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Thursday, September 30, 2010

SPORTS & LEISURE- FOR IMMEDIATE RELEASE- STUDIO 777 PARTNERS TERMINATES SFL, SECOND FOOTBALL LEAGUE- Breach of Contract, Lack of Confidence and Misrepresentation Played Key Roles

NEW YORK AND SECOND LIFE -- September 28, 2010 -- Studio 777 Partners ("777" or "Partners") announced the termination of its relationship with the Second Football League ("SFL"), effective immediately.

Causes of action with the SFL and its Owner, Romeo Torvalar, include misrepresentation, breach of contract, and ethical violations. Despite repeated requests to cure breaches in writing over a three month period, SFL not only failed to cure, but also exacerbated the issues. As a result of SFL's willful actions, Studio 777 Partners has no choice but to terminate the relationship and demands SFL immediately cease using the name, logos and intellectual property of Partners and the 777 Buccaneers.

Studio 777 Partners makes substantial investments establishing and highlighting its reputation, and has aligned with many of Second Life's top brands and creators. With 100,000 unique guests since February, Partners produces some of Second Life's most popular destinations. With 10,000 group members, a staff near 100, and 5 million minutes spent in Partners' land, Partners is honored to associate with staff and partners who share the values of clear communications, ethics, and honest leadership, including Vista Animations, EMH Motors, LalaLand, Hurricane Choppers and many others.

SFL represented and warranted to team owners that there would no fees or expenses, but then announced a Membership scheme costing L$20,000 to L$40,000 monthly. Owners were strongly encouraged to join to remain competitive, and if Membership was not paid yet more expenses would be charged to non-participating owners. Further, SFL believed that it should participate in revenue generated from individuals participating in the SFL, including Players and Cheerleaders, without respecting or defining the intellectual property rights of individuals and team owners. Partners strongly reject that position. Partners has registered, and will retain, the 777 Buccaneers team name and intellectual property for a future project.

Most seriously, while simultaneously increasing costs in an arbitrary way, SFL made virtually no progress in establishing a sustainable business model. Promises of traffic to owners' land, advertising and promotion revenue, and other revenue offsets were subsumed by internal unforced errors and League-created distractions. After many months, SFL is no closer to having working fields, player HUDs and a business plan, and has subjected everyone involved to interminable delays.

Partners are aware and in receipt of a numerous ex parte communications by and between SFL which have given unfair advantages to certain team owners. While Partners repeatedly called on SFL to establish a clear Code of Ethics and Conduct, not only did SFL fail to implement any form of guidelines, but also inappropriate conduct continues to this day. Partners believes that for success, SFL must be a role model to owners, business partners, players, cheerleaders and staff. Partners note that SFL staff, especially Barbie Chase, have been for the most part exemplary. Issues have been with the League's Owner and many reputable owners and participants are leaving the project for similar reasons.

Partners' understanding is that many team owners have similar or heightened concerns and a lack of confidence. Until recently, owners did not even have the ability to chat in the SFL's Owner Group, and to date, no full owners’ meeting has ever been held. Perhaps SFL, after losing many teams, will examine its foundation and find a way to rebuild with new management and active participation by stakeholders.

Partners regret that SFL has put owners and participants in such an unsustainable position; months were spent in pre-production at significant cost. Partners will assist and work closely with its exceptional Players, Cheerleaders and Managers who have demonstrated outstanding commitment and loyalty. To express support, they will all be invited to assist Partners with other projects. Partners can not recommend or endorse having any association with SFL, especially under current management.

It is understandable that with Second Life projects, delays will inevitably occur. What has been tragic has been that most of the delays and issues were self-inflicted by SFL. After more than three months, which Partners believes is a more than reasonable enough period of time to cure, Partners conclude that SFL is either not willing or able to make the changes that success requires.

No further action is being contemplated at this time, but Partners expressly reserves all rights in law and in equity. This will be Partners' final comment on this matter.


Media Contact:
Legal Contact: Stroock & Stroock & Lavan LLP

Studio 777 is a registered trademark in the United States and/or other countries. SFL and Second Football League are either registered trademarks or trademarks of ODNY in the United States and/or other countries. All rights reserved. All Trademarks, Product Data, Logos, etc, including those of Linden Lab and Second Life are the property of their respective Companies and should not be construed as an endorsement.


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