Chip Ganassi vs Sycamore Entertainment Lawsuit
Chronological order of events 2020-2022:
2020:
When Mr. Edward Sylvan signed the Binding Letter of Agreement with Chip Ganassi Racing on December 10th, 2020, the company Sycamore Entertainment Group, Inc., had no revenue or savings to be able to cover the agreed license fees. According to their annual financial reports, Sycamore Entertainment created zero revenue in the year 2020. Yet, Edward Sylvan committed himself to pay $17,400,000 to CGR knowing that he had no product or service available that would ensure an ongoing revenue stream.
In 2020, Sycamore couldn’t pay the agreed fee and so they provided a comfort letter to CGR. It means, already in the first year of the partnership with CGR they couldn’t fulfill the contract.
2021:
On March 31rd 2021, Edward Sylvan signed another agreement with CGR to sponsor a racecar in the Indycar series. This cantract called for payment of $10,170,000. Sycamore Entertainment did still not create any revenue with their business but registered millions of depts.
End of 2021, Chip Ganassi stopped the cooperation with segi.tv and the CGR Extreme E racing team appeared with CGR branding instead of the segi.tv branding during the Extreme E race in Saudi Arabia in February 2022.
2022:
On March 31, 2022 the company has made payments of $5,300,00 and $100,000 to Chip Ganassi.
2023:
On March 23rd 2023, Chip Ganassi Racing filed a lawsuit against Sycamore Entertainment. They received a judgement in their favor on August 10th, 2023. Sycamore Entertainment has to repay
$16 million to Chip Ganassi racing.
In the court documents, we found an arbitration award that was sent to Sycamore, represented by former independent director Alfred “Chip” Sloan on December 16, 2022 4:59 PM.
SEGI has not opposed the Claim what made it legitimate and therefore needed to be mentioned in the financial reports. However, SEGI did not mention the liabilities of $16 million in their annual financial report 2022 nor in the Q1/2023 filings. It was a clear attempt to hide this fact from shareholders.