You forgot to mention that the CHS coach eventually forbade any Chaminade players from playing for this travel team. Not sure if that is still the case, but getting into a fight with one of the top 2 catholic school coaches on LI probably not a good way to grow a youth lacrosse business.
But, I think the thing that really has hurt them, at least in my boys grade, is that the program likes to "turn over" or cut half the team almost every year. They end up alienating a lot of people. This youth sports business runs on word of mouth. It's a people business. Acting like an jerk makes people not like you or your business.