UFL, Cuban Hope To Settle Differences Without Further Input From Federal Court
The UFL and Mark Cuban told a federal court this morning that they hope to work out their differences without any further input from the court. Cuban’s HDNet sued UFL Founder Bill Hambrecht in January for an unpaid $5M loan plus interest. Cuban loaned the UFL the money on April 7, 2010, in exchange for a 5% stake in the league. The money was due back on October 6, 2010. Hambrecht had secured the loan, so he is the target of the lawsuit. According to the filing today in a northern Texas federal court, the two sides have been working to resolve the dispute and the case could be dismissed within one year. “If the parties do not fully perform under the settlement agreement, a previously executed agreed judgment will be entered,” according to the document, called an “agreed motion to stay.” The stay motion does not describe what the judgment would be if the sides do not reach an agreement. The UFL has struggled financially, and has had trouble paying many vendors, players, and coaches. Nevertheless, the UFL said just this week following its third championship game it expects to play in '12. The loan paid 1% interest before default. But because the UFL defaulted, the rate rose to the Prime Rate, or the rate banks charge their most credit worthy customers, plus 3%. That would have raised the total interest rate to over 6%.