The USL PRO soccer franchise formerly held by BDR Sports, LLC, doing business as the Phoenix FC Wolves, has been terminated by the United Soccer Leagues (USL) after just one season, according to a termination notice transmitted to the BDR Sports yesterday.
The termination notice, attached below and provided to Triangle Offense by a source not affiliated with the team or the league who wishes to remain anonymous, was written by Tim Holt, USL President. The notice outlines a litany of alleged transgressions by the now-former Phoenix FC franchisees that precipitated this action. Among them are submitting “misleading and inaccurate financial statements distorting the ownership group’s financial worth prior to the acquisition of the franchise,” failure to carrying worker’s compensation insurance for a period of time, three or more defaults on deposits and other league payments, and multiple instances of failing to pay players in a timely fashion. There is also a laundry list of “minimum standards defaults” related to club operations and communications.
This action by the league is the culmination of a tumultuous debut season for Phoenix FC. In addition to the woes outlined in the termination notice, the team suffered from a variety of missteps, from initial high season ticket prices to changing venue for their final three home matches to a facility with little to no dedicated seating. In September, Tim Thomas, the team’s former president, filed suit against BDR Sports and others for wrongful termination, failure to pay wages and defamation.
In a statement released by USL PRO this morning, the league confirmed that the franchise rights formerly held by BDR Sports have been terminated . However, the league contends that Phoenix FC Wolves “will continue to participate in USL PRO in 2014 under new ownership.” No further details were provided, although an announcement on this new ownership and other related details will be made later this month, according to the league’s press release.