsuit is "without
merit" (Lisa Dillman, L.A. TIMES, 6/16).
ALL BAIL (OUT) THE KINGS: Internal documents revealed
Wednesday reported an operating loss of $8M for the Kings last
year, according to the L.A. TIMES. A source who viewed the
records called the franchise "radioactive," writes Lisa Dillman.
The team last week received an advance from Lakers and Forum
Owner Jerry Buss of $500,000 to keep the franchise operational.
However, Dillman reports that "of immediate concern" are unpaid
payroll taxes of $1.9M and two payments of $1M to Wayne Gretzky
the team owes this summer. The NHL lockout, an unfavorable
lease, high payroll and the team's failure to make the playoffs
all "combined to exacerbate the situation." Dillman: "In
contrast, according to sources, the Mighty Ducks showed about a
$9-million profit in their first season in the league -- under
calm conditions, a low payroll and a favorable lease deal" (L.A.
TIMES, 6/15).
SHOWTIME: Credit Lyonnais Bank of France had the winning
bid Thursday at an auction of films owned by McNall's Gladden
Entertainment and Sherwood Productions. The winning $14M bid gave
the bank control of such Mcnall-produced films as "The Fabulous
Baker Boys" and "Mr. Mom" (AP/Minneapolis STAR TRIBUNE, 6/16).
