These guys showed up in the first game of the Big 3 League open season. Dressed in designer clothes, they bragged around about their ties to Qatari royalty, flaunting their money and expensive tastes. They were clearly impressed by the Big 3 League's events over the opening weekend in Brooklyn, because a few weeks later, they were minority shareholders in the fledgling basketball league.
But league owners accuse the men of wanting too much. In a lawsuit made public last week, league owners accused the foreign investors of deliberately withholding millions of dollars in investment in an attempt to squeeze out the founders of Big 3, including well-known entertainment figure Ice Cube, to take over the league.
Ace Cooper and co-founder Jeff Kwatinetz, a senior executive in the U.S. entertainment industry, are seeking $1.2 billion in damages. They claimed to have been deceived by foreign investors, including Sheikh Abdullah bin Mohammed bin Saud Al Thani, the current CEO of the Qatar Investment Authority, who works at Qatari state-owned enterprises specializing in foreign investment.
Cooper and Kwicknanz founded the eight-team Big 3 league, which lasts ten weeks and travels to a new city on weekends for a series of 3X3 half-time basketball games. The league currently has more than 50 former NBA players, including All-Star and Hall of Fame players. Cooper is the equivalent of the league's facade characters, such as Iverson, Julius Owen, Ron Artest, Amare Stoudemire, Gary Payton and George Gervin signed as players or coaches. The league ended its first season last August.
"This league, how to say it, we are a very new and small league, and we have only been running for one season. But we're chasing those big games. Cooper said in a telephone interview.
He went on to say it was more important to catch up with other leagues. "It's like telling the world what they want to do, we're not good at bullying." They think we're just rapping or music, but we can kill them and don't get in our way. ”
The plaintiff said the months-long farce cost the league millions of dollars. The farce led to the league firing its first president, in part because of his relationship with foreign investment groups, and management tensions cast a shadow over the league's finances.
In a 33-page lawsuit filed in Los Angeles County Superior Court, the plaintiffs pointed out that the Qatar Group paid only a portion of the agreed investment and withheld the remaining funds in the hope of taking the initiative. These moves are aimed at splitting the leadership and ultimately controlling the alliance.
The investment group, called Sport Trinity, involves three other investors: Ahmed Al-Rumaihi, a former Qatari diplomat in the United States, Faisal Al-Hamadi, director of the Qatar Investment Authority, and Ayman Sabi, a U.S. citizen. The plaintiffs said in the lawsuit that Sabi misled Big 3 into thinking he was also a top Qatari figure.
A spokesperson for Sport Trinity claimed the lawsuit was "completely wrong and viciously fabricated false information" and said investors "did nothing superfluous than to get the best out of the business." The spokesman did not mention the specifics of the lawsuit, but said Kvinaz had rejected Sport Trinity's efforts to contribute to the alliance's further development.
"Sport Trinity believes that Kvinaz has a long history of running a business poorly and emotionally, and that he has bankrupted a series of profitable businesses... We don't think he's a good fit to manage big 3. The spokesperson wrote in an email.
A Qatari government spokesman said Sport Trinity Group has no formal ties to the Qatar Investment Authority or Qatar.
The lawsuit is just the latest flashpoint in the management unrest. The original told the recently fired president Roger Mason Jr. introduced investors to Kvinanz and Cooper, and Mason issued a statement last month saying he had been retaliated for his dismissal because he said Big 3 had breached his contract. He said Kvinaz "engaged in malicious acts that denigrated me" and described the coalition's working environment as "hostile and racist."
In a statement last week, Mason said, "Unfortunately, the commercial dispute between the two sides has turned into an emotional defamatory competition."
"Big 3 is a business and should be run the way it is, but conceit and emotion seem to be hindering the development of this business." "I didn't want to be involved in retaliatory and unprofessional behavior, but as a result, I was unceremoniously fired and targeted for false and disparaging remarks," he said. Thankfully, those who understand me know exactly what kind of person I am. ”
The lawsuit is dramatic, with international intrigue rife and entertainment giants battling foreign investors. The gap between the two sides began with courtside gossip and progressed to a heated argument at a former NBA player's memorial service until it became a lawsuit in a Los Angeles courtroom.
Comb through from scratch
In order to prolong the player's career and let fans still see their favorite NBA stars, on June 25, 2017, Big 3 opened its first game under the watchful eyes of 15,177 fans at the Barclays Center. Cooper and Kvinaz also began looking for investors in the hope that the alliance would continue to grow.
"Cooper and I are willing to invest ourselves, which is certainly not easy, but we both believe we can do it." "We rejected a lot of investors who wanted to take over and transform the alliance as they wished," Kvinaz said. ”
The plaintiffs wrote in the indictment that Mason emailed the alliance's executives at the time, telling them that Qatari investors were "very interested in acquiring the remaining shares in big 3." They are able to provide great value and are strategic for the development of the Alliance internationally."
Less than two weeks after the opening of Big 3, on July 7, the investment group made a 30 percent offer to the alliance to buy a 30 percent stake, according to court documents, and they want Sabi to become chief operating officer. Cooper and Kvinaz see this as too much to ask. But a week later, Kvinaz said in an interview that the two sides had reached an agreement that Sport Trinity owned no more than 15 percent of the shares. Big 3 made it clear that the investment group would only be anonymous partners.
The lawsuit laid out the terms of the contract: Sport Trinity would have to pay $11.5 million and contribute $9 million in sponsorship fees over the next three years. The investment group also discussed the possibility of partnering with Qatar Airways (Qatar's state-owned airline) and Qatari TV channel beIN Sports.
But the plaintiffs said Sport Trinity only initially paid $6.5 million and promised to pay the remaining money as soon as possible. But at the same time, the investors travel to places like Dallas and Lexington, Kentucky, and sit on the sidelines and enjoy the privilege of engaging with players and league executives.
Increasing tensions
The plaintiffs noted in the lawsuit that the investors were trying to curry favor with some of Big 3's employees, including Mason, by offering them access to St. Tropez. Tropez) and Ibiza tours, parties on yachts and California mansions, in addition to providing them with investment opportunities in private commercial projects.
According to the plaintiffs' indictment, the investors still have not paid the remaining amount of their investment after the championship game in Las Vegas ended on August 26. Kvinaz began to solicit money more directly, but investors always shyed away.
In December, Sport Trinity paid another $1 million, but still owed $4 million. According to the plaintiffs, the investment group is like "a debtor who avoids debt collectors."
The plaintiffs' filing also contained a series of screenshots of The Ramaha and Kvinaz chats that showed the growing tension in their relationship.
The two finally had a face-to-face conversation two days later, Feb. 3, the day of Rasual Butler's memorial service (the former NBA and Big 3 player was killed in a crash four days ago). The plaintiffs said Rumaiha did not attend the chase, but waited in his Bentley until the end to meet with Kvinaz. The documents show that Rumaiha said he would not hand over the remaining funds to Big 3. He said in a separate message that he needed a 25 percent stake in the union and that "Mr. Kvinaz should show respect for the royal family".
"Mr. Kvinaz told him that to be respected, he should first repay the money he has been owed for six months and stop lying repeatedly." The indictment reads, "Rumaiha became so angry that he yelled at Kvinaz and threatened him and his family. "You don't know who I know in Los Angeles and what these people can do. You should consider the safety of yourself and your family. ”
Rumaiha did not comment on the incident.
The plaintiffs noted that Kvinaz hired professionals to protect themselves, their families and Big 3 employees.
The move of the investment group
On February 14, Big 3 began seeking arbitration to resolve its dispute with Sport Trinity. The indictment states that Mason said he "didn't want to be caught up in it" because the investor was his friend.
"The announcement by an employee with the highest salary and still owning shares is unsettling and a wake-up call for the union office." The indictment reads.
The league hired Sean Macias, a law firm from the law firm of Massias, to investigate. Mason declined to be investigated and was fired in early March. He made a highly inflammatory statement that became a hot topic in the news. Mason said another employee told him that Kvinaz repeatedly called the black players rich. Kvinaz denied this claim.
"I'm angry." Ice Cube said, But everyone, myself included, knows that's. We can sense how desperate Roger is to say such a thing. ”
The plaintiffs say Sport Trinity's investors are Behind Mason's efforts to break up the alliance and create a leadership vacuum. The plaintiff sued the defendant for defamation, commercial fraud, and wilful interference to damage the contractual relationship.
$1.2 billion in damages, partly from The Big 3's expected revenue and the other from $20 million in damages per player, is accrued. The league claims that players enjoy a share of the revenue, so even if players are not listed as plaintiffs, they are victims.
"The players are 100 percent supportive of the league." Clyde Drexler said. Drexler, a Hall of Famer, served as coach at Big 3 last season and replaced Mason as league president last month. "Everyone is a part. It's a revenue-sharing league, and if you anger the league, you anger all of our players. ”
Cooper and Kvinaz said the controversy would not slow the momentum of big 3 growth. The league, which is expected to start its second season in Houston on June 22, also announced an equipment sponsorship deal with Adidas. At the same time, the league's television broadcast situation is also improving, and they hope that their basketball brand will get better in the next year.
"We just want to do basketball." Cooper said, We don't want to get involved in the of international conspiracy theories. ”
Disclaimer: This article is compiled by Lazy Bear Sports from the Washington Post, original author Rick Maese.