· _ · · 2 ' _ Page 1
,1 2 _ y 1 *
· 2 UNITED STATES DISTRICT COURT V ‘ 1
_ DISTRICT OF ARIZONA . Q *
. 3 , D ._X _ 2
. NR`1§1t>5wEARK*LEM5NT S married Een, — »
y 4 Plaintiff, ‘ “ ~ g ‘
· 5 _ —against— Index No. y %
‘ CV O4 0299 PHX DGC -.
_ . I 6’ y and CV 04-1023 PHX DGC
7 Q
• - HARLEM GLOBETROTTERS INTERNATIONAL, -
L 8 INC., an Arizene Corporation, , `
· HARLEM GLOBETROTTERS INTERNATIONAL ‘ ’ †f _
I 9 FOUNDATION, INC., an Arizona ` `
` ‘ Corporation; MANNIE L. JACKSON ~_ { _
· _ V 10 and CATHERINE JACKSON, husband · ‘ 1 _
and wife; FUBU THE COLLECTION, LLC, y Q
. 11 a New York limited liability I ;
4 company, doing business in Arizene; ` · i
_ 12 _ GTFM, Ltc, e New York limited - . 1
g _ liability company, doing S 1 _ `
L 13 business in Arizona, i
11 { Defendants.
~ _ _ _ _ _ _ _ _,_ _ _ _ _ _ _ _ _ _ _X ;
15 FRED "CURLY" NEAL, LARRY ?GATOR" 4 T
Q R1VERS,·DALLAS "BIG D" THORNTON, E
16 ROBERT ··S1—1owB0AT·· HALL, ;
MARQUES HAYNES, JAMES _ A Q I
17 ··1*w1SSY·· SANDERS, ‘ I Q
E 18 Plaintiffs,» · · A
? O 19 V · ‘ —against— .
20 HARLEM GLOBETROTTERS INTERNATIONAL, 1
,; A INC., an Arizona Corporation, _ 2
$ ,21 HARLEM GLOBETROTTERS INTERNATIONAL _ f
5 1 FOUNDATION, INC., an Arizona» 2 ( `
1 •» 22 · Corporation; MANNIE L. JACKSON X
» _and CATHERINE JACKSON, husband » j
{ 23 _and wife; FUBU THE COLLECTION, LLC, ‘ .
mi ‘ ia New York limited liability Q Q
li 24 company, doing business in Arizona; L ‘ g _
n`·_ I - 25 GTFM, LLC, a New York limited . 1- 1
1 ( 1, is ,,.. - A A. ` _,___________W.. I W ,.,, S ,_WM»mM_,___W__“ I -
1 I ,, , f disc Rc -9580
il" ` 1 ·
» · 1 laifnllklt Rww&w#####;$ 2,_,l;S ·
‘ A Case 2:04-cv-00299-DG0 De 11· 1¢»1 1 `·111 .1,21t Qi LSISLII. P »,,`, 11/21/2005 I?3g91()f3 -,
.. - I » I 1
. Page 42 Page 4 3 {
1 MICHAEL SYRACUSE 1 MICHAEL SYRACUSE { _
2 biggest supporter of the program, and 2 ‘ chief financial officer, I can approve
3 that's why the program exists. 3 those and mail those without his l I
4 Q. — What program are you talking about? 4 knowledge.
5 A The program that has allowed 5 Q When did you get the approval that I
6 reimbursement back to alumni players is 6 you could send checks out for the sale of l -
_ 7 the creation of Mamie. Mannie created 7 Fubu clothes to former players? »
._ » , 8 the program. 8 A I can't give you a specific date. Q .
9 Q What program? Are you talking about 9 Q Give. me your best shot at how long {
1 0 the foundation? 1 0 before you sent this letter you got that `
. 1 1 A No. It's not what I’m talking 1 1 approval.
12 about. You're asking me where these 1 2 . MR. GARVEY: Don't speculate. j
13 checks came from. We have, from the 13 A I'm unable to do that. $.
- 14 bobble head sales —— you‘ve asked me about 1 4 ‘Q Can't even give me a range? · §
15 bobble head sales and Fubu licensing that 15 A I can't even tell you the date the 3 |
1 6 are intermingled in this memo. They are 1 6 Fubu contract was signed; so I c’an't give
17 two separate programs. These programs are 17 you the date that I would be aware that ~
` 1 8 ·set up and approved through Mr. Jackson, 1 8 when we had a program in place to
1 9 as he is the biggest supporter of those 1 9 reimburse former players. _
20 _ programs. Now, to what I knew with this 2 0 Q Does this appear to be the first · T -
2 1 specific letter and who approves the 2 1 payment? - _ I
22 payments, when we have a program in place 22 A I can't answer that. I don‘t know. . . {
, 23 and I write checks to fund those programs, 23 Q "In addition, Mannie has approved a · *
2 4 I do not get approval on each one of . .2 4 portion of the net sales to go directly to _
2 5 those. As an officer ofthe company and 2 5 the players. This program was established i
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Page 44 ._ Page 45 _
1 MICHAEL SYRACUSE ` 1 MICHAEL SYRACUSE {
2 ` as a good will gesture. You're not 2 · input in it as far asarecommendation. n
3 entitled to any payments." Does that 3 And I believe at the time, it was -- we J `
· i 4 sound like the first payment to you? 4 may have had the management team or —- I .
5 ‘ MR. GARVEY: Objection. 5 can't tell you that. I cannot recall if ·
6 A No. I believe I included that in - 6 Mannie was specifically involved in that ·
7 every letter I wrote to the players. 7 conversation. ' ,
8 Q And what percentage —- was it just 8 Q About how much percentage to give Q
9 up to you to pick a percentage that you 9 out of Fubu? _ _ . _
1 0 were going to give the players? How woul 10 A Correct.
11 you come up with how much each player 1 1 Q And is it your testimony that the . ‘ ‘ E
12 would get? I'm curious. From the sale of 12 .decision to give a percentage of Fubu net L - `
13 Fubu. I 13 sales to former players had nothing to do ¤ ‘
14 A I would have to go back and research 1 4 with the claims that were surfacing a .
15 what our theory was. I believe they , ' 15 month earlier? · i
1 6 shared the same percentage as the 16 A It absolutely did not. The program, ? I »
17 Globetrotters shared. 17 as a percentage of sales to be retumed, . {
18 Q Which was? _ _ 18 was in place almost at the inception of . i
1 9 A Eight percent; 1 9 the licensing agreement.
_ 20 Q And whose idea was that? 20 _ Q Okay. So the payments should have i
21 A I don’t recall exactly. 2 1 been made from -— as soon as you started i
- _ 22 Q Is that one of those you come up 22 making profit? . i
` 23 _with on your own or is that coming down 2 3 MR. GARVEY: Objection. .1 ?
‘ 2 4 from Mannie Jackson? ‘ 2 4 A That's —— I can't answer that ‘ .
25 A I’m sure I had some pretty strong 25 question. . V
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· . p Page 86 4 ‘ . Page 87
1 MICHAEL SYRACUSE 1 MICHAEL SYRACUSE 5 g A
_ 2 division of Harlem Globetrotters,Iwhich is 2 MR. GARVEY: I think that's all I
| 3 just Harlem GIobetrotters'·merchandising ·· ` 3 have. , » ¤
4 .arm, 25 percent to the foundation and 25 . 4 4 ‘ - MR. MITNIK: Very briefly. g
5 percent to the players. The theory there 5 EXAMINATION BY "
R6 was half will take care of the program and 6 BY MR. MITNIK: _ ` S
7 the proceeds will be split as charitable 7 j Q Who is the contact person at the 1
8 contributions through the HGI foundation, 8 accounting tirm that you retained looking
Q 9 and a simple split, the remainder would go 9 into this issue?
10 to the players. So you had a 50 percent _ 10 A At McGladrey and Pullen? - ¤
1 1 margin item split in half between the two 1 1 Q Yes, sir. .
12 charitable arms, the players being one and 12 A l`€:'(iiId*foFw“a1·d1}i6G`tIE;ihaHa@‘-who
13 the foundation being the other. _ 13 p assistédiirne-o'ri¥sitE·`aT1dith‘e·paT1tner wlii
14 Q In the Fubu agreement, Mr. Jackson 14 ai:companieclfl‘iim»"fr`Ftlie»`iiiitialx
Q 1 5 made a determination that 8 percent woul ri 1 5
4 17 8 percent to the foundation;_ is that 17 A I know both their namesQ At this Q
1 8 correct? . _ 1 8 time, I can't recall them. ·
i 19 A That is correct. 1 9 Q And have they been asked to make an
20 Q So that's a total of 16 percent that 2 0 kind of determination as to the percentage
Q 2 1 would have otherwise stayed with the 2 1 of the sales attributed to individual i
22 Globetrotters that was devoted to the 2 2 ‘ players? ‘
2 3 players? I · 2 3 A Specific to the players? 1 ·
_ 2 4 _ A That is correct. Mr. Jackson was a 2 4 Q Versus percentage that went to the i
2 5. part of that process. 2 5 name generally, Harlem Globetrotters? g
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• A Page 88 » Page 8 9
» 1 MICHAEL SYRACUSE 1 MICHAEL SYRACUSE 1
2 A dur investigation, our audit 2 THE VIDEOGRAPI-IER:· The time is
3 “ investigation did not get to the point · 3 7:04 p.m. We are now going off the 2
.. Q . 4 where that would bc possiblg ‘ 4 - record, ending the deposition with 2 `
· 5 Q By the way, were there new active 5 T3P€_N“mb°Y 2- ‘
6 ° players, where their names were being 3 (Time noted 7:04 P·m·) _
A g sldlzgggrgzgzilcnowledge, on jerseys and 8
9 A You need to define new active, and I 9 _ . 5
to would have to review the mm. S—e¤S¤¤*><=da¤¤;w¤m1¤bgf¤¤·=m¤ ,
• __ I 11 Q Were the individual names primarily this pday 0 ’ 2 05 . E
12 the alumni legends? V lz
13 A I don't know. I'd have to do an 1 3 1
c 14 initial investigation. 1 4
15 MR. MITNIK: Okay. That's all I 15 ‘ _
I 1 6 got. Thank you. 1 6 I =
I 17 y 17 _
18 1 (Continued on the next page to 1 8 5 ` =
19 include jurat.) 1 9 ' · I ` _
2 0 - 2 0 y . _ g
Q; » ~ 21 » Q
c y 22 » I
· Z3` I VM; 23 I I
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