By Anthony Caruso III | Publisher
Former Birmingham Iron punter Colton Schmidt and Orlando Apollos linebacker Reggie Northrup has sued the defunct Alliance of American Football. They believe they were “misled and defrauded” by former league owner Tom Dundon.
The Texas businessman — who also owns the Carolina Hurricanes — pulled the plug on the league after eight weeks. Dundon and former AAF CEO Charlie Ebersol are two defendants in the case.
The lawsuit was made in Superior Court of California and is seeking a breach of contract. They also claim there was a breach of good faith and fair dealing, failure to pay wages in violation of labor code, and fraud. The two former players are being represented by Abir Cohen Treyzon Salo LLP lawyer Boris Treyzon.
“We are proud of the players who decided to stand up for their rights. Our clients stand ready to perform the obligations required by the terms of their contract and demand that the league and its’ backers do the same,” Attorneys for the class representatives Boris Treyzon and Jonathon Farahi said in a released statement.
The two players believe they are entitled to the $250,000 from the three-year, $250,000 deal they signed with the league.
“There is a basic honesty part,” Treyzon said. “If you’re going to sign [the players] to a three-year contract, there’s an implied promise. If you shut it down eight weeks after you start, that indicates, among other things, that you don’t have the backing to fulfill that promise.”
Dundon took over as the Chairman of the league in Week 1. Through Week 2 through Week 8, he reportedly lost $70 million of his $250 million investment.
He tried to get the league to partner with the NFLPA. He had hoped to use their practice squad players in the league; however, due to the NFL’s CBA, it was near impossible for this to happen.
This is the second known lawsuit against the league. Former Birmingham Iron executive James Roberson Jr. filed a lawsuit claiming that the league violated federal law by shutting down without giving a 60-day notice.