-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rtm4mNgNqNifdqL5kWRknRk0mHptHyRKIddFtMQmFmxDGP7rcRDeeXMg9FLyHuQI pyqyY4MB29InWKtKhZ1LoA== 0000914121-05-001396.txt : 20050722 0000914121-05-001396.hdr.sgml : 20050722 20050722105027 ACCESSION NUMBER: 0000914121-05-001396 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20050722 DATE AS OF CHANGE: 20050722 GROUP MEMBERS: EMANUEL R. PEARLMAN GROUP MEMBERS: LIBERATION INVESTMENTS, L.P. GROUP MEMBERS: LIBERATION INVESTMENTS, LTD. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BALLY TOTAL FITNESS HOLDING CORP CENTRAL INDEX KEY: 0000770944 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEMBERSHIP SPORTS & RECREATION CLUBS [7997] IRS NUMBER: 363228107 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-47769 FILM NUMBER: 05967761 BUSINESS ADDRESS: STREET 1: 8700 WEST BRYN MAWR AVENUE STREET 2: SECOND FLOOR CITY: CHICAGO STATE: IL ZIP: 60631 BUSINESS PHONE: 773-380-3000 MAIL ADDRESS: STREET 1: 8700 WEST BRYN MAWR AVENUE STREET 2: SECOND FLOOR CITY: CHICAGO STATE: IL ZIP: 60631 FORMER COMPANY: FORMER CONFORMED NAME: BALLYS HEALTH & TENNIS CORP DATE OF NAME CHANGE: 19940526 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LIBERATION INVESTMENT GROUP LLC CENTRAL INDEX KEY: 0001259272 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 11766 WILSHIRE BLVD., STREET 2: SUITE 870 CITY: LOS ANGELES STATE: CA ZIP: 90025 SC 13D/A 1 li714671-13da9.txt AMENDMENT NO. 9 TO INFORMATION STATEMENT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) Amendment No. 9 Bally Total Fitness Holding Corporation - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, par value $.01 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 058 73K 10 8 -------------------------------------------------------------- (CUSIP Number) Mr. Emanuel R. Pearlman Liberation Investment Group 11766 Wilshire Blvd. Suite #870 Los Angeles, CA 90025-6538 (310) 479-3434 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) July 21, 2005 -------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box |_|. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7(b) for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 2 of 7 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 Liberation Investments, L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 2 (a)[ ] (b)[X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 WC - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 2,662,963 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 2,662,963 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON 11 2,662,963 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions)[ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 7.84% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON (See Instructions) 14 PN - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 3 of 7 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 Liberation Investments, Ltd. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 2 (a)[ ] (b)[X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 WC - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Cayman Islands - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 1,436,487 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 1,436,487 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON 11 1,436,487 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 4.23% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON (See Instructions) 14 CO - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 4 of 7 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 Liberation Investment Group LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 2 (a)[ ] (b)[X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 N/A - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 Delaware - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 0 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 4,099,450 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 0 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 4,099,450 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON 11 4,099,450 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 12.06% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON (See Instructions) 14 OO, IA - -------------------------------------------------------------------------------- SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 5 of 7 - ---------------------- ------------------- - -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 Emanuel R. Pearlman - -------------------------------------------------------------------------------- CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions) 2 (a)[ ] (b)[X] - -------------------------------------------------------------------------------- SEC USE ONLY 3 - -------------------------------------------------------------------------------- SOURCE OF FUNDS (See Instructions) 4 N/A - -------------------------------------------------------------------------------- CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 5 2(d) or 2(e)[ ] - -------------------------------------------------------------------------------- CITIZENSHIP OR PLACE OF ORGANIZATION 6 United States - -------------------------------------------------------------------------------- SOLE VOTING POWER 7 35,000 NUMBER OF SHARES -------------------------------------------------------- SHARED VOTING POWER BENEFICIALLY 8 4,099,450 OWNED BY -------------------------------------------------------- EACH SOLE DISPOSITIVE POWER 9 35,000 REPORTING PERSON -------------------------------------------------------- SHARED DISPOSITIVE POWER WITH 10 4,099,450 - -------------------------------------------------------------------------------- AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON 11 4,134,450 - -------------------------------------------------------------------------------- CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES 12 (See Instructions) [ ] - -------------------------------------------------------------------------------- PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 13 12.16% - -------------------------------------------------------------------------------- TYPE OF REPORTING PERSON (See Instructions) 14 IN, HC - -------------------------------------------------------------------------------- CUSIP No. 058 73K 10 8 Page 6 of 7 - ---------------------- ------------------- INTRODUCTION This Amendment No. 9 (this "Amendment") relates to the Schedule 13D filed on behalf of (i) Liberation Investments, L.P., a Delaware limited partnership ("LILP"); (ii) Liberation Investments Ltd. ("LILtd"), a private offshore investment corporation; (iii) Liberation Investment Group, LLC ("LIGLLC"), a Delaware limited liability company and general partner of LILP and discretionary investment adviser to LILtd; and (iv) Emanuel R. Pearlman, as General Manager, Chief Investment Officer and majority member of LIGLLC (collectively, the "Reporting Persons"), with the Securities and Exchange Commission on June 8, 2004, as amended by Amendment No. 1 filed on July 13, 2004, Amendment No. 2 filed on August 27, 2004, Amendment No. 3 filed on September 1, 2004, Amendment No. 4 filed on September 10, 2004, Amendment No. 5 filed on December 13, 2004, Amendment No. 6 filed on April 26, 2005, Amendment No. 7 filed on May 6, 2005 and Amendment No. 8 filed on July 19, 2005 (the "Schedule 13D"), relating to shares of common stock, $.01 par value per share ("Common Stock"), of Bally Total Fitness Holding Corporation (the "Company"). Items 4 and 7 of the Schedule 13D are amended and supplemented as follows: Item 4. Purpose of Transaction. On July 21, 2005, LIGLLC, on behalf of the Reporting Persons, sent a letter to the Independent Directors of the Board of Directors of the Company (the "Independent Directors"). The letter responded to the Independent Directors' letter to the Reporting Persons dated July 20, 2005. In addition, the Reporting Persons again urged the Board of Directors to begin a search for a new chief executive officer and appoint Mr. Pearlman, the Reporting Persons' representative, to the Board of Directors. The Reporting Persons requested the opportunity to present their proposals to the Independent Directors. A copy of the letter is attached hereto as Exhibit 12. Item 7. Material to be Filed as Exhibits The following exhibit is filed is filed with this Amendment: EXHIBIT 12: Letter to the Independent Directors of the Board of Directors of Bally Total Fitness Holding Corporation dated July 21, 2005. SCHEDULE 13D CUSIP No. 058 73K 10 8 Page 7 of 7 - ---------------------- ------------------- SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: July 22, 2005 LIBERATION INVESTMENTS, L.P. By: Liberation Investment Group, LLC, general partner By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman General Manager LIBERATION INVESTMENTS LTD. By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman Director LIBERATION INVESTMENT GROUP, LLC By: /s/ Emanuel R. Pearlman ------------------------------ Emanuel R. Pearlman General Manager Emanuel R. Pearlman /s/ Emanuel R. Pearlman - ---------------------------------- EX-12 2 li714671-ex12.txt LETTER TO THE INDEPENDENT DIRECTORS Exhibit 12 [LETTERHEAD OF LIBERATION INVESTMENT GROUP, LLC] July 21, 2005 Independent Directors of the Board of Bally Total Fitness Holding Corporation 8700 West Bryn Mawr - 2nd Floor Chicago, IL 60631 Dear Independent Directors: We were astounded by your response to our letter dated July 18, 2005. While we can agree to disagree as to whether or not the CEO should be replaced at this time, we were shocked by the unprofessional tone your letter assumed by launching a personal attack on a representative of one of the Company's largest shareholders. Our sole purpose in writing our letter was to express our views on how the Company can best maximize the value of Bally Total Fitness for all shareholders. Indeed one of your independent directors, Marilyn Seymann, in her book, The Governance Game, encourages investors to make their opinions known to boards and not to be apathetic. "If governance is ever going to have any meaning, the owners of the company will have to act like owners." She even suggests that investors who fail to make their opinions known to boards are asking for trouble. She does not qualify that such opinions must concur with those of the current management and board of the company. Further, we found it quite surprising that another independent director, John Rogers, who runs Ariel Capital Management, a large institutional investment management company, would find a large investor speaking his mind to the board reason to stoop to a personal attack. The final paragraph of your letter was laced with innuendo and factual misstatements. Mr. Pearlman served only as an outside advisor to the Company on a limited number of specific transactions, not as the chief executive. To attribute the decline in Bally stock to him is ludicrous. In addition, the acquisitions to which you allude were considered good deals at the time, were fully vetted by management and each transaction was approved by the Board. Some of you personally approved those deals. The key to any transaction's success is the subsequent execution, which was not under Mr. Pearlman's purview at any time. I wonder if the independent board members are aware of the fact that Paul Toback, on behalf of the Company, personally retained Mr. Pearlman during the first six months of 2003. The Company's compensation committee at the time, three members of which continue to serve on the Company's board today, approved his retention by Mr. Toback. We have found that in professional business dealings it is better to deal in fact rather than innuendo. Liberation continues to believe that the capital markets have lost confidence in the current CEO, and we do not find this surprising in light of the fact that for two of the years for which you are restating financials Mr. Toback served as the CEO of the Company and personally signed and certified those financial statements under Sarbanes-Oxley. Please know that we remain committed to expressing our views and pressing the Company to make any and all changes necessary to maximize shareholder value. We are mindful that the Company is in the midst of a new turnaround plan. Yet, Liberation continues to believe that the board should begin a search to replace the existing CEO. We also do not understand your unwillingness to accept your largest single shareholder's proposal to have its representative join the board to assist the Company in its efforts to maximize shareholder value. We respectfully request the opportunity to present our case to the independent board so that you may fully understand our reasoning and hope we can move forward in a more productive, professional manner. Very truly yours, /s/ Gregg Frankel - ----------------------- Gregg Frankel President -----END PRIVACY-ENHANCED MESSAGE-----