Goltv, Inc. v. Fox Sports Latin America Ltd.

277 F. Supp. 3d 1301
CourtDistrict Court, S.D. Florida
DecidedSeptember 19, 2017
DocketCASE NO. 16-24431-CIV-ALTONAGA/Turnoff
StatusPublished
Cited by28 cases

This text of 277 F. Supp. 3d 1301 (Goltv, Inc. v. Fox Sports Latin America Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goltv, Inc. v. Fox Sports Latin America Ltd., 277 F. Supp. 3d 1301 (S.D. Fla. 2017).

Opinion

ORDER

CECILIA M. ALTONAG4, UNITED STATES DISTRICT JUDGE

THIS CAUSE came before the Court on Defendants, Confederación Sudamericana de Fútbol (“Conmebol”), Fuji Play Group, S.A., and Alejandro Burzaco’s Consolidated Jurisdictional Motion to Dismiss [ECF No. 203] Plaintiffs, GolTV, Inc. and Global Sports Partners LLP’s Amended Complaint [ECF No. 78]. The Court has carefully considered the Amended Complaint, Motion, Plaintiffs’ Memorandum of Law in Opposition (“Response”) [ECF No. 218], Defendants’ Consolidated Reply [ECF No. 228], the affidavits and exhibits filed contemporaneously with the briefing,1 and applicable law.

I. BACKGROUND

On October 20, 2016, Plaintiffs, GolTV, Inc. and Global Sports Partners, filed an initial Complaint [ECF No. 1], alleging 16 named Defendants were involved at various levels of bribery schemes to award and obtain exclusive television rights to Con-mebol’s international soccer club tournaments. The allegations relied extensively on a 92-count Superseding Indictment [ECF No. 1-3]2 from a parallel criminal case in the Eastern District of New York, which charged 27 individual defendants with crimes including racketeering, conspiracy, wire fraud, and money laundering offenses in connection with seeming exclusive worldwide rights for international soccer tournaments. (See generally Compl.).

Plaintiffs allege they are victims of bribery schemes spanning from roughly 2009 to 2015,3 during which all Defendants plotted to enable Defendant, T & T Sports Marketing Ltd., to secure exclusive television rights to Conmebol’s international soccer tournaments. (See generally Am. Compl.). While the Amended Complaint peoples the field with multiple players and details several aspects of this scheme, only the parties and factual allegations relevant to the Motion are discussed below.

Conmebol is “one of the oldest and most prestigious soccer confederations in the world,” and is exclusively authorized to direct and control soccer within the South American region by soccer’s international governing body, the Fédération Internationale de Football Association. (Id. 32 (citation omitted)). It is organized as a confederation of national soccer associations from ten countries in South America. (See id.). Its Executive Committee is its permanent authoritative body and as of 2013 consists [1309]*1309of one president, three vice presidents, a secretary general, a treasurer, and six directors. (See id.).

GolTV is a Florida-based television channel that provides Spanish-and English-language soccer programming in the United States. (See id. ¶ 144). Global Sports Partners is an English partnership formed by GolTV’s owners to acquire television rights to international soccer tournaments for GolTV. (See id. ¶ 16).

T & T Sports Marketing is a Cayman Islands company owned for much of 2005 through 2015 by Defendants, Fox Pan American5 and Torneos y Competencias. (See id. ¶ 17). Torneos has historically held exclusive agreements to produce and distribute television programming related to South American league soccer matches. (See id. ¶24). Alejandro Burzaco, an Argentine citizen, had an ownership share in Torneos and variously served as the company’s general manager, legal representative, and president of its board of directors between 2005 and 2015. (See id. ¶29). GolTV and Fox are competitors within the market for professional soccer programming, although they also do business together. (See id. ¶ 14). Full Play Group is a Uruguayan corporation and sports media and marketing business with its-principal offices in Argentina and Uruguay, and Hugo and Mario Jinkis serve as its controlling officers. (See id. ¶ 31).

Among the greatest prizes these companies vie for are the broadcasting rights to the South American tournaments run by Conmebol. (See id. ¶¶ 56-58). The tournaments relevant to the Amended Complaint include the Copa Libertadores, the Copa Sudamericana, and the Recopa Sudameri-cana. (See id. ¶¶ 55-56). Only Conmebol, by decision of its Executive Committee, can award television rights for the tournaments. (See id. ¶ 59).

Between 2005 and 2015, Burzaco, Full Play, and the remaining Defendants allegedly engaged in several acts to further the schemes to bribe Conmebol officials in order to secure broadcasting rights to the club tournaments. (See generally Am. Compl.).

Specifically, Burzaco, as majority owner of Torneos, which owned 25 percent of T & T Sports Marketing, caused T & T Sports Marketing to wire bribe and kickback payments to Conmebol officials. (See id. ¶¶ 5, 42, 64, 66). In 2005, he took over day-today management of Torneos and learned of the annual bribe payments to Conmebol officials which had begun in 2000 under one of the Torneos founders, Luis Nofal. (See id. ¶¶ 62, 67). Burzaco helped to continue the payment of bribes to Conmebol officials until 2014. (See id. ¶67). Beginning in 2009, he also acceded to demands for bribes from officials at Conmebol’s member associations, paying annual six-figure sums to secure these officials’ support for T & T Sports Marketing’s exclusive rights to the soccer tournaments. (See id. ¶ 69). He oversaw increases in the bribe payments starting in 2010 and laundered money through intermediary entities, including Full Play. (See id. ¶¶69, 95-96).

Torneos and Fox also relied on Full Play to launder money through its own intermediary entities to pay additional bribes and kickbacks to Conmebol officials. (See id. ¶¶72, 101-07). To avoid detection, some bribes were wired to Full Play bank accounts and held for periodic disbursement [1310]*1310to the officials. See id. ¶ 76 (citation omitted)).

Plaintiffs filed the Amended Complaint on March 6, 2017, after perfecting service of process and narrowing the list of Defendants. The Court entered an Order [ECF No. 156] providing for a period of jurisdictional discovery for Plaintiffs to defend any motion to dismiss on grounds of lack of jurisdiction or improper venue.

Plaintiffs assert Conmebol’s, Full Play’s, and Burzaco’s activities in the state of Florida are sufficient to subject them to the jurisdiction- of this Court. (See id. ¶¶ 38-50). Plaintiffs contend venue is proper in the Southern District of Florida because “a substantial part of the events, omissions, communications, and transactions giving rise to Plaintiffs’ claims occurred in this judicial district, including wire transfers of bribes... and other criminal wrongdoing.” (Id, ¶ 51 (alteration added)). Plaintiffs’ specific allegations, and Defendants’ respective rebuttals, are more fully developed in the discussion as to each part of the Motion.

II. PERSONAL JURISDICTION

Conmebol and Full Play move to dismiss for lack of personal jurisdiction. (See generally Mot.). The Court reviews the legal standard before analyzing the jurisdictional allegations, first as to Conmebol and then as to Full Play.

A. Legal Standard

Under Federal Rule of Civil Procedure

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277 F. Supp. 3d 1301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goltv-inc-v-fox-sports-latin-america-ltd-flsd-2017.