League finds Thunder allowed ‘pay-to-play’
Published 9:50 am Friday, November 20, 2009
The Albert Lea Thunder is in hot water with North American Hockey League over findings of pay-to-play and for misrepresentation of ownership.
According to a memorandum summarizing the decision, the North American Hockey League Board of Governors this week ordered the team’s membership be terminated or agree to pay to about $400,000 — which could vary depending on how much pay-to-play expenses are discovered and legal fees generated.
The memorandum states “Albert Lea misrepresented itself to the NAHL as being 100 percent owned by Barry Soskin. Instead, available evidence suggests this is untrue.” And it states, “Albert Lea has failed to post adequate security in the form of a letter of credit or performance bond.” And it states, “Albert Lea has willfully implemented a ‘pay to play’ model.”
It says the Albert Lea Thunder owners before or on Nov. 27 must post a $200,000 cash bond, pay a fine to the NAHL of $50,000 and refund all the money taken through pay-to-play agreements, which the league estimates at $100,000. And it must pay the NAHL’s legals costs related to the matter and serve a three-year probationary period.
The Tribune has left messages with Soskin, with NAHL Commissioner Mark Frankenfeld and is seeking answers from team officials.
There are eight players who skated for the Thunder last season and had what are called “advance player guarantees.” According to Steven Sempeck, father of Matt Sempeck, the eight players are Matt Sempeck, Mitch Tews, Mat Rabin, Jake Armijo, Mark Ellis, Zach Lewis, Tommy Robaczewski and Steve Nykolajcuyk.
League statement: ‘Not a reflection on NAHL’
Steve Sempeck a bowling alley owner in Elkhorn, Neb., a western suburb of Omaha, is the whistleblower in the case, which prompted the league to take action.
“We trusted these people with $12,500 of our hard-earned money,” the father said.
He has hired a lawyer and is building a legal case against the NAHL and the Albert Lea Thunder.
He provided the Albert Lea Tribune a copy of the pay-to-play contract, which came in exchange for $12,500. And he provided copies of a canceled check made out to the Albert Lea Thunder for that amount.
The son was among the first picks for the Thunder last year. The previous season Matt Sempeck played on a Midget Major team in Chicago. He turned 18. Having “aged out,” he sought a new place to play. He looked at the NAHL, a Junior A league for amateurs hoping to land college scholarships, and the U.S. Hockey League, a higher-level amateur league.
A parent of another Midget Major player considering the Albert Lea Thunder, but whose son didn’t go, first approached Steve Sempeck, explaining that because the Thunder was an expansion team it needed money to get started. He explained the pay-to-play option.
Steve said he asked Soskin and Jim Perkins, who both billed themselves as owners of the team, if the advance player guarantee was illegal. He said he was told it was called “advertising” and was told “everybody does it.”
A letter signed by Perkins, with names of Soskin and Perkins at the bottom and with the words “Advance Player Guarantee” at the top, lists:
“You will be able to play on the team until the age out.” The age limit is 20.
“You will play in at least 45 games each year. (Unless you have an injury or get suspended.)”
“You will not be traded from the team.”
“You will not be released from the team. (Unless you break the code of conduct for the team, which will include all drugs use and only after a thorough investigation by the owners.) The code of conduct will be signed by each player and parent after Main Camp in August.”
“In the player’s second year, they will only be required to pay housing fees.”
“You will have to earn your position on the team as far as which lines you play on and being on special teams.”
And it mentions an example player rotation: “Forwards will play 13 games, then sit one game. Defense will play seven games, then sit one game.”
Another, signed by Perkins and with names of Soskin and Perkins at the bottom, states, “Thank you for your commitment to support the hockey team through our sponsorship program. We appreciate you taking full advantage of our ‘Platinum Package.’ Your package will include custom advertising to fit your needs.”
Yet another signed the same way explains the developmental goals of the team.
Steve Sempeck said he didn’t tell his son about the deal until this season. Matt works at Holiday Lanes and lived much of last season at the then-Ramada Inn, now America’s Best Value Inn. Steve said his son enjoys living in Albert Lea and attends Riverland Community College. Matt broke his ankle in August and wasn’t cleared to play at the start of the season. When he became healthy, new Thunder coach Chuck Linkenheld — brought in to save a team that went 4-49-5 last year — wouldn’t add him to the roster. Steve Sempeck asked Soskin about the pay-to-play contract and said Soskin says he was trying to get Matt on the roster. Four other pay-to-play players were on the roster.
Steve said after “a month of excuses,” he threatened to go to the league. He said Soskin suddenly was friendly and mentioned he could get Matt into a Division III college. On Nov. 7, Steve and his wife, Lori, faxed a statement to Soskin, Perkins and the Thunder saying that if Matt would not be reinstated, they would pursue legal action starting Nov. 9.
“It is obvious that Matt is being pushed around, as he was not assigned his number from last year as all the returning players were,” the notice states.
Steve said he and Lori are not the stereotypical angry hockey parents, believing their son is good enough to play. He said they signed the contract because it sounded nice to guarantee their son could stay in a safe city — especially compared to Chicago — and is within a drive from Omaha and would get time playing the sport he loves.
“Do the honorable thing and honor the contract,” he said.
Because the Thunder didn’t play Matt — “I don’t think the new coach knew about the pay-to-play,” Steve said — he decided to take his documents to the league headquarters in Frisco, Texas. It was then he discovered that, yes, pay-to-play is against the rules for a developmental league.
Matt went to the team’s locker room last week in attempt to play on the team. Steve said his son only received a verbal lashing from the coach and left.