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Published: Feb 05, 2008 02:14 PM
Modified: Feb 05, 2008 02:14 PM

Economides named in N.Y. lawsuit
RailHawks president sued with former partners over loans.
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Carolina RailHawks President and General Manager Chris Economides was named as a co-defendant in a civil lawsuit filed in upstate New York last week.

According to the Rochester (N.Y.) Democrat and Chronicle, Economides and his former business partners with the USL First Division’s Rochester Rhinos — Steve Donner and Frank DuRoss — are being sued by an area bank for defaulting on nearly $11 million in loans.

Economides could not comment on the specifics of the complaint, but he did say it has nothing to do with the RailHawks.

“It doesn’t affect the RailHawks in any way, shape or form,” Economides said Monday.

The loans in question were made by NBT Bank of Norwich, N.Y., to the three men and their companies, Rochester Rhinos Stadium, LLC and Empire Professional Soccer, LLC, according to court documents. The money was used for the construction of PAETEC Park, the soccer-specific stadium the Rhinos opened in June 2006.

According to the complaint, which was made available on the Democrat and Chronicle’s Web site, NBT Bank issued five separate loans totaling $10.8 million between December 2004 and May 2007.

The sides renegotiated payment plans several times so that repayment would begin in March 2007, and the loans would be paid in full by February 2009. The complaint alleges that no payments have been made on those loans since June or July 2007.

According to the Democrat and Chronicle, the state of New York contributed $19 million toward stadium construction, estimated to cover 80 percent of the cost. The City of Rochester added an additional $4 million for infrastructure and was put in charge of administering a $4 million state grant to complete 18 luxury suites and a press box at the stadium. That $4 million has been withheld by the city because of the Rhinos’ financial situation, which only worsened when last week’s lawsuit was filed.

The Rhinos are also being sued by an area party-rental company, which claims it’s owed more than $60,000 for services rendered at the stadium. Economides is not named in that suit.

Economides, Donner and DuRoss formed the Rhinos franchise in 1996 and it was an immediate success. The club led the league in attendance from 1996-2004 and won three league championships and the 1999 U.S. Open Cup.

As the team’s chief operating officer, vice president and general manager, Economides handled the soccer business of the club.

In January 2006, Economides announced that Triangle Professional Soccer, LLC, the ownership group consisting of Donner, DuRoss and Boris Jerkunica, had purchased the expansion franchise that became the RailHawks. Jerkunica is the majority owner and chairman of the Atlanta Silverbacks. In October 2006, F. Selby Wellman and Brian Wellman joined the RailHawks’ ownership group.

DuRoss and Donner are no longer involved with Triangle Professional Soccer, Economides said, and have not been for some time.

Though Economides’ focus is on the RailHawks, he still has a minority ownership stake in the Rochester franchise, less than 10 percent, he said. But he also said he has not been involved with the club’s day-to-day operations for years.

“I’ve had no involvement whatsoever with anything to do with the Rochester franchise for nearly three years now,” Economides said.

Contact Tim Candon at 460-2606 or tcandon@nando.com.
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