fl$ was to pay Pioneer $8,333.33 every month for a period of 10 years ($1MM total)
They started paying June 1, 2017 and made subsequent payments in July, august and September. They defaulted in October 2017 and have not made a payment since September 2017. You can do the math.
Per the latest letter from Pioneer's attorneys: ...Mr. Jahelka and Pioneer seek to file a motion for summary judgement dismissing the counterclaims and third-party claims and also for affirmative summary judgement based upon the straightforward payment defaults under the Consulting agreement. In addition, Mr. Jahelka has serious concerns that Mr. Winkoff is using the revenues of fl$ (namely monies that are due to Mr. Jahelka and Pioneer under the Consulting Agreement) for personal and family uses and likely for the funding of this litigation. In addition, based upon the 2017 fl$ tax returns provided to Mr. Jahelka, fl$ as of December 31, 2017 has an outstanding SBA loan of $333,000, along with an open line of credit in the outstanding amount of $91,000. As of the same date, Mr. Winkoff is reported on the returns to owe fl$ approximately $350,000 from "shareholder loans". As a result, Mr. Jahelka and Pioneer see to file with the summary judgement motion an application for an accounting and/or to retain a receiver or monitor to review the books and records of fl$.
In short, @#$^@#$(^ about to get real.
I'm kind of glad my son didn't make the team this year.
So Winky took a 300k loan from his own business. What is he doing with this money besides pay for his daughters wedding? How naive could he be? Thinking this wouldn't catch up with him?
He can certainly borrow money from his business, but what if he's positioning things so that the company doesn't have any assets that can be used to pay Jahelka? Based on the letter to the judge that foreshadows their impending motion, it appears that Jahelka believes Winkoff may be diverting assets out of fl$.
He'll survive for a while. Its a shell game with the $ with this guy. When its catches up to him and he can't make payroll or rent on the headquarters on Main Street in Huntington it will all fall apart. I would stay far away from this organization.
Have any of you considered perhaps there was a breach of contract by the entity not getting paid leading to the current situation??? Hmmmm.
Have you considered reading the complaint and answer? If you had, you would have also seen the consulting agreement which is basically a fancy way for fl$ to pay Jahelka in monthly increments. The agreement, which was for 10 years/$1MM is pretty specific - you pay whether or not Pioneer renders any services.
If there was a breach of contract, that most certainly would have been brought up in fl$'s answer to the complaint. Instead, fl$ claims that both parties were represented by the same law firm and that Winkoff had no idea what he was signing because Winkoff claims he had no idea Pioneer had to be paid no matter what.
All of this was addressed in the September 7th filings, complete with supporting emails and documents, showing that Winkoff was well aware of what he was signing and knew that the law firm was representing fl$, not Jahelka nor Winkoff.
My comments have and always will be based on the documents filed with the court, not supposition.
And for those following at home, this case has the potential to provide great insight into the financial operations of a club/organizer. If you've ever wondered how these clubs make money, this case is not to be missed.
Good point about looking behind the curtain. From help wanted ads for coaches it looks like 5K per season plus free for your kid. I doubt giant clubs pay full price at these tourneys when then bring 10 teams to a stay to play. Say a club has 16 teams of 20 players each at 2K per, 640K of revenue per year. 80K for coach salaries plus 40K free go for coaches children. 200K max for tourney entry fees. heck 100K for field rental/ indoor space etc. That leaves around 250K for admin fees, insurance, marketing, equipment and most important director/owners salary. 150k salary/year possible? I realize most clubs are not that big but some of the cost's will decrease year over year especially if you own your practice facility or host own tournaments. Kickbacks for "Stay to play" etc. Comparison in girls Lax would be HOCO team which is part of howard county rec and parks, free fields, non paid coaches. Fees are around half of private clubs, 1K per kid. I am sure they all make HOCO pay full price at tourneys as well.
In addition, 3d lacrosse is filing a lawsuit against True Lacrosse. More behind the curtain opportunities. I think what is interesting is that these clubs along with fl$ are the most expensive clubs in the sport.