Yesterday, Synergy sued the international federation for revoking its license. Synergy is also suing the City of Cleveland saying it colluded with the federation to kill its deal. The suit specifically names Mayor Jackson's Government Affairs Director Valarie McCall. She told WKSU earlier this week that the City had concerns too, about Synergy's pace of fundraising and failure to document how it was spending funds the city allocated to the gay games effort. But she says there was no conspiracy.

Washington, D.C. and Boston both put in bids for the 2014 games, and are continuing to push for them, and hoping the legal controversy will give them an in. Richard Haber is the attorney for Cleveland Synergy Foundation, and says his group has worked too hard to get the games in Cleveland to watch them slip away.

Cleveland officials refused to be interviewed but Law Director Robert Triozzi issued a written statement that it will "aggressively defend against the lawsuit."

Kelly Stevens is spokesman for the Federation of Gay Games. He says a new local organization, including representatives of the gay community, needs to be in place by the end of the year, but the lawsuit won't change the fact that Cleveland will be the host city.

After the international federation revoked Cleveland Synergy Foundation's agreement, Synergy hired Cleveland attorney John Climaco. But he pulled out, citing a conflict of interest.