Six-figure judgments

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preeths
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Six-figure judgments

Post by preeths » Thu Sep 28, 2006 4:49 pm

We've now seen that both the AIFL and NIFL currently have six-figure judgments against them. My question is what do they do about it? The AIFL lost a default judgment to Rob Boyd for $435,000, while the NIFL lost is appeal of the Billings case for nearly $200,000. Will member teams be forced to pony up the dough to pay the judgments or negotiated settlements?

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Post by Reichert » Thu Sep 28, 2006 5:06 pm

[quote=""preeths""]We've now seen that both the AIFL and NIFL currently have six-figure judgments against them. My question is what do they do about it? The AIFL lost a default judgment to Rob Boyd for $435,000, while the NIFL lost is appeal of the Billings case for nearly $200,000. Will member teams be forced to pony up the dough to pay the judgments or negotiated settlements?[/quote]

Eventually the costs of such judgements find their way to the league ownership. I would never think for a minute that CS is going to personally suffer for any of this even though she screwed it up herself.

The Rapid City Aces have another factor to consider right now...their share of the Billings settlement might be enough to tilt their decision against staying in the NIFL. I don't think CS will have any more than 12 teams so that's a pretty penny for each team.

AK53
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Sure ought to make for interesting meetings

Post by AK53 » Thu Sep 28, 2006 5:12 pm

This weekend in Miami, maybe they could pass the plate. And the AIFL meetings in Florence ought to be interesting to. Wonder if Andrew dares show his wallet in the state of South Carolina ?

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Freedom
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Post by Freedom » Thu Sep 28, 2006 5:32 pm

200 grand is nuttin' for a league worth a quarter of a billion dollars. . .


**in my best Don King voice**
It's pocket change baby. . .

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Post by Ninthman » Thu Sep 28, 2006 8:18 pm

Any businessman that understands business 101 would have bought insurance to cover….

Strike that I forgot which league we were talking about. Me bad.

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Post by CarpetMuncher » Thu Sep 28, 2006 9:03 pm

i'm wondering if insurance would even cover the judgement in the aifl case because it was uncontested i bet the insurance has stipulations or something that say for them to pay that they would have had to defend it at least, not just ignore it like a retard.

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Post by BarbaraPatterson » Thu Sep 28, 2006 10:26 pm

What people have been saying is that the AIFL has till the end of October to pay their judgment or they start loosing assets to Boyd. I cant imagine the AIFL can stay in business long without their accounts receivables.

Insurance most likely wouldnt cover any lawsuit for fraud which is one of the charges the AIFL has been found guilty of.

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Post by AllAces » Thu Sep 28, 2006 10:30 pm

[quote=""Reichert""]Eventually the costs of such judgements find their way to the league ownership. I would never think for a minute that CS is going to personally suffer for any of this even though she screwed it up herself.

The Rapid City Aces have another factor to consider right now...their share of the Billings settlement might be enough to tilt their decision against staying in the NIFL. I don't think CS will have any more than 12 teams so that's a pretty penny for each team.[/quote]

CS is smarter than that. You may laugh at this, but I have heard that at least one new team (in Cali) has written a check to the league for a franchise. If there are more (say - 50 or so, hehe), they could take the money off the top and fulfill their obligation. That would technically not cost anything out of pocket to existing NIFL teams.

However, fulfilling obligations does not sound like the league I know. I predict the unpredictable. I suspect they are researching a way to get out of paying Billings anything - out of spite. They may be unethical and immoral, but not necessarily stupid. They will seek out a loophole and exploit it. Or maybe file for bankruptcy protection.

I think Rapid is inclined to leave this league for much more substantial reasons than this. There are so many. We will have to wait and see how negotiations turn out with the other league. Who knows; maybe the UIF will step in to the negotiations and bring some reality to the franchise deal for them. I hope so.

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Post by AllAces » Thu Sep 28, 2006 10:34 pm

[quote=""Ninthman""]Any businessman that understands business 101 would have bought insurance to cover….

Strike that I forgot which league we were talking about. Me bad.[/quote]

I heard a rumor (I don't remember where I heard it and can't substantiate it) that the NIFL allowed their liability insurance to lapse last year during the season. That is the insurance the teams operate under. The teams were never notified. So I doubt they maintained insurance for this sort of thing...

Can someone help me out with this info? Maybe someone on the board knows more about last year’s insurance fiasco.

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preeths
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Post by preeths » Thu Sep 28, 2006 11:27 pm

I have heard that from more than one team owner.

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