Hornets Owner George Shinn was the subject of a lawsuit
filed by Charlotte business exec Ed Peacock who alleges that
Shinn has received $4.1M in "unconstitutional payments from
the Charlotte Coliseum Authority," according to Liz Chandler
of the CHARLOTTE OBSERVER. Peacock contends that payments
of public money to Shinn "are unconstitutional because they
`confer privileges upon private parties without public
benefit.'" Peacock says the suit "targets" Shinn rather
than the Coliseum Authority because Shinn has been receiving
the payments. Peacock, a former Charlotte City Council &
Coliseum Authority member, said, "I am suing on behalf of
taxpayers, and if I win, the money will be returned to
them." The suit asks for the payments to stop and the money
to be returned, plus interest. The conflict stems from the
Coliseum Authority's '95 contract revision with George Shinn
Sports, "allowing for the first time revenue-sharing with
Shinn's company." Until '95, the Coliseum Authority kept
all profits made from parking and concessions at Hornets
games. But the revisions gave Shinn 50% of those profits,
which have "totaled about" $4.1M over the last three
seasons. City officials, however, say "there's nothing
wrong" with their deal with Shinn. City Attorney Mac
McCarley: "The city is fully aware of all the (contract)
provisions ... and I believe they are legal and valid."
Shinn was not available for comment Thursday, and a Hornets
spokesperson declined comment (CHARLOTTE OBSERVER, 10/23).
