A1Sports and the ABA Jaloza cases

[preeths]

For those who believe A1Sports has been lying about the current state of the Jaloza case against the ABA, here is the Findings of Fact, Conclusions of Law, Partial Summary Judgment and Entry handed down Friday.

http://www.oursportscentral.com/pdf/JalozaOrderenteredJuly202007.pdf

[dbaproball]

I will not claim to be a lawyer, but this says to me the Jalozo owns his share of the ABA (and all of the offshoots) because those offshoots were not legally created. If Jalozo's original shares were 50%, then he owns 50% of the ABA and effectively no business can be transacted without his vote. Furthermore, the judge made his decision final by denying a motion to reopen. The only real question is what the damages turn out to be and how they will be settled. It does seem like there is a new sherrif in town until settled.

[a1sports]

Great you found that Paul !!

Now Id like to see first and foremost how Alex the "sportswriter" treats this news.

Then lets see how others react.

[nksports]

The league is millions in debt. So he is now half owner of how much in debt? At this point, why would you want your name associated with this?

On the other hand, now Joe and his cronies own less than 50% of the league, so maybe he can be bounced out.

[Paul S]

Guys - I really think this may be a case of better the devil you know. I mean if you google Jaloza, well, the NASD has had some interesting discussions with him on his previous brokerage life and has a site where you can look up a broker.

This guy isn't exactly St. George on a white horse riding in to save the ABA from itself.

Jaloza, in my opinion, has 3 options
1/ get Joe to buy him out (oh, and I'd ahhhhh.... get a certified check, ok Steve)
2/ Force Joe out (great, but now he's stuck with this dysfunctional league)
3/ Work with Joe ( I doubt he's gonna want to do that, it didn't work out too well the first time.)

I guess he could also try and sell his share but with Dan Meisenheimer calling all over the lower 48 trying to find a buyer for the USBL there is already one other lemon on the market.

[preeths]

You're assuming that Jaloza has some interest in being a part of a basketball league. I'm not sure he does. If there's enough bad blood between the parties, he may just want to shut the thing down or let it operate and collect checks from the owners for use of the ABA license.

[The Magician]

... he may just want to shut the thing down or let it operate and collect checks from the owners for use of the ABA license.

in his speculation ... Jaloza can collect on the ABA license?

[preeths]

in his speculation ... Jaloza can collect on the ABA license?

That would be speculation at this point, I believe, but it doesn't sound unreasonable given the decision on Friday. Any damages apparently must still be determined by the court.

[preeths]

From a recent ABA SEC filing (http://www.secinfo.com/d12TC3.ukFc.htm) (emphasis mine):
Recently filed litigation could adversely affect the Company’s intellectual property. In or around December 2006 the ABA was advised that Steve Jaloza and Sol Fradella, 50% owners of ABA Founders & Properties LLC, filed an action against Joseph F. Newman, Richard P. Tinkham and American Basketball Association, Inc. The plaintiffs have alleged that they have non-exclusive rights to the same intellectual property and rights “that is the subject of the corporate transactions between and among ABA and/or Brax Capital Group and/or Souvall Page” and that “potentially the plaintiffs in conjunction with another individual control the majority ownership of all ABA rights.” The Company believes that the pending actions and allegations are not meritorious, particularly insofar as they relate to the ABA and to the use of its intellectual property. The Company intends to defend this litigation aggressively, expects that the courts will concur with the Company’s views that these actions and claims are without merit and currently believes that the outcome, other than costs of suit, will not be materially adverse to the ABA. Nevertheless, an adverse judgment on these actions could materially harm the business of the Company. No assurance can be given that the Company’s position will be upheld or will prove to be correct over the course of litigation.

[dbaproball]

That's the great thing about SEC filings...even white lies can put you in jail....so they don't get told. These statements and "market reservations as product lines" are really all you have to know to form your own opinions.

[preeths]

Anyone know more about this?

Capital Growth Financial, LLC v. American Basketball Association, Inc. et al:
http://dockets.justia.com/docket/court-flsdce/case_no-9:2007cv80622/case_id-299452/

According to the SEC report (http://www.secinfo.com/d18KQ3.ud.4.htm), Capital Growth Financial acted as the ABA's placement agent during the reverse merger.

[a1sports]

Capital Growth may have filed a recission. This is a legal proceeding to get any money back from the ABA that they got for them.


Looks like JOJO ( or Jaloza ) has a lot on his plate....

[TheStandard]

Jaloza can now sell the ABA to capital growth and capital growth can now write it off and shut it down if they win their case.

[The Magician]

Anyone know more about this?

Capital Growth Financial, LLC v. American Basketball Association, Inc. et al:

According to the SEC report ... Capital Growth Financial acted as the ABA's placement agent during the reverse merger.

If you have access ... You can read the entire complaint and filings at:
https://ecf.flsd.uscourts.gov/cgi-bin/show_case_doc?1,299452,,,,,11,1

Look to Page 63 ... and you will see for yourself where the ABA CEO had agreed to retire.