Carolina Panthers Facilities

[KJHburg]

I am no attorney but pretty sure this is called piercing the corporate veil.    Mr Tepper files bankruptcy for a company that was developing the facility in Rock Hill but writes the check on the Panthers checking account.   This looks like commingling of funds a term used in my industry.    This is a great reporting on these court filing by the Ledger. 

From the Charlotte Ledger today  (Underlined my emphasis) 

Construction company that says it’s owed $68M calls Panthers owner a ‘crafty player’ in bankruptcies, with ‘incestuous’ business structure; suggests team should pay

by Tony

Construction company that says it’s owed $68M calls Panthers owner a ‘crafty player’ in bankruptcies, with ‘incestuous’ business structure; suggests team should pay

by Tony Mecia

""The general contractor on the Carolina Panthers’ abandoned Rock Hill headquarters project suggests in new court documents that the Panthers could be liable for tens of millions of dollars of the project’s debts.

In a filing last week in the bankruptcy case of GT Real Estate Holdings — a real estate company controlled by Panthers owner David Tepper — joint venture contractor Mascaro/Barton Malow said Tepper and the Panthers and affiliated business entities engaged in a series of “intertwined and suspicious dealings” that deserve further scrutiny. It says that the contractor believes that “entities owned or controlled by David Tepper, and in particular the Carolina Panthers, may be liable for the Debtor’s obligations.”

Generally, the assets of separate holding companies are distinct from those of their owners, which would mean Tepper and the Panthers would be off the hook for tens of millions in debts racked up on the failed project, which was in the middle of construction when it was halted in March. But in the court filings, the contractor says Tepper and the Panthers made a series of sloppy missteps and “questionable insider transactions” that could open them up to liability.

For instance, the contractor says that even though GT Real Estate Holdings was the company running the Rock Hill project, $115M in payments for work there came directly from the Carolina Panthers’ checking account. And Mascaro/Barton Malow’s contract with the real estate company was signed by “Mark Hart” as “Vice President and C.O.O.” when in fact Hart is the vice president and chief operating officer of the Panthers. Those distinctions are important because they suggest that Tepper’s real estate company was not being operated as a distinct business, which could open up Tepper’s larger enterprise to liability.

Loans or not? The court filings also raise questions about the status of the money that the Panthers put into the Rock Hill project. The real estate company has said the Panthers contributed $163.5M in loans. But the contractor alleges there are no loan documents for the payments, which further suggests a co-mingling of assets and raises the question of which should take priority in being repaid: the “loan” payments from the Panthers, or the money owed to construction contractors?

Mascaro/Barton Malow has said in court filings it believes it is owed $68M for construction work. It’s a joint venture between construction companies Mascaro of Pittsburgh and Barton Malow of Michigan and is the largest outside creditor in the bankruptcy. York County is also trying to recover the $21M it paid toward the project in January 2021. The project fell apart over a dispute with the city of Rock Hill, which did not issue more than $200M in bonds to help pay for the infrastructure.

‘Crafty’ hedge fund manager: Last week’s filing also has some choice words about Tepper, who the contractor says deserves extra scrutiny because of his background. It says that “Tepper is one of the most seasoned and crafty players in the distressed market space” who has “made his career in leveraging distressed situations to his benefit.” It calls Tepper’s football-related business entities “incestuous (if not intentionally fraudulent).” Tepper is a hedge fund manager with an estimated net worth of $17B.

In reply, GT Real Estate Holdings’ chief restructuring officer says in court documents that its proposed plan is in the best interest of creditors. He also says that there has been some interest from developers in acquiring the site. The company “has shared NDAs [non-disclosure agreements] with two mixed-use real estate investors that have inquired about the status of the project,” he wrote, without providing further details.""

 

[Hushpuppy321]

This has become a straight-up Sh!t Storm.  I really hate it for this region.  Again I say that if Rock Hill didn’t uphold their end, Tepper should’ve fronted the money, completed the project and just Sued the hell out of Rock Hill for Breach of Contract & Damages later on.

This totally Sucks for SC, York County and Fans/Taxpayers in general.  Whoever thinks that Tepper played a ‘good’ business hand in this is fooling themselves.  Dang - we can’t have anything nice here in the Carolinas…. Rant Over.

Edited July 1 by Hushpuppy321

[JeanClt]

Should it have gone there in the first place…?

[RANYC]

4 hours ago, Hushpuppy321 said:

This has become a straight-up Sh!t Storm.  I really hate it for this region.  Again I say that if Rock Hill didn’t uphold their end, Tepper should’ve fronted the money, completed the project and just Sued the hell out of Rock Hill for Breach of Contract & Damages later on.

This totally Sucks for SC, York County and Fans/Taxpayers in general.  Whoever thinks that Tepper played a ‘good’ business hand in this is fooling themselves.  Dang - we can’t have anything nice here in the Carolinas…. Rant Over.

Huh - no nice things in the Carolinas because practice fields in some strange way billed as major economic stimulus didn’t get built?  This was just more public-private folly doing almost nothing for per capita productive capacity in the region

Edited July 1 by RANYC

[KJHburg]

I am much more concerned about the contractors and businesses not be paying what they are owed.  Do you think Steelfab would want to work with the Panthers again or the many other contractors?  What a huge waste of materials as well?  was this too ambitious and a vanity project for Tepper?  and do we know for a FACT that Rock Hill did not do what they said or did they need more information from Teppers organizations that was never provided?   Suing a major city in the metro area that can't be good for business of the Panthers.   

[kayman]

47 minutes ago, KJHburg said:

I am much more concerned about the contractors and businesses not be paying what they are owed.  Do you think Steelfab would want to work with the Panthers again or the many other contractors?  What a huge waste of materials as well?  was this too ambitious and a vanity project for Tepper?  and do we know for a FACT that Rock Hill did not do what they said or did they need more information from Teppers organizations that was never provided?   Suing a major city in the metro area that can't be good for business of the Panthers.   

What else was Tepper to do?  Let Rock Hill screw him over for not keeping their end of the contract?

[Hushpuppy321]

3 hours ago, RANYC said:

Huh - no nice things in the Carolinas because practice fields in some strange way billed as major economic stimulus didn’t get built?  This was just more public-private folly doing almost nothing for per capita productive capacity in the region

So true - the fact of this being a bit of folly but at least this could’ve been a major attraction like the Cowboys Facility in Texas.  We don’t expect the State of SC to do anything major concerning major investments in Public Transit down there.  

7 hours ago, JeanClt said:

Should it have gone there in the first place…?

Maybe not but since the State and Local Governments were on board, it was the best option.  Now after this crap it’s going to be harder or anyone (Contractor or Government) to work with Tepper Organizations like @KJHburgwas mentioning.  

[JHart]

On 7/1/2022 at 5:10 PM, KJHburg said:

I am much more concerned about the contractors and businesses not be paying what they are owed.  Do you think Steelfab would want to work with the Panthers again or the many other contractors?  What a huge waste of materials as well?  was this too ambitious and a vanity project for Tepper?  and do we know for a FACT that Rock Hill did not do what they said or did they need more information from Teppers organizations that was never provided?   Suing a major city in the metro area that can't be good for business of the Panthers.   

If you talk with anybody involved in SC development, they all agree there is no possible way this is solely on Rock Hill and everyone knows it.

[KJHburg]

the state of SC has lived up to their end of the bargain with Mr Tepper.  Here is the brand new interchange on I-77 in Rock Hill being built.  I ask again where is Mr Tepper going to get this kind of access for any training facility in this region?  Plus the ability to develop the entire area?  I hope he circles back and he better pay these local contractors that are owed millions.   I don't any other county in the region would want to deal with him at this point with the exception of Meck. 

[urbanlover568]

David Tepper's GT Real Estate Holdings LLC files complaint against York County in Delaware bankruptcy court

https://www.bizjournals.com/charlotte/news/2022/07/15/gt-real-estate-york-county-adversary-proceeding.html

Quote

GT Real Estate's complaint filed this week states the county funds were provided "with no binding contractual obligations governing its use." The county claims the money was for a road expansion project at the headquarters project site that was not completed.

 

[#1Son]

 

"Earlier this month, GT Real Estate was approved for its debtor-in-possession financing after several hours of hearings with strong opposition from creditors."

Anyone have an idea what the benefit of debtor-in-possession financing is for GTRE?  Everything you read about this project says that the site will be sold and redeveloped, but the examples of companies that have used DIP financing while in Chapter 11 use the financing to keep the business operating.  Is it possible that Tepper may be looking to have this project completed in the future? 

[KJHburg]

I stand by what I said this is the best place in the region for this training facility and I know Mr Tepper is mad but sometimes you have to think the long term.  What other regional county would make a bid for this training facility?  On Meck would be interested at this point and is that reasonable with a possible large public investment in a stadium?  But screwing local supplies like Steelfab out of millions does not build goodwill with local contractors.  

[thateasta]

Off 85 in Kings Mountain next to Casino.

[JeanClt]

Off 85 in Kings Mountain next to Casino.

Probably… pretty much the same commute with 77s traffic…

[kermit]

So I guess at this point its very clear where the problem is in the organization…

 

Edited July 19 by kermit

[KJHburg]

the only project Mr Tepper needs to do at the stadium and front office is a LARGE revolving door!

[InSouthPark]

17 hours ago, kermit said:

So I guess at this point its very clear where the problem is in the organization…

 

If you were hired to build a billion dollar facility and failed, I would assume you would be looking for a new job as well.   I am pretty sure Tepper wasn't out there giving kudo's to these guys for a job well done.   

Was Tepper directly responsible for hiring these people, yeah probably.  Was Tepper the reason they left?  Well if you piss off the boss to the tune of $275mil loss, yeah probably.   

[turbocraig]

Looks like Tepper is pulling out of Eastland altogether.   Another mystery.  This one is on a roll…

https://www.charlotteobserver.com/news/local/article263676168.html

[KJHburg]

I just don't understand all these decisions and chaos there  seems to be in the organization.  

[CarolinaDaydreamin]

13 hours ago, InSouthPark said:

If you were hired to build a billion dollar facility and failed, I would assume you would be looking for a new job as well.   I am pretty sure Tepper wasn't out there giving kudo's to these guys for a job well done.   

Was Tepper directly responsible for hiring these people, yeah probably.  Was Tepper the reason they left?  Well if you piss off the boss to the tune of $275mil loss, yeah probably.   

This is directly due to chaos he has created, not a job "poorly done".

[J-Rob]

9 hours ago, KJHburg said:

I just don't understand all these decisions and chaos there  seems to be in the organization.  

It is all very embarrassing. Regarding Rock Hill and Eastland, I am genuinely curious if Tepper has pinpointed somewhere else he wants to go, or if these were just separate failures and missteps. Part of me wonders if there is a hidden plan to locate everything near the Kings Mountain casinos, or something like that.  At this point, it is hard to imagine how all the missteps can be resolved in a positive light. 

[KJHburg]

1 minute ago, J-Rob said:

It is all very embarrassing. Regarding Rock Hill and Eastland, I am genuinely curious if Tepper has pinpointed somewhere else he wants to go, or if these were just separate failures and missteps. Part of me wonders if there is a hidden plan to locate everything near the Kings Mountain casinos, or something like that.  At this point, it is hard to imagine how all the missteps can be resolved in a positive light. 

I will say this out loud how tied is he to Charlotte region? I wondered this from the beginning with homes in NJ, FL and from Pittsburgh.  Would he back the city in a corner over a new stadium with threats of leaving? I can see that.  He is a hedge fund billionaire but not a real estate developer or someone who used to complicated real estate deals. 

and please no one say never.  Never would the Charlotte Hornets leave but they did and we got one back luckily.  Something is going on not sure what is Austin calling his name?  I hope I am in 100% wrong but given what is happening here of late I am concerned.  But of course he could sell the team and make some money and move on himself. 

[kermit]

1 hour ago, KJHburg said:

I will say this out loud how tied is he to Charlotte region? I wondered this from the beginning with homes in NJ, FL and from Pittsburgh.  Would he back the city in a corner over a new stadium with threats of leaving? I can see that.  He is a hedge fund billionaire but not a real estate developer or someone who used to complicated real estate deals. 

and please no one say never.  Never would the Charlotte Hornets leave but they did and we got one back luckily.  Something is going on not sure what is Austin calling his name?  I hope I am in 100% wrong but given what is happening here of late I am concerned.  But of course he could sell the team and make some money and move on himself. 

Yea, the lack of progress on a new stadium (does he own Charlotte pipe land or not? Where are the conceptual renderings of the new stadium?) and questionable personnel choices (Rhuel) makes me wonder if he is trying to find a way to say “see, Charlotte isn’t giving me what I need to have an NFL team here.” While I am sure the city will bend over for him, if he can create enough uncertainty about the process (even if the blame is 100% his) that he may be able to get league approval to pack the moving vans Bob Irsay style. The Rock Hill incident demonstrated that Tepper does not really care what we think of him.

[disclaimer: this is just paranoid ranting on my part. I am not really suggesting that I think this is likely to happen, just that it could.]

 

Edited July 21 by kermit

[InSouthPark]

51 minutes ago, J-Rob said:

It is all very embarrassing. Regarding Rock Hill and Eastland, I am genuinely curious if Tepper has pinpointed somewhere else he wants to go, or if these were just separate failures and missteps. Part of me wonders if there is a hidden plan to locate everything near the Kings Mountain casinos, or something like that.  At this point, it is hard to imagine how all the missteps can be resolved in a positive light. 

They absolutely do and its not like they were keeping it a secret.  On April 6th, Nick Kelly (Former TSE CEO) posted this:

 

[CTiger]

Personally I think this is all posturing for future stadium negotiations.  I think Tepper is trying to build up a reputation of "if you don't give me what I want, I'll take my business elsewhere".  

I think it is working too.  I now believe that if the city doesn't give him everything he wants in a new stadium (and he is going to want a hell of a lot) he'll go out and find a city that will.