Maddox Foundation money comes back to TN

Maddox Foundation money, $55 million of it, is officially headed back to Tennessee after several years of bare-knuckled legal battles over the foundation’s assets.

The Internal Revenue Service has given its blessing on the transfer of the money from Mississippi where the foundation’s assets had been moved.

“Today’s ruling from the IRS is the last piece of unfinished business before the Mississippi foundation is required to distribute assets to the Tennessee Trust” said Davidson County District Attorney General Johnson.

Over the next 10 days, the Mississippi foundation will transfer $19 million to the Dan and Margaret Maddox Charitable Trust. The remainder of the money will arrive 60 days later.

Dan and Margaret Maddox started the foundation in 1968. They died together in a boating accident in Louisiana in 1998.

Robin Costa, a long-time foundation employee, and Dan Maddox’s step granddaughter Tommye Maddox Working took control of the foundation. Costa gained total control and moved the foundation to Hernando, Miss.

Three years ago, Working along with Johnson started fighting to get the foundation moved back to Nashville, claiming the move was illegal. They claimed that Costa had been reckless with the foundation’s money, squandering money on buying a minor league hockey team and an arena football team and spending lavishly on business trips and vacations.

There were also tales of Costa’s personal shenanigans in addition to the spending, including an alleged affair with former Mississippi Gov. Ronnie Musgrove while he was in office. Musgrove represented the foundation in the Mississippi courts.

The Nashville contingent won in Tennessee courts while the Mississippi side won rulings in there, creating a possible showdown in federal court at some point.

Both sides settled in May, ending years of spending foundation money on legal bills.