DALLAS (CN) – Dallas Mavericks owner Mark Cuban sued the founder of the United Football League in Federal Court, claiming William Hambrecht failed to repay a $5 million loan. The plaintiff, Cuban’s HDNet TV network, says it loaned the league the money on April 7, 2010, and that the loan that was guaranteed by Hambrecht and his revocable trust.
When the Oct. 6 due date passed and no payment was made, HDNet and the league entered into a forbearance agreement that pushed the due date to Dec. 1, and the league failed to pay again, Cuban says.
When Cuban’s investment in the league was announced in April last year, he said one reason why he joined the ownership group was the potential of an NFL lockout in 2011.
“It will make things really interesting, potentially,” Cuban told ESPNDallas.com. “Now, if there’s not a lockout, it’s a valid league. But that just made it more interesting.”
Cuban told the Dallas Observer this week, “It was only a loan, and (it’s) personally guaranteed by one of the founder’s trust.”
Launched in 2009, the UFL consists of five teams playing eight games each in a 10-week season in the fall. None of the teams are in markets where the NFL has a presence, though their rosters include many former NFL players. In its first two seasons, games were broadcast nationally on HDNet and the Versus network.
The plaintiff, HDNet, is represented by M. Brett Johnson with Fish & Richardson.