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105-738: Spring football was nothing new by the early 90s: the United States Football League played three seasons from 1983-85, while the NFL 's own minor league, the World League of American Football , was starting its second season in 1992. Lardner was unconcerned about the USFL's failure or competition from the WLAF: "We're going to play a new brand of football that will create excitement." Two-point conversions were to be allowed and overtime

210-629: A New Orleans antiques dealer, who would be instrumental in bringing the New Orleans Saints (and building their current home stadium, the Superdome ) to his hometown, began to envision football as a possible spring and summer sport. This was not the first time the United States Football League name was used; there had been a previous, short lived attempt in 1945 to start up a league with that name. Over

315-412: A contract with one major network. The lawyer for the USFL, Harvey Myerson, had what he felt were three " smoking guns ". All but one of the league's 28 teams was named as a co-defendant. Al Davis , owner of the then- Los Angeles Raiders , was a major witness for the USFL and his team had been excluded from the lawsuit in exchange for his testimony. ABC Sports' Howard Cosell was also a key witness for

420-546: A fall season in 1986. Tampa Bay Bandits owner John F. Bassett , who had registered one of the two "nay" votes, declared his intention to pull his team out of the USFL and organize a new spring football league. However, failing health (he died from cancer in May 1986) forced Bassett to abandon his plans and sell the Bandits to minor partner Lee Scarfone, who agreed to keep the franchise in the USFL. The spring advocates had lost, and

525-515: A handful of USFL franchises abided by the Dixon Plan and were relatively stable, others suffered repeated financial crises, and there were many franchise relocations, mergers, and ownership changes during the league's short existence; however, none of its teams actually folded during any given season. These problems were worsened as some owners began engaging in bidding wars for star players against NFL teams and each other, forcing other owners to do

630-540: A handful of other owners as a way to force a merger between the leagues. As part of this strategy, the USFL filed an antitrust lawsuit against the National Football League in 1986, and a jury ruled that the NFL had violated anti-monopoly laws. However, in a victory in name only , the USFL was awarded a judgment of just $ 1, which under antitrust laws, was tripled to $ 3. This court decision effectively ended

735-458: A hazard insurance premium increases by $ 120 per year, the escrow payment will need to increase by $ 10 per month to account for this difference (in addition to collection for the resulting escrow shortage when the mortgage company paid $ 120 more for the hazard insurance premium than what was anticipated). By RESPA guidelines the escrow payment must be recomputed at least once every 12 months to account for increases in property taxes or insurance. This

840-663: A lease to play at Nickerson Field on the campus of Boston University , a facility that seated only 21,000 people. There were plans to establish four franchises in Canada prior to the inaugural season, located in Vancouver , Edmonton , Montreal and the Toronto/Hamilton metroplex (with the last of these to play at Ivor Wynne Stadium ). The proposal was pushed by John F. Bassett , the Canadian who would go on to own

945-569: A licensed class effective 1 July 2001. The first Internet escrow company to be licensed was Escrow.com , founded by Fidelity National Financial in 1999. In the European Union , the Payment Services Directive , which commenced on 1 November 2009, has for the first time allowed the introduction of very low-cost Internet escrow services that are properly licensed and government-regulated. The regulatory framework in

1050-459: A merger did occur, the surviving teams' original investment would more than double. A consulting firm recommended sticking with a spring season. Despite the protests of many of the league's "old guard", who wanted to stay with the original plan of playing football in the spring months, on August 22, 1984 the owners voted to move to the fall starting in 1986. On April 29, 1985, the league's owners voted 13–2 to reaffirm their decision to begin playing

1155-465: A minority owner (and eventually majority owner) of the NFL's San Diego (now Los Angeles) Chargers . Jim Joseph, a real estate developer who had lost out to friend Tad Taube for the USFL's San Francisco Bay Area franchise, had thought he would be content to be a part-owner of the Oakland Invaders . When the potentially more lucrative Los Angeles franchise became available, Joseph snapped up

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1260-486: A number of current or future notable Arena Football and NFL players were in the teams' training camps, including mid-90s Miami Dolphins running back Bernie Parmalee , AFL quarterback Ben Bennett , AFL defensive specialist Durwood Roquemore , and AFL wide receiver/defensive back Barry Wagner . Also vying for spots in the PSFL were former Notre Dame signal-caller Tony Rice and running back Timmy Smith , who rushed for

1365-482: A standard player contract. Nonetheless, the other owners did not raise any objections, knowing that having the reigning Heisman winner in the fold would lend the league instant credibility. Other marquee stars to sign with the league were Craig James , Anthony Carter and Kelvin Bryant as well as some familiar NFL vets like Chuck Fusina and members of the NFL vet laden Chicago Blitz , like Greg Landry , showed that

1470-471: A team for the final lame duck spring 1985 season. Within a few weeks of the decision, the USFL had been forced to abandon four lucrative markets, abort a move to a fifth and suspend operations in a sixth. In hindsight, this destroyed the USFL's viability, although the Maulers folding likely would've happened anyway due to the team being owned by shopping mall magnate Edward J. DeBartolo Sr. (who also owned

1575-895: A then-record 204 yards in Super Bowl XXII for the Washington Redskins . The team salary cap was set at $ 2 million per team with 50-man rosters. The 1992 PSFL season was set to begin in Tampa on February 29, with the Utah Pioneers taking on the Tampa Bay Outlaws. There was to be a sixteen-game regular season through June 14, two rounds of playoffs, and the championship game (or "Red, White And Blue Bowl"), scheduled for Robert F. Kennedy Memorial Stadium in Washington, D.C. , on Sunday, July 5. The league

1680-405: A third party (the stakeholder or escrow agent ) receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties. Examples include an account established by a broker for holding funds on behalf of the broker's principal or some other person until the consummation or termination of a transaction; or,

1785-479: A trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums. The word derives from the Old French word escroue , meaning a scrap of paper or a scroll of parchment; this indicated the deed that a third party held until a transaction was completed. Escrow generally refers to money held by a third party on behalf of transacting parties. It is mostly used regarding

1890-466: Is a vending machine , where the customer's money is held in a separate escrow area pending successful completion of the transaction. If a problem occurs and the customer presses the refund button, the coins are returned from escrow; if no problem occurs, they fall into the coin vault of the machine. Source code escrow agents hold source code of software in escrow just as other escrow companies hold cash. Sometimes one may not own or have any rights to

1995-402: Is called an escrow analysis. The escrow payment used to pay taxes and insurance is a long-term escrow account that may last for years or for the life of the loan. Escrow can also refer to a shorter-term account used to facilitate the closing of a real estate transaction. In this type of escrow, the escrow company holds all documents and money related to closing the transaction, rather than having

2100-535: Is designated to pay for real property taxes and hazard insurance . It is an amount "over and above" the principal and interest portion of a mortgage payment. Since the escrow payment is used to pay taxes and insurance, it is referred to as "T&I", while the mortgage payment consisting of principal and interest is called "P&I". The sum total of all elements is then referred to as " PITI ", for "Principal, Interest, Tax, and Insurance". Some mortgage companies require customers to maintain an escrow account that pays

2205-420: Is done to establish legal ownership rights, with the independent escrow agents attesting to the information's ownership, contents, and creation date. Escrow is also known in the judicial context. So-called escrow funds are commonly used to distribute money from a cash settlement in a class action or environmental enforcement action. This way the defendant is not responsible for distribution of judgment monies to

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2310-504: Is illegitimate. Genuine online escrow companies will be listed on a government register, and users are generally advised not to use an online escrow service without first verifying that it is genuine by independently viewing a government on-line register. Currently, the US Federal Government does not offer a license for online escrow services. However, certain states offer their own license for online escrow services; such as

2415-500: Is in place. Escrow is when the software source code is held by a third party—an escrow agent—on behalf of the customer and the supplier. Information escrow agents, such as the International Creative Registry , hold in escrow intellectual property and other information. Examples include song music and lyrics, manufacturing designs and laboratory notebooks, and television and movie treatments and scripts. This

2520-468: Is often used as a part of mergers and acquisitions a supplement that warranties and indemnities offered by the seller(s). This will be particularly likely where the credit risk of the seller(s) is of poor quality and the buyer is concerned about their ability to recover any sums that may become due. Unlike many other forms of escrow, escrow arrangements in corporate transactions are often designed to last for extended periods rather than simply to complete

2625-503: Is responsible for excessive wear and tear on a natural grass playing field, baseball clubs were not keen to see football played in their parks throughout the entire baseball season. Thus, the need to use ballparks played a large part in ensuring that the National Football League and early rivals would delay the start of their seasons until September when the baseball season was winding down, thus affording baseball teams

2730-669: The 21 Club in New York City on May 11, 1982, to begin play in 1983. ESPN president Chet Simmons was named the league's first commissioner in June 1982. According to the Dixon Plan, if the league was going to be a success, it needed television revenue and exposure. In 1983, the league signed contracts with both over-the-air broadcaster ABC and a cable TV broadcaster, the four-year old ESPN , to televise games. The deals yielded roughly $ 13 million in 1983 and $ 16 million in 1984, including $ 9 million per year from ABC. ABC had options for

2835-764: The Breakers , also had stadium problems. The Boston ownership group wanted to play in Harvard Stadium , but were unable to close a deal with the university; Sullivan Stadium was owned by the New England Patriots , who were unwilling to share their venue with a rival, while Fenway Park was being used in the spring by the Boston Red Sox and was also unavailable, and Alumni Stadium on the campus of Boston College , for reasons never made public, also declined. Finally they were able to negotiate

2940-462: The Concordes , was on precarious financial ground, having just been established to replace the recently folded Alouettes. This led Bassett to drop the idea. Once play actually started, the league experienced the same kind of franchise instability, relocation, and closures that almost all pro football leagues, including the NFL, experienced in their early years. On the whole, the inaugural season

3045-535: The Denver Broncos and Houston Oilers , respectively. In spite of all of these changes, the USFL would never play a fall game. In another effort to keep themselves afloat while at the same time attacking the more established National Football League , the USFL filed an antitrust lawsuit against the older league, claiming it had established a monopoly with respect to television broadcasting rights, and in some cases, on access to stadium venues. The case

3150-573: The National Hockey League 's Pittsburgh Penguins at the time), whose son Edward J. DeBartolo Jr. owned the Super Bowl champion San Francisco 49ers (a team now owned by his sister Denise DeBartolo York ), causing a potential conflict of interest for the family between the USFL and the NFL. ABC offered the USFL a 4-year, $ 175 million TV deal to play in the spring in 1986. ESPN offered $ 70 million over 3 years. Following all

3255-709: The Pittsburgh Maulers . Future Pro Football Hall of Fame members defensive end Reggie White of the University of Tennessee, offensive tackle Gary Zimmerman of the University of Oregon , quarterbacks Jim Kelly of the University of Miami and Steve Young of Brigham Young University , and linebacker Sam Mills of Montclair State began their professional careers with the USFL's Memphis Showboats , Los Angeles Express , Houston Gamblers , Los Angeles Express , and Philadelphia Stars , respectively. A number of NFL veterans of all talent levels played in

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3360-826: The Tampa Bay Bandits USFL team. However, Senator Keith Davey warned that the Canadian government would act to protect the Canadian Football League (the league in which in all four of the aforementioned Canadian cities had teams in) from competition. The Canadian Football Act had been proposed, but not approved, when Bassett had tried to establish the Toronto Northmen in the World Football League in 1974. Such legislation would have banned US football leagues from playing in Canada. In particular, Montreal's CFL team,

3465-500: The 1983 champion Michigan Panthers surprised the commissioner with an announcement that they would not be playing in the Detroit area for the 1985 season. Panthers owner A. Alfred Taubman informed the league at the meeting that he had negotiated a conditional merger with Tad Taube's Oakland Invaders depending on the outcome of the vote, with Taubman as majority owner. With an expectation of fall play in 1986, Einhorn decided not to field

3570-517: The 1985 season at $ 14 million and 1986 at $ 18 million. Each week, there would be a nationally televised game, as well as the USFL's own version of Monday Night football. Like almost all startup pro football leagues, the USFL had some off-the-field factors that prevented the league from starting out with their preferred membership. The problems started when the original owner of the Los Angeles franchise, Alex Spanos , pulled out and instead became

3675-523: The Blitz to Hoffman in order to clear the way for his purchase of the Wranglers before the 1984 season, they did not take a close look at Hoffman's financial statements. Realizing he was in over his head, Hoffman was forced to scramble to find minority partners. When there were no takers, he walked away from the team after the second preseason game, forcing the league to take over the team. In San Antonio,

3780-455: The CFL's owners were "lukewarm" and ultimately rejected the offer. With nearly all of its players under contract to the NFL and CFL, Usher announced the league would stay shuttered in 1987 as well. (Many of the USFL players who were not under NFL contract would end up playing in fall 1987 as replacement players during the strike.) Escrow An escrow is a contractual arrangement in which

3885-554: The California Department of Business and the Arizona Department of Financial Institutions. Escrow is used in the field of automatic banking and vending equipment. One example is automated teller machines (ATMs), and is the function which allows the machine to hold the money deposited by the customer separately, and in case he or she challenges the counting result, the money is returned. Another example

3990-523: The Dixon Plan. Like the NFL, the USFL barred underclassmen from signing. However, league officials were certain that this rule would never stand up in court, so they allowed Walker to sign with the New Jersey Generals . More importantly, Walker signed a three-year contract valued at $ 4.2 million with a $ 1 million signing bonus. Due to the USFL's salary cap rules, this was a personal-services contract with Generals owner J. Walter Duncan, and not

4095-506: The Dixon plan. The plan allowed the league to compete not just by playing its games on a March–June schedule during the NFL off-season, but also by having the following conditions: The Dixon plan laid out a budget to allow all teams to manage losses in the initial lean years. As mentioned earlier, prospective owners had to meet strict capitalization requirements and post a $ 1.3 million line of credit for emergencies. The league's TV revenue met

4200-473: The EU allows these web-based escrow services, which operate along the lines of expensive letter of credit service run by banks for international buyers and sellers but at a cost in cents rather than thousands of Euros, the ability to enhance security in commercial transactions. Bogus escrow methods have been employed online. In an effort to persuade a wary Internet auction participant, the perpetrator will propose

4305-457: The Invaders and Generals. The USFL sought damages of $ 567 million, which would have been tripled to $ 1.7 billion under antitrust law . It hoped to void the NFL's contracts with the three major networks. The USFL proposed two remedies: either force the NFL to negotiate new television contracts with only two networks, or force the NFL to split into two competing 14-team leagues, each limited to

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4410-797: The Jacksonville Bulls, with the Bulls as the surviving team. Trump bought the assets of the Houston Gamblers for an undisclosed amount and merged them with the New Jersey Generals. While the Generals were the surviving team, Gamblers coach Jack Pardee was named as the merged team's new coach. Both the Gold and Gamblers had seen their attendance plummet to unsustainable levels, as their fanbases were not willing to abandon

4515-399: The NFL had held a draft in 1984 for teams to acquire the rights to USFL players, in the event of the league (or teams in the league) folding. However, it is unlikely the USFL would have been able to put together a viable product in any case. Many of its players had signed contracts with NFL teams after the 1985 season, and the league was some $ 160 million in debt. Five days after the verdict,

4620-511: The NFL to pay a substantial settlement. It considered the television-related claims to be the heart of its case. On August 4—four days after the announcement of the verdict—the USFL owners voted to suspend operations for the 1986 season, with the intent of returning in 1987; the league accurately foresaw the 1987 players' strike and had hoped the strike would give the league access to star players. Players signed to contracts were free to sign with NFL (or other professional teams) immediately. Indeed,

4725-594: The Tampa Bay Bandits were effectively shut down when a judge placed a lien on the franchise to satisfy back pay owed to former player Bret Clark . All of the team's remaining assets were seized to satisfy the debt. In a desperation move, the Arizona Outlaws arranged a meeting in January 1987 with officials with the Canadian Football League hoping to negotiate a merger between the USFL and CFL;

4830-428: The USFL based upon securing NFL-caliber stadiums in top TV markets, securing a national TV broadcast contract, and controlling spending—and found investors willing to buy in. Though the original franchise owners and founders of the USFL had promised to abide by the general guidelines set out by Dixon's plan, problems arose before the teams took the field, with some franchises facing financial problems and instability from

4935-503: The USFL took his word as evidence that he would be a solid owner for one of its marquee franchises. However, in June 1984, investigations by the FBI, The New York Times and The Wall Street Journal revealed that the man who made waves by signing a roster of high-priced young talent did not have even a fraction of the money to buy the team. He abruptly walked away from the team during the playoffs. Gamblers minority owner Jay Roulier took over

5040-493: The USFL were conceived in 1965 by New Orleans businessman David Dixon , who saw a market for a professional football league that would play in the summer, when the National Football League and college football were in their off-season. Dixon had been a key player in the construction of the Louisiana Superdome and the expansion of the NFL into New Orleans in 1967. He developed "The Dixon Plan"—a blueprint for

5145-452: The USFL's existence. The league never played its planned 1986 season, and by the time it folded, it had lost over $ 163 million (equivalent to $ 380 million in 2023 dollars). Three consecutive Heisman Trophy winners signed with USFL teams directly out of college: Georgia running back Herschel Walker and Boston College quarterback Doug Flutie signed with the New Jersey Generals , and Nebraska running back Mike Rozier signed with

5250-461: The USFL's other claims. The jury found that the USFL had changed its strategy to a more risky goal of forcing a merger with the NFL. Furthermore, the switch to a fall schedule caused the loss of five major markets (Philadelphia, Denver, Houston, Pittsburgh, Detroit , the Bay Area) and derailed a move to a sixth (Miami). The jury also made note of a memo Tad Taube wrote about the dispute, which quoted

5355-435: The USFL. The case went to trial in the spring of 1986 and lasted 42 days. On July 29, a six-person jury nominally returned a verdict for the USFL. However, the jury's findings were devastating to the upstart league. The jury declared the NFL a "duly adjudicated illegal monopoly", and found that the NFL had willfully acquired and maintained monopoly status in professional football through predatory tactics. However, it rejected

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5460-615: The USFL. Certain NFL backups such as quarterbacks Chuck Fusina and Cliff Stoudt , G Buddy Aydelette , and WR Jim Smith had limited success in the NFL but became major stars in the USFL. But many NFL backups struggled or never made it in the USFL. Additionally, the USFL also lured in NFL starters, including a handful in the prime of their careers including 1980 NFL MVP, Cleveland Browns ' quarterback Brian Sipe , Buffalo Bills ' three-time Pro Bowl running back Joe Cribbs and Kansas City Chiefs ' three-time Pro Bowl safety Gary Barbaro . For many decades after its inception, American football

5565-599: The baseball season. Los Angeles was seen as critical to the league's success, and Dixon and Simmons felt that two cable moguls would be better suited to head the league's efforts there. Joseph was forced to move his operation. The team opened play in Phoenix, Arizona , where it became the Arizona Wranglers . Daniels and Harmon's team became the Los Angeles Express . The League's Boston franchise,

5670-410: The beginning of Internet auctions and commerce. It was one of the many developments that allowed trust to be established in the online sphere. As with traditional escrow, Internet escrow works by placing money in the control of an independent and licensed third party in order to protect both the buyer and seller in a transaction. When both parties verify the transaction has been completed per terms set,

5775-421: The beginning. Due to pressure from the NFL, some franchises had difficulty securing leases in stadiums that were also used by NFL teams, forcing them to scramble to find alternative venues in their chosen city or hurriedly move to a new market. The USFL had no hard salary cap , and because of this, some teams quickly escalated player payrolls to unsustainable levels despite pledges to keep costs under control. While

5880-427: The buyer and the seller deal directly with each other. When and if the transaction is ready to close, the escrow company distributes all funds and documents to their rightful recipients, and records the deed with the appropriate authorities. Courts sometimes act as stakeholders, holding property while litigation between the possible owners resolves the issue in which one is entitled to the property. Escrow arrangement

5985-496: The comic strip Pogo : " we have met the enemy and he is us ." Most importantly, the jury found that the NFL did not attempt to force the USFL off television. (Indeed, ESPN remained willing to carry USFL games in the fall, several of the league's teams also had local broadcast contracts, and 1986 also happened to be the inaugural season of the Fox Broadcasting Company , a network that would establish itself as

6090-513: The completion of person-to-person remote auctions (such as eBay ), although the advent of new low-cost online escrow services has meant that even low-cost transactions are now starting to benefit from use of escrow. In the UK, escrow accounts are often used during private property transactions to hold solicitors' clients' money, such as the deposit, until such time as the transaction completes. Other examples include: Internet escrow has existed since

6195-557: The era. Even in cities where the fans were not numerous, the fan base was passionate; the documentary Small Potatoes: Who Killed the USFL? made note of a regular-season game in which Boston Breakers fans stormed the field following a come-from-behind victory over the Stars at Nickerson Field . Arizona, Baltimore, Birmingham, Jacksonville, Memphis, New Jersey, Orlando and a newly reorganized Tampa Bay team were scheduled to play an ultimately aborted 18-game fall schedule season in 1986. At

6300-518: The exclusive use of their facilities in the spring and summer. Starting in the 1950s, a number of technological changes and trends eventually caused some to question the traditional timing of the American football season. In particular, football became a much more lucrative sport, the invention of artificial turf and developments in the growth and maintenance of natural grass made it more practical for baseball and football to be played at elite levels in

6405-683: The fall advocates now set their sights on forcing a merger with the NFL, or at the very least winning a sizable settlement and securing a TV network for fall broadcasts. As a direct result of this decision, the Pittsburgh Maulers folded rather than compete with the Pittsburgh Steelers , the sale of the struggling Washington Federals to Weiser's Miami-based ownership group collapsed, the New Orleans Breakers and 1984 champion Philadelphia Stars had to relocate, and

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6510-468: The field. For instance, the Michigan Panthers reportedly lost $ 6 million—three times what Dixon suggested a team could afford to lose in the first season—even as they became the league's first champions. The desire to compete with other loaded USFL teams and for the league to be seen as approaching NFL caliber led to almost all of the teams exceeding the Dixon Plan's team salary cap amount within

6615-465: The first employee, Dixon signed up 12 cities—nine where there already were NFL teams and three where there were not. The Dixon Plan called for teams in top TV markets to entice the networks into offering the league a TV deal. All but two of the 12 initial teams were located in the top 13 media markets in the US at the time. After almost two years of preparation, Dixon formally announced the USFL's formation at

6720-476: The four initially envisioned by Dixon, to pocket two more expansion fees. This put more pressure on the TV deal, which was not designed to support an 18 team league. A frustrated Dixon sold his stake and got out. Additionally, the league was so determined to appear to put a credible product on the field that on some occasions, it set aside its own vetting procedures–all of which backfired disastrously. When Diethrich sold

6825-429: The functions usually performed by team owners in the traditional model of North American professional sport organization. The idea was to eliminate weak financial teams as well as the potential for collusion as all players were contracted by the PSFL, and then assigned to individual teams. Many sports leagues have folded before actually playing a game, but the PSFL probably got the closest to starting their season before

6930-471: The games were played and revenues were earned. This protected fans and sponsors from losses or failure, and ticketholders received full refunds. The teams shut down all on the same day as all invoiced expenses were paid by the league headquarters. The PSFL tried to regroup for 1993 season, but again the start-up funding did not get secured and the league organization disbanded. United States Football League The United States Football League ( USFL )

7035-412: The growing popularity of college football (which also played a fall season to coincide with the fall semester) led to the construction and expansion of dozens of large stadiums for collegiate teams, which were mostly football-specific or at least designed primarily for football, and were primarily in cities without professional football franchises. It was in this environment, in 1965, that David Dixon ,

7140-422: The individual plaintiffs or the court-determined use (such as environmental remediation or mitigation ). The defendant pays the total amount of the judgment (or settlement) to the court-administered or appointed escrow fund, and the fund distributes the money (often reimbursing its expenses from the judgment funds). In the US, escrow payment is a common term referring to the portion of a mortgage payment that

7245-459: The league began discussing the possibility of competing head-to-head with the NFL by playing its games in the fall beginning in 1986. The strongest proponents of playing in the fall were Chicago owner Eddie Einhorn and Generals owner Donald Trump. Einhorn and Trump argued that if the USFL moved to the fall, it would eventually force a merger with the NFL in which the older league would have to admit at least some USFL teams. They also argued that if

7350-496: The league was so enamored at Manges' apparent oil wealth that it not only did not closely vet his application, but did not require him to make an initial capital investment. Instead, Manges paid team expenses out of pocket as they arose, resulting in an operation that appeared short of professional standards. The Gunslingers' offices were in a double-wide trailer, and they used folding chairs to bring Alamo Stadium up to minimum capacity. Manges' practices caught up with him in 1985, when

7455-430: The league's first 6–18 months. Dixon urged the members of the league to reduce spending. Rather than backing off spending, recommitting to a firmer salary cap, and dispersing some of the larger contracts to expansion teams to alleviate the problem, the league sought other options to take on revenue to cover increased costs overruns. These actions magnified the problem. The league added six more teams in 1984 rather than

7560-485: The mergers and shutdowns, there just were not enough spring football advocates left in the league to accept those contracts. The owners in the league walked away from what averaged out to $ 67 million per year starting in 1986 to pursue victory over the NFL. After the 1985 season, more plans were announced to accommodate the fall schedule, pool financial resources and avoid costly head-to-head competition with NFL teams. Two mergers were announced. The Denver Gold merged with

7665-547: The money is released. If at any point there is a dispute between the parties in the transaction, the process moves along to dispute resolution. The outcome of the dispute resolution process will decide what happens to money in escrow. With the growth of both business and individual commerce on the web, traditional escrow companies have been supplanted by new technologies. In the US, the California Department of Business Oversight enacted Internet escrow companies as

7770-489: The mortgage, usually property taxes and insurance. The escrow agent has the duty to properly account for the escrow funds and ensure that usage of funds is explicitly for the purpose intended. Since a mortgage lender is not willing to take the risk that a homeowner may not pay property tax, escrow is usually required under the mortgage terms. Escrow companies are also commonly used in the transfer of high value personal and business property, like websites and businesses, and in

7875-415: The most basic expenses. With this in mind, Dixon wanted to ensure that USFL teams had the wherewithal to put a credible product on the field. To that end, the league required potential owners to submit to a detailed due diligence and meet strict capitalization requirements. They were also required to post a $ 1.5 million letter of credit for emergencies. With respected college and NFL coach John Ralston as

7980-491: The nation's fourth major broadcast network .) In essence, the jury felt that while the USFL was harmed by the NFL's de facto monopolization of pro football in the United States, most of its problems were due to its own mismanagement. It awarded the USFL nominal damages of $ 1, which was tripled under antitrust law to $ 3. When NFL commissioner Pete Rozelle and NFL broadcasting chief Val Pinchbeck initially heard

8085-475: The next 15 years, Dixon studied the last two challengers to the NFL's dominance of pro football—the successful American Football League and the troubled World Football League . In 1980, he commissioned a study by Frank Magid Associates that found promising results for a spring and summer football league. He had also formed a blueprint for the prospective league's operations, which included early television exposure, heavy promotion in home markets, and owners with

8190-511: The oil market collapsed. The result was a litany of bounced checks, culminating in the team going the last four games without pay. It later emerged that Manges had been in financial difficulty as early as 1980. The worst situation of all, however, was in Los Angeles. Original owners Alan Harmon and Bill Daniels sold the Express to mortgage banker J. William Oldenburg before the 1984 season. Swayed by Oldenburg's apparent net worth of $ 100 million,

8295-467: The original (or other) parties according to the outcome of the event and according to the previously decided conditions. Trustees also often act as stakeholders, holding property until beneficiaries come of age, for example. Not all escrow agreements impose the duties of a legal trustee on the escrow agent, and in many such agreements, escrow agents are held to a mere gross negligence standard and benefit from indemnity and hold harmless provisions. If

8400-400: The parties; (ii) application of interest earned on the funds; and (iii) credit worthiness of the financial institution . For example, two people may bet on the outcome of a future event. They ask a third, disinterested, neutral person—the stakeholder—to hold the money ("stakes") they have wagered ("staked"). After the event occurs, the stakeholder distributes the stakes to one or both of

8505-696: The plug was pulled; each team had players already in camp and practicing, and rosters cut down to 60 players. On February 11, 1992, the Miami Tribe (who had actually played a game, an exhibition against the Miami Police Department team) disbanded after its equipment was seized as collateral against an unpaid hotel bill at training camp in Florida. Meanwhile, the Washington Marauders (whose entire operation, including equipment,

8610-413: The property taxes and hazard insurance. Others offer it as an option for customers. Some types of loans, most notably Federal Housing Administration (FHA) loans, require the lender to maintain an escrow account for the life of the loan. Even with a fixed interest rate , monthly mortgage payments may change over the life of the loan due to changes in property taxes and insurance premiums. For instance, if

8715-412: The purchase of shares of a company. It is best known in the United States in the context of the real estate industry (specifically in mortgages where the mortgage company establishes an escrow account to pay property tax and insurance during the term of the mortgage). Escrow is an account separate from the mortgage account where deposit of funds occurs for payment of certain conditions that apply to

8820-408: The requirements of the Dixon plan. The Plan called for first year attendance over 18,000 per game. In 1983, 10 of the 12 teams exceeded that threshold. Player spending was where the league deviated from the plan, in the name of pursuing stars. The league's biggest splash—the signing of Herschel Walker, a three time All-American and the 1982 Heisman Trophy winner—represented a significant breach from

8925-441: The resources and patience to absorb years of losses—which he felt would be inevitable until the league found its feet. He also assembled a list of prospective franchises located in markets attractive to a potential television partner. Dixon was well aware that many attempts to challenge the NFL had foundered due to financial troubles. The WFL, for instance, was plagued by teams that were so badly underfinanced that they could not meet

9030-469: The rights to the area. The owners of the USFL's San Diego franchise, cable television moguls Bill Daniels and Alan Harmon , were denied a lease for Jack Murphy Stadium . While this was in part due to pressure from the Chargers, the main opposition came from Major League Baseball 's Padres who held the lease to the stadium at the time and did not want to see football played at the facility throughout

9135-426: The same facility at the same time of the year, and the increasing influence of television combined with the prevalence of a farm system in which Major League Baseball controlled the rights to baseball levels in all levels of play caused many minor league baseball clubs (some of whom played in large facilities that could be easily re-purposed for major league football) to be much less lucrative in their own right. Finally,

9240-600: The same or face a competitive disadvantage. On the field, the USFL was regarded as a relatively good product. Many coaches and team executives had NFL experience, and many future top NFL players and coaches got their start in the new league, including several who were later inducted into the Pro Football Hall of Fame and/or the College Football Hall of Fame . The Michigan Panthers won the first USFL championship in 1983. The Philadelphia Stars won

9345-469: The second USFL championship in 1984, and after relocating to Baltimore , won the final USFL championship in 1985 as the Baltimore Stars in what was effectively a rematch of the first USFL title game. In August 1984, the USFL voted to move from a spring to a fall schedule in 1986 to compete directly with the NFL. This was done at the urging of New Jersey Generals majority owner Donald Trump and

9450-471: The software (including source code) that they are accessing under the terms of a regular SaaS or desktop software agreement. This arrangement does not usually become an issue until technical problems start to arise, i.e. unexpected service interruptions, downtime, loss of application functionality and loss of data. This can add significant costs to one's business, as they remain reliant upon the software supplier to resolve these issues, unless an escrow agreement

9555-576: The team in October, only to be pushed out just months later when it emerged that he too had lied about his net worth. The league was forced to run the team on a shoestring that season. With the new wave of teams, more college stars like Marcus Dupree , Mike Rozier , Reggie White , Jim Kelly , Steve Young and other young stars of the day signed high dollar contracts to play for USFL teams in 1984, as did high-profile NFL stars like Doug Williams , Brian Sipe , Joe Cribbs , and Gary Barbaro . In 1984,

9660-472: The ten teams that would play. Walt Michaels , former coach of the New York Jets and the USFL's New Jersey Generals was announced as the PSFL's Director of Football Operations, but apparently had no role with the league going forward. The PSFL also hired some fairly high-profile coaches (including ex- Denver Gold coach Craig Morton and former Detroit Lions and college coach Darryl Rogers ), and

9765-511: The time, only New Jersey and Tampa Bay shared markets with an NFL team (in New Jersey's case, they shared with two NFL teams). It was announced that the USFL would be returning in March 2022 with at least eight teams and a broadcasting deal with Fox Sports . Despite claims that this was a reactivation of the old league, no figures from the original league were involved in the new league, which

9870-410: The transfer of an asset. There is also commonly the requirement for an escrow agent to adjudicate on the validity of a claim on the escrow funds, which can lead to the risk of the dispute between the parties. Due to the length that the funds are held, the escrow arrangements need to take into account different considerations to those for other escrow arrangements, for example (i) information provision to

9975-431: The upstart league was a credible challenger to the NFL. The league also made a serious run at some other stars, such as Eric Dickerson and Dan Marino . The pursuit of top-level talent proved to be a double-edged sword. While the presence of many blue-chip stars proved the league could put a competitive product on the field, many teams wildly exceeded the league's player salary cap in order to put more competitive teams on

10080-420: The use of a third-party escrow service. The victim is unaware that the perpetrator has actually created an escrow site that closely resembles a legitimate escrow service. The victim sends payment to the fraudulent escrow company and ends up receiving nothing in return. Alternatively, a victim may send merchandise to the subject and waits for his/her payment through the escrow site, which is never received because it

10185-417: The verdict, they were devastated; Pinchbeck later recalled that he thought Rozelle would have a heart attack. While on their way to the league office, however, they heard that the USFL had lost nearly all of its claims, and headed back to the courthouse. The verdict was a classic Pyrrhic victory . The USFL had essentially staked its future on winning the suit, hoping to finance the move to the fall by forcing

10290-414: Was a professional American football league that played for three seasons, 1983 through 1985. The league played a spring/summer schedule in each of its active seasons. The 1986 season was scheduled to be played in the autumn/winter, directly competing against the long-established National Football League (NFL). However, the USFL ceased operations before that season was scheduled to begin. The ideas behind

10395-461: Was a success for the league. Attendance was in line with league expectations at about 25,000 fans per game, and television ratings slightly exceeded projections (an average Nielsen rating of 6.1, when the league had aimed for 5.0). The brand of play was exciting and entertaining, and the 1983 championship was generally recognized as being a more entertaining game than most of the Super Bowls of

10500-496: Was being run out of a single hotel room in Deland, Florida ) stated they had sold only 100 season tickets, and also threatened to quit the league without more money. Finally, the end of the PSFL was announced by Lardner on February 19, just ten days before the scheduled season opener, after a needed cash infusion of $ 1 million did not surface. The league had over $ 7 million in escrow from ticket sales as funds were not to be spent until

10605-557: Was first heard by United States District Judge Peter K. Leisure in the United States District Court for the Southern District of New York . The USFL claimed that the NFL had bullied ABC, CBS and NBC into not televising USFL games in the fall. It also claimed that the NFL had a specific plan to eliminate the USFL, the "Porter Presentation." In particular, the USFL claimed the NFL conspired to ruin

10710-539: Was instead backed by the principals of the extant developmental showcase The Spring League , Brian Woods and Fox Sports . On June 3, 2021, the new USFL confirmed a return in the spring of 2022. In December 2023, it was announced that the new USFL had merged with the XFL to form the United Football League . At first the USFL competed with the older, more established National Football League by following

10815-481: Was the first sports LLC , which has been used as a blueprint for several leagues since, such as Major League Soccer and the WNBA . Rather than the league being set up as a non-profit organization which technically exists for the benefit of its for-profit franchises , the PSFL was one single corporation (the "entity" model of sports league organization) with limited partners operating the teams and performing many of

10920-423: Was to be a modified sudden death , with each team being guaranteed a possession. The PSFL also had what they called a "universal ticket" which allowed season ticket holders to attend any league game anywhere in the country. Announced on October 1, 1991 -- less than five months before their scheduled opening game -- the PSFL had no TV contract, but did air a preview show on SportsChannel America in 1991, laying out

11025-475: Was widely regarded as a second-tier sport behind baseball which was long-regarded as America's national pastime. As a result, even the elite levels of American football generally lacked both the financial wherewithal to build their own facilities and the political clout to secure significant public funds to construct such venues, and as such were compelled to play primarily in ballparks hastily re-purposed for football. However, since gridiron football in particular

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