Saskatchewan CanPL expansion partners hit with $10 million law suit

Former partner alleges breach of contract

Photo by Tingey Injury Law Firm on Unsplash

Joe Belan, the man behind the Saskatchewan Summer Soccer Series, has alleged that Living Sky Sports & Entertainment, Al Simpson and Prairieland Park Corporation breached a contract that gave him exclusive rights to negotiate a CanPL expansion team in Saskatchewan.

In a civil case filed to the Ontario Superior Court last week, Belan is seeking damages of at least $10 million.

The defendants have 40 days to respond to the claims. The Canadian Premier League was not named in the suit.

In the filing, Belan claims that his company, Novatrek, was granted exclusive rights to negotiating a CanPL team for Saskatchewan in January 2017. Those initial rights, which ran through August 31, 2017, were extended twice. At the time of the alleged breach of contract, Belan claims that Novatrek had been granted rights to the territory until February 26, 2021.

Belan says that Simpson first became involved in the discussions in September 2017, after he had independently approached the CanPL about obtaining a team. After initial talks with Simpson, Belan formally involved him in the discussions with CanPL and entered into a formal partnership with him and a third investor who is not named in the suit.

Working together, the group successfully put on the 2019 Saskatchewan Summer Soccer Series, with Belan acting as the face of the series and Simpson working on the game day operations. Simpson contributed 1/3 of the investment to put on the SSSS, with Novatrek contributing the remaining funds.

After the successful 2019 SSSS, plans to formalize the requirements for an expansion team started to take place between the partners and the CanPL. It was at this time that Living Sky Sports & Entertainment was established as a new entity and that Prairieland was identified as the potential site of the proposed team.

An exclusive deal was signed between Novatrek and Prairieland at this time that made Prairieland the sole site for the new team, the court document claims. Additionally, it was agreed that Prairieland would not negotiate with any third party over the use of the stadium for soccer, rugby, field lacrosse or ultimate Frisbee.

It was shortly after this that Simpson withdrew from the group, according to the documents filed to the court. In the documents, Belan claims that Simpson “abruptly withdrew” from the partnership expressing “vague concerns” over the marketing of the project.

Belan says that he attempted to resolve the concerns of Simpson over the next several months, but attempts to speak to Simpson or the other owners were turned away.

In September 2020, Novatrek learned that the CanPL and Canadian Soccer Business had been negotiating with Simpson separately and intended to award exclusive rights to him and Living Sky, which had by this point been incorporated. This despite the exclusive rights agreement help by Novatrek, according to the court filings.

The filing suggests that a conformation of that agreement can be found by an email from then Prairieland’s CEO Mark Regier that was sent on October 2, 2020. In that email, Regier asked for Novatrek to terminate the exclusive agreement. This was after talks had taken place with Simpson, which were in violation of the agreement, according to the court documents.

Despite continued efforts to assert the its exclusive rights and continue to be involved in the project, Belan and Novatrek were shut out, with the CanPL announcing that Simpson and Living Sky had obtained the expansion rights to Saskatchewan on March 12, 2021, according to the court documents.

The basis of the breach of contract claim is the timeline outlined above.

I will have more on this as it develops.

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