WATCH ABOVE: In light of hundreds of families not being able to get refunds after a Scarborough soccer club abruptly shut down, Cindy Pom reports on what parents should look for when choosing where to enroll their children.
TORONTO — The Scarborough soccer club that abruptly shut down this week leaving hundreds of families without refunds was not a member of the Ontario Soccer Association, Global News has learned.
As a result, there was little oversight over its finances.
“A provincial association regulates how clubs are run,” said Doug Blair, general manager of North Toronto Soccer Club. “They require clubs to submit annual financial statements to prove they’re capable of continuing their operation”
Hundreds of families who paid deposits to Just For Kicks Soccer Club in Scarborough will likely not get their money back.
READ MORE: Scarborough soccer club goes bankrupt, leaving families without refunds
“It’s going to be economically difficult to pursue the claims in a small claims court,” confirmed Michael S. Deverett of Deverett Law Offices, who noted the cost of hiring a lawyer could outweigh the deposit amount.
But it hasn’t stopped families from speaking out.
“We want to know where that money has gone and why we aren’t being given the money that we invested for our children,” said Melissa Ezard.
The Scarborough mother paid $500 to register her three children in a summer league with the non-profit soccer club. On Wednesday night, she received an email from the club owner alerting her that there would be no refunds.
“I’m really sorry. I wish there was a different situation,” said Just For Kicks club owner Nick Voronka. “I’ve also sunk in all of my money. I’ve lost a few hundred thousand dollars as a result.”
According to Voronka, the deposits from the families of the 400 children who paid for this summer were used to cover losses from previous years.
Voronka said he was short $120,000 in total revenue due to low enrollment and made a decision to shut down the club two weeks ago. He admits he lied to parents and told them spots were filling up quickly.
It is unclear when Just For Kicks began running into financial difficulties but Voronka himself had personal financial troubles. A document obtained by Global News showed he placed a lien on his home in September 2013 for the amount of $43,829.25.
Even though parents are unlikely to get their money back through Voronka, credit card companies are reminding buyers there is another option.
“Visa cardholders are protected against goods or services not received,” said a Visa Canada spokesperson.
MasterCard also confirmed it has a similar policy in place to refund money. But parents like Ezard didn’t pay with plastic.
“We paid in cash to be economically responsible,” she regretted.
Ezard started a GoFundMe page to help families who cannot afford to re-register their kids in a new league.
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