LOUISVILLE, Ky (WDRB) -- Lyndon Recreation is where nearly 1,500 area youth play baseball, softball and football.

According to its website, it's served the community for 35 years.

But recently, major money problems came to light.

"It was determined mid-summer that some of the financial reports we were getting were false," said Nathan Moore, Lyndon Recreation President.

Moore says when he and board members dove into the books to see where the problems started, the board discovered an employee wasn't doing his job.

"We took over the books to figure out how much damage had been done and what steps we needed to take to rectify the situation. The biggest problem was the failure to file reports," said Moore.

Moore wouldn't say just how far in debt Lyndon Rec is. He called it a moving target.

"It's relatively substantial. When I say that, I say six figure number. It's crested into that but it's nothing that's insurmountable," said Moore.

But not everyone thinks Lyndon Recreation's problems are behind it.

John Lee is a baseball coach whose sons have played ball at Lyndon.

He thinks board members need to step down and make room for new leadership.

"The future is the most important part of it. If you're $140,000 in debt, how are you going to get anyone to do any business with you?" said Lee.

Lee thinks if the money problems continue, the future of Lyndon Rec is in trouble.

"The city since they own the land, they have the option to pull out and take over and build big buildings on it, that sort of thing. Ultimately, 1400-1500 kids will be without a place to play ball," Lee added.

But Moore says a plan is in place to get out of debt.

"We've removed that employee. We hired a new general manager," he said.

The new general manager tells WDRB he has a tight 2014 budget prepared.

"He's already put together his budget for next year that we've put out to the various people who do owe money that we're on payment plans with now to get back whole," Moore told WDRB.

Lyndon Recreation did have to make one lay off because of the money problems.

Board members say shutting down is not an option and neither is raising prices for Lyndon Rec families.

When asked if any charges are coming against the employee who mismanaged funds, Moore would not comment.

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