It's a great lens. Just not for that camera. The CP-16 takes CP mount lenses. C-mount is VERY different from CP (c mount is a threaded mount, CP is a bayonet mount; for starters).
Luckily, they've made a bunch of great cinema lenses in CP mount. Unluckily, you usually have to pay for them. Luckily, they're usually cheaper than Arri mount lenses.
If you look around, you can probably find a Nikon-CP lens adapter. I don't know of anyone making one anymore, but they used to. That's probably your best bang for the buck bet.
Angenieux made a few cinema zooms in CP mount that will give acceptable results.
Zeiss made one (I think think this one's too pricey, but that's just me):
If you want something more expensive, look for CP mount Cooke or Zeiss primes.
The price for the camera was very good. That camera doesn't have a registration pin. But usually a CP16 will register better than that. My gut says that the folks above have it right. The loops were formed too tightly.
If you're worried about the hole, tape a cover over it until you get a new lens. Probably easier than finding a CP port cover these days.