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Teamwork by FHLBank Pittsburgh, Member Scores Big with Soccer Fans

“Banking On Business proved an excellent complement to our own commercial lending to the City Islanders. It helped us meet the needs of a valued customer, created new jobs in the community and added to the vitality of Downtown Harrisburg."
— Craig Kauffman, president and CEO, Pennsylvania State Bank

Starting a business is never easy. When Eric Pettis began fielding his plans for a pro soccer team in Harrisburg, PA in 2004, he experienced the ‘cold start’ that almost every entrepreneur experiences: initial operating expenses were exceeding revenues. Pettis turned to FHLBank member Pennsylvania State Bank to make his financial goal.

Working with loan officer David Leppo, FHLBank’s Community Investment Department agreed to supplement Pennsylvania State Bank’s commercial term loan with Banking On Business (BOB) financing, providing Pettis with a total of $100,000 in working capital to cover team operations. BOB extends recoverable loans to worthy entrepreneurs with no payment of principal or interest required in the first year.

Extending financing to the team proved a very sound investment. The Harrisburg City Islanders, a member of the United Soccer Leagues Second Division, placed fifth in the division in their first season. The team finished third in 2005 and fifth in 2006, with average attendance last season standing at 1,879 at the City Islander’s 2,200-seat stadium.

“We’ve got the largest attendance-to-capacity ratio in the league,” reports Joe Sierko, the team’s general manager. “We enjoyed three sellout games during our ten home games last year, and an exhibition game against D.C. United drew a standing-room-only crowd of 4,000.”

With the pro soccer team clearly on the division map and attendance high, the team’s owners founded City Islanders Academy in 2005, giving southcentral Pennsylvania’s youth an opportunity to develop their soccer skills and passion for the fast-growing sport. The academy now trains approximately 400 youth players and fields 16 teams in the Super Y-League. Separately, a winter session attracts about 600 players to the Skyline Sports Complex, and 3,000 youngsters participate in the team’s summer camps. “From a business perspective, youth soccer is starting to surpass what the pro team does,” reports Sierko.

The Harrisburg City Islanders begin their 2007 season on April 21 with a home game against the Wilmington Hammerheads. Tickets are available online at www.cityislanders.com