Admirals owners sue Tides over 2016 team purchase

The Tides' owners filed a countersuit, denying the allegations

NORFOLK, Va. (WAVY) — A legal standoff between two local sports teams is playing out in federal court.

Owners of the Norfolk Admirals are accusing the Norfolk Tides’ owners of intentionally misleading them in a business transaction last year.

Paperwork filed in a New York federal court accuses the Tides’ owners of several offenses, including breach of agreement, conversion and fraud.  According to the documents, Power Play bought the Admirals in September of 2016 based on operational data provided by the Tides.

The documents allege the Tides made misrepresentations and failed to disclose certain operations-related contracts, which caused the now owners of the Norfolk Admirals to overpay for the team.

The plaintiffs wrote, “Power Play would not have entered into the MIPA (Membership Interest Purchase Agreement) and subjected itself and the operating company to unforeseen obligations associated with the undisclosed Operating Company-related contracts.”

The Admirals’ owners claim they tried to resolve the issues with the Tides twice, but the team rejected their efforts. After the attempts didn’t work, they decided to file a federal suit in New York.

The Tides filed a countersuit in Norfolk federal court, claiming they did nothing wrong. The team says it did not mislead the Admirals’ owners. The Tides asked a judge for a declaratory judgment.

The Admirals owners are suing the Tides baseball club for $500,000.

The Tides also claim Power Play has “not suffered any damages from any alleged breach and/or misrepresentation.”

10 On Your Side reached out to the lawyers for both parties. The lawyers for the Admirals did not respond for comment.

Johan Conrod Jr. with the Kaufman & Canoles, representing the Tides, said in an email to 10 On Your Side, “We deny the allegations made by Power Play 1 and will vigorously defend ourselves against the claims made in the suits.”

This past Tuesday, a Norfolk judge ordered the two parties to appear in court to settle the dispute. 10 On Your Side is working to learn what came out of that meeting.

Meanwhile, another hearing is scheduled for next week in New York.

Stay with WAVY.com for the latest on this developing news.