Soc Takes understands that an unidentified investor (see update for identity of the investor) has secured the USL territorial rights for Chattanooga. This new team will be unaffiliated with Chattanooga FC.

Currently, Chattanooga FC operates in the National Premier Soccer League (NPSL) playing their homes games at Finley Stadium. Soc Takes reached out to Chattanooga FC president Tim Kelly, who said:

“I don’t know that it’s true (information about Chattanooga USLD3), but if it is true, Chattanooga FC was not aware of it, and we have every intention of fighting back with everything we’ve got.”

Kelly also confirmed to Soc Takes that Chattanooga FC had previously discussed USL expansion with USL representatives, but said those conversations were arrested due to a difference in vision. Chattanooga FC has also previously shown interest in the National Independent Soccer Association (NISA), but backed away from those discussions.

While Chattanooga FC is not involved in this USLD3 expansion, the story may have some twists and turns. A source close to the story suggests that the new USLD3 team will employ current Chattanooga FC general manager Sean McDaniel. McDaniel was a founding member of Chattanooga FC, and has served as its GM since 2017.

To complicate matters further, McDaniel currently serves as treasurer of the executive board of the NPSL.

It remains unclear if the Chattanooga USLD3 team will launch in 2019 or later. USLD3 is attempting to secure key markets with their goal of occupying the currently-vacant Division III niche next year with the league announcing Greenville, Tormenta FC, FC Tucson, Madison and Toronto FC II as its five initial founding members.

The league would need to announce eight teams in order to qualify for United States Soccer Federation (USSF) sanctioning. USL media suggested that multiple DIII teams would be announced during the month of July.

Per information provided to Soc Takes a year ago, USLD3 teams can expect to spend between $1.2 million and $1.9 million during their first year, which includes an initial expansion fee of $500,000. As revealed by Soc Takes, the expansion fee for USL (division II) has recently risen to $7 million. USLD3 targets 3,500-seat stadia in cities with a population of over 150,000. The population of Chattanooga is just shy of 180,000.

Soc Takes reached out to the USL for comment.

UPDATE: 7/27/18 6:05pm. Chattanooga FC released the following statement via Twitter:

We regret to announce that Sean McDaniel has resigned as club General Manager. In addition, we understand that an investor from Utah has purchased the rights to the Chattanooga area in USL D3… (1/2) — Chattanooga FC (@ChattanoogaFC) July 27, 2018

UPDATE: 7/27/18, 10:30pm. Earlier this evening, NPSL and Chattanooga released a joint statement.

Soc Takes was also provided with some additional information –

Sources at Chattanooga FC posit that McDaniel acted inappropriately and allege that McDaniel negotiated with USL “for months” while working within NPSL And Chattanooga FC, thereby raising questions of conflicts of interest. Soc Takes was not able to contact McDaniel for his side of the story. Chattanooga FC chairman Tim Kelly confirms that the team’s stadium lease at Finley expires this year. While Kelly was on the board of the stadium, he recused himself from all Chatta-stadium deals. herefore, there is a window for Finley stadium to come into play for the USL-Chattanooga team. The investor is Bob Martino from Utah. Soc Takes understands that Martino is involved in the Utah youth soccer scene, and has children who play collegiate soccer. It remains unknown if Martino has any local connection to the city of Chattanooga. Bill Nuttall – another Chattanooga FC board member – resigned earlier this week. It is unclear if his resignation is related to today’s events. Chattanooga FC is exploring legal options. Chattanooga FC owners are not interested in being bought out by the USLd3 group.

Follow Nipun on Twitter: @NipunChopra7.

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