Home Forums Long Island & Eastern New York Soccer Message Boards Roll Away The Stone Soccer News Multi-state U.S. youth club GPS shuts down

by Mike Woitalla

Global Premier Soccer (GPS), which ran youth programs in more than 20 states and has partnered with Bayern Munich since 2014, is shutting down operations.

Keith Caldwell, who became GPS's CEO in January of this year, sent an email to GPS families on June 19 informing them of the immediate shutdown, which comes in the wake of a federal investigation into former president and CEO Joseph Bradley, GPS’s parent company, Legacy Global Sports, being forced into Massachusetts Bankruptcy Court, and a former GPS employee pleading guilty to obstructing justice.

"Our financial sponsor & LGS determined that the stress of the involuntary bankruptcy petition filed by certain creditors, in addition to the impact of the federal investigation, COVID and the uncertainty of the future in that regard -- have had a severely negative impact on the organization and its viability moving forward. As a result of these and other factors, they made the decision to shut the club down," wrote Caldwell.

Bayern Munich announced its partnership with GPS shortly after opening an office in New York and a U.S. online store in 2014. The German club's official website states: "FC Bayern and Global Premier Soccer (GPS) have an extensive youth partnership that brings over 92,000 kids in the U.S. the knowledge and expertise of FCB's notable Youth Academy."

GPS, which specialized in importing coaches from the UK and Ireland, was founded in 2001 by brothers Joseph and Peter Bradley, who emigrated from Northern Ireland, as Massachusetts Premier Soccer. It changed its name to GPS while expanding into other states, Canada and Puerto Rico.

In February, the New England Soccer Journal's Jonathan Sigal and Frank Dell’Apa reported on a federal investigation of Joseph Bradley, regarding improper work visas used by the GPS coaches. Sigal cited accounts from former GPS coaches accusing the club of irregularities with immigration paperwork, providing poor working conditions, excessive hours with disproportionate pay and living in overcrowded conditions. The federal investigation included a search and seizure warrant of GPS’s offices in Waltham, Massachusetts, in October 2019.

In May, Gavin MacPhee, a Scotland native who had worked for GPS since 2007, pleaded guilty to one count of destruction, alteration, or falsification of records in the federal investigation into visas for foreign workers at GPS.

A civil lawsuit filed in February accused Legacy Global Sports, which acquired 80 percent of GPS ownership in 2016 for $15.2 million, of not paying over $3.7 million as part of an adjusted purchase agreement.

In March, GPS filed a lawsuit against Surf Soccer Club, the Southern California club that had moved into New England, that included complaints against former GPS employees of breaking non-competition and non-solicitation agreements after moving to New England Surf. The New England Soccer Journal reported that suit was settled out of court in April.

GPS, which described itself as "one of the largest and most successful soccer programs in North America," at its peak ran clubs and had affiliate clubs in 26 states, hosted tournaments around the country, and ran "International Academies" in Europe for American players promising trials with professional clubs.

Bayern Munich renewed its partnership in 2017, announcing that FC Bayern coaches would double their presence in the U.S. "to bring coaching philosophy and curriculum to now over 85,000 children and 6,000 coaches into 101 soccer clubs."

Legacy Global Sports is a youth sports event and management company also involved in hockey and lacrosse.

How many hundreds of thousands of dollars of Memorial Day Tournament registration fees are they making off with?

How many kids and families have they now screwed over? Would love to see a Class Action lawsuit against these clowns. Enough of the greed and alleged PT Barnum saying "there's a sucker born every minute"

Not much sense suing a company that is bankrupt.

Maybe not GPS but LGS......

There are pending suits by creditors attempting to force LGS into chapter 7 bankruptcy. There is no money.

And what do you think the thousands of parents who shelled out the big bucks to play for GPS are? They are a creditor of sorts but as individuals they are voiceless but in a class action they could be heard and get in the line to recoup some of their investment. Those forcing GPS into bankruptcy are doing the same thing, looking to get paid on the monies paid out by the thousands of families. I just think those families deserve to recoup something.

The whole point of bankruptcy is to settle legal claims in an orderly way. The families and anyone who paid a tournament fee are "unsecured creditors" which is a fancy business term for "[****] out of luck".

Tournament fee? Is that all you think they paid? GPS makes SUSA look like a piddly little outfit. Hence that's why class action was mentioned since the families who pay the bills are unsecured creditors.

Why so angry, bro? It's not my fault that you didn't read my post and don't have a basic understanding of the concept of bankruptcy. Bankruptcy is the "class action" but not all of the members of the class are equal. Bankruptcy is specifically designed to consolidate the claims of everyone into one court-approved settlement.

First come debt holders, so any bank that lent GPS money is first in line. They generally get everything.

Then come people with accounts receivable, so any vendor that provided a contractual service to GPS but was not paid for it. They rarely get anything.

Then come all of the unsecured creditors, like people who have paid GPS for services not rendered. They never get anything.

Uh I'm not a lawyer but I think you're wrong that a bankruptcy filing prevents any other type of class action. I highly doubt GPS listed the members as debtors. The entire point was the sleaze of the youth sports industry and how families are ripped off by these "Academies". I guess you would take it lying down like a #SUSASHEEP would.

Stopping lawsuits and settling debts is the exact point of a bankruptcy filing. What does listing members as debtors have to do with anything at all? I think the two things most commonly misunderstood on forums are the first amendment and class action lawsuits. Why chip in on something you obviously know little to nothing about.

Upon the filing of a Bankruptcy, there goes into effect an "automatic stay" under Section 362(a)(1) of the Bankruptcy Code (11 USC Section 362[a][1]) which prohibits "…the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of [a Bankruptcy] case".

So any new lawsuits are prevented and any current lawsuits are halted until the bankruptcy is completed. Then, there is no company to continue suing.

Very nicely written Mr Legal Eagle. But how many threads on BOTN have dealt with Class Action and First Amendment Rights until recently? Your post was good until your last sentence. It shows what an arrogant a** you are. Right or wrong people can post what they like and they probably will learn something in the process from responses. Wouldn't you rather be a teacher than someone who people despise which is a know it all?

Well I'm mad as hell and I'm not going to take it anymore!!!

If the company goes into bankruptcy and liquidates, what entity do you plan on suing with your class action?

I love these tough talking soccer moms and dads. Its over and you are not getting back a dime. There will be no cash going to customers in the bankruptcy process and there is no check coming in the mail from a class action lawsuit. Bankruptcy and class action lawsuits end up paying secured lenders (you are not a secured lender) and professionals (lawyers, accountants, etc.). Customers are unsecured creditors and you get nothing. Sign up with another club and mark it down as a lesson learned.

And we love all you tough talking know it all people who are ok to just take it up the wazoo and say oh well Corporate greed and sleaze wins out and I just have to accept it and move on with my tail between my legs. I know its just the way it is. Perhaps legislation is needed to make sure those members who get screwed have redress.

What law will possibly make a bankrupt company magically have enough money to pay back all it's debtors?

I'm think Anonymous is right, Legacy Global Sports will not have anything left to sue, however, their "financial sponsor" (as Keith Caldwell called them) is worth billions (and that's for a reason). I am not a soccer mom or dad, or really have nothing to do with soccer, but I am an advocate for seeing Venture Capital companies like Jefferson River Capital (a family office of Tony James Blackstone Group) that took over LGS and GPS two years ago not get away with destroying companies for their own financial gain. Not only did they screw a guy out of money in a lease they were in in Portsmouth NH last year, they then went and spent your money on a posh office on the water in Boston and nice executive salaries and paying lawyers for lawsuits where they screwed over employees over the past two years, plus paying themselves "management fees" for the "loans" they were giving themselves. ....so my understanding is they have forcefully made themselves the secured creditor that will get paid first, unless people can convince the trustee appointed that it was all part of their scheme. There is a history here. A year ago it happened to Home Team Marketing screwing over a ton of high schools and non-profits and the main investor was Fenway Partners whose founder Richard Dresdale is also Sr Managing Director at Jefferson River Capital and on the Board at Legacy (before they went bankrupt). That's just one example of the carnage these guys have left over many many years.
A claims document was released in court records today. If you are owed money, I recommend you file. The doc says the deadline is 9/21/20 and says "A proof of claim is a signed statement describing a creditor's claim. A proof of claim form (Official Form 410) may be obtained at www.uscourts.gov or any bankruptcy clerk's office or printed from the courts website at www.mab.uscourts.gov/mab/creditorinformation. You may also file your claim electronically through the court's website at www.mab.uscourts.gov." Debtor: Legacy Global Sports, LP District of Massachusetts Case number: 20−11157

Uh the point was to not exclude the members who have paid the money that the other debtors will collect on. It's really just commentary on how the little guy gets screwed.

I am NOT an Elizabeth Warren supporter...however, not only is she in Massachusetts where Legacy Global Sports and GPS is headquartered but she is trying to reform Private Equity Companies like the one who took over LGS and GPS, Jefferson River Capital, owned by the Blackstone Group. Her Stop Wall Street Looting Act aims to curb private equity’s abuses. Jefferson River's directors and their previous Private Equity companies have a long history of doing this to companies and consumers. They need to be stopped.

Thank you. What a knowledgeable and informative post!

It's been happening in USYouth Soccer leagues, and now more recently with the US Club leagues. These additional outside for profit entities, as well as US Soccer should be taken to court for allowing this cluster of profiting on youth.