As the webaster of the LSFL I thought I'd chime in as well and shed some light on the subject. Chuck was spot on with the Administration nipping this problem immediately; so, the plug isn't pulled after the season has started.
I've read a couple of articles about his other team in the UFIL- Danville and I can tell you it does mirror the Mesquite situation to a " T ". The owner brought in the people to get it up running extremely late and then neglected to market the team properly. The GM for the Mesquite Team had her hands tied from the start due to getting to the show; so, late in the game that every time I talked to her she was hustling for business. It was really an uphill battle for her and from what I understand the owner was know where to be found in the area. When your owner doesn't even live in the city that your team is and doesn't even get out in the field to meet the community it make's it hard for a community to take you very seriously.
The combine that the Bandits put on this weekend wasn't sanctioned by the LSFL, in fact the GM and Coach's were explicitly told not to put on a combine and collect any money. Turns out they did collect monies; but, they did so under a different team name called the " Texas Crunch " which is a Semi-Pro Indoor League in the Texas whose GM was the new GM of the now defunct Bandits Franchise.
I hope this sheds some light.