Former Agents Sue SFX Entertainment

Claim fraud in lack of information about purchase by Clear Channel

Chicago, February 8, 2001 -- Agents Jim Bronner and Bob Gilhooley filed suit in federal court in Chicago against their former employer, SFX Entertainment Inc. The two baseball agents, fired immediately after the suit was filed, claim they were defrauded.

Bronner and Gilhooley began working for SFX on February 2, 2000, when SFX purchased their company, Speakers of Sport, for $29.76 million along with $10 million in possible future payments. The two agents signed $1 million, 5-year contracts with SFX. On August 1, 2000, SFX was acquired by Clear Channel Communications Inc. for around $3.3 billion in stock. Clear Channel is affiliated with several Major League Baseball teams, and Bronner and Gilhooley claim the buyout created a conflict of interest that affected their ability to attract and maintain clients. The lawsuit asserts that SFX deceived Bronner and Gilhooley and that the firm should have informed them of negotiations with Clear Channel when it purchased Speakers of Sport. Bronner and Gilhooley say damages in the case amount to $10 million and are asking for an additional $50 million in punitive damages.

SFX has placed agent Randy Hendricks in charge of Bronner and Gilhooley's players and staff. Among their clients are dozens of Major League Baseball players, including Pedro Martinez, Mariano Rivera, Larry Walker, Moises Alou, Vladimir Guerrero, and Jim Thome. An SFX spokesperson stated the "suit was completely without merit and that SFX would move immediately to dismiss it."

Amy Armond