BarbaraPatterson
07-16-2006, 10:08 AM
http://www.cantonrep.com/index.php?ID=296989&Category=17&fromSearch=yes&subCategoryID=0
Potential AIFL sale derailed
Sunday, July 16, 2006 SUNDAY SPECIAL BY TODD PORTER
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After two years and plenty of headaches, it looked as if American Indoor Football League President and founder Andrew Haines was going to make a large chunk of money off his start-up indoor football league. Now it looks like he has more headaches. A $435,000 one, as a matter of fact.
Last month, Haines and Greens Worldwide, a sports marketing and management company, reached a tentative agreement to sell the AIFL to Greens for $1.1 million. The deal could have been part cash and part stock. Greens pulled the plug on the deal July 5 because, it said in a news release, the “AIFL was not forthcoming with the documents requested” for the company to complete its due diligence report.
According to Greens, Haines had to provide initial financials, which was done, and the deal was to close June 30. However, Greens discovered a judgment in favor of former Asheville owner Robert W. Boyd that was not previously disclosed by the AIFL. Greens exercised its right to terminate the asset purchase agreement.
Boyd sued Haines, the AIFL and his former general manager, David Dix, for breach of contract, fraud, negligent selection and retention because the league hired Dix as GM. Dix, according to the lawsuit, has a criminal record. There were five other counts as well.
The suit was filed in Allegheny County Common Pleas Court, where Boyd lives. Earlier this month, Boyd was awarded a default judgment for $435,127.50.
“Will I see any money? That’s up to my lawyer,” Boyd said. “This is something I would have much rather worked out and resolved, but that didn’t happen. ... What was supposed to be a decent investment turned out to be a nightmare.”
Boyd shut down the Asheville team, and the AIFL operated it.
“The money used to invest in this team was obtained from several years of hard work,” Boyd said. “This lawsuit was never solely about the money; it was about regaining control over what was rightfully paid for so a successful team could be operated. The citizens of Asheville deserve a quality team, and I deserve to get what I paid for. Not having what I paid for will continue to put a financial hardship on my family for years to come.”
A message left on Haines’ cell phone Friday night was not returned. Prior to this, he seemed enthused about the sale. Greens planned to have Haines stay on as president for at least four years.
“Unfortunately, no one can get rid of me,” he joked a few weeks ago.
Haines seems to have built an impressive minor-league indoor league, but it has been plagued by problems, as many start-up minor leagues are.
“It’s taken a toll on me,” Haines said. “Just to get where we’re at, it’s gotten farther than I thought it would. It took off. Now we have to clean up some issues we have.”
The AIFL just finished its second season, and the Canton Legends won the AIFL Championship. Legends owner Joe Hoffman could not be reached Friday night.
MORE PROBLEMS?
Sources close to indoor football indicate that as many as five teams in the AIFL’s Southern Conference are looking to leave the league by mid-August. If that happens, the AIFL will be on shaky ground for the 2007 season.
GLIFL TEAM IN WOOSTER
The Great Lakes Indoor Football League, similar to the AIFL, has announced it will put a team in Wooster. A news conference is planned for Wednesday to introduce Wayne County Rumble owner Ramone Davenport. The team, the league’s fourth expansion team, will play in the Alice Noble Ice Arena.
Local businessman and Canton City Auditor R.A. Mallonn purchased a team in the GLIFL. Mallonn’s team, in Marion, didn’t have a great season on the field, but it led the league in attendance. Mallonn talked with Haines about buying the Legends, but Mallonn decided against it.
Potential AIFL sale derailed
Sunday, July 16, 2006 SUNDAY SPECIAL BY TODD PORTER
Advertisement
After two years and plenty of headaches, it looked as if American Indoor Football League President and founder Andrew Haines was going to make a large chunk of money off his start-up indoor football league. Now it looks like he has more headaches. A $435,000 one, as a matter of fact.
Last month, Haines and Greens Worldwide, a sports marketing and management company, reached a tentative agreement to sell the AIFL to Greens for $1.1 million. The deal could have been part cash and part stock. Greens pulled the plug on the deal July 5 because, it said in a news release, the “AIFL was not forthcoming with the documents requested” for the company to complete its due diligence report.
According to Greens, Haines had to provide initial financials, which was done, and the deal was to close June 30. However, Greens discovered a judgment in favor of former Asheville owner Robert W. Boyd that was not previously disclosed by the AIFL. Greens exercised its right to terminate the asset purchase agreement.
Boyd sued Haines, the AIFL and his former general manager, David Dix, for breach of contract, fraud, negligent selection and retention because the league hired Dix as GM. Dix, according to the lawsuit, has a criminal record. There were five other counts as well.
The suit was filed in Allegheny County Common Pleas Court, where Boyd lives. Earlier this month, Boyd was awarded a default judgment for $435,127.50.
“Will I see any money? That’s up to my lawyer,” Boyd said. “This is something I would have much rather worked out and resolved, but that didn’t happen. ... What was supposed to be a decent investment turned out to be a nightmare.”
Boyd shut down the Asheville team, and the AIFL operated it.
“The money used to invest in this team was obtained from several years of hard work,” Boyd said. “This lawsuit was never solely about the money; it was about regaining control over what was rightfully paid for so a successful team could be operated. The citizens of Asheville deserve a quality team, and I deserve to get what I paid for. Not having what I paid for will continue to put a financial hardship on my family for years to come.”
A message left on Haines’ cell phone Friday night was not returned. Prior to this, he seemed enthused about the sale. Greens planned to have Haines stay on as president for at least four years.
“Unfortunately, no one can get rid of me,” he joked a few weeks ago.
Haines seems to have built an impressive minor-league indoor league, but it has been plagued by problems, as many start-up minor leagues are.
“It’s taken a toll on me,” Haines said. “Just to get where we’re at, it’s gotten farther than I thought it would. It took off. Now we have to clean up some issues we have.”
The AIFL just finished its second season, and the Canton Legends won the AIFL Championship. Legends owner Joe Hoffman could not be reached Friday night.
MORE PROBLEMS?
Sources close to indoor football indicate that as many as five teams in the AIFL’s Southern Conference are looking to leave the league by mid-August. If that happens, the AIFL will be on shaky ground for the 2007 season.
GLIFL TEAM IN WOOSTER
The Great Lakes Indoor Football League, similar to the AIFL, has announced it will put a team in Wooster. A news conference is planned for Wednesday to introduce Wayne County Rumble owner Ramone Davenport. The team, the league’s fourth expansion team, will play in the Alice Noble Ice Arena.
Local businessman and Canton City Auditor R.A. Mallonn purchased a team in the GLIFL. Mallonn’s team, in Marion, didn’t have a great season on the field, but it led the league in attendance. Mallonn talked with Haines about buying the Legends, but Mallonn decided against it.