In the wake of losing its provisional Division 2 sanctioning from USSF, the NASL has put up a $6 million letter of credit as insurance against its teams defaulting during the season, league CEO Aaron Davidson has confirmed. It's still unclear whether this will be enough to grant sanctioning, but teams have started releasing schedules and appear to be moving forward with planning their seasons.
That $6 million represents $750,000 for each of the eight teams planning to play next year. It is being presented as a lump sum, meaning that if one team were to default and require more than $750,000, it could be accessed. The San Antonio Scorpions, who won't begin play until 2012, also contributed to the letter of credit.
"That’s more money than has ever been guaranteed by any pro soccer league and its teams in the U.S.," Davidson said. "Further, our LOC’s are joint and several, an additional requirement that was not in the minimum standards. That means that it’s one for all and all for one."