Summary:
Sellout Crowd, an Oklahoma sports media startup, closed its doors in May 2024.
The website's financial backers, Big Dog Media, are suing the founders for over $600,000 in unpaid debt.
The lawsuit alleges that the founders, including Mike Koehler, Kris Murray, Berry Tramel, and Mike Sherman, signed agreements guaranteeing a $1.5 million line of credit with 12% interest.
Tramel and Sherman claim they were unaware of the loan documents and were told they were being offered ownership in the company.
The loan guaranty agreements make the individuals personally liable for the debt.
Sellout Crowd's Rise and Fall: A Lawsuit Over $600,000 in Debt
The Oklahoma sports media website, Sellout Crowd, which launched with great fanfare in 2023, has closed its doors, leaving behind a $600,000 debt and a lawsuit filed by its financial backers.
Big Dog Media, a group of investors including former University of Oklahoma football coach Bob Stoops and the estate of Toby Keith, is suing the founders of Sellout Crowd. They claim Mike Koehler, the founder, Kris Murray, the co-founder, Berry Tramel and Mike Sherman, who signed loan agreements guaranteeing a $1.5 million line of credit with 12% interest, owe them more than $600,000 in unpaid principal and interest.
The lawsuit alleges that Sellout Crowd received a $1.5 million line of credit but only repaid $249,719.22 of the $721,500 borrowed.
Tramel and Sherman claim they were unaware they were signing loan documents and were told by Koehler that they were being offered an ownership stake in the company.
The website initially hired top sports writers to cover Oklahoma's major sports teams, but it went through layoffs in early 2024 and ultimately closed in May.
The lawsuit includes loan guaranty agreements, making the individuals personally liable for the debt.
Tramel is considering personal bankruptcy but will follow his lawyer’s advice.
Sherman, Koehler, Murray, and Big Dog Media's lawyer have not responded to requests for comment.
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