Current Issues in Sports & Entertainment Law: Panel Discussion PARTICIPANT ROBERT E. LEIB, JD, LL.M, CPA, CGMA Attorney at Law Managing Member, Leib Advisors, LLC, NSLI Board of Advisors, Mequon, Wisconsin 2 Robert E. Leib, JD, LL.M, CPA, CGMA Education BBA, Business Administration, University of Wisconsin, Madison Juris Doctor, University of La Verne College of Law Masters of Laws in Taxation, Boston University School of Law Professional Affiliations & Activities •Admitted to Practice Law (Wisconsin and California) Bob’s Illustrative Clients Experience Includes: •Certified Public Accountant (Wisconsin) •Tampa Bay Lightning (NHL), Palace Sports & Entertainment •Chartered Global Management Accountant (AICPA) •Nashville Predators (NHL) •Board of Advisors, National Sports Law Institute (NSLI), Marquette University •Florida Panthers (NHL) Law School •Minnesota Wild (NHL) •Adjunct Professor, NSLI, Marquette University Law School (2002-2005) •Dallas Stars Acquisition Group (NHL) •Board of Directors, Tax Section, Wisconsin Bar (1990-1995) •Montreal Canadiens Acquisition Group (NHL) •Member, AICPA Forensics and Valuation Services Section •New Jersey Devils/Prudential Center (NHL) •Appointee, American Bar Association Sports and Entertainment Forum •McDavid Acquisition: Atlanta Hawks &Thrashers (NBA/NHL) •Orca Bay /Griffiths Vancouver Ownership Group (NHL/NBA) Bob Leib began independent consulting in June 1999 after a 22-year career as a CPA •Los Angeles Dodgers/Dodger Stadium (MLB) with Arthur Andersen., Bob provides business and financial advice to sports and •Milwaukee Brewers/Miller Park Economic Impact (MLB) entertainment clients as he had over where he had global responsibility as the lead tax •Texas Rangers/Ballpark at Arlington (MLB) partner in Andersen's Professional Sports Industry Group reporting to the World •San Diego Padres Acquisition Group (MLB) Wide Head of Tax. •Nashville Sounds/Sacramento Rivercats (PCL) •Multipurpose Stadium Authority of Lackawanna County (IL) His experience is extensive and has covered a wide range of services to teams and •Frisco RoughRiders (TL) facility owners in MLB, NFL, NBA, NHL, and MLS. He has also worked extensively •Boston Celtics (NBA) with facilities, teams and municipalities at all levels of minor league hockey, baseball, •Golden State Warriors (NBA) basketball and soccer rendering feasibility and tax opinions in connection with this •Milwaukee Bucks (NBA) work. Specialties include team and league transactions from initial tax and financial •Queen’s Park Rangers Acquisition (English Premiership) structuring to being the lead advisor in team sale and acquisition negotiations. He has •Manchester City Acquisition Group (English Premiership) also acted as an intermediary in representing both buyer and seller of team interests, •Aston Villa Acquisition Group (English Premiership) and league expansions. •Minnesota Vikings Acquisition Group (NFL) •Tampa Bay Buccaneers (NFL) Responsibilities have included assisting counsel with document preparation and •Indianapolis Colts (NFL) negotiating contract terms as well as performing valuations conforming to AICPA a •Malmo Redhawks (Swedish Premier League) standards for acquisition value and allocation of purchase price for tax and financial •Tranmere Rovers (Sky Bet League 1) accounting purposes as well as litigation support and tax controversy representation. 3 Leib Advisors, LLC provides strategic valuation and transaction services, as well as market and financial feasibility analytics to the sports, recreation, and entertainment Global Experience industries. Our client base is diverse: amateur and professional enterprises, public and private institutions as well as investment funds and high net worth individuals. Our distinctive blend of experience, resources and proprietary industry database and proficiency allows us to deliver focused and strategic advisory services. GLOBAL 4 Franchise Owner Breach of Contract on League Exit North American Soccer League LLC v. Tim McLaughlin, index number 651995/2015, in the Supreme Court of the State of New York, County of New York, Commercial Division. < Oklahoma City was announced as an NASL expansion franchise on July 25, 2013. McGlaughlin who was a 50% owner of a group that was granted the franchise that was to begin play in 2015. < The North American Soccer League has filed suit in New York Supreme Court against McGlaughlin, seeking $2.5 Million under a Payment Guaranty he had signed for an alleged breach of contract related to the team's improper withdrawal from the league and breach of its contractual duties imposed by NASL governing documents. < The factual statement in the complaint alleges that in February 2014, OKC ceased operations and attempted a hasty exit in which its owner paid $500,000 as an attempted withdrawal fee which was subsequently rejected by the NASL. Following unsuccessful attempts to arrive at an “appropriate” exit fee, the league file a complaint for breach of contract in state court. < According to the NASL complaint: – The league’s operating agreement does not permit withdrawals that are immediately effective. According to NASL under the terms of the operating agreement, in order to “properly withdrawal”: – Written notice must be given to the league by 12/31 of then current calendar year; – Full payment must be made and the team must play for the full season of that calendar year, fulfilling its “operational and financial obligations”. < NASL argues that to be an “appropriate withdrawal” McGlaughlin would have had to notify the league by the end of 2013 that they were exiting, pay all the bills and put a team on the field during 2014. < As a ”default withdrawal” NASL asserts McGlaughlin under the guaranty is liable for a default fee of $2.5 million or $2.0 million if the $500,000 already paid is to be deducted from what is owed. In addition NASL is seeking reasonable attorney’s fees and costs. < Complaint was withdrawn June 27, 2016. no report on amount of confidential damage settlement the two sides agreed to out of court. An NASL team in Oklahoma City was eventually announced for a 2016 launch when Spanish club Rayo Vallecano of La Liga launched Rayo OKC in November 2015.5.