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Article Watertown Times January 29, 2008 - Battle begins for Red and Black name
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Lawsuit Filed By Watertown January 29, 2008 In Response To Shultz
Shultz Letter To Attorney Burrows December 20, 2007; Shultz Is Now Representing Himself
(315) 778-8744
Lawsuit That Shultz Filed Against The Officers of the Greater Watertown Red and Black Inc. 12/20/2007
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF JEFFERSON
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:
THOMAS J. SHULTZ :
35 Spring St :
Adams, NY 13601 : Index No.
:
Plaintiff, :
: COMPLAINT
v. :
:
1. GREATER WATERTOWN RED & BLACK INC, :
1358 Washington St :
Watertown, NY 13601 :
:
2. GEORGE ASHCRAFT :
1358 Washington St :
Watertown, NY 13601 :
:
3. JOHN RAMUS :
337 Thompson Blvd :
Watertown, NY 13601-4138 :
:
4. ROBERT C. FREEMAN III :
1067 Marble St. :
Watertown. NY 13601 :
:
Defendants. :
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1. Plaintiff Thomas J. Shultz, represented Pro Se, for his complaint against Greater Watertown Red and Black Inc, George Ashcraft, John Ramus, Robert Freeman III, alleges as follows:
2. The true names or capacities, whether individual, corporate, associate or otherwise, of the Defendants named herein 1 through 4 are unknown to Plaintiff, who therefore sues said Defendants by such fictitious names, and Plaintiff will amend this complaint to show their true names and capacities when the same have been ascertained.
3. Plaintiff, Shultz, is an individual and is now, and at all times mentioned in this complaint was, a resident of Jefferson County, New York.
4. Defendants Ashcraft, Freeman, and Ramus, and Greater Watertown Red & Black Inc. is now, and at all times mentioned in this complaint was, a corporation organized and existing under the laws of the State of New York, with its principal place of business in Jefferson County, New York.
5. Plaintiff is informed and believes, and on the basis of that information and belief alleges, that at all times mentioned in this complaint, Defendants were the agents and employees of their codefendants, and in doing the things alleged in this complaint were acting within the course and scope of that agency and employment.
History
6. Watertown, New York has often been called "The Green Bay of the East". The North Country is undeniably a football community. Since the inception of the Red & Black (“team”) in 1896, the enthusiasm among the fans has steadily increased each year. Never since the football fever reached the peak in the early 1900's has a local pro team been able to garner a profit allowing it to pay players at a rate of $300 or more at the end of a season.
7. In those early years, avid fans watched the home games and followed the team whenever it went to play out of town contests. Huge sums of money were wagered on every game; some of the players themselves indulging in side betting when rivalry became especially keen.
8. It was in 1902 that Watertown Athletic Association became known as the Red & Black Professional Football Team. Football enthusiasm reached a peak locally in 1903, a year which ended with the Red & Black participating in a Madison Square Garden tournament for the world championship. Watertown lost the championship to Frankling A.C. of Pennsylvania; J.B. Wise, Mayor of Watertown and the Red & Black's business manager lost $8,000 in bets during this contest.
9. The Red & Black team became semi-professional in 1904 and has played with semi pro status every since. Several teams during the decades of the 1900's, 1910's and 1920's brought the semi professional championships of New York State home to Watertown. Alex Duffy wore the colors for 17 seasons, the last 15 as captain during the 1910's and 1920's. During the 1923-1925 seasons, the team won 31 games, losing only to Binghamton, 6-0. The 1927 squad was undefeated. In 1935, the Red & Black was reorganized under George (Buzzy) Gibson and produced several outstanding teams.
10. Jake Devito and Rocco Canale guided the team when it was a member of the Eastern Professional League in the late 40's and early 50's. In 1950, the Red & Black went undefeated until losing the championship game to Hudson Falls at the Fairgrounds in Watertown.
11. In 1954, after a two year hiatus, the Red & Black was reorganized by Dick Doe and Budjo Alteri, assisted by Earl Cole. Johnny Marra was the sponsor. Boots Gaffney coached the team, assisted by Joe Guardino and Nelson Sholett. In four seasons, beginning in 1954, the team won 28 games, lost one and tied two. In these four seasons, the defense allowed but 50 points. Sadly the team once again became only a fond memory after the 1959 season.
12. In 1969, Carmen Scudera, Francis Lyng and John Morgia headed efforts to revive the Red & Black. Pat Killorin was selected as coach and the team had a successful season of 4 wins, 3 losses. It was not only competitively successful but financially successful as well. Crowds of 5000 to 6000 were reported at the games.
13. In 1971 and 1974, the Red & Black went undefeated. In 1980, the team reached its pinnacle of modern history, nearly comparable to that of the 1903 team. The team, playing under the direction of Jim Powers and Tom LaDuke won the Empire Football League Championship and was ranked second in the nation by Pro Football Weekly.
14. The Red and Black have their own showcase in the NFL Hall of Fame as being the oldest semi-pro team in the Nation. It is the very first showcase.
15. From 1980 until 1991 the team was under the direction of several different coaches. In 1991, George Ashcraft took over as the Head Coach. Mike Britton was the Offensive Coordinator from 1992 through the 2000 season starting his own semi-pro team, the St. Lawrence Trailblazers in 2002. The Red and Black have made the playoffs every year since 1993. In 2003 and in 2006 they won the Northern Division Championship.
16. In 2005, the Red and Black did a commercial with Donovan McNabb and the Philadelphia Eagles. When you see the commercial on TV with Donovan McNabb and his mom, it is the Red and Black players wearing the Cleveland Brown uniforms!(History source; Watertown Red& Black Website)
17. After playing football for one season, Thomas J. Shultz (“Shultz“) was approached by the Vice-President and General Manager of the Greater Watertown Red & Black Inc., George Ashcraft (“Ashcraft“) to take over and run the total operations of the football team. Ashcraft had asked Shultz in the previous season to buy the team several times. When asked how much, Ashcraft replied “$25,000“. He said that he had not been paid in the past five seasons and he should have received $5000 a year. Shultz was more interested in playing that season than taking over the team although the thought was interesting.
18. Ashcrafts current attempt to run the team has lead into financial turmoil, poor equipment and the deterioration of the public popularity. Ashcraft decided that Shultz would be a better candidate to run the organization. Shultz has a education that includes a Bachelors degree in Business Administration, Bachelors degree in Public Justice and a Masters degree in Business. He also owns and operates several businesses around the local community. Ashcraft wanted Shultz to run the operations so that Ashcraft could focus on coaching.
19. Shultz then acquired the help of Kenny Anderson “Anderson”, to help run football operations of the team. He was to be a 50% partner in the business. He was titled Director of Football Operations. Shultz asked Anderson to partner because he had a vast football knowledge having played for over a decade and he called the majority of the offense in the 2006 season. Anderson would oversee Ashcraft. It was apparent to the whole team that Ashcraft was more of a cheerleader versus a coach. When Ashcraft gave speeches at the end of practices, his only duty, players would interrupt him and show him very little respect. Shultz was shocked as a first year player because of this disrespect. Shultz knew that Anderson was the unofficial Head Coach of the team and wanted him officially in the capacity to run the teams football operations.
Time Line
20. On or about Jan 4th 2007, Ashcraft approached Shultz in the YMCA gym as he was working out for the next season. Ashcraft asked Shultz to take over the team because Ashcraft wanted a business man running the team so he could focus on the football. Shultz agreed and they decided to talk further about the situation in the coming days. Shultz later that night acquired Anderson as a partner in this venture. Anderson was asked to be in charge of football operations, Shultz was to be in charge of the business operations.
21. On or about Jan 5th 2007, Shultz told Ashcraft that he would like to proceed and Ashcraft recommended that they go see the teams Attorney David Renzi. Attorney David Renzi would do the proper transaction necessary to make the transfer legal.
22. On or about Jan 9th 2007, Shultz and Ashcraft went to Attorney David Renzi's office and talked about their intentions. Attorney David Renzi said he would transfer ownership of the team, form a new corporation called Sports Partners Inc. to run the team, and dissolve the former corporation, The Greater Watertown Red & Black. The equipment would be turned over to Sports Partners Inc.
23. On or about Jan 14th 2007, Ashcraft announces to the team during a practice that Shultz and Anderson are the new owners of the team. Both gave a speech to the players before resuming practice. Later that night Shultz had dinner with Ramus who tells Shultz, after a lengthy conversation, that this is what’s best for the team. Ramus had a full understanding of the transfer of the team.
24. On or about Jan 17th 2007 , Shultz was out of the country and learned from a voicemail from Anderson that Ashcraft was having trouble with the deal. He felt that Shultz was not listening to his input. Shultz called Ashcraft and they decided to talk when Shultz returned.
25. On or about Jan 22nd 2007, Ashcraft, Anderson, and Shultz met at Casa de Flora Restaurant. They discussed Ashcrafts issues and left the meeting with a feeling of resolve. They agreed to set up the meeting to finalize the deal with Attorney David Renzi. Ashcraft delivered the first coaches contract (attachment A) to Shultz. Shultz read it over, it had a salary of $5000, $500 bonus for every playoff or championship game, and a $750 bonus if he wins the championship game. He also wanted 20% of all add revenue that he brought to the team. In total, it cold have added up to over $12,000. It was confusing to Shultz at the time because he knew that Ashcraft was on disability and working part time at the YMCA. Ashcraft in an earlier conversation told Shultz that he couldn’t make more that $9000.00 a year without penalty to his disability payments. Ashcraft also told Shultz in a previous conversation that a lot of money gets brought in at home games and by paying him in cash, his disability would not be put in jeopardy.
26. On or about Jan 23rd 2007, they met at Attorney David Renzi's office to sign the papers to start the new corporation. Ashcraft sat down and handed Shultz a letter stating that he wanted Shultz’s new company to pay his wife $25,000 for the hard work she had put into the team over the past five years. Attorney David Renzi stated to Ashcraft "that is illegal and I will have no part of it." Ashcraft looked around for a few seconds and then said “lets do it.” All parties went into the conference center and Shultz signed the corporate paperwork to form the new company, Sports Partners Inc. DBA Watertown Red & Black. The paperwork to dissolve the old corporation was still in processing; Ashcraft, Freeman, and Ramus were to sign the necessary documents to dissolve the corporation the next day. When Shultz finished signing, Ashcraft stood up, shook Shultz’s hand and said “this is what's best for the team“. Upon exiting the building, Ashcraft stopped Shultz and explained that they hadn’t filed their taxes in their five years of existence. It was better for them to move on in hopes to sweep the past under the rug instead of facing hefty fines from the New York State Department of State, Taxation Bureau. This was Shultz’s first understanding why Ashcraft wanted to rid the team and form new ownership. The potential legal ramifications were mounting.
27. On or about Jan 24th 2007, paperwork to dissolve old corporation was signed by all parties, Ashcraft, Freeman, and Ramus.
28. On or about Jan 25th 2007, Shultz hires an employee to help develop the teams program, rents office space, and starts developing rate sheets, season tickets, and marketing programs.
29. On or about Jan 27th 2007, Shultz and Ashcraft met to discuss the coaching contract at Casa De Flora Restaurant. Ashcraft in the past claimed that he had not been paid in the past five years and the team owed him $5000 a year for a total of $25,000. Shultz always believed that Ashcraft should be paid for coaching. Shultz had thought that $4000 to $5000 a year was reasonable and likely the going rate in the semi-pro football community. Ashcraft again pulled out his coaching contract. Shultz again read it then questioned Ashcraft about his time commitment to the team now that he no longer ran the business aspects and only coached. Ashcraft immediately acted belligerent and started getting upset that Shultz would question Ashcrafts actions. Shultz knew that the relationship between the two had changed with Shultz being an owner and Ashcraft a coach. Shultz felt reasonable asking what his plans were for the team. Ashcraft disagreed and left upset.
30. On or about Feb 1st 2007, Shultz heard that Ashcraft was dissatisfied with the deal, Ashcraft thought Shultz was not listening to his opinions, although Ashcraft had not given him any opinions. Tells others the deal was off. Nothing was said to Shultz.
31. On or about Feb 2nd & 3rd 2007, Fundraiser at Hannaford supermarkets, Ashcraft does not talk to Shultz during the fundraiser.
32. Feb 5th 2007, Shultz meets with Freeman at his office to discuss Ashcraft and the problems they were having. Shultz explained to Freeman that if Ashcraft does not honor the deal, there could be negative ramifications for him being the President of the company. He confirmed that he has discussed the situation with Ashcraft and was leaving everything up to Ashcraft, Freeman stated it was wholly Ashcraft’s decision. Freeman was going to back Ashcraft no matter what way he decided. Freeman had a full understanding and knowledge of the transaction that had taken place. Shultz then went over to Ashcrafts house to discuss the problems they were having. Once again, Ashcraft’s issues were generalities and not specific. When Shultz asked him to get specific, he could not. Shultz told him at that point he already owned the team and Ashcraft would be out if he didn't concede. Shultz told Ashcraft to call Attorney David Renzi for confirmation of that fact.
33. On or about Feb 6th 2007, Ashcraft called Shultz and agreed upon the status of the team after talking to Attorney David Renzi. Ashcraft asked Shultz to give him some input on decisions and have a talk with his family so that they will understand the transition along with an explanation of Shultz’s plans for the upcoming season.
34. On or about Feb 8th 2007, Shultz call David Burch (“Burch“), commissioner of the EFL (Empire Football League); let him know he was the new owner and that he needed copies of the player contracts and insurance waivers. Burch said he would email them to Shultz.
35. On or about Feb 9th 2007, Shultz met with Ashcraft’s family to explain his plan and how they were included into the new teams mixture. Shultz welcomed all their help and input into the situation. Upon arrival Shultz quickly learned the Ashcraft family was more concerned about their future during this meeting then the teams future. They wanted to make sure they still had their paid positions on the team and they wanted to secure a reserved seating section for Ashcrafts friends and family. It was apparent that was more important to them than the future of the team. Ashcraft said very little at that meeting and his family said a lot. That’s when Shultz understood why when face to face, Shultz and Ashcraft agreed, but the next day, they would be at odds. Ashcrafts apparent dissatisfaction comes from his family. Ashcrafts wife was resentful of the fact that someone else was taking charge. The whole family was drinking heavily and they were getting belligerent towards Shultz. Ashcrafts wife said to Shultz “What the f___ makes you think you can take over this team without paying us any money?” Ashcraft then gave Shultz the coaching contract again. The whole family tried to pressure Shultz into signing it but he refused. Ashcraft ordered Shultz to sign it by 10:00am the next day or else, then told Shultz to leave his house.
36. On or about Feb 10th 2007, Shultz represented the team at the chili cook-off in the state office building, Shultz did not call Ashcraft that morning by the 10:00am time limit. Shultz saw Ashcraft at the chili cook-off and said to him "We can work this out; we need to sit down alone and make it work for you and the team". Ashcraft agreed and they both shook hands, they then greeted guests together until Ashcraft made an early departure..
37. On or about Feb 11th 2007, Ashcraft and Shultz had 42 players sign player contracts with Sports Partners Inc., Shultz’s Corporation, both Ashcraft and Shultz signed the contracts.
38. On or about Feb 12th 2007, George signed over the checks from Hannaford Supermarkets fundraiser. These checks totaled over $500.00. They were written to George Ashcraft and Ashcraft endorsed the back for Shultz to deposit into the new companies account.
39. On or about Feb 13th 2007, Shultz spends $7000.00 buying new shoulder pads for the team and purchases two 11x17 laser printers for the teams programs.
40. On or about Feb 18th 2007, Shultz went to practice an hour early, conducted a coach's meeting. Met with Anderson, Ernie Miller Sr. (defensive coordinator). As players arrived Shultz had them sign the insurance waiver. Ashcraft did not attend the meeting, when the coaches went into the gym; Shultz noticed Ashcraft was having players sign something when they entered. Shultz went over and saw it was another players contract with Ashcrafts old companies name on it, the Greater Watertown Red & Black Inc. Shultz asked Ashcraft what was going on and he stated that he was going to be in charge. Things were not going the way that Ashcraft planned. Shultz left thinking he should pursue legal options as opposed to making a confrontation in front of the players.
41. Since the team was taken over by Shultz, he has spent more than 100 hours of time on the management and structure of the team. He hired an individual to assist in the marketing aspects and day to day operations. He developed a plan for the upcoming season, met with sponsors, handed out hundreds of rate sheets, developed a season pass and sold them, and spent nearly $20,000 for equipment and supplies directly for the team use.
Conclusion
42. Ashcraft had been paid every year up until he started running the team. That is when the teams finances deteriorated. His poor management lead to depleted funds although the money seemed to still be coming in. Many fans were attending the games. Players often mentioned to Shultz that the coach was the only one profiting from the team. While the equipment, uniforms, and accommodations were deteriorating, he lived a lifestyle of a prominent man. He drove a new van, had a motorcycle, and paraded around town in a vintage corvette. This lifestyle was not one of a man struggling on disability to pay for his next meal. Questions often were raised from veteran players and coaches as to where the money was going. One player question what happened to the money that was earned from the teams participation in the Donavan McNabb’s Campbell’s Soup commercial. The team signed the checks over to Ashcraft because he promised a trip to a national football tournament. Several thousand dollars were given to Ashcraft and he never made good on that promise. This is a punishable crime in New York State if any of the players lodge a complaint. The players do not know where the money went. The team went to the EFL Championship game in 2006, several thousand people showed up to the game. The game should have been a cash cow for the team bringing in as much as $10,000. At the end of the season, the team had less than $500 in their check book. Several coach’s have questioned Shultz as to where the money went. Many improprieties have existed at the teams expense. The Assistant Attorney Generals office in Watertown has been notified and awaits a compliant to start an investigation into the non-profits finances.
43. Shultz legally took control of the team, conducted hundreds of hours of team business, spent almost $20,000 for the promotion of the team, and Ashcraft, Freeman, and Ramus all enacted partial performance that was unequivocally referable to the contract.
FIRST CAUSE OF ACTION(Specific Performance)
44. Plaintiff repeats and realleges each and every allegation in paragraphs 1 through 43 of this Complaint as if set forth fully herein.
45. On or about January 23rd, 2007, Plaintiff and Defendants corporation through its agent Ashcraft entered into a contract in which Defendants corporation agreed to transfer and Plaintiff agreed to assume operations of the team.
46. Plaintiff has performed all of the conditions of the contract that are required to be performed by Plaintiff. Plaintiff remains ready and willing to perform all terms of the agreement applicable to Plaintiff and to receive a good and sufficient title to the team as promised by Defendants.
47. WHEREFORE, Plaintiff demands judgment against Defendants for specific performance.
48. Plaintiff repeats and realleges each and every allegation in paragraphs 1 through 43 of this Complaint as if set forth fully herein.
49. On or about January 23rd 2007, Plaintiff and Defendants and each of them, entered into an agreement whereby Defendants agreed to transfer the operations of the team to Plaintiff at the office of Attorney David Renzi in Watertown, New York.
50. Plaintiff has performed all of the conditions, covenants and promises required by it to be performed in accordance with the terms and conditions of the contract, agreeing to assume operations and fully functioning in that capacity.
51. Defendants, and each of them, breached their agreement with plaintiff by failing and refusing to perform in good faith their promise to turn over operations of the team..
52. As a result of the breach of the Defendants in the obligations pursuant to the contract, and a demand has been made to each for fulfillment, the Plaintiff has been damaged.
53. These circumstances are so egregious as to render Ashcraft, Freeman, Ramus, and the Greater Watertown Red and Black Inc. behavior unconscionable.
Third CAUSE OF ACTION(Fraud)54. Plaintiff repeats and realleges each and every allegation in paragraphs 1 through 43 of this Complaint as if set forth fully herein.
55. As set forth above, Ashcraft made Shultz a clear and unambiguous promise that Shultz would own and manage the team know as the Watertown Red & Black.
56. By making this promise, Ashcraft reasonably and foreseeable expected that, by these representations alone, Shultz would be induced to act on their mutual behalf to organize, manage and run the investment in the business, and, in so doing, select and secure certain business opportunities for the company.
57. In reliance on Ashcraft’s promise, Shultz expended considerable efforts over a period of more than two months to organize and manage the business, and to select, negotiate and secure, and indeed did secure, benefits for the Watertown Red & Black, including the acquisition of new shoulder pads for the team at a considerable expense.
58. As a consequence of Ashcrafts refusal to honor his promise, Shultz has
been injured financially and incurred injury to his reputation with other potential business
partners and associates.
59. Ashcraft entered into this contract fully aware of the legal ramification of the contract. Ashcraft knew fully before negotiations that if Shultz did not honor the coaching contract, he would renege on the contract.
60. Ashcrafts direct misrepresentations of the coaching contract that were collateral to the original contract and which induced Shultz to enter into said contract defrauded Shultz into the performance of the contract. As a result of the fraud of the Defendant in his deceptions pursuant to the contract, and a demand has been made to each for fulfillment, the Plaintiff has been damaged.
61. These circumstances are so egregious as to render Ashcraft’s behavior unconscionable.
PRAYER FOR RELIEFWHEREFORE Plaintiff respectfully requests that the Court enter judgment
against Ashcraft, Freeman, Ramus and the Greater Watertown Red& Black Inc. by:
(a) For an order that defendant corporation and its agents specifically perform the contract and deliver the team as described in paragraph 26;
(b) In the event that the Court does not order specific performance of the contract, awarding compensatory damages to be determined at trial, but in no event less than $50 thousand for breach of contract; and
(c) In the event the Court does not order specific performance of the contract, awarding punitive damages to Plaintiff in an amount to be determined at trial, but in no event less than $50 thousand, for breach of contract: and
(d) In the event the Court does not order specific performance of the contract and damages for breach of contract, awarding compensatory damages to Plaintiff in an amount to be determined at trial, but in no event less than $50 thousand, for fraud: and
(e) In the event the Court does not order specific performance of the contract and damages for breach of contract, awarding punitive damages to Plaintiff in an amount to be determined at trial, but in no event less than $50 thousand, for fraud: and
(f) Awarding Plaintiff the costs of this action, including reasonable attorney’s fees and costs incurred as a result of having to commence and prosecute this action; and
(g) Awarding Plaintiff such other and further relief as the Court deems just and
proper.
Dated:
December 21, 2007
By: ___________________________
