Sports teams could face consequences of Future Legends’ legal troubles

WINDSOR — Financial and development issues at the Future Legends Sports Complex threaten to entangle sports teams based there. 

Both the minor-league baseball team, Northern Colorado Owlz, and the professional USL League 1 soccer team, the Northern Colorado Hailstorm, in addition to the youth and women soccer leagues, could be affected by the legal issues that their ownership is facing.

Three of the structures at the park are under receivership, all construction has been at a standstill for the last year, and temporary occupancy permits that allow teams and youth leagues to play on site could expire in October if owner Jeff Katofsky doesn’t fix myriad public-safety issues at the park. 

Another lawsuit recently popped up as well. OT Sports Industries Inc., a North Carolina custom uniform designer, filed a lawsuit in Weld District Court on Aug. 16 against Northern Colorado Owlz Baseball, alleging nonpayment of more than $15,192 in team practice and game-day uniforms.

It is one of three lawsuits in Colorado relating to the minor-league baseball teams owned by Katofsky.

Shamrock Foods in Grand Junction sued Future Legends LLC in June for a $38,813 catering bill with the Grand Junction Jackalopes minor-league baseball team that Katofsky purchased in 2022. A judge in July issued a default judgment when Future Legends never answered the complaint in court. Katofsky’s attorneys fought back, claiming that they were never properly served with the lawsuit. Mesa District Court Judge Valerie Jo Robison agreed, and on Tuesday, Sept 10, she set aside the judgment, stating that now, there has been proper service and both sides must file pleadings within 21 days.

Future Legends and Katofsky could be on the hook for a 2023 hotel bill to house visiting teams playing the Owlz. Harmony Suites, which owns the Cambria Suites Hotel in Fort Collins, sued for $76,192.91, the balance owed on the visiting baseball teams’ rooms from May 2023 to September 2023. Katofsky’s attorney filed an answer on Sept. 5 denying the claims. The next day, a Larimer District Court judge ordered the two sides to make progress on discovery in the case within 14 days.

In the uniform lawsuit filed in Weld County Court, the uniform company claims that the Owlz ordered $11,202 worth of uniforms in April 2024, and made a second order for $3,990 in specialty team uniforms shortly after the first.

Despite demand for payment, the complaint states that the bill was never paid. Katofsky has yet to answer that lawsuit and could not be reached for comment this week.

Katofsky faces millions in liens and lawsuits over construction at the Future Legends Sports Complex. The three buildings on the site, the dome, the partially built stadium and the unfinished dormitory building were recently placed into receivership after lender US Eagle Federal Credit Union sued for $45 million for nonpayment of six loans Future Legends took out to build the structures.

The receiver, Michael Staheli of Cordes & Co. in Denver, said that his work in no way affects the baseball team or how the team is run or its finances. He is in control over only the dome, the partially built stadium and the dormitory.

The Owlz use the completed collegiate stadium for their practices and games.

The Hailstorm soccer, as well as the women’s league and the youth soccer league, use the dome and endure not having any water on the property, which means no operating bathrooms. Being in receivership may help their situation.

Staheli said the portable toilets that line the north side of the dome were just serviced Tuesday, Sept. 10. He said he is receiving no money from the uses of the dome just yet.

“I have some options at my disposal as far as actions with the dome,” Staheli said. “That’s what I’ll have to work out with Future Legends to find a workable solution to keep them involved. 

“I do think it’s in the best interest of the dome to have people in there all the time and using it,” Staheli said. “It generates revenue and also makes sure the dome is working correctly. If there are people there and the fans stop working, we’d know right away, and I recognize it’s a valuable amenity for the community and a lot of families out there.”

Mike Shapiro, president of the Pioneer League, in which both the Owlz and Jackalopes play, responded via email to questions about any concerns the league may have about the lawsuits against Katofsky or the Owlz, and if the legal troubles violated league policies or caused concern.

“The Owlz are members of the Pioneer Baseball League. The league has no comment on pending litigation that may involve any of our clubs,” Shapiro wrote. “I cannot comment on any matters involving any of our clubs with respect to the league’s internal rules and regulations.”

Katofsky also owns the Northern Colorado Hailstorm, a professional soccer team under United Soccer’s US League 1, representatives of which said they could not discuss the team’s financial issues.

*This is a developing story, and will be updated as information is made available.

Cases cited

Case No. 2024C36123, OT Sports Industries, Inc., v. Northern Colorado OWLZ Baseball, filed Aug. 16, in Weld County Court.

Case No. 24CV30632, Harmony Suites LLC v. Future Legends LLC et al, filed July 23, 2024 in Larimer District Court.

Case No. 2024CV030112, Shamrock Foods Company v. Future Legends LLC, filed March 19, 2024 in Mesa District Court.

Case No., 2023CV030946, Coloscapes Concrete Inc et al v. Jaco General Contractor Inc et al, filed Nov. 22, 2023 in Weld District Court. Combined with case Nos. 2024CV30033  and 2024CV30470 also filed in Weld District Court. (US Eagle Federal Credit Union files cross-claim for $45 million; judge places Future Legends Sports Complex structures in receivership).