Seyfarth and Ferguson McManamy work Georgia State football deal

Posted on December 9, 2008 17:07 by Andy Peters

College football is king in Atlanta and the Southeast. Georgia State University, seeking to capitalize on the region’s passion for football, is starting its first football team. The Panthers’ first game is scheduled for 2010 at the Georgia Dome.Bill Curry

The team will start practicing next year, at a new site just a short walk from Georgia State’s downtown campus. Seyfarth Shaw partner Robert Trusty and Ferguson McManamy partner Kati Heller were the two primary outside counsel on the property sale.

Blood N Fire Ministries-Atlanta Inc., a non-profit group, sold the 3.8-acre parcel to the Georgia State University Foundation for $6.6 million, according to Fulton County Superior Court records. Trusty advised Georgia State and Heller was counsel to Blood N Fire. Georgia State University in-house counsel Neal Bateman III worked on contract issues and due diligence.

The property is located on Martin Luther King Jr. Boulevard, just east of where the street crosses the Downtown Connector. MARTA’s east-west rail line runs along the northern edge of the property. The headquarters of Atlanta businessman Billy Corey’s business sits to the west of the site. Blood N Fire operated a ministerial-outreach program on the property, which includes two older brick-clad industrial warehouses.

Georgia State plans to have two practice fields on the site, along with a training facility and coaches' offices.

The property sale was brokered by Jamie Hargather of Wilson, Hull & Neal, representing Georgia State; and by Larry Culbertson of The C Group LLC, representing Blood N Fire.

The Georgia State Panthers will be coached by former Georgia Tech and Alabama head coach Bill Curry [photo, above].


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Greenberg Traurig negotiates contract for video game developer

Posted on December 2, 2008 15:10 by Andy Peters

Two big video game development companies combined earlier this year – Activision and Blizzard Entertainment – creating a new firm called Activision Blizzard Inc.World of Warcraft

Activision is responsible for the video game blockbusters “Guitar Hero” and “Call of Duty”, while Blizzard developed the popular multiplayer online role-playing game “World of Warcraft.”

After the merger, the new company decided to operate Blizzard Entertainment as a separate division. It also retained one of Blizzard’s co-founders, Michael Morhaime, as president and chief executive of Blizzard Entertainment. Greenberg Traurig partner Duane Sitar in Atlanta was legal adviser to Morhaime on negotiating his employment contract with Activision Blizzard, according to a regulatory filing.

Sitar declined to comment on his work for Morhaime.

The deal to create Activision Blizzard was announced in December 2007. In the deal, Vivendi SA acquired a majority stake in Santa Monica, Calif.-based Activision and combined Activision with its Vivendi Games subsidiary, which included Blizzard Entertainment. The transaction closed in July. In the merger, Skadden, Arps, Slate, Meagher & Flom advised Activision and Gibson, Dunn & Crutcher advised Vivendi.


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Michael Vick's Sugarloaf mansion, horses and yachts on the block

Posted on November 14, 2008 16:40 by Andy Peters

Want to live in an 8-bedroom mansion at Sugarloaf Country Club, once owned by a superstar NFL quarterback, complete with a movie theater and a 4-car garage? It can be yours for $4.1 million.Vick house

As part of a plan to sell his assets to pay off debts, former Atlanta Falcons quarterback Michael Vick is selling his Sugarloaf mansion. The sale of the Gwinnett County mansion, along with more houses, cars, yachts, sport-fishing boats, horses and more, was part of a reorganization plan filed on Wednesday in federal bankruptcy court by Vick’s lawyers, Crowell & Moring partners Peter R. Ginsberg and Michael Blumenthal.

Vick is serving a 23-month sentence in federal prison in Kansas for bankrolling a dogfighting ring in rural Virginia. He is scheduled to be released July 20. Although Vick remains on the Atlanta Falcons roster, Falcons owner Arthur Blank has said that he expects Vick will return to the NFL, but not with the Falcons.

Among the many disclosures found in the filing made in U.S. Bankruptcy Court for the Eastern District of Virginia:

* In early 2007, before he was indicted, Vick gave his younger brother, former Miami Dolphins wide receiver Marcus Vick, about $450,000 worth of jewelry as a gift. However, the bling, which includes a Breitling watch and diamond stud earrings, may not have been Vick’s to give. It’s unclear whether Vick made payments on the merchandise to Atlanta jeweler Aydin & Co., or whether Aydin gave Vick the jewelry to wear as a promotion for the company.Breitling

“There is an issue as to who owns the jewelry,” the Crowell & Moring lawyers wrote in the court filing.

* With his multimillion-dollar contract with the Atlanta Falcons and endorsement contracts with Nike, Rawlings and others, Vick financially supported his mother and siblings, his son, his son’s mother, his fiancée, Kijafa Frink, and the two children he has had with Frink, a 10-month-old and a 3-month-old. Vick allowed his family to live in homes he purchased and drive his cars while he also paid their living expenses.

* Vick’s family and fiancée drove nicer vehicles than he did. Vick gave his brother, Marcus, a 2007 Land Rover. He gave his mother two Cadillacs, and his fiancée a 2007 Infiniti. But Vick himself drove a 2007 Ford F-150 truck.

* Vick paid Sutherland partner Billy Martin $500,000 for defending him against the federal dogfighting charges. Vick paid Atlanta criminal defense lawyer Daniel R. Meachum $200,000, according to Meachum spokeswoman Monica Wood.

* Vick gave his former personal manager, David Talbot, a 2008 Mercedes and $35,000 in cash as part of his compensation. Vick’s bankruptcy attorneys later learned, however, that Talbot had filed for Chapter 13 bankruptcy protection on three separate occasions, and also had had multiple legal judgments filed against him. Additionally, shortly after Vick filed for bankruptcy protection, New Jersey state officials filed a complaint against Talbot alleging civil securities fraud.

* After he was convicted and sent to federal prison, some of Vick’s memorabilia from his football career was left behind at the Sugarloaf mansion. These items are being held for safekeeping by Vick’s former Falcons teammate Demorrio Williams, now with the Kansas City Chiefs.


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Paul Hastings advises CD, DVD maker on reorganization

Posted on July 15, 2008 13:25 by Andy Peters

Paul, Hastings, Janofsky & Walker partner Elizabeth H. Noe and associate John R. Collins in Atlanta are advising Entertainment Distribution Co. on a reorganization of the company.

Amy Winehouse The New York company last month filed its reorganization plan, which includes swapping shares of Entertainment Distribution’s common stock into a new company, to be called EDCI Holdings Inc. The reorganization is being planned in conjunction with the switch of the listing of its shares from the NASDAQ Global Market to the NASDAQ Capital Market. NASDAQ advised Entertainment Distribution in January that because of the price of the company’s shares it was in danger of being de-listed from the Global Market.

In its prospectus, Entertainment Distribution identifies as one of the company’s major assets “net operating loss carryforwards (NOLs).” The company describes the NOLs as “an important part of our overall strategy because they can be used to reduce the amount of income tax we would be required to pay in the future on earnings from our business.”

Entertainment Distribution is formerly known as Glenayre Technologies Inc. Under the Glenayre name, the company sold telecommunications messaging software and pre-recorded CDs and DVDs. Now, as Entertainment Distribution, it only makes and distributes pre-recorded CDs and DVDs, and also provides consulting on digital music downloads. One of Entertainment Distribution’s customers is Universal Music Group, whose artist roster includes Amy Winehouse and India.Arie.


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Michael Vick, autographed collectibles peddler clash over money

Posted on July 8, 2008 17:13 by Andy Peters

One of the creditors listed in Michael Vick’s bankruptcy-reorganization filing is one of a small number of players in the world of selling memorabilia autographed by famous athletes.Michael Vick signed helmet

Radtke Sports Inc. operates a Web site that sells balls, hats, helmets, jerseys, photos and other items hand-signed by professional athletes. Radtke, which also operates a store in Marietta, has an exclusive agreement with Green Bay Packers quarterback Brett Favre to sell his hand-signed merchandise.

Radtke Sports also had an exclusive agreement with Vick . But Vick’s conviction on federal dog-fighting charges last year, and subsequent sentencing to a two-year-long stint in federal penitentiary, changed all that, said Radtke Sports’ counsel, Kimbrell & Burgar partner P. Darrell Kimbrell in Atlanta.

“You don’t ever anticipate anything happening like what happened with Vick,” Kimbrell said.

Vick listed Radtke Sports as one of his 20 largest unsecured creditors in a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, estimating that he owes the company about $550,000. But Kimbrell said that figure doesn’t include the full amount that his client requested in separate litigation he filed last year in Cherokee County (Ga.) Superior Court.Peyton Manning signed jersey

After his sentencing, Radtke Sports sued Vick when he “failed to provide autographs” pursuant to the terms of his agreement, Kimbrell said. Vick was obligated to provide a certain number of autographs per year; these signatures would have been produced in person  at collectors’ trade shows or in private signings, Kimbrell said.

Only a few athletes have exclusivity agreements with autographed merchandise resellers, Kimbrell said. Indianapolis Colts quarterback  Peyton Manning and New York Yankees shortstop Derek each has an exclusive deal with Steiner Sports Marketing & Memorabilia Inc. of New York. Former Yankees pitcher Roger Clemens and former Auburn Tigers football star Bo Jackson have deals with TRISTAR Productions Inc. of Houston. But many players, such as John Smoltz, have never agreed to sell their autographs exclusively through a reseller.

“There aren’t that many athletes who have exclusive agreements,” Kimbrell said. “There isn’t that big of a demand for it.”

Even with the exclusivity deals, athletes still sign autographs for fans at no charge when they are exiting the field or playing court at a stadium or arena, Kimbrell said.


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Atlanta Falcons seek return of $3.75 million bonus from Vick

Posted on July 8, 2008 15:56 by Andy Peters

An attorney who prosecuted Centennial Olympics Park bomber Eric Rudolph—King & Spalding partner Phyllis Sumner—is now trying to help the Atlanta Falcons recover a $3.75 million signing bonus from Michael Vick.

Vick, the former Falcons quarterbackMike Vick who was jailed last year for bankrolling a dog-fighting ring, filed for Chapter 11 bankruptcy protection on Monday in the U.S. Bankruptcy Court for the Eastern District of Virginia. Vick said in the filing that his debts total somewhere between $10 million and $50 million.

Sumner, a litigation partner at King & Spalding in Atlanta, is listed as counsel to the Falcons in the bankruptcy papers. While an assistant U.S. Attorney in Atlanta, Sumner was involved in the prosecutions of Centennial Olympics Park bomber Rudolph and former Atlanta mayor Bill Campbell.

Sumner declined to comment on the Vick case.

In a court filing Vick’s attorneys blamed his bankruptcy filing on a suit filed against him by his former agent, Andrew Joel of Richmond, Va. In the suit Joel claims Vick reneged on an endorsement deal; Joel subsequently sued the football star for $45 million. Vick’s largest debt in his bankruptcy filing is the $4.5 million that he estimates he owes to Joel Enterprises Inc. of Richmond.

“The Debtor’s goal was to avoid bankruptcy and work out consensual resolutions with each of his creditors who, other than Joel, have been quite cooperative,” a court filing said.

Vick’s attorneys also wrote in the filing that “the bankruptcy case may provide a mechanism for the Debtor to recover assets from certain third-parties who may have taken advantage of the Debtor during the pre-petition period.”

Vick’s filing lists Hunton & Williams partners Hill B. Wellford Jr. in Richmond and Arthur E. Schmalz in McLean, Va. as counsel to Joel Enterprises. Wellford and Schmalz couldn’t be reached for comment.

Two law firms are advising Vick on his bankruptcy reorganization: Crowell & Moring in New York and Kaufman & Canoles in Norfolk, Va.

Some of Vick’s debts arise from his defaulting on loans as a result of his imprisonment. Vick was ordered in May to pay $1.1 million to Wachovia after he defaulted on a loan he used to open Atlantic Wine & Spirits and the Tasting Room restaurant in College Park. Smith, Gambrell & Russell partner Thomas Barton and associate Aaron Tady in Atlanta are counsel to Wachovia Corp. Vick also agreed to repay a $2.5 million loan to Royal Bank of Canada. Poyner & Spruill partner Lisa Sumner in Raleigh, N.C., is counsel to the Canadian bank.


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Schrutt, Greenberg Traurig extend sports yakker's contract

Posted on July 1, 2008 16:50 by Andy Peters

Atlanta talent agent Norm Schrutt negotiated a contract extension on behalf of 680 the Fan sports-talk radio show host John Kincaid.John Kincaid

Schrutt described Kincaid’s contract with Dickey Broadcasting Co.’s WCNN-AM as a long-term deal with certain non-compete provisions. Schrutt declined to provide further details on the contract.

In addition to his work on 680 the Fan’s “Buck & Kincaid” show, Kincaid [see photo, right] also does regular work for ESPN, such as guest-hosting on ESPN Radio’s “The Herd with Colin Cowherd” and hosting his own ESPN Radio show on Sunday mornings.

Schrutt, who’s not an attorney, said lawyers from Greenberg Traurig vetted the legal aspects of Kincaid’s contract. Schrutt leases office space from Greenberg Traurig inside its office at The Forum on Northside Parkway. Schrutt also previously owned a talent-agency firm with Greenberg Traurig entertainment partner Joel A. Katz, although Schrutt has since bought out Katz’s share of the firm.


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Braves' Smoltz finds another reason to work on his putting

Posted on May 27, 2008 15:24 by Andy Peters

Braves pitcher John Smoltz has said he wants to take a shot at playing professional golf once his baseball days are finished. Now Smoltz has another reason to work on his putting.

Smoltz Smoltz and some business partners recently acquired Southwest Putting Green Technologies Inc. of Scottsdale, Ariz. for undisclosed terms. The company designs and installs synthetic putting greens used for wealthy individuals who want a putting green in their backyard. Southwest Greens, which has a licensing deal with Jack Nicklaus’ golf-design company, also installs turf for commercial clients.

Lawson & Moseley partner William R. Moseley Jr., who was counsel to Smoltz and the investor group, said the investors all knew each other and saw an opportunity to buy a golf company.

“They have what the owners believe is the best artificial turf in the country,” Moseley said.

Moseley’s partner William H. Lawson worked with him on the transaction, as did associate Heather M. Davis. The three attorneys left Davis Pickren & Seydel about a year ago to form their corporate-law boutique.

Smoltz and his partners re-named the company Southwest Greens Holdings Inc. The group wants to expand the company’s sales outside of its core business, Moseley said. Their product can also be used as the turf in athletic fields, on playgrounds and at driving ranges, Lawson said.

Southwest Greens purchases all of its turf from one vendor, Challenger Industries of Dalton.green3

Lawson & Moseley continues to perform work for Southwest Greens on franchise law and intellectual property law, Moseley said.

“Their trademarks are already protected in Mexico, Australia, Panama, Canada and other locations,” Moseley said. “What we’re in the process of doing now is protecting their marks in areas where they want to do business. They want to break into the Middle East, Saudi Arabia and Dubai.”

The other members of the investor group are former Braves and Pirates pitcher Zane Smith and former Hitachi executive Richard Davis III, who’s serving as CEO of Southwest Greens.

As for Smoltz's golf game, as of May 2 he had a U.S. Golf Association handicap of +2.


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Andy PetersThe Deal Watch Blog is devoted to bringing you the latest news in business law in Atlanta, the Southeast and the U.S. The lead writer is Daily Report staff reporter Andy Peters.

Andy Peters has been a journalist since graduating from Furman University in 1992. A short list of the subjects he’s covered includes the Georgia state Legislature, the U.S. semiconductor industry, the Alabama-Florida-Georgia “water wars” litigation, the 1999 American Airlines pilots strike, Coca-Cola and PepsiCo’s battle to acquire the Gatorade sports-drink brand, indie rock music and high school football. Andy has written for Bloomberg News, the New York Times Web site, the Macon Telegraph, the Spartanburg (S.C.) Herald-Journal and the Atlanta Business Chronicle.

Andy has written the Deal Watch column for the Daily Report since March 2006. He was born in Chattanooga, Tenn. in 1971 and grew up in Ringgold, Ga. He lives in Decatur with his wife and two children.

He can be reached at andy.peters@incisivemedia.com.

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