Jonesboro, AR – JonesboroRightNow.com – A long-running dispute involving a youth sports nonprofit, the city’s parks department, and an ongoing federal investigation continues to ripple through Jonesboro city government.
At the center of the controversy is City Stars, a nonprofit organization created more than two decades ago to organize youth sports programs using city-owned facilities. Questions raised by leaders of the Revolution Soccer program about how the organization operated — and how closely it was connected to city government — have grown into a multi-year conflict involving city officials, former volunteers, and federal investigators.
The situation escalated in December when the U.S. Department of Justice and the FBI executed search warrants at the Jonesboro Parks and Recreation offices and the home of former parks director Danny Kapales, who also directed the City Stars organization. Kapales resigned from his city position on January 2.
| READ MORE: Kapales resigns, questions remain
But the controversy began much earlier.
Leaders of the Revolution Soccer program say they first began raising questions in 2023 about City Stars’ finances, including how fees were being charged for use of city soccer facilities and how sponsorship money collected by Revolution volunteers was being handled within City Stars accounts.
Those concerns simmered for nearly two years through meetings, emails, and text messages exchanged between Revolution leadership, Kapales, and Mayor Harold Copenhaver’s administration — eventually leading to the resignation of the entire Revolution board in 2025 and a growing public debate that has now spilled into multiple Jonesboro City Council meetings.
| READ MORE: Documents show City Stars concerns going back to early 2023, Jonesboro mayor responds
How the City Stars Dispute Began
City Stars was created in the early 2000s through a partnership with the City of Jonesboro to provide youth sports programming at minimal cost to children utilizing city-owned facilities.
The organization operated as a nonprofit. It was directed by Danny Kapales, who simultaneously served as the city’s Parks and Recreation Director.
Leaders of the Revolution soccer program began raising concerns about how finances and operations were handled within City Stars.
Among the issues raised were questions about fees charged to the Revolution program for the use of city soccer fields and facilities, how Revolution funds were maintained within City Stars accounts, and how sponsorship money collected by Revolution volunteers was handled after being turned over to City Stars.
Former Revolution leaders said the funds were reportedly combined within the City Stars account but tracked separately through manual accounting provided by Kapales.
Revolution leadership also expressed frustration with what they described as reluctance from Kapales to respond to requests for financial information and discussions initiated by the Revolution board.
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Disagreements Over Oversight
Over time, the dispute expanded beyond financial questions and into broader concerns about governance and oversight.
Mayor Harold Copenhaver has repeatedly defended his administration’s response, saying City Stars was a separate nonprofit entity not directly connected to city government and therefore not subject to city oversight or city audits.
Former Revolution leaders dispute that characterization.
They argue that although City Stars was technically a separate entity, it was closely intertwined with the city’s parks department.
They point to the fact that the organization was directed by the parks director, that several board members were parks department employees paid by the city, and that youth sports programs operated by City Stars relied heavily on city-owned facilities and equipment.
Parks department employees were also used to collect admissions, operate concession stands, and assist with managing youth sports events.
Because of those connections, Revolution leadership believed the mayor’s office should have taken a more active role in responding to their concerns.
Revolution leadership resigns
By the spring of 2025, frustrations had reached a breaking point.
Revolution soccer coach Matt Daniel stepped down on April 24.
The entire Revolution board resigned on April 26.
| READ MORE: Arkansas Revolution Soccer Club rebuilds after leadership shakeup
Following the resignations, Copenhaver recommended that Kapales arrange for an independent audit of City Stars’ finances to address the concerns raised by Revolution leadership.
Kapales hired the CPA firm Thomas, Speight, and Noble to conduct the audit.
At a July 8, 2025, meeting of the Jonesboro City Council Finance and Administration Committee, a representative of the firm reported that the audit findings were “clean.”
Federal Investigators Step In
The controversy intensified in December 2025 when federal investigators executed search warrants at the Jonesboro Parks and Recreation offices and at Kapales’ residence.
A Department of Justice release indicated investigators were examining Kapales, his connection to City Stars, and the organization’s finances.
| READ MORE: Jonesboro parks director under investigation from Department of Justice
There was speculation at the time that complaints from former Revolution leaders may have played a role in prompting the investigation, although that has never been confirmed.
Following the raid, the mayor’s office placed Kapales on paid administrative leave.
Kapales resigned from his position on Jan. 2, 2026. Former assistant parks director Jim Stearns was later appointed parks director on Jan. 14.
Council Discussions Intensify
Questions surrounding the situation began surfacing more frequently during Jonesboro City Council meetings earlier this year.
At a Jan. 6 council meeting, Copenhaver said he had spoken with several members of the city’s Parks Advisory Board about increasing their role and providing oversight of youth sports programming that had previously been managed through the City Stars organization.
At the Jan. 20 council meeting, former Revolution leader Matt Modelevsky and Jonesboro Advertising and Promotion Commission Chairman Jerry Morgan addressed the council about the ongoing concerns.
Modelevsky provided council members with binders containing emails and text messages documenting communications between Revolution leaders and city officials dating back to 2023.
Morgan challenged the mayor’s statement that members of the Parks Advisory Board had been consulted before the appointment of Jim Stearns as parks director.
“That’s just not true,” Morgan told council members.
Rumors of a No-Confidence Vote
As the controversy grew more public, word circulated that the city council might consider a vote of no confidence in the mayor.
At the Feb. 3 city council meeting, Copenhaver delivered a prepared address responding to the accusations raised at the January 20 council meeting.
Several council members responded to Copenhaver’s remarks, expressing concerns about the situation and the accusations and responses that had been made publicly.
Despite those concerns, no formal action was taken.
Sources from within the city council confirmed to JRN that, while the council was considering a vote of no confidence, they hoped to enter executive session to discuss the issues, rather than the open forum of the city council meeting.
However, JRN learned that shortly before the meeting began, City Attorney Carol Duncan presented council members with an opinion from attorneys with the Arkansas Municipal League. The opinion stated it would not be appropriate for the council to enter executive session to discuss or take action on a potential vote of confidence involving the mayor.
The opinion further said that any such discussion would have to occur in open session.
The unexpected result of the last-minute legal guidance may have changed how city council members decided to proceed that evening. The meeting ended without any vote being taken.
| READ MORE: Copenhaver responds to City Stars debacle
Christmas Parade Questions Raised
The controversy surfaced again during last Tuesday night’s city council meeting.
During council member reports, Councilman David McClain referenced information contained in the City Stars audit presented in July 2025.
The audit showed $15,990 in revenue connected to the Jonesboro Christmas Parade listed on the City Stars’ financial statement, along with $8,489 in related expenses.
McClain asked for clarification about how the parade was connected to City Stars, although he did not reference the audit in his remarks.
City Finance Director Steve Purtee said he was not immediately familiar with the specific transactions McClain referenced, but said the only city financial connection he was aware of involved a $500 check from the Jonesboro Advertising and Promotion Commission to City Stars for parade expenses.
City Administrator Brian Richardson followed and told council members the city itself does not organize parades.
“The city doesn’t do parades,” Richardson said.
He explained that, after the Foundation of Arts announced it would no longer organize the event after the 2023 parade, a volunteer committee was formed to keep the event going.
Richardson said the committee chose to work with City Stars because the organization already existed as a nonprofit capable of receiving donations and fees.
“That was a decision made by the showrunners of the parade,” Richardson said.
Richardson said Heather Talley, who organized the parade in 2024 and 2025, would likely be the person most familiar with the event’s finances.
Parade Organizer Responds
Talley told JRN she volunteered to organize the parade after learning the Foundation of Arts would not continue the event.
“I didn’t want the parade to not happen,” Talley said.
Talley said she met with the mayor and several members of the city administration, including Kapales, during talks about continuing the parade.
According to Talley, Kapales suggested using the existing City Stars nonprofit structure to manage donations and expenses.
A separate bank account was opened at First National Bank under the City Stars nonprofit umbrella.
After the 2024 parade, Talley said the volunteer committee voted to donate $5,000 in remaining funds to City Stars.
No donation was made following the 2025 parade because fewer contributions were received, Talley said.
Talley added she has requested time to address the city council at its next meeting because she believes she and the volunteer committee were unfairly characterized.
“I feel like we were thrown under the bus,” Talley said.
Former Revolution Coach Addresses Council
During the public comment portion of Tuesday’s meeting, former Revolution coach Matt Daniel addressed the council for the first time.
Daniel said he had never spoken before the council but felt compelled to do so because “clarity matters.”
Daniel disputed statements previously made by the mayor regarding a soccer proposal developed by Revolution leadership.
“I stand by what I wrote, every word of it,” Daniel said, referring to his resignation letter.
Daniel said the proposal did not request $500,000 in public funding without oversight as had been suggested.
Instead, he said the plan allowed the city to maintain full visibility into financial accounts and the ability to audit them.
Daniel also argued that City Stars’ operations were more intertwined with the city government than officials have publicly described.
He emphasized that his comments were not about criminal wrongdoing.
“The FBI will determine that, and I respect that process completely,” Daniel said.
Daniel said his concerns were focused on governance and transparency. He told council members he had lost confidence in Copenhaver’s leadership and urged the council to publicly state whether they supported the administration.
“If you have confidence in this administration, say so,” Daniel said. “If you do not, say so. Jonesboro deserves clarity.”
Federal Investigation Continues
City Attorney Carol Duncan also addressed questions related to the federal investigation during Tuesday’s council meeting. Duncan said city officials intentionally limited their own questioning of parks employees after initially meeting with FBI investigators.
“We did not want to do anything as far as asking questions about cash payments that would in any way impede his investigation,” Duncan told council members.
Duncan said city leaders chose to step back so investigators could conduct interviews and gather information without interference.
“As far as I know, he’s not finished with his investigation until it gets to an indictment or a grand jury or however they proceed,” Duncan said.
Duncan said the city may reach out to investigators to determine whether it is now appropriate for city officials to begin asking additional questions internally.
What Happens Next
What happens next in the City Stars saga remains uncertain. Much may depend on the outcome of the ongoing federal investigation.
Whether investigators ultimately bring charges, present evidence to a grand jury, or conclude their inquiry without further action could shape the next chapter of a controversy that has already stretched across multiple years, several city council meetings, and growing public scrutiny into the Jonesboro city government.
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