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Ashcraft's Red & Black Wins Court Battle Over Team Name March 7, 2008
Posted by Dave Burch at Mar 6, 2008 4:00PM PST
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Ashcraft's Red & Black Wins Court Battle Over Team Name
Friday, March 07, 2008, 3:42pm
The Watertown Red & Black name has been synonymous with semi-pro football since 1896. But, last month, two franchises laid claim to the name - forcing a battle not on the field, but in the courtroom.
A State Supreme Court judge ruled in favor of the football team coached by George Ashcraft.
The trouble all started when Thomas Shultz and Sports Partners claimed they had legal rights to the Red & Black name.
Shultz contended that the Red & Black legally transferred the ownership of the team to Sports Partners.
He subsequently applied to the Northeast Football Alliance for membership in the league. He planned to create a team called the Red & Black.
Ashcraft, who coaches the Red & Black in the Empire Football League, took Shultz to court over the right to use the name.
In a decision handed down Thursday, Judge Hugh Gilbert ruled in Ashcraft's favor and barred Shultz from using the words "Red & Black" or "Red & Black Football".
Shultz was unavailable for comment.
Ashcraft said he was pleased with the court's ruling.
Click link to view actual decision handed down from Supreme Court Justice Hugh Gilbert
View or Download Actual Legal Documentation Regarding The Current Issues
Posted by Dave Burch at Mar 2, 2008 4:00PM PST
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The following is the chronology of events involving the current situation in Watertown with regard to Mr. Tom Shultz.
Tom Shultz's Answer To Show Cause Order - February 28, 2008
Posted by Dave Burch at Feb 27, 2008 4:00PM PST
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF JEFFERSON
---------------------------------------------------------------------------x ANSWER
:
GREATER WATERTOWN RED & BLACK INC., : Index No. 08-283
:
Plaintiff, :
:
v. :
:
SPORTS PARTNERS INC., :
THOMAS J. SHULTZ :
:
Defendants. :
---------------------------------------------------------------------------x
STATE OF NEW YORK )
) ss:
COUNTY OF JEFFERSON )
Thomas Shultz, being duly sworn, deposes and says:
1. I am an individual and now, and at all times mentioned was, a resident of Jefferson
County, New York, and I am the President of Sports Partners Inc.
INTRODUCTION
2. 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.
3. Ashcraft’s 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 an education that includes a Bachelors
degree in Business Administration, Bachelors degree in Public Justice and is completing his
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.
4. 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 team’s football operations.
Time Line
5. 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.
6. 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.
7. 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.
8. 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 John Ramus, the teams
Treasurer, 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.
9. 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.
10. 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 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 could 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.
11. 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 “let’s do
it.” All parties went into the conference center and Shultz signed the corporate paperwork
to form the new company, Sports Partners Inc. (attachment A) DBA Watertown Red & Black.
(Attachment B) 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. This was Shultz’s first understanding why Ashcraft wanted to
rid the team and form new ownership. The potential legal ramifications were mounting.
12. On or about Jan 25th 2007, Shultz hires an employee to help develop the teams
program, rents office space, and starts developing rate sheets (attachment C), season
tickets (attachment D), and marketing programs.
13. 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 although the majority of coaches in the
league volunteer to coach because of the love of the game. Shultz had thought that $4000
to $5000 a year was reasonable. 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 became
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.
14. 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. Ashcraft tells others the deal was off. Nothing was said to Shultz.
15. On or about Feb 2nd & 3rd 2007, Fundraiser at Hannaford supermarkets, Ashcraft
does not talk to Shultz during the fundraiser.
16. 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.
17. 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.
18. 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 (attachment E) and also access to the
password protected league administrator website (attachment F ). Burch sent all
correspondence to Shultz. Burch had a full understanding of the transaction that had taken
place.
19. On or about Feb 9th 2007, Shultz met with Ashcraft’s family to explain his plan and how
they were included into the new team’s mixture. Shultz welcomed all their help and input into
the situation. Ashcraft gave Shultz a budget sheet (attachment G) and a game expense
worksheet (attachment H) to discuss that evening. Upon arrival, Shultz quickly learned the
Ashcraft’s family was more concerned about their future, rather than the team’s 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 with a finger in his face “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.
20. 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..
21. 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. Ashcraft took possession of these contracts and Shultz has learned that he has
since destroyed them. Ashcraft introduced Shultz and Anderson as the new owners of
Watertown Red and Black Football Team. All players in attendance (attachment I) had a full
understanding of the nature of the transaction between Shultz and Ashcraft.
22. 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 (attachment J).
23. On or about Feb 18th 2007, Shultz went to practice an hour early, conducted a coach's
meeting. Shultz met with Anderson and Ernie Miller Sr. (defensive coordinator). As players
arrived Shultz had them sign the insurance waiver (attachment h). 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 player
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.
24. 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.
25. Ashcraft had been paid every year up until he started running the team. That is when
the team’s finances deteriorated. His poor management led 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 team’s 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 if any of the players wanted to lodge a complaint.
The players do not know where the money went.
26. The team went to the EFL Championship game in 2006, several thousand people
showed up to the team’s final three home games. The games 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 coaches have questioned Shultz as to where
the money went. Many improprieties have existed at the team’s expense. The Assistant
Attorney Generals office in Watertown has been notified and awaits a complaint to start an
investigation into the non-profits finances.
Disparities in their Complaint
27. In response to the affidavit of David Burch. David Burch was contacted as soon as the
transaction was accepted and completed by Ashcraft. He was notified by Shultz and
Ashcraft as to the nature of the agreement. Shultz contacted him in early February to
discuss player contracts and insurance. They discussed the situation by phone and Burch
agreed to give Shultz the information necessary to run a team in the EFL. David Burch
emailed Shultz the adult waivers (Attachment E) and gave him the exclusive password to
the EFL administrators website (attachment F), allotted for owners and managers of football
operations. He is giving misleading statements in his affidavit stating that Shultz gave him
the attached letter as an outline of plans for the team. Shultz and Burch corresponded
several times prior to the sending of the letter. Burch gave Shultz privileged information
knowing the intended use of this information. David Burch had full knowledge of the
transaction that had taken place.
28. In response to the affidavit of Sam Verbeck. Sam Verbeck claims that the players
were confused as to the true owner of the team. This is also a false statement, the veteran
players were part of the process of the transition of the team, witness to the announcement
at practice, and tried to negotiate a settlement with Shultz and Ashcraft after Ashcraft faulted
on the transaction (attachment K). Sam Verbeck’s own son signed a player waiver and
release form with Sports Partners Inc., Shultz’s company (attachment L).
29. In response to the affidavit of George Ashcraft. George Ashcraft makes several false
statements of fact. In paragraph 5 of his affidavit, Ashcraft states that preliminary
discussions of a potential partnering agreement with Sports Partners Inc. were undertaken.
Sports Partners Inc. was formed by David Renzi, the acting attorney for the Greater
Watertown Red & Black Inc. Why would an Attorney that represents Ashcraft’s interests,
form a corporation, then file for a DBA with the name “Watertown Red & Black” if
discussions were only preliminary? Ashcraft was present when the corporation papers
were signed and attempted not to stop the process. Ashcraft signed over fundraising
checks to Shultz from Hannaford Supermarkets. Ashcraft announced to the team that
Shultz was the new owner. Ashcraft gave Shultz his 2006 sponsor sheets to help him raise
money (attachment M). Ashcraft’s son-in-law signed an adult athletic waiver with Shultz’s
company (attachment N). Ashcraft told Shultz that he scheduled a time to announce to the
public the new team owner with Mel Busler on channel 7 news. Ashcraft wrote a letter to
Shultz stating that he would resign if Shultz brought back season tickets to those players
that risked their bodies for the team (attachment P). Ashcraft tried to get Shultz to sign an
excessive coaching contract on three occasions. Ashcraft signed several player contracts
with the Sports Partners Inc. as the owners and then later destroyed them. Ashcraft acted in
good faith to the transaction in David Renzi’s office.
30. In paragraph 17 of his affidavit, Ashcraft claims that Shultz solicitation efforts were
successful in securing a sponsorship with Northern Radiology Associates (attachment O).
What he neglects to say is that Ashcraft’s own son Troy was the one to solicit the
advertisement. Troy Ashcraft, on his own free will, successfully marketed Northern
Radiology for the advertisement and had them mailed to Shultz. Troy Ashcraft had a full
understanding of the agreement between Shultz and Ashcraft. Once Shultz received the
check, he turned it over to the assistant coach Justin Rich.
31. Ashcraft has injured Shultz’s reputation during this ordeal. He has lied to several
persons as to the nature of our agreement. He cut the head off a picture of Shultz on his
website and cropped his sons Troy head in its place. He deleted Shultz from the 2006
player roster after Shultz spend 6 months enduring the harshness of semi-pro football. He
has also threatened physical harm to Shultz.
32. The Greater Watertown Red & Black was formed in 2003, not in 1896. Their claims
are misleading to the public. They are a separate entity from the Red & Black Hall Of Fame
because members fear Ashcraft could ruin that also. Ashcraft disbanded the past Board of
Directors and now many of them are aligned with this organization, giving Sports Partners
Inc. a more credible right to the name. This team once was the pride of the town and
through Sports Partners Inc. we would like to re-deliver that pride to the community.
33. Many of the allegations about Shultz are true, he did develop a rate sheet, sell season
tickets, look for sponsors and use the logo for advertising, but since the fallout, he
developed his own logo, secured his own sponsors and hired an assistant for advertising.
Since the fallout Shultz registered his Watertown Red & Black team with a league called the
Northeast Football Alliance. Since the fallout, he signed 30 players that have committed to
play football with him in the 2008 season. Shultz has started negotiations with the city for
use of their fields and facilities and has hired a marketing agent, trainer, head coach, and
assistant coaches for the team. Shultz has bought all the equipment necessary to outfit a
team and is getting support from several former Red and Black Football Board Members.
Since the fallout, Shultz operates his team separate from the team in the EFL and there is
no ambiguity amongst the players, community and league about the two separate teams. It
has been repeatedly noted in the Watertown Daily Times and on Channel 7 news that
Watertown now has two teams. Shultz acted like a team owner in the beginning and
attempted to deliver results as the team owner.
34. Shultz acted in good faith to the transaction that took place and reserves the right to
demand judgment against the Greater Watertown Red & Black and to compel plaintiffs to
account for this ownership (bent v. Witter. 162 AD2d 318 [1st Dept 1990]; Marcus v.
Fabrikank, 81 AD2d 527 [1st Dept 1981]). Shultz also reserves the right to demand
judgment for breach of contract and fraud. There were several misrepresentations of fact
that Ashcraft, Freeman, and Ramus never gave to Shultz. Because Shultz acted in concert
with the contract he was defrauded Credit Alliance Inc, v. R.E. Hable Co., 256 AD2d 114,
115 (1st Dept 1998).
Conclusion
35. Shultz 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. Because of
their complete disregard of the contract Shultz has been financially, emotionally, and
reputably injured. Shultz’s only conclusion was that Ashcraft broke the contracts
parameters because he would not financially benefit anymore from the teams money and
the coach’s contract was designed to make up for that gap. Because Shultz would not sign
the coach’s contract, Ashcraft reneged on the original contract.
Dated:
February 28, 2008
By: ___________________________
COUNTY OF JEFFERSON
---------------------------------------------------------------------------x ANSWER
:
GREATER WATERTOWN RED & BLACK INC., : Index No. 08-283
:
Plaintiff, :
:
v. :
:
SPORTS PARTNERS INC., :
THOMAS J. SHULTZ :
:
Defendants. :
---------------------------------------------------------------------------x
STATE OF NEW YORK )
) ss:
COUNTY OF JEFFERSON )
Thomas Shultz, being duly sworn, deposes and says:
1. I am an individual and now, and at all times mentioned was, a resident of Jefferson
County, New York, and I am the President of Sports Partners Inc.
INTRODUCTION
2. 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.
3. Ashcraft’s 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 an education that includes a Bachelors
degree in Business Administration, Bachelors degree in Public Justice and is completing his
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.
4. 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 team’s football operations.
Time Line
5. 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.
6. 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.
7. 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.
8. 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 John Ramus, the teams
Treasurer, 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.
9. 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.
10. 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 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 could 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.
11. 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 “let’s do
it.” All parties went into the conference center and Shultz signed the corporate paperwork
to form the new company, Sports Partners Inc. (attachment A) DBA Watertown Red & Black.
(Attachment B) 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. This was Shultz’s first understanding why Ashcraft wanted to
rid the team and form new ownership. The potential legal ramifications were mounting.
12. On or about Jan 25th 2007, Shultz hires an employee to help develop the teams
program, rents office space, and starts developing rate sheets (attachment C), season
tickets (attachment D), and marketing programs.
13. 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 although the majority of coaches in the
league volunteer to coach because of the love of the game. Shultz had thought that $4000
to $5000 a year was reasonable. 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 became
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.
14. 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. Ashcraft tells others the deal was off. Nothing was said to Shultz.
15. On or about Feb 2nd & 3rd 2007, Fundraiser at Hannaford supermarkets, Ashcraft
does not talk to Shultz during the fundraiser.
16. 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.
17. 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.
18. 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 (attachment E) and also access to the
password protected league administrator website (attachment F ). Burch sent all
correspondence to Shultz. Burch had a full understanding of the transaction that had taken
place.
19. On or about Feb 9th 2007, Shultz met with Ashcraft’s family to explain his plan and how
they were included into the new team’s mixture. Shultz welcomed all their help and input into
the situation. Ashcraft gave Shultz a budget sheet (attachment G) and a game expense
worksheet (attachment H) to discuss that evening. Upon arrival, Shultz quickly learned the
Ashcraft’s family was more concerned about their future, rather than the team’s 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 with a finger in his face “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.
20. 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..
21. 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. Ashcraft took possession of these contracts and Shultz has learned that he has
since destroyed them. Ashcraft introduced Shultz and Anderson as the new owners of
Watertown Red and Black Football Team. All players in attendance (attachment I) had a full
understanding of the nature of the transaction between Shultz and Ashcraft.
22. 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 (attachment J).
23. On or about Feb 18th 2007, Shultz went to practice an hour early, conducted a coach's
meeting. Shultz met with Anderson and Ernie Miller Sr. (defensive coordinator). As players
arrived Shultz had them sign the insurance waiver (attachment h). 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 player
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.
24. 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.
25. Ashcraft had been paid every year up until he started running the team. That is when
the team’s finances deteriorated. His poor management led 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 team’s 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 if any of the players wanted to lodge a complaint.
The players do not know where the money went.
26. The team went to the EFL Championship game in 2006, several thousand people
showed up to the team’s final three home games. The games 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 coaches have questioned Shultz as to where
the money went. Many improprieties have existed at the team’s expense. The Assistant
Attorney Generals office in Watertown has been notified and awaits a complaint to start an
investigation into the non-profits finances.
Disparities in their Complaint
27. In response to the affidavit of David Burch. David Burch was contacted as soon as the
transaction was accepted and completed by Ashcraft. He was notified by Shultz and
Ashcraft as to the nature of the agreement. Shultz contacted him in early February to
discuss player contracts and insurance. They discussed the situation by phone and Burch
agreed to give Shultz the information necessary to run a team in the EFL. David Burch
emailed Shultz the adult waivers (Attachment E) and gave him the exclusive password to
the EFL administrators website (attachment F), allotted for owners and managers of football
operations. He is giving misleading statements in his affidavit stating that Shultz gave him
the attached letter as an outline of plans for the team. Shultz and Burch corresponded
several times prior to the sending of the letter. Burch gave Shultz privileged information
knowing the intended use of this information. David Burch had full knowledge of the
transaction that had taken place.
28. In response to the affidavit of Sam Verbeck. Sam Verbeck claims that the players
were confused as to the true owner of the team. This is also a false statement, the veteran
players were part of the process of the transition of the team, witness to the announcement
at practice, and tried to negotiate a settlement with Shultz and Ashcraft after Ashcraft faulted
on the transaction (attachment K). Sam Verbeck’s own son signed a player waiver and
release form with Sports Partners Inc., Shultz’s company (attachment L).
29. In response to the affidavit of George Ashcraft. George Ashcraft makes several false
statements of fact. In paragraph 5 of his affidavit, Ashcraft states that preliminary
discussions of a potential partnering agreement with Sports Partners Inc. were undertaken.
Sports Partners Inc. was formed by David Renzi, the acting attorney for the Greater
Watertown Red & Black Inc. Why would an Attorney that represents Ashcraft’s interests,
form a corporation, then file for a DBA with the name “Watertown Red & Black” if
discussions were only preliminary? Ashcraft was present when the corporation papers
were signed and attempted not to stop the process. Ashcraft signed over fundraising
checks to Shultz from Hannaford Supermarkets. Ashcraft announced to the team that
Shultz was the new owner. Ashcraft gave Shultz his 2006 sponsor sheets to help him raise
money (attachment M). Ashcraft’s son-in-law signed an adult athletic waiver with Shultz’s
company (attachment N). Ashcraft told Shultz that he scheduled a time to announce to the
public the new team owner with Mel Busler on channel 7 news. Ashcraft wrote a letter to
Shultz stating that he would resign if Shultz brought back season tickets to those players
that risked their bodies for the team (attachment P). Ashcraft tried to get Shultz to sign an
excessive coaching contract on three occasions. Ashcraft signed several player contracts
with the Sports Partners Inc. as the owners and then later destroyed them. Ashcraft acted in
good faith to the transaction in David Renzi’s office.
30. In paragraph 17 of his affidavit, Ashcraft claims that Shultz solicitation efforts were
successful in securing a sponsorship with Northern Radiology Associates (attachment O).
What he neglects to say is that Ashcraft’s own son Troy was the one to solicit the
advertisement. Troy Ashcraft, on his own free will, successfully marketed Northern
Radiology for the advertisement and had them mailed to Shultz. Troy Ashcraft had a full
understanding of the agreement between Shultz and Ashcraft. Once Shultz received the
check, he turned it over to the assistant coach Justin Rich.
31. Ashcraft has injured Shultz’s reputation during this ordeal. He has lied to several
persons as to the nature of our agreement. He cut the head off a picture of Shultz on his
website and cropped his sons Troy head in its place. He deleted Shultz from the 2006
player roster after Shultz spend 6 months enduring the harshness of semi-pro football. He
has also threatened physical harm to Shultz.
32. The Greater Watertown Red & Black was formed in 2003, not in 1896. Their claims
are misleading to the public. They are a separate entity from the Red & Black Hall Of Fame
because members fear Ashcraft could ruin that also. Ashcraft disbanded the past Board of
Directors and now many of them are aligned with this organization, giving Sports Partners
Inc. a more credible right to the name. This team once was the pride of the town and
through Sports Partners Inc. we would like to re-deliver that pride to the community.
33. Many of the allegations about Shultz are true, he did develop a rate sheet, sell season
tickets, look for sponsors and use the logo for advertising, but since the fallout, he
developed his own logo, secured his own sponsors and hired an assistant for advertising.
Since the fallout Shultz registered his Watertown Red & Black team with a league called the
Northeast Football Alliance. Since the fallout, he signed 30 players that have committed to
play football with him in the 2008 season. Shultz has started negotiations with the city for
use of their fields and facilities and has hired a marketing agent, trainer, head coach, and
assistant coaches for the team. Shultz has bought all the equipment necessary to outfit a
team and is getting support from several former Red and Black Football Board Members.
Since the fallout, Shultz operates his team separate from the team in the EFL and there is
no ambiguity amongst the players, community and league about the two separate teams. It
has been repeatedly noted in the Watertown Daily Times and on Channel 7 news that
Watertown now has two teams. Shultz acted like a team owner in the beginning and
attempted to deliver results as the team owner.
34. Shultz acted in good faith to the transaction that took place and reserves the right to
demand judgment against the Greater Watertown Red & Black and to compel plaintiffs to
account for this ownership (bent v. Witter. 162 AD2d 318 [1st Dept 1990]; Marcus v.
Fabrikank, 81 AD2d 527 [1st Dept 1981]). Shultz also reserves the right to demand
judgment for breach of contract and fraud. There were several misrepresentations of fact
that Ashcraft, Freeman, and Ramus never gave to Shultz. Because Shultz acted in concert
with the contract he was defrauded Credit Alliance Inc, v. R.E. Hable Co., 256 AD2d 114,
115 (1st Dept 1998).
Conclusion
35. Shultz 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. Because of
their complete disregard of the contract Shultz has been financially, emotionally, and
reputably injured. Shultz’s only conclusion was that Ashcraft broke the contracts
parameters because he would not financially benefit anymore from the teams money and
the coach’s contract was designed to make up for that gap. Because Shultz would not sign
the coach’s contract, Ashcraft reneged on the original contract.
Dated:
February 28, 2008
By: ___________________________
