Case 1:17-cv-05495-MKB-ST Document 26-5 Filed 10/16/17 Page 136 of 168 PageID #:

1684

January 18,2017

North American Soccer League ("NASL") VIA EMAIL ONLY

112 W. 34th Street, Suite 2110
New York, New York 10120
Attention: Rishi Sehgal
Email: rs<;j]_g£lu; !.l!l:>LC.ill!l

Re: 2017 Provisional Sanction

Dear Rishi:

As you know, on January 6, 2017, U.S. Soccer's Board of Directors voted to grant NASL provisional D2 status for
2017, conditioned on NASL 's timely fulfillment of certain additional requirements. These additional requirements, as
discussed with you, myself and Sunil Gulati in Los Angeles on Friday, January 13, 2017, are as follows:

1. Each NASL club must post a $750,000 performance bond (letter of credit, in a form satisfactory to the
Federation) to be held by the Federation and on which the Federation is a beneficiary. The bonds may be
applied jointly and severally. If a club does not operate a professional team in a U.S. Soccer-sanctioned
professional league in 2018, that club will forfeit $250,000 of the bond to the Federation; such funds·.
would be used by the Federation for developmental purposes. These bonds must be posted by no later
than March 1, 2017.

2. NASL will provide to the Federation's CEO monthly updates on ticket sales for each club with year-to-
date comparisons against the previous year for returning clubs.

3. NASL will provide to the Federation's CEO monthly updates on expansion with details of prospective
owners who are in advanced discussions with the league. NASL understands that representatives of the
Federation may meet with such prospective owners.

4. NASL will present a plan for the future including plans for the league office and strategic vision of the
league. This plan shall be presented by no later than March 15, 2017.

5. NASL will present to the Federation a mechanism for assuring that its member clubs are committed
beyond the 2017 season; this could be in the form of additional performance bonds or some other financial
guarantee, and shall be presented to the Federation by no later than March 15, 2017.

6. NASL will agree to mediation, followed by binding arbitration (as needed), to resolve the outstanding
Tampa and Ottawa issues.
'"

Dan Flynn
CEO/Secretary General

cc: Sunil Gulati

Lisa Levine

uS Soccer Federation 1801 S Prairie Ave Chicago. IL 50516 p 312.8081300 f 312 808.1301