A legal battle between a sports industry executive and the monolithic Kroenke Sports & Entertainment, LLC (KSE) and other corporate defendants appears headed to trial next winter, where a court will decide the breach of contract and other claims.
The dispute between plaintiff Nic Salomon and the defendants arises from Salomon’s failed attempt to purchase SkyCam, LLC and CableCam, LLC, two wholly-owned subsidiaries of co-defendant Outdoor Channel Holdings, Inc. (Outdoor), which are engaged in the aerial camera business (collectively, the Camera Business).
The plaintiff sued on February 27, 2015, alleging that Outdoor had agreed to sell the Camera Business to him and his investor partner, co-defendant Pacific Northern Capital LLC (PNC). As part of their negotiations for the purchase and sale of the Camera Business, the plaintiff, PNC, and Outdoor executed a “Term Sheet,” dated February 27, 2013, allegedly containing promises by Outdoor (a) to deal exclusively with the plaintiff and PNC regarding the purchase of the Camera Business; (b) not to entertain any competing offers to purchase the Camera Business; and (c) not to disclose to any third-party efforts by the plaintiff and PNC to purchase the Camera Business.
Salomon alleged that Outdoor breached these promises (collectively, the Exclusivity Provision) when it negotiated a merger with co-defendant KSE, which resulted in KSE acquiring Outdoor and all its subsidiaries, including the Camera Business. The plaintiff further alleged that KSE “interfered with Salomon’s efforts to purchase the Camera Business and usurped the opportunity for itself. The plaintiff further alleged that PNC breached its fiduciary duties to him by agreeing to amend the Term Sheet to give KSE the right to veto the sale of the Camera Business to the plaintiff and PNC. Based on this alleged conduct, Salomon sued the defendants, asserting claims for (1) breach of contract against Outdoor; (2) tortious interference with an existing contract and prospective relationships against KSE; (3) breach of fiduciary duty against PNC; and (4) unjust enrichment against Outdoor, KSE, and PNC.”
Salomon told Sports Litigation Alert that the litigation involves “an executive who had a legally binding contract, but has limited resources, and is up against powerful corporate interests. Diplomacy is the goal, but that’s not entirely in my control. From the beginning, we have been open to the idea of a settlement. But the other side has not been interested in a resolution.”
KSE is one of the world’s leading ownership, entertainment and management groups. Among its major properties are the Pepsi Center, the Paramount Theatre, Dick’s Sporting Goods Park, the Colorado Avalanche (NHL), Denver Nuggets (NBA), Colorado Mammoth (NLL) and Colorado Rapids (MLS).
Asked about what the optimum solution would be, Salomon said he would like to see “a meeting with Mr. Kroenke. I’m sure we could resolve this.”
