Many businesses experience down times when their financial problems seem to outweigh the benefits to staying in business. Most of them are able to keep their money woes out of the media. Not so with San Antonio’s only professional football team, the Talons, who moved to San Antonio just two years ago. The move has not created the boost to business the team was hoping for. Game attendance has been poor and the team is having trouble paying its creditors.
Many of the team’s financial issues have been in the news. In addition to a number of other alleged financial problems, including liens for unpaid wages, the team’s former chief operating officer has filed a claim for breach of contract. He claims the owner has failed to pay him wages he says he has earned.
Two other former team employees have also filed claims for unpaid wages. Even the man who acts as the team mascot says the team owes him nearly $3,000 for three of his past performances. He claims the team tried to terminate his employment agreement simply because they did not have enough money to pay him.
If employers enter into contracts with employees to pay certain wages for work performed, that contract is binding on the employers. Not having enough money to make the wage payment is not an excuse and amounts to a breach of the employment contract. As the former CEO discovered, his only apparent recourse is filing legal action alleging breach of contract in order to collect his earned wages.
Source: San Antonio Express-News, “A Big Fumble,” Patrick Danner, Dec. 22, 2013