Louisiana Attorneys- Baton Rouge Law Firm

In the News

Ex-TFN official seeks wages
By TED GRIGGS
Advocate business writer
04/22/05

The former vice president of operations at The Football Network has sued the company, alleging the network owes him more than $200,000 in unpaid wages and failed to live up to other arrangements in his contract.

Paul Hendrickson, who resigned in late March, said he has not received his full salary since the latter part of 2003, according to a lawsuit filed Monday in 19th Judicial District Court. Hendrickson said his contract called for him to receive a salary of $155,000 per year through September 2004 and $165,000 a year through March.

"I sold my business and relocated here, relocated my family here. I tried to stick it out as long as I could," Hendrickson said.

Stephen Babcock, an attorney for TFN, said his client vehemently disputes Hendrickson's claims.

"Based on our appreciation of his claim, a thorough understanding of his employment contract, and the facts surrounding his employment, we, at this time, do not believe Mr. Hendrickson is accurate in his assertions, and the Babcock Law Firm will vigorously defend The Football Network in this matter," Babcock said.

Hendrickson said he was the first TFN employee to arrive in Baton Rouge, moving from Minnesota during summer 2003. Hendrickson said he quit after disagreeing with TFN Chairman and Chief Executive Officer Jerry Solomon's recent decision to tape an NFL draft program.

"I thought it was not a wise business choice based on the fact that we owed so much money to so many people," Hendrickson said.

Hendrickson said the money would have been better spent taking care of TFN's bills. TFN arrived in Baton Rouge with promises of 200 high-paying jobs, average salary $50,000, and a lineup of top-tier sports broadcasters. Public money brought TFN here. The state invested $1.25 million and Bon Carré put up $3.75 million.

However, TFN began life undercapitalized and quickly ran into money trouble. In late 2003, the company let go most of its workers and went off the air.

It is still off the air. TFN owes hundreds of thousands of dollars in rent to Bon Carré Business Center on Florida Boulevard and Louisiana Public Broadcasting for the use of studio equipment. The exact amount TFN owes is not known.

LPB President Beth Courtney said TFN still owes the network between $500,000 and $600,000. LPB has removed all of its equipment from TFN's offices at Bon Carré.

"I've terminated all my contractual arrangements with them," Courtney said.

Courtney said LPB made a separate arrangement to rent a videotape editing machine to TFN but required the company to pay cash upfront. When the $12,000 contract ended recently, LPB removed that machine, too, she said.

TFN officials could not be reached for comment Thursday. However, the company has taken some steps toward addressing its money problems.

In August, TFN announced a $30 million equity commitment from Cornell Capital Partners, which has committed more than $800 million to 120 companies in the United States, the United Kingdom and Australia.

Under the Cornell Capital agreement, TFN had to register with the Securities and Exchange Commission and bring its accounting procedures in line with the federal agency's regulations.

TFN is listed as a "pink sheet" stock, which is publicly traded but doesn't fully disclose its financial statements to the public.