USFL Announces Two Troubled Teams to Merge

Sporting News, June 10, 1987

The USFL Executive Board in New York announced today the merger of the San Antonio Gunslingers and the Oklahoma Outlaws, to be engaged upon the completion of the current season in three weeks. The two clubs have struggled in this their first season as expansion franchises, not only on the field, but administratively and financially. The merger, which the league hopes will resolve some of the current issues around financial solvency as well as claims of mismanagement in San Antonio, as well as the issues regarding Mr. William Tatham, owner of the Oklahoma Outlaws, and his desire to find a more lucrative market for the club.

The league has over the past month become significantly disillusioned with the management of the San Antonio franchise as claims of financial delinquency and mismanagement of league-provided shared revenue have plagued the fledgling franchise. Players have claimed that paychecks have been delayed or have been rejected for insufficient funds. Vendors have claimed much the same. The deal includes funding from the USFL’s general account, largely league-retained monies from the successful 1984 lawsuit against the NFL, as a temporary measure to complete the season.

Following the season, the league will proctor the financial and logistical transfer, which will reduce San Antonio’s Clint Manges to a role as one of three minority owners, with one being the league itself, and with Oklahoma Outlaws owner William Tatham as the majority owner. The league will then reduce its ownership over the next 3 years until it no longer holds a stake in the franchise’s ownership. As for logistics, it is believed, though the league would not comment, that the franchise will retain San Antonio, Texas as its location, though a relocation may not be out of the question due to the known inadequacies of the Alamo Stadium in San Antonio. The market itself is a large and growing urban center, one the league feels is a solid growth market, and with plans already under way for a 60,000 seat domed stadium in San Antonio, the league is hoping it can arrange a favorable lease to move the franchise in 1990, when the stadium is slated to open.

USFL officials were somewhat mum on exactly how they would go about designating which players from the two franchises would be retained for the 1988 season, though it is expected that a good number of players from both franchises would become members of the new joint franchise. When asked about the possibility of a 19-team format in 1988, league officials were confident in stating that the USFL would play with 20 franchises in 1988, but would not elaborate on how this would be achieved. Having selected San Antonio, Chicago, Orlando (originally Miami) and Oklahoma (originally San Diego) in last year’s expansion process, there are no fewer than 3 expansion ownership groups who were turned away, and it would be a somewhat direct path for the league to reach out to the bidding ownership groups which were turned away, which includes suitors representing Seattle, Portland (OR), and Atlanta.

USFL Commissioner Chet Simmons announced that further developments in the merger of the two franchises would be announced within the month, and that this would include plans for a 20th franchise to round out the league for the 1988 season. For now, the announcement means that players and vendors in San Antonio will be paid for the remainder of the season, and that the next next two games for the Outlaws, against Michigan and Los Angeles, are likely to be the last at Skelly Stadium.