Sheldon Grizzle

@ChattanoogaFC

Chattanooga FC opens up ‘true ownership’ to its supporters

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The owners of Chattanooga FC have opened up their beloved club to fan ownership in a non-cosmetic, very real way, and it is going very well.

Billing the move as the first time in America that a “soccer club offers fans true ownership,” the National Premier Soccer League club has sold over 1,800 of 8,000 available shares in its club over a 24-hour period.

For $125 a share, buyers get “one vote, a stock certificate, an owner lapel pin, a “CFC Owner” yard sign, their name on our 2019 third alternate jersey, access to exclusive owner benefits and merchandise, and invitation to annual shareholders’ meeting.”

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ProSoccerTalk spoke to CFC general manager Sheldon Grizzle about the project, and found that its deep roots stretch back to board room daydreaming and the Green Bay Packers’ selling shares of their NFL club to fans.

“In the very early days of Chattanooga Football Club, we’d sit around in the board room and talk about how cool it would be,” Grizzle said. “What if we could have that commitment and culture in Chattanooga?”

Grizzle played a pivotal role in starting the club over a decade ago before taking a break to work on some other projects. He returned last January after selling his shares in a software company, and became even more involved when CFC’s general manager departed the club to help start a USL League One side in Chattanooga. Grizzle took over the GM duties in November.

He’s always held firm faith in the project, because he says CFC was built for the soccer fans, players, and proud citizens of its region. Having an opponent across town with non-local ownership has only redoubled the club’s commitment to its city.

“The entire founding group is Chattanoogans,” Grizzle said. “This wasn’t about money or creating value to sell it to someone else. It really was about Chattanooga and planting a flag here that says this is Chattanooga’s team and we are never leaving. This is by far the best way to demonstrate that this is the case.

“It has already far exceeded our expectations. When we initially did this we were thinking, if we could get 1000 people to say I’m an owner of Chattanooga FC, that would be a really powerful thing for our community. For us it’s just an honor and an encouragement to have so many people thinking, ‘We love what you do. It’s important, and I’m willing to literally invest and take ownership of this thing which is good for our community,’.”

What broke the dam for CFC was a federal law which allows for crowdfunding across all 50 states. It took a decade-old idea and launched it into hyper speed, relatively speaking.

“We found out about this model about a year ago, maybe 18 months ago, and we’ve chipped away at it,” he said. “In the last four months, we’ve really driven hard on it. It was love of community, commitment to a place that we’re never gonna leave. Now if we ever sold the club at some point in the future — clubs transition, they have to. All of our owners are going to die at some point — and someone can take care of our baby better than us. When that happens, we don’t want there to be any chance that the club can be taken out of city.”

In doing so, Grizzle has ensured that his club will outlive him. It’s something that has driven numerous groups across the country, but CFC is implementing the most ambitious plan yet.

Chattanooga FC ready to face challenge from USL D-III

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The next battleground for the future of lower division American soccer was identified Friday night, and it’s located along the Tennessee River.

Chattanooga FC is an undisputed success for lower league soccer. The 10th-year National Premier Soccer League club is a four-time league finalist and seven-time conference winner.

[ MORE: USL’s Cincy reportedly to add Adi, Alashe ]

More important, however, is CFC’s status as proof that division doesn’t have to matter if your club can bring a crowd. Chattanooga averages 4,000-plus fans, has drawn more than 18,000 fans to a single game, and boasted more than 12,000 for a friendly with Atlanta United at 20,668 capacity Finley Stadium.

If there was a club likely to control its own destiny in American soccer, it was this one. Heck, CFC’s success put the city on the map for USMNT and USWNT matches, and the club was actively pursuing a professional future. Board member Bill Nuttall admitted that CFC was being “courted by both” USL and NISA as recently as November.

Ah but that conditional if.

Enter a couple of shocking tweets. On Friday, Chattanooga FC announced that general manager Sean McDaniel was leaving the club, and that an investor from Utah had acquired the rights to put a USL D-III team in the market. Nuttall left, too. The club was not involved in the bid.

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McDaniel had no comment, other than to tell ProSoccerTalk he’ll release a statement later in the week.

Chattanooga chairman Timothy Kelly said that McDaniel and Nuttall occasionally butted heads with the rest of the club — there were “serious philosophical differences” between the parties — but left no hints that anything major was on the horizon.

“There was nothing other than we knew the philosophical rift existed,” Kelly said. “We certainly feel betrayed … but we’re relieved not to have the rift.”

Kelly said the philosophical differences were innate, and connected to how the board members viewed the club. As a microcosm, McDaniel did not hold open tryouts in 2017, in defiance of the board’s wishes to best scout local talent.

Complicating future plans for McDaniel and the club, assuming the report is true, would also be a fundamental difference of opinion on USL and its new third division USL D-III.

[ MORE: Mitrovic in, Rondon out at NUFC? ]

“We’re big fans of the notion of an open system and promotion/relegation, and I deeply believe that the franchise system is what’s fundamentally wrong with American soccer,” Kelly said. “We’re not going to sacrifice our principles for personal gain.”

USL replied to PST in an email:

“We look forward to meeting with USL Division III ownership groups during the USL Mid-Year Meetings in Atlanta next week. Both the league and its owners are excited to bring the thrill of professional soccer to these new markets. We will provide a more formal update on USL Division III, including exciting new cities and league details, following our Mid-Year Meetings.”

McDaniel also served on the National Premier Soccer League board, and submitted his resignation on Thursday night. NPSL chairman Joe Barone spoke with PST, and said McDaniel had been less active in league matters in recent months without informing anyone on the board of any reason for his absence.

“Chattanooga is a model organization not only for the NPSL but for soccer in general in the United States,” Barone said. “The fan base and community support are what make Chattanooga, and it’s tough to replicate that with a new club whether you’re Division 4, 3, 2 or 1.”

Lower level clubs continue to seek the most attractive path toward becoming bigger players in American soccer. Peter Wilt’s departure from NISA has put the nascent league in uncertain territory, the NASL remains on hiatus, and other leagues are still negotiating the start of professional play.

USL D-III is an intriguing option for clubs due to a lower budget and entry fee, and has announced Toronto FC II, Tormenta FC (Georgia), FC Tucson, and unnamed clubs in Madison (Wisc.) and Greenville (S.C.) as founding members for 2019.

[ MORE: Simeone bidding on Simeone? ]

Kelly expressed serious doubts about the chances for success of a new club in Chattanooga, and said reaction to the challenge of a second club has been “overwhelmingly positive.”

“We have always been fundamentally about Chattanooga as much as we’ve been about soccer,” he said. “We’ve said we’re totally dedicated to our local market. We said we’d never leave. This is not a franchise that is going to parachute in and parachute out. We’re fundamentally in tune with Chattanooga. We’re dedicated to grassroots up, as opposed to franchise down.

“We’ve spoken to all the staff members, all the stakeholders, and the expression of support has been warm and universal,” Kelly said. “We expect we’re going to win this fight.”

Put differently, from another CFC owner:

Again assuming the reports are true, it’s a puzzling fight for USL D-III to pick as it launches for 2019. As the second-tier USL sees success for many of its club and continues prolific expansion, trying to start a third division club in a market with a decade-old fourth division club is a head scratcher unless it was possible to cherry pick CFC and drop it into its first season.

American club soccer still is the Wild West, though, and any area’s club needs to be prepared for a battle from big dollars regardless of its success. Major League Soccer is trying to expand into Detroit despite (and maybe because) NPSL side Detroit City FC boasting wild attendance figures and hosting friendlies against Venezia, FC St. Pauli, and Club Necaxa.

[ MORE: Pochettino hopeful for signings as injuries pile up, deadline looms ]

In a lot of ways it’s unsavory, but not terribly unique: The World Hockey Association of the 1970s saw all of its teams fold save the four who would join the National Hockey League. The “sport of the future” truly is here, and early adopters aren’t granted free passes to the present.

As the number of teams in the NPSL and Premier Development League continues to rise and more markets prove they can draw crowds, this is going to keep happening for some time. And upward mobility happens: The PDL’s Ottawa Fury moved into the NASL in 2014, and now plays in the USL. The NPSL’s Nashville FC and PDL’s Richmond Kickers now have entities in the USL.

Yet it doesn’t have to feel good. It’s America, and USL D-III has every reason to aim for the Chattanooga market. Why an investor would pick this particular fight, however, leaves plenty to the imagination. What’s to come from the presumably impending announcement from McDaniel in Tennessee?

DISCLAIMER: The author operates a club in the same league as Chattanooga FC.