Courtesy the San Diego Union Tribune

(October 8, 2010) Longtime San Diego radio entrepreneur John Lynch has filed suit in San Diego alleging that he and his daughter were fired from the broadcast company he founded after being taken advantage of by other investors, including the Viejas Tribe.

The suit seeks unspecified damages as a result of his firing from the Broadcast Company of the Americas (BCA), which operates the Padres flagship station XX Sports Radio AM 1090 and others. Among those named as defendants are Viejas, BCA and JMI, the investment company of Padres chairman John Moores.

“As a result of his termination, Mr. Lynch can no longer attract the investments that he needs to recapture his position at BCA, which position was promised to him,” the suit states. “ He also lost his percentage ownership in the (company), a loss that is estimated at $9 million. Mr. Lynch is particularly harmed by these actions because of his age. This deal was intended to be his last major investment that would see him into retirement.”

Lynch, 63, founded BCA in 2003. In 2006, Viejas became a majority shareholder of BCA. JMI also participates in the operations of the company.

The suit states in 2008 “the Padres had a bad year and the Moores’ divorce hit the news. Padres-related revenues plummeted and BCA had to open a line of credit. Mr. Lynch guaranteed, and guarantees, that line of credit.”

The suit states BCA tried to merge with a newly created broadcasting company, Local Media of America (LMA), and buy out shares of Viejas, which had previously indicated it wanted to sell its outside investments including radio ownerships.

LMA is backed by private equity firm Thoma Bravo, which “was not willing to pay the inflated price demanded by Viejas,” the suit states. Tuari Bigknife, the interim CEO of Viejas Enterprises, then “threatened all concerned that if Viejas did not get what it was demanding, he would personally ensure that everybody lost,” the suit states.

Viejas said its policy is to not comment on pending litigation.

After Lynch offered to find another buy-out partner, the suit says the offer was rejected and Lynch and his daughter, Kara Guthrie, were fired. Guthrie worked as BCA’s vice president of sales and also is a plaintiff in the suit.

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