Future Legends appeals $7M judgment that could gut complex stadium, offices

WINDSOR — A U.S. District Court judge in Utah has dealt another blow to Future Legends Sports Complex in Windsor, ordering the repossession of various stadium seating, IT equipment, a security system, LED displays, computers and more for failing to pay the roughly $7 million loan from Onset Financial Inc. in Utah to purchase the equipment. The loss on the loan is $6,918,299, but Onset’s attorneys also moved for an award of attorney’s fees of $66,866 in the matter — which now will be suspended until the matter is appealed.

U.S. District Court Judge David Barlow in Utah earlier this month issued a $7 million judgment against Future Legends and its owner, Jeff Katofsky, and the Katofsky Family Trust for failing to pay the loan he took out in 2023.

Katofsky on Wednesday filed his appeal of the ruling to the U.S. Court of Appeals, which effectively will stop any repossession of the equipment until the case is ultimately decided.

The judgment is the latest installment of the saga that has seen the Windsor-based Future Legends sued in Colorado for more than $56 million in claims for unpaid work and loans to build the complex, which stands only partially complete today. Some cases have been settled, others dismissed shortly after Future Legends 5 LLC’s Chapter 11 bankruptcy filing, and other cases are awaiting hearings or trials.

Earlier this year, a Weld District Court Judge awarded treble damages of $600,000 to a landscaping company that sued for nonpayment of work on the complex. Katofsky had his Northern Colorado Owlz Minor League baseball team playing there as well as his Colorado Hailstorm professional soccer team, along with the Rain women’s league and the Northern Colorado Lightning Academy youth soccer league. The United Soccer League terminated the Hailstorm franchise in November, and Katofsky promptly sued the league for failing to deliver $100,000 in prize money from a tournament. 

Katofsky was able to convince the bankruptcy judge in his case to prevent another bank from repossessing vehicles on the Future Legends site. Katofsky has stated that he has $260 million in financing over the next 12 months to cure all ills, but he has presented no evidence of that loan in court other than an affidavit by an attorney saying it was in place. He spent the Thanksgiving holidays filing multiple pleadings in the cases.

Katofsky took out a $7 million loan from Onset in February 2023, presumably to complete the collegiate stadium, named 4Rivers Stadium, where his baseball team, the Northern Colorado Owlz, would be based for home games and practices. The Pioneer League team competed its first season there this past spring.

According to documents filed in Appellate Court, Katofsky and Future Legends were to pay $242,550 a month over 30 months to pay back the loan. In April 2023, Katofsky took the bank to court over the payment schedule and got his monthly payments reduced to $197,254.87 in a settlement. According to court documents, he stopped paying after seven months.

Onset sued in the 3rd Judicial District Court in Utah in January 2024. Katofsky removed it to U.S. District Court a month later. Barlow ruled in favor of Onset on Dec. 3, allowing the full amount requested, plus late charges, as well as granting the bank the right to enter the property at a reasonable time to retrieve the equipment.

According to court documents, the property included stadium seating, club seating, bleacher caps, a secondary monument sign, a security system, laptops and desktop computers, and the main monument signage.

Cases cited: 

Case No. 2:24-CV-133-DBB, Onset Financial Inc. v. Future Legends LLC, Katofsky family Trust and Jeff Katofsky, filed Feb. 22, 2024 in Utah’s 3rd District Court. Will now be in U.S. 10th Circuit Court of Appeals, Case No. 24-4120.

Case No. 24CV94, Future Legends v. Board of Equalization 2024, Weld County Colorado, Filed Dec. 2, 2024, in Weld District Court. 

Case No. 1:24CV03338-TPO, U.S. Eagle v. Katofsky, et. al, filed Dec. 2, 2024, in U.S. District Court in Denver. 

Case No. 24STCV29641, Future Legends LLC  v. USL Pro 2 LLC, Filed Nov. 12, 2024, in the Los Angeles Superior Court of California.

Case No. 24-51031, Chapter 11 Bankruptcy, In re: Future Legends 5 LLC, in United States Bankruptcy Court, District of Nevada, filed Oct. 15, 2024.

Case No. 24CV1297, Exchange Bank vs. Future Legends LLC, in Weld District Court, filed July 3, 2024.

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). Closed.

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