Construction project manager ICON Venue Group is suing the former lead investor of Sacramento’s collapsed Major League Soccer stadium deal for fraud and breach of contract.
The civil complaint alleges Burkle and his partners formed a shell company called “soccer stadium company, llc,” or “SSC,” then “failed to capitalize that entity with enough funds to proceed with the development, and pay all of the designers, engineers, contractors, and managers, including ICON,” CBS Sacramento reports.
The lawsuit alleges that there are $2.3 million in unpaid invoices.
The lawsuit alleges Burkle and his partners told ICON “finalizing a deal with major league soccer was a mere formality.”
The lawsuit states “…the defendants knew that SSC was not fully capitalized, that contracts were secretly never signed…” and “…that defendants would rely on the absence of a contract, or alternatively the lack of funds of SSC to deny liability and refuse to pay ICON…”
In 2019 MLS commissioner Don Garber flew into Sacramento to award the city and its lead MLS investor Burkle an expansion franchise. CBS reported that the touted downtown stadium plan had been a symbol for more downtown Sacramento resurgence, and a Railyards revival.
Now the deal is dead and left in a legal dispute, the broadcaster reported.
This lawsuit was filed in Sacramento County Superior Court on June 11.