Portland Thorns, Timbers Owner Merritt Paulson Steps Down as CEO
Portland Thorns owner Merritt Paulson, who also owns MLS’ Portland Timbers, announced in a statement Tuesday that he has removed himself as CEO of both clubs, effective immediately. Paulson also announced a search for a new CEO to replace him.
The news comes in the aftermath of the independent investigation into widespread abuse and misconduct within the NWSL, which was conducted by former Deputy U.S. Attorney General Sally Yates at the behest of U.S. Soccer and implicated both Paulson and the Thorns organization.
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While Paulson did not address selling his majority ownership of the team, he did acknowledge an uncertain future as the club and the league await the conclusion of the NWSL and NWSLPA’s own joint investigation. That review is expected to be completed this month. In the meantime, Paulson’s organization will retain interim executives who were appointed in the wake of the Yates report while a search for a permanent CEO for the Thorns and Timbers is underway.
“Looking ahead, our organization is at a crossroads, and the future is not necessarily a clear path,” Paulson said in his statement. “No matter what happens, ensuring the long-term health and success of the Portland Thorns is critical to me, as I know it is for our players and the community. Given the complexities involved on several levels, finalizing the correct path forward will take time.”
The Yates report charged Portland’s leadership with failing to take appropriate action in light of allegations of player abuse and sexual misconduct against the club’s former head coach, Paul Riley. It found that Thorns executives and the club’s lack of transparency enabled Riley, who was later hired by the North Carolina Courage, to continue in coaching positions within professional women’s soccer.
Yates’ firm also said the Thorns, long one of the league’s most successful clubs, were one of three clubs who failed to cooperate and tried to impede her firm’s investigation.
“I apologize to our players, the organization, and the Portland community for the mistakes we made, including not being publicly transparent about Paul Riley’s termination,” Paulson’s said. “Our organization’s failures and mistakes were ultimately my responsibility, and my responsibility alone. Part of me holding myself accountable is recognizing that someone else needs to take the reins of the organization and operational decision-making.”
Paulson had temporarily stepped away from all decision-making for the team in the immediate aftermath of the report’s release. He also fired the Thorns former president of soccer Gavin Wilkinson, as well as former president of business Mike Golub, who was accused of making an inappropriate sexual remark to current U.S. Soccer president Cindy Parlow Cone in 2013 when she coached the Thorns. General counsel Heather Davis was tapped as interim president and CEO for the Timbers and Thorns.
In his statement, Paulson said Davis will continue in her interim roles. Sarah Keane, who Davis appointed interim COO, will lead the search for a permanent CEO.
Players and fans have called for Paulson to sell the franchises. Several sponsors, including the Tillamook County Creamery Association and Alaska Airlines, have also voiced dismay over the report’s findings and said they will revisit their sponsorship commitments. Two other corporate partners have already terminated their sponsorship agreements with the organization.
Paulson, the son of former Goldman Sachs CEO and U.S. Treasury Secretary Hank Paulson, launched the club with his family 2011 after paying an expansion fee of $35 million. The group later sold a 15% stake to Arctos Sports Partners and the combined Timbers-Thorns business is now worth worth $685 million, according to Sportico‘s MLS Valuations– good for eighth in MLS.
