TNA’s financial issues are even more dire than previously thought, as unlikely as that may sound. We already knew that there are multiple lawsuits pending, a restraining order believed to be designed to stop the company from selling shares again, a dispute over music rights, and debt owed to various entities who funded the recent tapings. Yet there is still plenty of room for more.
On Friday morning, I confirmed with the Davidson County Register of Deeds that the State of Tennessee issued a tax lien against TNA Entertainment LLC about five weeks ago on September 8th. While the listing for the lien in some online databases has the debt recorded as “$0,” that is because some public record search companies misread the Register of Deeds not recording the amount of the lien.
Essentially, what this means is that TNA owes a lot of taxes to the state of Tennessee, to the point that the state now has the right to seize TNA property if the debt is not repaid. While the wrestling company is now operating under the newer Impact Ventures LLC company that was formed this year, Tennessee tax law covers successor companies. If someone actually buys the company, potential scenarios include TNA/majority owner Dixie Carter having to take a lower sale price so as to pay off the lien, or the new owners risking the scenario where Tennessee goes after them for the tax liability.
It’s up to the state whether or not to assert its rights and start seizing assets from TNA. While the restructuring as Impact Ventures LLC increases the distance from the original debt and thus requires more work by the state to collect, it can still do so. Tennessee would just have to assess a lien against Impact Ventures and, if it got that far, a buyer as well. However, the state cannot go after a successor for more than the purchase price.