Flown the coop?
FlyersÂ’ future uncertain amid lawsuits, allegations
Officials with the Fort Worth Flyers say they are looking at other Metroplex venues in which to play in the future, just as new financial allegations have come to light about the minor league basketball team.
One of the NBA Development League teamÂ’s local investors has filed a lawsuit seeking reimbursement for more than $80,000; the team owes more than $25,000 to the city of Fort Worth; and at least four local companies are actively seeking payment for services rendered.
Amid the accusations, David Kahn, principal owner of Southwest Basketball LLC, the parent company of the Flyers and three other D-league teams, has confirmed that a decision about the teamÂ’s future in Fort Worth will be made by the end of this month.
Kahn said the team has looked at other Metroplex venues but he isnÂ’t sure if changes will be for the upcoming season or the 2008-2009 season. He said a decision is expected by the end of June.
“The team belongs in the D/FW region, and I think there are several communities that have either directly or indirectly expressed interest in the team, and I think what we’re doing in conjunction with the NBA is trying to determine what should be the next steps,” Kahn said.
Meanwhile, Marsha Anderson, public information officer for the Fort Worth Convention Center, said the venue holds a three-year contract with the Flyers through 2008.
“We have not been told by the Flyers that they are looking at other options,” Anderson said.
The FlyersÂ’ season ended in April, and the team is currently more than $25,000 behind in its payments for the past seasonÂ’s accommodations, Anderson said.
Local investors Gary Walker, founder, owner and president of Arlington-based commercial brokerage and development firm SCM Realty, and Tim Berry, say they have also been left in the dark about the teamÂ’s actions and future plans.
Walker, who owns 10 percent of the Flyers and is also invested in Southwest Basketball, made a $75,000 initial investment in the team in early 2005, he said. In September 2006, Kahn approached him about an additional $75,000 to get the team through a tight spot and into its second season, Walker said.
“The gist of it was we were tight on cash, things were going to be positive and better this season and things were looking up, but before the season started and cash flow started, we needed money to get through that gap,” he said.
Walker said that Kahn agreed to reimburse this second investment, plus $5,011.14 that Walker contributed to install new computer software in the Flyers office. However, Walker says the last contact he had with Kahn was in April, and he was unaware that the team was considering leaving town or closing down. He has filed a lawsuit seeking reimbursement for the $80,011.14.
“I’m out of the loop, obviously,” Walker said.
“We don’t know really what’s going on,” said Berry, who made an initial investment in the team with partner Jason Keen, and who was also approached by Kahn for additional funds to get into the second season.
Berry said that they were paid back the additional $75,000 within about six months.
“Our hope is if they do sell the team, or move the team, that they buy us out,” Berry said.
Kahn, however, maintains he intends to repay Walker.
“We’re kind of puzzled, too, because we offered to repay him,” Kahn said. “It’s much ado about very little.”
‘Typical carpetbaggers’
From the start, the Flyers solicited area companiesÂ’ services.
A local AlphaGraphics franchise handled promotional materials and banners. The company billed the team, but as time went on, checks stopped coming, said Roger Venable, the franchiseÂ’s owner.
“They’ve always been very slow payers. It wasn’t too troublesome to begin with, because they would pay, but here recently they just haven’t paid,” said Venable.
Venable said that Kahn and team president Ken Nicholson tried to schedule a meeting with him recently but that he was out of town.
Venable declined to say exactly how much the Flyers owed, but said it was significant for a small business owner.
The story is the same at Concussion, a Fort Worth advertising/public relations firm that handled the teamÂ’s launch in Fort Worth during its first season. Concussion is still awaiting payment for services provided, said Allen Wallach, CEO and partner. An initial collection query sent by ConcussionÂ’s attorney went unanswered and there are plans to file suit against Southwest Basketball, Wallach said.
“Even though we quit working with them over a year ago, I was not shocked to learn that the Fort Worth Flyers had absconded,” said Wallach in an e-mail. “Like typical carpetbaggers, they took advantage of a number of local businesses and flew the coop.”
Witherspoon Advertising and Public Relations got on board with the Flyers after Concussion, in time for the teamÂ’s second season. Witherspoon CEO Mike Wilie said his company and the Flyers parted ways before that season was over because the team wanted to find sponsors, which is not something Witherspoon does. Still, the team owes Witherspoon an undisclosed amount, Wilie said.
“It’s well past due,” Wilie said. “[The amount is] enough to get our attention but not so much that I’m going after them with everything I have.”
Kahn and Nicholson met with Wilie and assured him that he would be paid but that the team was in financial straits, Wilie said.
Customized Computer Services Inc. of Arlington helped the Flyers with computer server and firewall issues, said sales manager Turk Blackwell.
Blackwell said his company provided services in late 2006, and that it was paid. However, he said the company also did work in February and March 2007 and hasnÂ’t received payment.
The outstanding balance is $191.70, he said.
“The good news is for us, the amount is very small,” Blackwell said. “They just said, ‘We don’t have the money.’”
“Any time you’re in a business, of course, there are payables,” Kahn said, when asked if the Flyers owed money to businesses in Fort Worth. “We came in trying to do things the right way, and we will treat everybody with the kind of respect they deserve,” he said.
A move to Garland?
With the future of the team uncertain, members of the FlyersÂ’ front office visited the Garland Independent School DistrictÂ’s Special Events Center recently, said Tim Mabe, general manager of the facility.
“This is very much in the information stage, and there have not been any contracts issued or come up with,” Mabe said.
Kahn confirmed that the team has also looked at other arenas in the area, but would not say which ones.
The Flyers are one of four teams owned by Southwest Basketball, which also has franchises in Austin, Tulsa, Okla., and Albuquerque, N.M.
Kahn said that any decision about the Flyers will be based on whatÂ’s best for the NBA Development League, the team and the area.
Representatives from the Tulsa 66ers, the Albuquerque Thunderbirds and the Austin Toros all said their teams were doing well and expected to open their third seasons on time and in their normal locations.
“Franchises, teams, move, usually for the same overriding reason – either because they are concerned about long-term growth and viability in their market, or looking for a market that can give them even more long-term growth and viability,” Kahn said.
The unpaid local businesses remain nonplussed.
“If anything good can come from this experience – like helping other communities to protect themselves from David Kahn and Southwest Basketball – then at least our loss will not be in vain,” said Concussion’s Wallach.
Contact Bassett at ebassett@bizpress.net
