Victims of deception
The MSU volleyball team was one of several teams to lose thousands of dollars to a bankrupt tour operatorby Nia Jonesz and Derek Wehrwein
Issue date: 3/26/09
Section: Campus News
Transports Athletics gave no indication it was a business about to go under. So the Minnesota State volleyball team handed over a $13,000 deposit for an overseas trip to Brazil - a trip that was supposed to take place this spring.
The trip to Brazil never happened, however. The deposit was never refunded. Today, Transports Athletics owner Dale Brannan is facing scrutiny for his business practices.
MSU wasn't the only school to lose money to Brannan. At least six other universities, including the University of St. Thomas, Kansas State and the University of New Mexico, lost a combined $530,000 to the man during a period of two years. Two schools lost more than $150,000 each.
Coaches and players thought they were paying the sports touring company to set up international trips for their teams. But Brannan never actually booked flights, hotels or anything else listed in itineraries. Many didn't discover the trips had never been set up until July 2008, when Brannan abruptly declared Chapter 7 bankruptcy.
ESPN released the results of a six-month investigation on the 2008 incidents late last week. In an interview with ESPN's "Outside the Lines," Brannan deferred bankruptcy questions to his lawyer and denied claims that he intentionally conned the teams.
"We've been running a great company for years," Brannan told ESPN. "There were some financial situations that came up that took us under. That's it. There was certainly no intention to do anything wrong. None, zero. And if people think there was, I'm sorry, there wasn't."
Intentional or not, MSU's volleyball team lost thousands of dollars it raised through summer volleyball camps and leagues specifically for a trip overseas. But MSU officials consider themselves fortunate.
"We were really lucky we only lost that $13,000," said head volleyball coach Dennis Amundson.
'They were legitimate'
The Mavericks began planning their trip to Brazil more than two years ago, and came across Brannan's company at the American Volleyball Coaches Association (AVCA) convention. When making international trips, teams typically use a tour operator with contacts in the country to set up everything from hotels and travel itinerary to opponents. Neither Amundson nor MSU administration say they had any reason to doubt Transports Athletics' validity.
"They had to be legitimate to have a kiosk or a place for coaches to visit [at the convention]," Amundson said. "Well, they were legitimate … until they went bankrupt."
Vice President of Finance and Administration Rick Straka echoed Ammundson's assertion that the company appeared trustworthy.
"The tour operator had been used extensively by NCAA schools and was the official trip provider of the [AVCA]," Straka said. "He had a reputable past and had done years' worth of good trips and unfortunately, they just closed their doors very quickly."
They closed so quickly, in fact, that none of the schools were even notified of the company's bankruptcy. They discovered something was wrong only when the trips grew closer and contact with Transports Athletics became increasingly sporadic.
"We didn't get a whole lot of responses to our calls and then we started to wonder," Amundson said. "All of a sudden the communication just stopped."
According to ESPN, Brannan by this time was in deep financial trouble as a result of his lavish lifestyle. Despite the $100,000 annual salary he paid himself, he and his wife were almost $1 million in debt personally in November 2007.
When his company filed for bankruptcy only a few months later, it was more than $650,000 in debt. Two teams, Kansas State and New Mexico, found out their trips weren't happening only four days before they were supposed to leave for China.
'$13k is what the guy owed'
Though MSU wasn't funding any portion of the scheduled trip, the volleyball team turned to MSU officials for legal help after it became apparent it was in danger of losing its money.
"We told the administration as soon as we knew and then it was up to them to decide if they wanted to recover the money," Amundson said. "$13,000 was what the guy owed, they might have gotten a dollar out of them, I don't know."
As of now, though, MSU doesn't appear to have recovered even a dollar.
According to Straka, MSU did file a claim against Transports Athletics in bankruptcy court but has not recovered the money.
"I just know that we have worked with the MnSCU legal counsel to see what our options were," he said.
Despite the financial loss, however, Amundson's team will still be traveling to South America this May. They'll be visiting Argentina instead of Brazil, and the planning is now in the hands of another touring company.
While the lost money means the trip will be a day or two shorter, the team is just happy to be going. It was able to raise additional money and prove that when it comes to a once in a lifetime experience, giving up is not an option.
Many might consider it unfortunate that Brannan seems to share this resilience.
ESPN reports he has filed papers with the Georgia Secretary of State to form a new company called Sports Tours and Tournament Specialists.
Nia Jonesz is the Reporter news editor
Derek Wehrwein is the Reporter editor in chief
The trip to Brazil never happened, however. The deposit was never refunded. Today, Transports Athletics owner Dale Brannan is facing scrutiny for his business practices.
MSU wasn't the only school to lose money to Brannan. At least six other universities, including the University of St. Thomas, Kansas State and the University of New Mexico, lost a combined $530,000 to the man during a period of two years. Two schools lost more than $150,000 each.
Coaches and players thought they were paying the sports touring company to set up international trips for their teams. But Brannan never actually booked flights, hotels or anything else listed in itineraries. Many didn't discover the trips had never been set up until July 2008, when Brannan abruptly declared Chapter 7 bankruptcy.
ESPN released the results of a six-month investigation on the 2008 incidents late last week. In an interview with ESPN's "Outside the Lines," Brannan deferred bankruptcy questions to his lawyer and denied claims that he intentionally conned the teams.
"We've been running a great company for years," Brannan told ESPN. "There were some financial situations that came up that took us under. That's it. There was certainly no intention to do anything wrong. None, zero. And if people think there was, I'm sorry, there wasn't."
Intentional or not, MSU's volleyball team lost thousands of dollars it raised through summer volleyball camps and leagues specifically for a trip overseas. But MSU officials consider themselves fortunate.
"We were really lucky we only lost that $13,000," said head volleyball coach Dennis Amundson.
'They were legitimate'
The Mavericks began planning their trip to Brazil more than two years ago, and came across Brannan's company at the American Volleyball Coaches Association (AVCA) convention. When making international trips, teams typically use a tour operator with contacts in the country to set up everything from hotels and travel itinerary to opponents. Neither Amundson nor MSU administration say they had any reason to doubt Transports Athletics' validity.
"They had to be legitimate to have a kiosk or a place for coaches to visit [at the convention]," Amundson said. "Well, they were legitimate … until they went bankrupt."
Vice President of Finance and Administration Rick Straka echoed Ammundson's assertion that the company appeared trustworthy.
"The tour operator had been used extensively by NCAA schools and was the official trip provider of the [AVCA]," Straka said. "He had a reputable past and had done years' worth of good trips and unfortunately, they just closed their doors very quickly."
They closed so quickly, in fact, that none of the schools were even notified of the company's bankruptcy. They discovered something was wrong only when the trips grew closer and contact with Transports Athletics became increasingly sporadic.
"We didn't get a whole lot of responses to our calls and then we started to wonder," Amundson said. "All of a sudden the communication just stopped."
According to ESPN, Brannan by this time was in deep financial trouble as a result of his lavish lifestyle. Despite the $100,000 annual salary he paid himself, he and his wife were almost $1 million in debt personally in November 2007.
When his company filed for bankruptcy only a few months later, it was more than $650,000 in debt. Two teams, Kansas State and New Mexico, found out their trips weren't happening only four days before they were supposed to leave for China.
'$13k is what the guy owed'
Though MSU wasn't funding any portion of the scheduled trip, the volleyball team turned to MSU officials for legal help after it became apparent it was in danger of losing its money.
"We told the administration as soon as we knew and then it was up to them to decide if they wanted to recover the money," Amundson said. "$13,000 was what the guy owed, they might have gotten a dollar out of them, I don't know."
As of now, though, MSU doesn't appear to have recovered even a dollar.
According to Straka, MSU did file a claim against Transports Athletics in bankruptcy court but has not recovered the money.
"I just know that we have worked with the MnSCU legal counsel to see what our options were," he said.
Despite the financial loss, however, Amundson's team will still be traveling to South America this May. They'll be visiting Argentina instead of Brazil, and the planning is now in the hands of another touring company.
While the lost money means the trip will be a day or two shorter, the team is just happy to be going. It was able to raise additional money and prove that when it comes to a once in a lifetime experience, giving up is not an option.
Many might consider it unfortunate that Brannan seems to share this resilience.
ESPN reports he has filed papers with the Georgia Secretary of State to form a new company called Sports Tours and Tournament Specialists.
Nia Jonesz is the Reporter news editor
Derek Wehrwein is the Reporter editor in chief
Viewing Comments 1 - 1 of 2
andrewm
Andrew Miller
posted 4/01/09 @ 11:07 AM CST
Am I the only one who was completey outraged by the way Coach Amundson seems to shrug at losing $13,000? Here, the university has cut two vice presidents, the state budget defecit is hovering at $5B and many students are struggling just to pay tuition. (Continued…)
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