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Insurer Sues United Football League

MANHATTAN (CN) - Already coping with hundreds of millions of dollars in losses, the United Football League faces a $3 million claim from an insurer for workers' compensation premiums.

Formed in 2009, the United Football League has franchises in Las Vegas, Sacramento, Virginia Beach and Omaha.

The UFL lost $225 million in its first 3 years, but hopes to stage a comeback by expanding the league, according to the Omaha World Herald.

In a complaint in New York County Court, the National Union Fire Insurance Company of Pittsburgh says the UFL owes it $3.1 million for the workers' compensation it provides its athletes.

"The United Football League owes additional premium, loss reimbursements, adjustments, expenses, fees, interest, and other obligations to National Union pursuant to the Payment Agreements," the complaint states. "As of December 9, 2011, the amount due National Union was $3,095,483.44."

The insurer claims the UFL never objected to the bill and did not respond to its Dec. 9, 2011 demand for arbitration.

The insurer seeks an order compelling arbitration and finding the UFL in breach of contract.

It is represented by Yoav Griver with Zeichner Ellman & Krause.

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