Hulk Hogan Discovers Nick Denton and Gawker Hiding Dirty Money In Europe
### Nick Denton has a secret cash stash overseas
### Is this payola money from Denton’s “Hit-Jobs”?
### “Following the money may lead to kick-backs from Washington, DC.
Gawker’s stated net worth of $83 million seems as phony as a WWE bout — and Hulk Hogan’s lawyers want access to confidential documents to try to prove it, according to court papers.
The gossip site and its owner, Nick Denton, last month were ordered to pay the pro wrestler $140 million for violating his privacy by posting a sex tape involving him and a then-friend’s wife.
But Denton may try to get out of paying a required $50 million bond and the final judgment by lying about his and the company’s worth, the documents charge.
Denton, who is Hungarian and British, appears to have hidden millions of dollars in Gawker profits through inflated licensing fees to a Hungary-based sister company, the documents charge.
“In my opinion, it’s very hypocritical that Mr. Denton continues to cloak himself in the Constitution while it also appears he’s expatriating great sums of money to Eastern Europe, potentially to avoid taxation and creditor issues,” Hogan’s lawyer, David Houston, told The Post.
In a Florida courtroom in March, the jury was told that Gawker is worth only $83 million, while Denton’s net worth is $121 million — largely based on his shares in Gawker’s parent company, Gawker Media Group Inc.
GMGI is valued at $267 million; Denton has a $117 million portion of it.
Gawker has refused to give up a document called a “transfer pricing study” that would determine whether the fees are inflated, citing lawyer-client privilege, according to court papers.
Gawker has claimed that the $140 million jury award would be “ruinous” to its business, in a bid to get the judge to slash the amount to less than $2 million.
Yet its own pitch book for investors reveals a rosier future: Gawker’s growth plan is to increase its operating income from $6.7 million in 2014 to $43 million in 2019.
Gawker has responded in court papers that a major international law firm, Mayer Brown, “analyzed the appropriate arm’s-length pricing for the royalty payable by Gawker to [subsidiary company] Kinja with respect to the intellectual property.”