THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, July 9, 1994 TAG: 9407090348
SECTION: SPORTS PAGE: C1 EDITION: FINAL
SOURCE: BY TOM ROBINSON, STAFF WRITER
LENGTH: Medium: 73 lines
Management of the Hampton Roads Hurricanes, the first-year semipro franchise that leads the United States Interregional Soccer League in attendance, was stripped from owner Ellis Gillespie on Friday for a failure to meet a financial commitment to the league.
The league assumed control of the Hurricanes and entrusted their operation for the rest of the season, which ends July 23, to Hampton Roads Sports Limited Liability Corp. That group, run by Norfolk Tides investors Mark Garcea and Page Johnson, recently discussed investing in the Hurricanes or purchasing the club outright from Gillespie.
According to Gillespie, the league took its action because he did not pay a $10,000 letter of credit and more than $4,000 in other franchise fees by the Wednesday deadline set by the league. The letter of credit is normally required up front, but Gillespie said USISL commissioner Francisco Marcos waived it at that time, though Gillespie knew it would be due at some point.
League spokeswoman Beverly Wright, however, said Gillespie was notified more than a week ago that the fees would be due Wednesday, ironically the day the league All-Star Game was played in Virginia Beach. The site was chosen because of the Hurricanes' average attendance of about 3,000 per game - the best in the 72-team league.
When Gillespie did not respond, the league took its action.
Gillespie said that he was unaware that the deadline had passed, and said he had a check ready to go out Friday. But he was told by the USISL that it was too late.
Gillespie apparently will be given an opportunity to argue for reinstatement at the league's meeting in Greensboro on Aug. 14. However, a statement released by the USISL on Friday said that it is ``expected that formal membership rights will be granted to Hampton Roads Sports LLC'' at that meeting.
Gillespie downplayed the announcement.
``This is not big news,'' said Gillespie, who also said that he was in disagreement with the league on some other issues, though he was vague as to what those were. ``I'm still the sole owner. It all belongs to me.
``The league is giving temporary custodianship to Hampton Roads Sports LLC until I rectify the situation with them. That's fine with me. I don't want to go any further with it until we get those issues cleared up.''
Neither Garcea, who owns M&G Electronics Inc. in Virginia Beach, nor Johnson, an accountant, could be reached for comment Friday night.
Garcea apparently approached the league after negotiations with Gillespie broke down and made known his interest in the franchise, according to Hurricanes' attorney Kevin B. Rack. The USISL then turned to Garcea when Gillespie defaulted.
``Apparently they did not want to wait any longer and decided to do business with Mark,'' Rack said.
Rack denied that Gillespie, owner of National Security Inc. and National Limousine in Virginia Beach, was in financial trouble but acknowledged the pressures on a first-year franchise. Gillespie, who has said he has poured more than $100,000 into the Hurricanes, said at Wednesday's All-Star Game that he was in the process of seeking investors at $4,000 per share.
``We required some additional capital to get through the remainder of the season,'' Rack said. ``With the marketing efforts and popularity of the team, we felt the next two years or so would easily return the initial investment.''
The Hurricanes are the second team to have its management transferred this season, according to the USISL. The Memphis Jackals defaulted as well.
The Hurricanes, who play the Connecticut Wolves tonight and the Long Island Rough Riders on Sunday night, both on the road, are 7-7 with six games left. ILLUSTRATION: Ellis Gillespie
by CNB