Professional Documents
Culture Documents
Mike Petke vs. Utah Soccer, LLC, D/b/a Real Salt Lake
Mike Petke vs. Utah Soccer, LLC, D/b/a Real Salt Lake
(6255)
RYAN B. BRAITHWAITE, ESQ. (8817)
BENNETT TUELLER JOHNSON & DEERE
3165 East Millrock Drive, Suite 500
Salt Lake City, Utah 84121-4704
Telephone: (801) 438-2000
bjohnson@btjd.com
rbraithwaite@btjd.com
vs. [Tier 3]
Complaint - Page 1
Plaintiff Mike Petke, by and through his counsel of record, hereby complains against
Defendant Utah Soccer, LLC, d/b/a Real Salt Lake, a Utah limited liability company (“RSL”) as
alleged below:
1. This is a case about a professional soccer club and its owner not keeping their
binding promises to a coach after the owner was caught on videotape improperly talking to
strangers about the coach’s employment status while the coach was suspended and barred from
speaking publicly about his punishment imposed by the league and team. Upon recognizing the
impropriety of his conversation, the owner had the team use its overwhelming power to engage
in high-pressure tactics calculated to coerce the coach into publicly resigning so that the owner’s
embarrassing and improper conduct could be swept under the rug. Despite the team’s and
owner’s outrageous, intentional, and reckless conduct, the coach did not relent and agree to
resign because he had previously signed a binding amendment to his employment contract with
the team, which expressly provided that the coach would return to his position upon the
expiration of his suspension. Consequently, the owner had the team immediately fire the coach
and inflict additional, unwarranted economic damages on the coach and his family by refusing to
pay the remaining salary the team owed the coach under a three-year contract. The owner also
directed the team to execute a publicity campaign designed to damage the coach’s reputation and
2. Here, Mike Petke (“Petke”) is the coach. RSL is the professional soccer club. And
Complaint - Page 2
3. Petke’s contract was terminated at the end of a two-week unpaid suspension
stemming from his interaction with a referee following a Leagues Cup match in July 2019. The
unpaid suspension was in addition to other fines and sanctions levied by Major League Soccer
(“MLS”) and RSL against Petke, all of which were outlined in a written contract amendment
signed by Petke and RSL after the incident at the Leagues Cup match.
4. Although the agreement expressly stipulates that future infractions could result in
Petke’s immediate dismissal for cause, RSL removed Petke as head coach the day before his
two-week suspension without pay concluded. After brazenly breaching the agreement, RSL
rubbed salt in the wound by issuing an inflammatory press release the evening RSL fired Petke.
The next day, Hansen provided a TV interview where he painted Petke as lacking certain morals
5. Petke files this complaint against RSL because, among other things, RSL refuses to
pay Petke the balance due on the remainder of his three-year contract with RSL. Instead, RSL
dictated that Petke either resign and receive $75,000.00 (approximately 11% of what Petke is
6. Because of RSL’s conduct, Petke alleges seven causes of action: (1) breach of
contract; (2) violation of the duty of good faith and fair dealing; (3) promissory estoppel;
contractually obligated to pay him, Petke seeks all other damages to which he is entitled under
Utah law, as well as exemplary damages, attorney fees, costs, prejudgment and post-judgment
interest, and all such other relief to which he may be entitled both at law and equity.
Complaint - Page 3
PARTIES
8. Petke is an individual who resided at all relevant times in the State of Utah.
located at 9256 S. State Street, Sandy, Utah 84070. RSL’s registered agent may be served with
process at c/o Joe Saxton, 595 S. Riverwoods Parkway, Suite 400, Logan, Utah 84321.
10. Jurisdiction is proper in this Court under Utah Code § 78A-5-102, because this
action involves civil matters not excepted in the Utah Constitution and not prohibited by law.
11. Venue is proper in this Court pursuant to Utah Code sections §§ 78B-3-304 and
78B-3-307.
12. This case falls within Tier 3 of Rule 26(c)(3) of the Utah Rules of Civil Procedure.
GENERAL ALLEGATIONS
13. Petke is a former professional soccer player who played approximately 13 seasons
for four different MLS teams. As a gritty, hard-nosed player on the back line of defense, Petke
played on teams that won the MLS Cup (the championship for MLS teams), reached the
14. As a tough, grinding player who was durable, Petke could be counted on to leave
everything on the field as he played on the back line of defense striving to prevent opposing
teams from scoring goals. Because of his reliability and passion, Petke was a fan favorite and a
valued teammate.
15. As much as Petke was a fiery competitor on the pitch (a/k/a the soccer field), he was
also known for his daring outspokenness, particularly when he believed his teammates had been
Complaint - Page 4
wronged. For instance, on August 20, 2000, four days after Petke’s teammate suffered broken
ribs after a violent incident during a match in which the MLS failed to penalize the player
causing the injury, Petke scored a goal and unveiled a T-shirt that said “August 16: Crime of the
Century” on the front and “Revenge is Coming” on the back. Petke’s conduct endeared him to
16. After retiring as a professional soccer player, the MLS’s New York Red Bulls
professional soccer team hired Petke to perform various duties, which eventually resulted in
Petke becoming the club’s head coach before the opening of the 2013 MLS season. That year,
Petke successfully managed the Red Bulls to their first major trophy by clinching the Supporters’
Shield, which is an annual award given to the MLS team with the best regular season record as
17. The following year, Petke coached the Red Bulls to the playoffs and advanced to the
Eastern Conference Finals, where the team lost to the New England Revolution.
18. Despite guiding the Red Bulls through two successful seasons, the club released
Petke from his responsibilities as part of an overall shake-up of the organization and team
philosophy. Petke’s release was strongly denounced by Red Bulls’ fans. In fact, the fans
19. Throughout his tenure as coach of the Red Bulls, Petke guided his team with the
Complaint - Page 5
B. RSL hires Petke as the club’s head coach.
20. On December 22, 2016, Petke was hired by the Real Monarchs, which is a reserve
team serving as a bridge between RSL’s academy program and the first-level parent RSL team.
Petke signed a one-year contract (with club options for 2018 and 2019) to serve as head coach of
21. Less than four months later, RSL promoted Petke to head coach of RSL after the
club sacked Jeff Cassar as its head coach three games into the 2017 MLS season. After the
promotion, Petke signed a new two-year contract with RSL, which included a club option for the
1. RSL knew what it was getting in Petke: a fiery, passionate coach protective of
his players and club.
22. When RSL hired Petke as its new head coach, RSL was well-aware of Petke’s fiery
disposition and passion. In fact, when RSL announced Petke’s hiring to serve at the helm of the
team, RSL’s official website posted a story titled, “Beyond: The Stories Behind Mike Petke’s
Passion.” The first two sentences of the introductory paragraph of the article state, “Mike Petke
is very passionate about soccer. To the point that early in his coaching career, he referred to
himself as ‘a little psychotic.’” Additionally, in the article’s last section titled “A New Passion,”
‘I’m not fooling anybody. I’m not kissing the scarf, because that would be
fake. I respect, 100%, this club and I have for years. Now being
immersed in it, I have a newfound respect,’ he said. ‘What I want is to see
from the players who have been here, from the staff and from the upper
management to show me that passion so I can buy into that. They’ve done
a hell of a job so far. I love this club already. I’m going to do everything
I can for this club. But a true 100% passion is going to come and I look
forward to when it does.’
Complaint - Page 6
23. Petke coached RSL with fire and passion after being named head coach, and the
team responded by going on a successful late season run against opposing teams.
24. Petke also spoke out when he believed his players and the club were not being
treated fairly. For instance, in a July 2017 match between RSL and its rival Sporting Kansas
City, Petke was ejected after complaining to the referee. In a well-publicized postgame
interview, Petke asked RSL’s Trey Fitz-Gerald to distribute color printouts of blown-up still
frames showing the referees’ failure to call a blatant foul committed by a Sporting Kansas City
player who put a RSL player in a headlock while trying to prevent a breakaway goal that would
have resulted in RSL winning the match. Petke also stated that RSL’s players were frequently
targeted by bigger-name clubs without penalty because RSL is a small market team with a lower-
than-average payroll. 1
25. Afterward, MLS fined Petke $3,000.00 for his impassioned postgame comments.
26. Petke’s outspokenness in support of protecting his players and the club engendered
fan support. And at least one RSL executive told Petke that his conduct benefitted the team in
many respects, including bolstering its presence and follower count on social media. Moreover,
Hansen was pleased with Petke because Hansen had never had a coach who exhibited the
27. Although RSL went on a successful late season run against its opponents, the club
1
RSL is among the lower half of spenders on player salaries in MLS. For instance, for the 2018 MLS season,
RSL’s entire team payroll matched Toronto FC’s top two earners—Sebastian Giovinco and Michael Bradley. In
2019, LA Galaxy’s Zlatan Ibrahimovic will make $7.2 million, nearly two-thirds of RSL’s entire payroll.
Complaint - Page 7
2. Weeks after MLS fines Petke, RSL rewards him for his fiery passion with a
new three-year deal.
28. On September 30, 2017, just weeks after MLS issued its $3,000 fine, RSL entered
into a new contract with Petke that would have him serve as the head coach during the 2018-
2020 MLS seasons (“2017 Contract”). Hansen rewarded Petke with the 2017 Contract even
though Petke was willing to honor the original contract he signed with RSL.
29. The 2017 Contract was prepared by RSL 2 and presented to Petke.
30. Under the 2017 Contract, the “Total Guaranteed Compensation Value” is
$1,512,880.00, which includes a salary of $400,000.00 for 2018, $450,000.00 for 2019, and
$500,000.00 for 2020. RSL agreed that Petke would receive his yearly salary “in twenty-four
31. Under Section 1.04 of the 2017 Contract, MLS retained jurisdiction to “impose
sanctions and other disciplinary measures, including, without limitation, suspending [Petke]
(with or without pay) and imposing fines for violations” of the 2017 Contract “or for actions
(including on-field actions) that” either the MLS Commissioner or RSL, “in their absolute
discretion, determines to be contrary to the best interests” of MLS or RSL. Further, Petke
“expressly acknowledge[d] and agree[d] that he shall be subject to discipline by the” League,
“including, without limitation, fines, suspension (with or without pay) or termination of” the
2017 Contract for certain conduct including, but not limited to, “mak[ing] a statement or
engag[ing] in conduct that is prejudicial to the interests of the League or engag[ing] in a course
2
Unlike Petke, who was not represented by legal counsel, RSL has in-house legal counsel—i.e., General Counsel
Lindsay Barenz, Esq.
Complaint - Page 8
32. Further, Section 3.01 of the 2017 Contract states that RSL may terminate the
agreement in the event of certain occurrences. For purposes relevant here, Section 3.01(F) of the
2017 Contract allows RSL to fire Petke for his “commission of any action or involvement in any
occurrence that brings Club or Employee into public disrepute, scandal or ridicule, or reflects in
a materially adverse manner on the integrity or reputation of the Club or the Owner, including,
33. Section 3.01(K) of the 2017 Contract allows RSL to terminate the 2017 Contract
“for any reason other than” those expressly identified elsewhere in Section 3.01. Importantly, if
RSL terminated Petke’s employment under Section 3.01(K), RSL is obligated to pay Petke
(1) “any portion” of his compensation that he has earned, but remains unpaid on the date of
termination and (2) Petke’s “remaining base Compensation” “through the end of the then
existing term” with the exception of certain “unearned bonuses, car stipends, per diem or unfiled
reimbursements.” For purposes of clarity, Section 3.02(B) of the 2017 Contract includes the
following example:
34. In addition, Petke and RSL expressly agreed in Section 7.09 that the 2017 Contract
“may be amended at any time upon mutual agreement of the parties hereto, which
amendments must be reduced to writing and signed by both parties in order to become
35. The 2017 Contract was signed by Petke and Hansen as RSL’s President.
Complaint - Page 9
3. Petke performs under the 2017 Contract.
36. After signing the 2017 Contract, Petke coached RSL through the 2018 MLS season.
As before, Petke guided the team with a fiery passion. He continued to be vocal and
demonstrative on the field. Petke’s approach to managing RSL was approvingly endorsed by the
club, the fan base, and even the media. In fact, the Salt Lake Tribune published an article on
May 25, 2019 titled “Monson: ‘What the hell’s wrong with Mike Petke?’ Nothing. Nothing at
all.”
37. Petke’s method of coaching in 2018 remained consistent with his earlier
performance. He was ejected from a game, and MLS fined him $10,000.00 and imposed a one-
game suspension for challenging referees for their failure to call fouls on opposing players who
38. Additionally, because RSL used the club’s official Twitter handle to endorse and
statements and behavior—MLS imposed a $10,000.00 fine against RSL for its social media
posts.
39. In response, Hansen announced that he would pay Petke’s fine (although Hansen’s
promise was apparently designed to endear him to fans and not because he meant it because
Hansen did not, in fact, pay Petke’s fine). And RSL’s fans expressed their appreciation for
Petke’s passion and outspokenness by printing t-shirts that included the catch-phrase/quote that
40. In 2019, Petke again coached the team with the same fire, grit, and determination as
in previous campaigns. By July 2019, the team was positioned for play-off contention.
Complaint - Page 10
C. The July 24, 2019 RSL v. Tigres match: A cat, disruption of play, an attempt to
protect RSL players, and an incident, which has been misconstrued by some and
later manipulated by RSL for its selfish interests and to the detriment of Petke.
41. RSL’s 2019 MLS schedule included a match at home against a Mexico-based
24, 2019. RSL’s match against Tigres was sandwiched between RSL’s games against MLS
opponents Minnesota United FC (Saturday, July 20th) and FC Dallas (Saturday, July 27th).
42. Tigres is the reigning champion in Mexico’s professional soccer league known as
Liga MX. RSL was scheduled to play Tigres as part of the inaugural Leagues Cup, which is an
annual soccer competition between clubs from MLS and Liga MX. The Leagues Cup’s debut
was in July 2019 with four MLS teams—including RSL—playing four Liga MX teams in a
single-elimination tournament.
43. Late on July 23, 2019, the evening before RSL’s match with Tigres, RSL received
notice of rule changes that would have a material impact on how the contest would be played.
These new rules concerned, among other things, goal kicks and free kicks and how the game
would be refereed. RSL’s untimely receipt of the rule changes prevented RSL from properly
training for the game against one of Mexico’s premier soccer teams.
44. The untimely notice of the rule changes led one senior executive of RSL late that
evening to send an email to Petke stating: “This thing is a joke, no one at mls [sic] will claim
ownership . . . .” In a subsequent email minutes later, the same RSL executive wrote: “You’re
probably right, i [sic] just have to throw my hands up some times [sic] and at this point I think
mls [sic] is buckling to [the] Mexican federation. Playing by rules not yet instituted in our
Complaint - Page 11
45. Despite mounting frustration and irritation arising from the untimely receipt of
material information that impeded the coaching staff’s ability to fully prepare, the match between
RSL and Tigres was hard fought. Although Tigres was leading 1-0 late in the game, RSL had
momentum going into the final minutes of the match. With approximately two minutes left in
stoppage time (additional time for play after the first 90 minutes of the game had expired), a cat
entered the pitch and ran between a Tigres player controlling the ball and a RSL defender.
Although the cat appeared to flick the ball as it ran by, the referee, John Pitti, failed to blow a
46. Because there was no whistle to stop play, the Tigres player continued driving the
ball toward the goal and took a shot that missed the goal and went out of bounds. Instead of
giving the ball to RSL for a goal kick—standard procedure when the opposing team kicks the
ball out of play wide of the goal—the referee gave possession of the ball back to Tigres at the
spot where the cat entered the field, granting Tigres an unexplained second bite at the apple. The
referee’s decision resulted in at least one minute of delay, which should have resulted in
additional stoppage time. Instead of adding more time and giving RSL possession of the ball, the
referee blew the whistle and ended the game when the Tigres player kicked the ball to resume
Complaint - Page 12
play. By his actions, referee Pitti impacted the outcome of the game by denying RSL a possible
opportunity to tie the score given that RSL had built late-game momentum.
47. After the match, Petke calmly walked down the sideline and shook the hand of
Tigres’s head coach. At that time, Petke did not intend to approach and speak with the referees.
However, Petke noticed RSL players standing in front of Pitti and the other referees arguing.
Concerned that one or more of his players may receive a red card, Petke walked toward the RSL
players and told them to leave and not speak to the “moron” Pitti. At this point, Petke had said
nothing directly to Pitti. In response, Pitti raised a red card at Petke, meaning that Petke would
be possibly fined and prevented from coaching a future game. Given the grating frustration
arising from RSL’s untimely receipt of the rules the night before and Pitti’s missed calls, Petke
responded by using a Spanish word beginning with a “P,” which is commonly used by soccer
players and soccer fans alike to mean “coward” or “jerk.” In fact, the “P” word had been used
by fans and players on the field alike throughout the match. Petke also used the Spanish word
because Pitti is Panamanian and speaks Spanish, and Petke wanted the referee to understand he
was being called a coward for his actions, which made Petke feel as if RSL had been cheated.
48. Afterward, Petke left the field and entered the only tunnel leading from the pitch to
the players’ dressing room, coaches’ room, and the referees’ office. Upon entering his office,
Petke saw a piece of paper and a pen on his desk. He wrote the “P” word on the paper and then
walked out of his office toward the players’ dressing room. As he walked down the corridor,
Petke saw Pitti walking toward the referees’ office using the tunnel shared by the players,
coaches, and referees. Petke held-up the handwritten note so Pitti could read it.
Complaint - Page 13
D. After investigating the incident, MLS and RSL choose to suspend and fine Petke
rather than terminate the 2017 Contract for cause.
49. After RSL’s match with Tigres, some individuals alleged on social media that Petke
was homophobic because Petke angrily used the “P” word as an insult to the Panamanian
referee—a word that has multiple meanings in Spanish but is commonly used to suggest
someone is a coward, like shouting “chicken” in the United States. The individuals accusing
Petke of being homophobic conveniently ignore Petke’s strong belief in equal rights for all,
which has been publicly demonstrated over time. Indeed, after the June 2016 mass shootings at
Pulse, a gay nightclub in Orlando, Petke paid tribute to the victims, as shown below:
Petke has also shown his strong support for the LGBTQ community on his TV program—The
Mike Petke Coaches Show. One guest even felt so comfortable with Petke and his support of
LGBTQ rights that she used his show as the platform to publicly announce her sexual orientation
as a lesbian. Additionally, Petke has worn clothing supporting the LGBTQ community and is
known by those around him, ranging from childhood friends to RSL executives and players, as a
Complaint - Page 14
50. Because some individuals alleged Petke’s use of the Spanish “P” word was
homophobic, MLS investigated incident. MLS also suspended Petke from coaching the July 27,
51. On Monday, July 29, 2019—five days after the incident during the Tigres match—
MLS Commissioner Don Garber and Hansen conferred by telephone about the incident. Petke
was notified by at least one RSL executive that MLS Commissioner Garber gave discretion to
52. Later that same day, Petke and his wife, Kim, were requested to meet with Hansen at
54. Instead, RSL informed Petke that he would be punished as follows: (1) suspension
from all club activities, without pay, for two weeks; (2) mandatory anger management
counseling, with a therapist chosen by RSL; and (3) Petke must issue written apologies to MLS
Commissioner Garber, Todd Durbin, and the four referees who worked the RSL v. Tigres match.
E. RSL enters a new written and signed contract with Petke to remain as coach.
55. On the same day RSL chose not to terminate the 2017 Contract—i.e., July 29,
2019—RSL and Petke signed a written contract amending the 2017 Contract. The contract was
prepared solely by RSL executives and titled Violation of Club Policy (“July 2019 Contract”). A
true and correct copy of the July 2019 Contract is attached hereto as Exhibit A.
56. The July 2019 Contract, which expressly refers to the 2017 Contract, addresses
Petke’s conduct after the Tigres match and identifies with specificity the punishment imposed by
RSL upon Petke. But even more important, the July 2019 Contract states that Petke would not
Complaint - Page 15
be fired for his conduct and that RSL was giving him another opportunity. Specifically, the July
(See Exhibit A) (emphasis added.) The July 2019 Contract is signed by Petke and Robert
F. RSL knew it agreed to allow Petke to return to his job after his suspension
concluded and that Petke would not be fired for the incident after the Tigres match.
57. The following day, July 30, 2019, RSL announced the punishment levied against
Petke. Around the same time RSL issued its press release, RSL’s General Manager, Craig
Waibel, texted Kim Petke to tell her Petke should turn off his phone and go to Moab, Utah.
Below is Waibel’s text to Kim dated July 30, 2019 at 6:05 p.m.:
Complaint - Page 16
58. Later the same day and after the press release had been issued, Kim happened upon
RSL owner Hansen and his fiancé at a local Target store while she was shopping for the trip to
Moab. While visiting, Hansen told Kim he had spoken with RSL’s sponsors and that it had been
“close with the sponsors, but everything was okay.” Hansen acted jubilant and said Petke should
“go have fun with the family.” In fact, Hansen offered the Petkes the use of his vacation home
59. On Monday, August 5, 2019, RSL’s Waibel texted Kim to schedule a meeting with
Petke to discuss his agreed-upon return to the team scheduled for Monday, August 12, 2019.
Complaint - Page 17
60. The following day, Tuesday, August 6, 2019, RSL’s Robert Zarkos texted Kim to
inform her that RSL’s Director of PR and Web Content, Matt Gaschk, would contact Petke to
prepare for his return to the team on Monday, August 12, 2019. Below is Zarkos’s text dated
Complaint - Page 18
61. The July 2019 Contract, together with the totality of these communications and
admissions by RSL’s executives, show RSL agreed to allow Petke to return to his job after his
two-week unpaid suspension concluded and that Petke would not be fired unless he committed
62. As late as Wednesday, August 7, 2019, Petke and RSL’s Waibel and Zarkos were
working with Petke’s wife, Kim, to schedule a meeting with Petke to discuss his return to the
team the following Monday. Below is a text exchange between Kim and Waibel on Wednesday,
Complaint - Page 19
63. However, as Kim, Waibel, and Zarkos worked to finalize scheduling a meeting the
next day, RSL’s owner Hansen was caught on videotape speaking with a few spectators at the
Utah Royals’ match against Sky Blue FC. During the conversation, Hansen stated he was
considering firing Petke. A transcript of the video shows a fan asking whether Hansen is going
to fire Petke and Hansen responds: “I’d like to say I might cry all the way, but we literally had a
meeting today here, the GMs and everyone, kind of reviewing that. Honestly, I’m talking
64. In another response to a fan asking whether Petke would be granted another chance,
Hansen states:
Complaint - Page 20
The commissioner and I have had many long, heartfelt
conversations. Part of my thing is that I’m not a quick reactor.
When something happens, I don’t feel like I’ve got to immediately
jump. I weigh everything, I talk to a lot of people, (…) We’ve
polled the millennials closely, the older fans—and it’s a deep split.
Millennials are almost 90 percent out, the older fans are almost 90
percent in. I’ve got two generations in this whole thing, so it’s an
interesting conversation. Our point is we’re weighing it, but at the
end, once it’s all in, it still comes down to our values.
65. Realizing his inappropriate conversation about Petke had been caught on tape,
Hansen began to scramble for cover. He called Petke’s cellphone and left a voice message.
Petke, under orders not to speak with RSL during his suspension, did not answer. Instead, Kim
texted RSL’s Waibel to notify him that Hansen called Petke. Kim also requested approval for
Petke to return Hansen’s call. Waibel responded with surprise and said he would ask why
Hansen was calling Petke. Below is the text chain between Kim and Waibel:
Complaint - Page 21
1. Hansen’s conduct is immediately criticized by RSL’s executives.
66. As the image above shows, Waibel texted Kim back the following morning, August
8, 2019 and scheduled the meeting with Petke, Waibel, and Zarkos for 2 p.m. at a local
Starbucks.
67. At the agreed-upon time and place, Petke met with Waibel and Zarkos. Waibel and
• Waibel and Zarkos woke up that morning and read Real Soapbox, a fan site, and
read an article about a videotape showing Hansen “talking to fans about your
• “When I woke up, and read it, he’s talking to fans like it’s almost a casual
conversation, like, ‘Oh, look at me! I’m the owner and I want to talk.’”
• Given Hansen’s statements, “I don’t know how he can go back. He’s on video.
He’s on video!”
• “He [Hansen] really put himself in a corner. I mean, I don’t know some bullsh#t,
• “He [Hansen] doesn’t give a f*ck about anything but himself. He’s spazing.”
• “He [Hansen] cares about him. He f*cked up because he ran his mouth to Don
[Garber] and you know, it’s all about him. It’s always about him.”
• “It was gross how quickly [Hansen] changed his tune. This is 100% about him.”
68. Because Hansen had publicly painted himself into a corner, Waibel and Zarkos
confirmed that Petke was going to be fired because of Hansen’s errors and that they disagreed
Complaint - Page 22
69. During the conversation, Petke explained that he did not understand. Petke told both
RSL executives that “It’s just confusing to me that I signed something saying that this is my
punishment, ya know?” Petke also notified Waibel and Zarkos that a decision by RSL to
terminate his contract would detrimentally impact his career as a professional soccer coach. In
response, Waibel said, “I know.” Waibel also told Petke “you’re still a good person dude.
71. Both Waibel and Zarkos also told Petke that they were no longer going to put up
with Hansen’s conduct and that they had a plan to exit RSL after the season. Waibel then said,
“It’ll be at the end of the year, because I also don’t think Dell Loy [Hansen] should ever be
72. After the meeting at Starbucks, Petke and Waibel exchanged texts. The subject was
whether Petke would resign and accept $75,000.00 or be terminated, allegedly for cause, so that
RSL would not have to pay Petke the amounts he is owed under the 2017 Contract. Petke
inquired whether a call to Hansen would cause him to “reconsider,” and Waibel replied “He
73. In a subsequent exchange of texts between Petke and Waibel, Petke thanked Waibel
“for everything,” including how they worked together through a tough year in 2018. In response,
Waibel wrote:
3
The Athletic posted an article citing “[o]ne source” that the option to resign in lieu of being fired “would’ve netted
the former manager a payout in the low six-figures.” See https://theathletic.com/1133214/2019/08/12/sources-why-
real-salt-lake-decided-to-fire-mike-petke-as-his-suspension-ended. The Athletic’s story is wrong. Petke has never
been offered more than $75,000.00—which is less than 11% of what he is owned under the 2017 Contract. The
alleged “source” clearly was not Petke, particularly since he has yet to speak to the press since he was suspended.
Rather, this false story planted by “[o]ne source” appears to be just another example, as demonstrated further below,
of RSL using the press to make misrepresentations to manipulate public sentiment.
Complaint - Page 23
Thank you, I am exhausted, confused, emotionally spent, and
disappointed that this is the only thing that makes sense. I have
always known where the issues in this organization are born . . .
and I have never once believe[d] that anything last year was
created by you or I as individuals. This is [the toughest] work
environment in major league soccer without a doubt. 4
H. In breach of the 2017 Contract and July 2019 Contract, RSL uses high pressure
tactics to coerce Petke to resign so that Hansen can save face.
74. On the morning of Sunday, August 11, 2019—the day before Petke was
contractually entitled to return to work as coach of RSL—Zarkos texted to inquire whether Petke
would meet at 2 p.m. that day to sign papers resigning from the team. Petke responded by
notifying Zarkos that he was meeting with his lawyers. Later, it was agreed that a conference
call between the parties’ representatives and attorneys would occur at 7:00 p.m. that evening.
Mike I just spoke with Rob and we should talk [sic] Everything
we are doing is to give you the best outcome under very tough
circumstances [sic] I want to avoid having to terminate for cause
which would damage your future possibilities [sic] Call me as a
true friend [sic] DellLoy [sic].
I think you should have legal counsel but we are going to have to
act by 6:00 p.m. Don’t miss the chance to allow a better outcome.
DellLoy
(Emphasis added.)
76. Petke responded by text, writing, “if you are interested in arriving at a better solution
then [sic] is currently presented Lets [sic] have a conversation.” Petke then mentioned that
Hansen’s claim that Petke had to act by 6:00 p.m. contradicted an earlier agreement with RSL
that the parties were to conduct a conference call at 7:00 p.m. Petke requested Hansen to “clarify
the times.”
4
The original text contained a misspelling or autocorrect error. Waibel, therefore, sent a follow-up text to clarify,
writing: “*The toughest work environment[.]”
Complaint - Page 24
77. Hansen replied that the conference call was being changed to 6:00 p.m. and that
“Rob had told me earlier this morning that would be ok.” Hansen also texted, “Everyone wants
an affirmative outcome as I hope you also see that is your best also.” (Emphasis added.)
78. The parties held a conference call at 6:00 p.m. Among those participating were
Petke’s legal counsel, as well as RSL’s Zarkos, RSL’s General Counsel Lindsay Barenz, and
79. During the conference call, RSL presented no offers different from the offer
proposed by RSL’s Waibel on August 8, 2019. Instead, in bad faith, RSL continued to use its
dominant position to force Petke to submit to and accept a low-ball offer of $75,000.00 to resign
or be fired in breach of the 2017 Contract and July 2019 Contract. Because an agreement could
80. Despite RSL’s knowledge that Petke had retained legal counsel, Hansen called Petke
twice, left a voicemail, and texted Petke after the conference call concluded. In his text, Hansen
wrote: “Call I am sending the press releases assuming we [sic] are not accepting the offer to
81. After 8:00 p.m. on August 11, 2019, RSL texted Petke stating “find the Notice of
that RSL was immediately terminating the 2017 Contract pursuant to Section 3.01(F). The text
also included the press release RSL issued later that evening. The press release states:
Complaint - Page 25
At Real Salt Lake, we have the privilege to represent our great
community and fans here locally and on a national and global basis.
We hold all of our coaches, players, executives and staff to the
highest standards of professionalism. As an organization, it is vital
that everyone, particularly our leadership, reflects and embodies our
core values and the values of our community, treating all people
with respect, civility and professionalism. Moreover, throughout
our 15-year history, we have championed diversity, acceptance and
inclusion throughout our organization, our stadiums and our
community. This is a responsibility that we take very seriously.
82. RSL’s press release was a calculated move designed to damage Petke’s reputation by
suggesting he lacks certain morals and values—including, but not limited to, that Petke is
homophobic, disrespectful, uncivil, and unprofessional. The press release also conveniently
fails to acknowledge, let alone refer to, the July 2019 Contract entitling Petke to continue
83. By firing Petke the night before he was to return to work, RSL also denied Petke the
opportunity to demonstrate his ability to continue performing under the 2017 Contract. And by
terminating the contracts and refusing to pay Petke the remaining approximately $687,500.00,
RSL’s actions were designed to inflict additional, unwarranted economic damage on Petke and
his family, particularly since they are transplants from New Jersey and have no family ties to
Utah.
Complaint - Page 26
I. To inflict further damage to Petke’s reputation and detrimentally harm Petke’s
future coaching prospects, Hansen speaks to the press about Petke’s firing the day
after RSL’s press release.
84. Less than 18 hours after RSL issued its press release, and after RSL’s press release
said that “[t]he club will have no further comment at this time,” Hansen was interviewed by
KUTV about Petke’s firing. In a lengthy interview, Hansen claimed Petke was fired because his
conduct was inconsistent with RSL’s values. According to Hansen, “That was the end game.”
Hansen’s statements advanced RSL’s calculated move to portray Petke as lacking certain morals
and values, ineffective as a leader/coach, detrimental to the team’s good will, and homophobic,
85. During his interview, Hansen once again conveniently fails to acknowledge or
address the July 2019 Contract and the promises RSL made to Petke. And although Hansen
repeatedly refers to RSL’s values, Hansen conveniently ignores that RSL was well-aware of how
Petke’s actions may have conflicted with RSL’s alleged values when it prepared and signed the
July 2019 Contract five days after the Tigres match. In fact, as reflected in paragraph 56 above,
an entire paragraph of the July 2019 Contract references how Petke’s “passion and drive to win .
. . should never come at the expense of [RSL’s] values.” Nevertheless, RSL made the decision
not to terminate the 2017 Contract and, instead, agreed that only future infractions could result in
Petke’s dismissal for cause. (See Ex. A (“Any further violations of these policies will result in
immediate termination for cause under your employment contract.”) (emphasis added).)
Complaint - Page 27
J. Even the players knew what the truth was—i.e., Petke was supposed to resume
coaching RSL.
86. The following day, August 12, 2019, the press interviewed several RSL players.
RSL captain Kyle Beckerman’s quote captured the players’ surprise the best: “I heard the news
when the rest of everyone heard the news last night. I was a little surprised. I thought it was a
settled matter.” (Emphasis added). Like Beckerman, Petke also thought it was a settled
matter—right up until RSL broke its promise and breached the 2017 Contract and July 2019
Contract by firing him without cause and refusing to pay him the amounts he is owed.
87. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
88. RSL and Petke entered into the July 2019 Contract, which is a binding amendment
89. Under the July 2019 Contract, the parties agreed Petke would accept certain
punishment in response to Petke’s conduct after the Tigres match in exchange for continuing to
serve as RSL’s coach. The parties agreed that only future infractions could result in Petke’s
dismissal.
90. While Petke was performing under the July 2019 Contract, RSL breached the July
2019 Contract and the 2017 Contract by immediately terminating Petke’s employment on August
11, 2019.
Complaint - Page 28
91. In its August 11, 2019 letter providing notice of termination, RSL relied on Section
3.01(F) of the 2017 Contract as the basis for its decision to fire Petke. But RSL had no right to
fire Petke under Section 3.01(F) because Petke’s conduct after the Tigres match did not
constitute a material breach of Section 3.01(F), and the team admitted Petke did not materially
92. Additionally, RSL knew that Petke did not materially breach Section 3.01(F) of the
2017 Contract and that Petke’s conduct after the Tigres match did not constitute a material
breach of Section 3.01(F). Consequently, RSL prepared and entered into the July 2019 Contract
to have more definitive language allowing RSL to fire Petke in the future if he violated the
“policies” set forth in the July 2019 Contract. However, Petke did not and could not commit any
infractions of the “policies” because he was still suspended and incommunicado when RSL
93. Moreover, if RSL had the right to fire Petke under Section 3.01(F) of the 2017
Contract, which RSL did not, RSL knowingly waived that right by entering into the July 2019
94. After breaching the 2017 Contract and July 2019 Contract, RSL has failed to pay the
amounts Petke is entitled to receive under Section 3.02(B) of the 2017 Contract.
95. RSL’s failure to pay Petke in full constitutes a further material breach of the 2017
96. RSL’s breaches of the parties’ agreements caused Petke to incur economic damages
including, but not necessarily limited to, compensatory and consequential damages. At a
minimum, Petke is entitled to judgment against RSL in the amount of at least approximately
$687,500.00, which is the estimated remaining amount due and owing under the 2017 Contract.
Complaint - Page 29
SECOND CLAIM FOR RELIEF
(Breach of the Duty of Good Faith and Fair Dealing)
97. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
98. Petke and RSL entered into the written contracts described above.
99. Petke’s July 2019 Contract with RSL amended the 2017 Contract. Under the July
2019 Contract, Petke, among other things, was entitled to resume his head coaching
100. The covenant of good faith and fair dealing inheres in nearly every contractual
relationship. Under this covenant, the parties must deal with each other fairly and in good faith.
101. Under the July 2019 Contract, Petke was entitled to resume his head coach
responsibilities after serving his suspension. Pursuant to the express terms of the July 2019
Contract prepared and signed by RSL, Petke would only be dismissed for cause in the event of
future infractions. However, Petke did not and could not commit any additional infractions
because he was still suspended and incommunicado when RSL immediately terminated his
102. RSL intentionally or purposely committed acts to destroy or injure Petke’s right to
receive the fruits of the July 2019 Contract and the 2017 Contract.
103. RSL’s bad faith conduct has caused Petke to incur numerous damages.
104. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
Complaint - Page 30
105. Pleading in the alternative, if the Court determines the July 2019 Contract is not a
valid and binding agreement between the parties (which Petke asserts that it is), RSL must
perform as it promised—that is, RSL would not terminate Petke’s employment as RSL’s head
coach for cause unless and until he committed an infraction in the future after resuming coaching
106. RSL promised Petke that the two-week suspension (without pay), mandatory anger
management counseling with a therapist chosen by RSL, and the issuance of written apologies to
the MLS Commissioner, Todd Durbin and the referees who worked the Tigres match would be
the only sanctions and penalties Petke would receive for the incident that occurred after the
Tigres match.
107. RSL also promised that only future infractions could result in Petke’s immediate
109. RSL knew or should have expected that these promises would lead Petke to act or
not act.
112. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
Complaint - Page 31
113. If for any reason the trier-of-fact in this case fails to identify the existence of
enforceable and binding contracts as alleged herein, Petke asserts an alternative claim for unjust
114. Petke accepted and agreed to abide by the punishment imposed by RSL, which
115. Petke, in justifiable and reasonable reliance on RSL’s promises, acted with the
expectation of returning to work on Monday, August 12, 2019, and resuming his job as head
116. RSL was fully aware of the benefit that Petke conferred upon it.
117. Petke did not act as a volunteer or intermeddler in connection with the benefit he
118. To permit RSL to retain the benefits without compensating Petke would result in the
unconscionable and unjust enrichment of RSL at the expense of Petke, which should not be
allowed.
119. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
120. RSL agreed to allow Petke to return to his job as the team’s head coach and that
Petke would only be terminated for cause if he committed future infractions. However, after
Hansen was caught on tape improperly speaking about Petke’s job status while Petke was
of using its dominance over Petke to force him to accept less than he was financially entitled and
threatening to disparage him through the press in an attempt to ruin Petke’s future career
Complaint - Page 32
opportunities as a coach in professional soccer. When Petke did not accede to RSL’s demand,
RSL immediately fired Petke, denied him the opportunity to show that he could adapt, and
inflicted additional, unwarranted economic damages on Petke and his family who are transplants
from New Jersey. RSL then spread a false narrative to the press that Petke lacked certain morals
or values in a calculated plan to damage Petke’s reputation and future job prospects as a
121. These facts, among others pleaded herein, show that RSL’s conduct evokes outrage
or revulsion.
122. RSL should have realized that its conduct as alleged herein involved an unreasonable
123. RSL should have realized that its conduct as alleged herein could cause the sort of
124. RSL’s conduct proximately caused Petke to suffer severe emotional distress.
125. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
126. RSL published statements by written and oral communications asserting as a fact
that Petke lacks certain morals and values of the community and that he does not treat all people
Complaint - Page 33
129. RSL’s written and oral statements were false considering Petke’s strong belief in
equal rights for all, which has been publicly demonstrated over time, including as described
above.
130. RSL was negligent and reckless in determining whether its statements were true.
Indeed, RSL’s executives acknowledged during their conversation with Petke after MLS
conducted its investigation and RSL entered into the July 2019 Contract that Petke is not
homophobic and that he is “a good person . . . .” Further, Hansen, by his own admissions in his
texts to Petke, knew that characterizing Petke as lacking such morals and values would damage
131. RSL’s false statements directly and proximately caused injuries to Petke, including
special damages.
132. Additionally, Petke’s injuries resulted from RSL’s malice, knowledge of the written
and oral statements’ falsity, and/or reckless disregard for the truth, which entitles Petke to
exemplary damages.
133. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
134. RSL published statements by written and oral communication asserting as a fact that
Petke lacks certain morals and values of the community and that he does not treat all people with
respect, civility, and professionalism, and that he does not champion diversity, acceptance, and
136. RSL’s written and oral communications place Petke in a false light.
Complaint - Page 34
137. RSL’s written and oral communications are highly offensive to a reasonable person.
138. RSL published the written and oral communications with knowledge of their falsity,
CONDITIONS PRECEDENT
139. All conditions precedent to Petke’s claims for relief have been performed or have
occurred.
EXEMPLARY DAMAGES
140. Petke hereby incorporates all other paragraphs of this Complaint as if fully set forth
herein.
141. RSL’s conduct manifested a knowing and reckless indifference toward, and a
142. Accordingly, Petke requests the award of exemplary damages as determined by the
trier of fact.
143. Petke requests a jury trial on all issues triable under Article 1, Section 10 of the Utah
Constitution.
1. As to the First Claim for Relief, that judgment be entered for Mr. Petke and against
RSL for all damages allowed under Utah law as determined by a trier of fact;
2. As to the Second Claim for Relief, that judgment be entered for Mr. Petke and
against RSL for all damages allowed under Utah law as determined by a trier of fact;
Complaint - Page 35
3. As to the Third Claim for Relief, that judgment be entered for Mr. Petke and against
RSL for all damages allowed under Utah law as determined by a trier of fact;
4. As to the Fourth Claim for Relief, that judgment be entered for Mr. Petke and
against RSL for all damages allowed under Utah law as determined by a trier of fact;
5. As to the Fifth Claim for Relief, that judgment be entered for Mr. Petke and against
RSL for all damages allowed under Utah law as determined by a trier of fact;
6. As to the Sixth Claim for Relief, that judgment be entered for Mr. Petke and against
RSL for all damages under Utah law as determined by a trier of fact;
7. As to the Seventh Claim for Relief, that judgment be entered for Mr. Petke and
against RSL for all damages under Utah law as determined by a trier of fact;
8. That judgment be entered for Mr. Petke and against RSL for exemplary damages
9. That judgment be entered for Mr. Petke and against RSL for attorney fees and other
10. That Mr. Petke be awarded prejudgment and post-judgment interest as allowed by
law;
12. That Mr. Petke be awarded such other and further relief as the Court and jury may
Complaint - Page 36
DATED this 16th day of September 2019.
Plaintiff’s Address:
Mike Petke
c/o Bennett Tueller Johnson & Deere
3165 East Millrock Drive, Suite 500
Salt Lake City, Utah 84121-4704
Complaint - Page 37
EXHIBIT A