Team Owners Association/USL Update 11/11/09 – USL Issues Statement Regarding TOA Breakaway League

USL releases statement regarding USL-1 and TOA’s filing of papers to create new Division II league.

While yesterday was an eventful day with the Team Owners Association (TOA) releasing an official statement saying it had filed papers with the United States Soccer Federation (USSF) to start a new Division II league in the US, it seems today could also be full of fireworks. The United Soccer League (USL) have released a long statement today regarding the TOA’s new break-away league.

Yesterday was a roller-coaster ride of statements and more statements by the owners of the 7 teams associated with the TOA. Ryan Johnston of Sports Net Canada did a nice job of forming a timeline of the comments made by Vancouver Whitecaps president Bob Lenarduzzi and Montreal owner and Chairman of the TOA, Joey Saputo. The Impact owner seemed to almost contradict and apologize for the statement from the TOA, saying they were still negotiating with the USL, while Lenarduzzi was saying they were “not talking to the USL.” Later Saputo made another statement saying, “Montreal is fully committed to its fellow teams and to the new league application.” Confusing would be an understatement as these individual team owners, each who were all talking to the media, are understanding why there should only be one mouthpiece for the organization. Jeff Cooper from St. Louis is noted as the spokesperson for the league and he has secured the high profile PR firm of Fleishman and Hillard out of St. Louis to represent the new proposed league. Note to league, get your stories straight and only have one person speak for you. Also, your PR firm is pretty good at doing what they do. You better let them do their job.

Yesterday, Manny Lagos, team president for the cash-strapped Minnesota Thunder, confirmed the team’s release of players. All this while they claim to be continuing to move forward with plans to join the the new league with the TOA. Again, confusion and logic seem to be thrown out the window here. According to Lagos, the team owner Dean Johnson continues to work to right the ship that is listing and is taking on water. The team still sits without a general manager or coach. Even if Johnson is able to find the financing for the team, he will need to rebuild the broken trust in the community. That too will take time if that’s even possible.

Johnson was quoted yesterday in the TOA press statement as saying, “…we must take control of our own destiny.” I would suggest that Johnson take control of the Thunder’s destiny first before thinking about the league’s destiny.

Today’s release can be read below. In effect it’s a rebuttal to the TOA’s press statement and its members’ comments. The USL is saying it does not object to the idea of someone applying for a new league with USSF, but it does oppose this application on the grounds that, “there is misrepresentation, interference with USL business operations and substantial debt amongst the membership of the parties applying for certification.”

They also state that “There is no FIFA regulation stipulating that member leagues be owned by their respective clubs.” However, Kartik Krishnaiyer from the Kartik Report, who has collaborated with IMS to bring you detailed information concerning this breakaway league, has told IMS that USL is correct in saying that there is no mandate for FIFA to require team owners to run their league. However, Krishnaiyer has surveyed (about 30) leagues and didn’t find any of them owned by  a private corporation and most of the leagues were team run.

IMS does wonder if USSF would require all debt to be paid off to the USL by the new league’s participating teams before giving the OK. The Minnesota Thunder are known to owe the league a 6 figure amount. It’s not known if any of the other teams owe money to the league.

Here is that press statement from USL:

USL News Release
Tuesday, November 10, 2009
TAMPA, FL – United Soccer Leagues issued the following statement regarding the USL First Division in response to the announcement of an application before the United States Soccer Federation for a new Division II Men’s Outdoor Professional League submitted, in part, by former USL-1 franchises.
Statement:
United Soccer Leagues, founded in 1986, continues to be the only organization with Division II and III Men’s Outdoor Professional Leagues sanctioned by the United States Soccer Federation, providing over 20 years of professional league management experience to its member clubs at all levels of the game.
The new ownership of NuRock Soccer Holdings has made a significant investment in United Soccer Leagues through its acquisition of the business and the retaining of strategic business partners such as Nike, Inc. and Premier Partnerships, which is led by the highly-respected duo of Alan Rothenberg and Randy Bernstein.
While USL does not oppose the right of an entity to affiliate with USSF per the governing organization’s bylaws, it does oppose the current application before the Federation on the grounds that there is misrepresentation, interference with USL business operations and substantial debt amongst the membership of the parties applying for certification.
Although USL is currently working with USL-1 member teams on reforming the structure of league management, USL’s ownership structure and franchise system has been, and will continue to be, in compliance with all USSF and FIFA statutes since its membership as a professional league with the USSF began in 1993.
There is no FIFA regulation stipulating that member leagues be owned by their respective clubs, and in many cases around the world, leagues consist of individual clubs that play in league competitions managed by the respective Federation such as the English leagues (excluding the Premiership), Bundesliga (Germany), La Liga (Spain) and Mexican Primera Division. While some management systems are similar, the models of ownership structure vary greatly throughout FIFA based on each country’s business regulations as well as respective regional confederation and federation guidelines and principles. While there are universal principles woven throughout FIFA, league ownership models are among concepts such as promotion/relegation and the prohibition of two equal-tiered leagues that are not mandated and not necessarily applicable for every federation, such as is the case in the United States. Every league in every federation has its own nuances that make it unique.
The ownership structure of United Soccer Leagues has played a crucial role in maintaining a stable foundation while advancing the sport over decades of growth through both prosperous and difficult financial times. This structure has allowed USL to support and maintain the operation of member clubs such as Montreal and Vancouver during times when the then ownership of the clubs were unable to continue operating, which would have had detrimental affects on both the competition and on all respective markets across the league. With continued financial difficulties being experienced by clubs all around the world as well franchises and leagues in various United States sports entities, USL believes its model, with upcoming reforms to better serve its teams, is an important aspect to a successful future in the USL First Division.