USL Terminates Northern Colorado's Franchise Agreement

Per court filings, the termination took place on November 4th, 2024.

The USL terminated Northern Colorado Hailstorm’s franchise agreement on November 4th, 2024, per a lawsuit filed by the team’s ownership group against the USL. The official announcement on the club’s demise is expected to follow, as sources tell us the players have already been notified of contract terminations.

The lawsuit, filed in Los Angeles County as Future Legends LLC vs. USL PRO 2, LLC, case 24STCV29641 on November 12th alleges multiple instances of financial “wrongful conduct” by the league.

The suit alleges that the USL exploits USL League One franchise fees and owner expenses to fund “marketing, advertising, programming and offset expenses” for the promotion of USL Championship, USL Super League, and “the USL as a whole” to “increase the overall value of the USL’s enterprises for eventual sale of the USL.”

The suit also alleges that the privately owned USL personally benefits the Papadakis family. Alec Papadakis serves as the CEO of USL, while Justin Papadakis is one of the public faces of the USL, as deputy CEO and Chief Real Estate Officer.

Other allegations:

• USL League One teams do not receive any return for broadcast rights, and the league funnels everything to the promotion of Championship and Super League.

• USL sponsorship deals do not benefit USL League One teams.

• USL has refused to pay out promised prize money for the Jägermeister Cup ($100,000 to the winner, $25,000 to the runner up).

• The USL concealed the fact that no teams are making a profit.

• Future Legends kept the USL up to date on its own financial setbacks, and the league agreed to loan money to the team with the intention of keeping it afloat into future seasons.

• Despite the alleged promises to keep the team afloat, the league terminated its franchise agreement on November 4th.

Future Legends alleges that the USL never intended to comply, and “made the representations with the intent to defraud,” and that the ownership group and the club suffered financial damages as a result.

The suit asks for general, special, incidental, punitive damages, as well as attorney’s fees, all to be shown at the time of trial.

We do not expect comment from either party due to active litigation, but will provide if given. This is a breaking story, and may be updated.

Northern Colorado won the inaugural Jägermeister Cup, and finished second in the table before losing in the opening round of the playoffs. The staff and squad were well rewarded at the end of the season, with head coach Éamon Zayed receiving a coach of the year nomination; defender Bruno Rendón winning Defender of the Year and a nomination for MVP; goalkeeper Lalo Delgado winning a nomination for Goalkeeper of the Year; and Rendón, Delgado, forward Ethan Hoard, and defender David Garcia being named to the All-League teams.