The glamorous launch of Kansas City Chiefs stars Travis Kelce and Patrick Mahomes' upscale steakhouse, 1587 Prime, has been overshadowed by explosive allegations of financial misconduct and corporate retaliation. What was meant to be a celebrity-backed culinary triumph now faces a bitter legal feud that threatens to unravel the entire venture.
A Star-Studded Opening Conceals Backroom Turmoil
On September 9, the VIP opening night of 1587 Prime in Kansas City appeared to be a resounding success. Kelce, his superstar fiancée Taylor Swift, and Mahomes dined at the restaurant, celebrating their partnership with the glitzy hospitality firm Noble 33. The evening was designed to establish the venue as a premier celebrity haunt, capitalising on the athletes' fame and the allure of high-end dining.
However, behind the scenes, a multi-million-dollar conflict was erupting. According to legal filings, Noble 33 co-founders Tosh Berman and Michael Tanha allegedly ambushed their partner and chief legal officer, Matthew Syken, terminating his employment from their hospitality firm, The Madera Group (TMG), on that very night. Syken claims this was direct retaliation for exposing serious financial misconduct.
Allegations of Siphoned Millions and Retaliation
In lawsuits filed in Nevada and California courts, Syken alleges that Berman and Tanha orchestrated a scheme to siphon millions of dollars from the company through a gift card arrangement. The partnership had engaged with a gift card company called inKind, which provided "millions of dollars in advance payments" in exchange for store credits redeemable at their Toca Madera restaurant chain.
Syken contends that these funds were improperly diverted into Berman and Tanha's private accounts, rather than being deposited into TMG. "Although presented as a marketing and financing program, these arrangements allowed Berman and Tanha to generate significant up-front cash that was later distributed to themselves," Syken wrote in a Nevada court motion.
The situation escalated when Syken, who was undergoing treatment for blood cancer and on medical leave, returned to work in late 2023. He began investigating accounting irregularities and a lack of corresponding deposits. "Financial statements were opaque and incomplete, and requests for transparency were ignored," his Nevada lawsuit states.
Claims of Extortion and Discrimination During Cancer Recovery
Syken's allegations become even more personal. He claims that when he confronted Berman and Tanha about the financial discrepancies, they attempted to "extort" him by threatening his legal license. Furthermore, he alleges they withheld his pay, fired him, and canceled his medical insurance while he was recovering from cancer.
"Syken was undergoing treatment for blood cancer and was on medical leave," his October 21 Clark County filing noted. The termination letter, delivered on 1587 Prime's opening night, falsely accused him of taking $257,000 in improper business expenses, according to Syken, who says TMG refused to provide supporting evidence for these claims.
Counter-Allegations of Embezzlement and Personal Expenses
Berman and Tanha vehemently deny all wrongdoing and have launched their own counterclaim. They allege that Syken "embezzled" and "defrauded" the company by charging personal expenses to his corporate credit card and authorising overpayments of his salary.
In a December 5 counterclaim filed in California federal court, they detailed numerous alleged personal charges, including first-class plane tickets for his family, vacation expenses in Cabo, payments to his divorce attorney, and elective medical treatments at an anti-aging clinic. They claim he charged $7,000 to a clinic offering "hair restoration, testosterone replacement therapy, Botox, light therapy, and other cosmetic services" on May 11, 2023, with another $5,000 in the following two months.
Additional expenses listed include trips to the Aquarium and Disneyland, clothing from Patagonia, Target runs, Netflix fees, Apple App Store purchases, ice cream treats, and video games. In total, they allege "nearly $150,000" in personal expenses on the company credit card and "more than $100,000 in alleged improper extra pay Syken gave himself."
Legal Battle Escalates with Denials and Rebuttals
Brian Timmons, lawyer for Berman and Tanha, told the Daily Mail: "Syken's wild claims were made only after being fired for stealing from his employer. He made them weeks later, hoping to deflect attention away from his embezzlement. He has yet to produce a shred of evidence to support his bogus claims."
Syken has vigorously denied these allegations. He called claims about anti-aging clinic payments "false" and "absurd," stating they were for cancer medication from a compounding pharmacy, "covered by the company per my agreements." He also asserted that over $100,000 of the allegedly embezzled funds was legitimate business travel over five years, some charges were made by another business partner, and the other alleged improper pay was board-approved remuneration.
"The defendants have been caught embezzling millions of dollars from shareholders and are grasping at anything to deflect what they've done," Syken told the Daily Mail.
Gift Card Deal at the Heart of the Dispute
Central to the legal battle is the inKind gift card arrangement. Berman and Tanha maintain there is "nothing improper" about the deal and claim Syken himself "voted to increase the amount of inKind funding." They state: "There were no misrepresentations or accounting shenanigans, and Noble 33 certainly did not use the inKind platform to 'siphon' money from TMG."
Syken refutes this completely: "It is a complete lie that I ever 'voted to increase' inKind funding for the simple reason: I never sat on the board of the company. I never had any vote." He claims he had been questioning them for months about the inKind deal and financial flows before his termination.
Celebrity Partners Uninvolved in Legal Proceedings
Notably, Travis Kelce and Patrick Mahomes have not been named in the lawsuit and are not accused of any wrongdoing. Their involvement appears limited to their partnership with Noble 33 to launch 1587 Prime. Representatives for Kelce and Mahomes did not immediately respond to the Daily Mail's request for comment.
Photos obtained by the publication show Kelce and Mahomes laughing with restaurant staff at a company meeting ahead of the September opening, highlighting their initial enthusiasm for the venture. However, the ongoing legal battle now casts a shadow over what was intended to be a flagship addition to Kansas City's dining scene, blending sports celebrity with gourmet cuisine.
As the case progresses through federal courts, with allegations of harassment, civil extortion, wrongful termination, disability discrimination, and breach of contract on one side, and counterclaims of embezzlement and fraud on the other, the future of 1587 Prime hangs in the balance. The dispute serves as a stark reminder of how backroom corporate conflicts can threaten even the most high-profile business ventures.
