| x | ANNUAL                REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------|

| o | TRANSITIONAL                REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE                ACT OF 1934 |
|---|--------------------------------------------------------------------------------------------------------------------|

| Delaware                                       | 06-1120072                         |
|------------------------------------------------|------------------------------------|
| (State                or Other Jurisdiction of | (I.R.S.                Employer    |
| Incorporation                or Organization)  | Identification                No.) |

| 183                Plaines Road, Suite 2, Milford, Connecticut | 06461                     |
|----------------------------------------------------------------|---------------------------|
| (Address                of principal executive offices)        | (Zip                Code) |

----

**Item      1.** **Description      of Business.**

----

----

----

**RISK      FACTORS**

**Forward      Looking Statements**

**Our      Operating History Does Not Reflect Profitable Operations**

**We      May Not Be Able to Continue as a Going Concern**

----

**We      Have Not Been Able to Realize the Full Sales Value of a      Franchise**

**Our      Established Guidelines in Connection with the Sale of Franchises May Not be      Sufficient to Ensure the Viability of a Franchise Over the Long      Term**

**We      Have Been Dependent on Loans and Revenues from Affiliates to Sustain Our      Operations**

**We      Are Dependent on Corporate Sponsorships Which Have Been      Negligible**

**Our      Basketball Season Competes with Other Professional Sporting      Events**

----

**We      Lack Sufficient Capital to Promote the League**

**The      Meisenheimer Family Exercises Significant Control over Us**

**Dependence      upon Key Individual**

**We      Have a Limited Public Market for Our Stock**

**Penny      Stock Regulation**

----

**Item      2. **
**Description      of Property.**

three-quarters      of an acre of real property and an office building of approximately 6,000 square      feet. In the years ended February 29, 2008 and February 28, 2007, MCRE rented      this property to USBL, Cadcom, Inc., a corporation controlled by the two      officers of USBL, and other tenants under month to month agreements. Presently      the property is vacant and not earning any rental income. At February 29, 2008      the balance on the mortgage (due in August 2008) was approximately      $74,000.

**Item      3. **
**Legal      Proceedings.**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders.**

**Part      II**

| **Item 5.** | **Market                for Common Equity and Related Stockholder Matters and Small Business                Issuer Purchases of Equity                Securities.** |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Fiscal                2007 |   |
|---------------------------------------------|--------|----------------------------|--------|
|                                        |   | Closing                Bid |   |
|                                        |   |                       |   |   |   |
|                                        |   | High                       |   | Low |   |
| First                Quarter Ended 5/31/06  |   | $                          | 1.01   |   | $ | 0.70 |   |
| Second                Quarter Ended 8/31/06 |   | $                          | 1.01   |   | $ | 0.70 |   |
| Third                Quarter Ended 11/30/06 |   | $                          | 0.95   |   | $ | 0.77 |   |
| Fourth                Quarter Ended 2/28/07 |   | $                          | 0.78   |   | $ | 0.75 |   |

----

|                                        |   | Fiscal                2008 |   |
|---------------------------------------------|--------|----------------------------|--------|
|                                        |   | Closing                Bid |   |
|                                        |   |                       |   |   |   |
|                                        |   | High                       |   | Low |   |
| First                Quarter Ended 5/31/07  |   | $                          | 0.75   |   | $ | 0.60 |   |
| Second                Quarter Ended 8/31/07 |   | $                          | 0.50   |   | $ | 0.50 |   |
| Third                Quarter Ended 11/30/07 |   | $                          | 1.50   |   | $ | 0.51 |   |
| Fourth                Quarter Ended 2/29/08 |   | $                          | 0.54   |   | $ | 0.47 |   |

**EQUITY      COMPENSATION PLAN INFORMATION**

|                                                                      |   | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) |   | Weighted-average exercise price of outstanding options, warrants and rights (b) |   | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))                (c) |   |
|---------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity                compensation plans approved by security holders     |   |                                                                                                                                                                  | 0      |                                                                                                                         |   | N/A                                                                                                                                                                                                                                                 |   |   | 0 |   |
| Equity                compensation plans not approved by security holders |   |                                                                                                                                                                  | 0      |                                                                                                                         |   | N/A                                                                                                                                                                                                                                                 |   |   | 0 |   |
| Total                                                                     |   |                                                                                                                                                                  | 0      |                                                                                                                         |   | N/A                                                                                                                                                                                                                                                 |   |   | 0 |   |

----

**Item      6 .**
**Management's      Discussion and Analysis or Plan of Operation.**

**Overview**

**CRITICAL      ACCOUNTING POLICIES**

**Revenue      Recognition**

----

**Fiscal      Year 2008 Compared To Fiscal Year 2007**

**Liquidity      and Capital Resources**

----

**Off-Balance      Sheet Arrangements**

**Item      7.**
** **
**Financial      Statements.**

| **Item              8.** | **Changes                In and Disagreements with Accountants on Accounting and Financial                Disclosure.** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------|

**Item      8AT.**
**Controls      and Procedures.**

**Management’s      Annual Report on Internal Control over Financial      Reporting.**

----

**Item      8B.**
**Other      Information.**

**PART      III**

| **Item              9.** | **Directors,                Executive Officers, Promoters, Control Persons and Corporate Governance;                Compliance with Section 16(a) of the Exchange                Act.** |
|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                      |   | Age    |   | Position                                            |
|-------------------------------------------|--------|--------|--------|-----------------------------------------------------|
|                                      |   |   |   |                                                |
| Daniel                T. Meisenheimer III |   | 57     |   | Chairman                of the Board and President  |
|                                      |   |   |   |                                                |
| Richard                C. Meisenheimer    |   | 54     |   | Chief                Financial Officer and Director |

**Background      of Executive Officers and Directors**

----

**Section      16(a) Beneficial Ownership Reporting Compliance**

**Code      of Ethics**

**Item      10.**
**Executive      Compensation.**

----

| **Item              11.** | **Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters.** |
|---------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| Name                and Address of Beneficial Owner     | Amount                and Nature of Beneficial                Ownership | Approximate                Percent of Class           |
|---------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------|
|                                                    |                                                                    |                                                  |
| Daniel                T. Meisenheimer III (1)           | 143,998                Preferred Stock (1)                              | 13.0%                                                 |
| c/o                The United States Basketball League  | 437,400                Common Stock                                     | 12.6%                                                 |
| 183                Plains Road, Suite 2                 |                                                                    |                                                  |
| Milford,                CT 06461                        |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
| Estate                of Daniel T. Meisenheimer, Jr.(2) | 182,723                Preferred Stock                                  | 16.5%                                                 |
| c/o                Spectrum Associates                  | 12,000                Common Stock                                      |                       * |
| 183                Plains Road, Suite 1                 |                                                                    |                                                  |
| Milford,                CT 06461                        |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
| Richard                C. Meisenheimer(3)               | 142,285                Preferred Stock                                  | 12.9%                                                 |
| 884                Robert Treat Ext.                    | 5,000                Common Stock                                       |                       * |
| Orange,                CT 06477                         |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
| Meisenheimer                Capital Inc.                | 140,000                Preferred Stock                                  | 12.7%                                                 |
| 183                Plains Road, Suite 2                 | 2,095,000                Common Stock                                   | 60.2%                                                 |
| Milford,                CT 06461                        |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
| Spectrum                Associates, Inc. (4)            | 376,673                Preferred Stock                                  | 34.1%                                                 |
| 183                Plains Road, Suite 2                 | 231,857                Common Stock                                     | 6.7%                                                  |
| Milford,                CT 06461                        |                                                                    |                                                  |
|                                                    |                                                                    |                                                  |
| All                Officers and Directors as a Group    | 286,283                Preferred Stock                                  | 25.9%                                                 |
|                                                    | 442,400                Common Stock                                     | 12.7%                                                 |

----

**Item      12.** **Certain      Relationships and Related Transactions, and Director      Independence.**

**Loans      **

**Dependency      on Affiliates**

**Director      Independence**

**Item      13.** **Exhibits.**

| a)     | Exhibits                                                                           |
|--------|------------------------------------------------------------------------------------|
|   |                                                                               |
| *3(i)  | Certificate                of Incorporation (May 29, 1984)                         |
|   |                                                                               |
| *3(i)a | Amended                Certificate of Incorporation (Sept. 4, 1984)                |
|   |                                                                               |
| *3(i)b | Amended                Certificate of Incorporation (March 5,                1986) |

----

| *3(i)c | Amended                Certificate of Incorporation (Feb. 19, 1987)                                  |
|--------|------------------------------------------------------------------------------------------------------|
|   |                                                                                                 |
| *3(i)d | Amended                Certificate of Incorporation (June 30, 1995)                                  |
|   |                                                                                                 |
| *3(i)e | Amended                Certificate of Incorporation (January 12, 1996)                               |
|   |                                                                                                 |
| *3(i)f | Certificate                of Renewal (June 23, 1995)                                                |
|   |                                                                                                 |
| *3(i)g | Certificate                of Renewal (May 22, 2000)                                                 |
|   |                                                                                                 |
| *3.9   | By-Laws                of USBL                                                                       |
|   |                                                                                                 |
| *3.10  | Amended                By-Laws                                                                       |
|   |                                                                                                 |
| +10.1  | Standard                Franchise Agreement of USBL                                                  |
|   |                                                                                                 |
| 21     | Subsidiaries—Meisenheimer                Capital Real Estate Holdings, Inc.                    |
|   |                                                                                                 |
| 31.1   | Certification                of President (principal executive officer)                              |
|   |                                                                                                 |
| 31.2   | Certification                of Chief Financial Officer (principal financial                officer) |

----

| 32 | Certification                pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*****

**+**

**Item      14. **
**Principal      Accountant Fees and Services.**

**Audit      Fees**

**Tax      Fees**

**All      Other Fees**

**Pre-Approval      Policies**

----

**UNITED      STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY**

| Years                Ended February 29, 2008 and February 28, 2007      |   | Pages  |
|-------------------------------------------------------------------------|--------|--------|
|                                                                    |   |   |
| **Financial                Statements**                                 |   |   |
|                                                                    |   |   |
| Report                of Independent Registered Public Accounting Firms |   | F-2    |
|                                                                    |   |   |
| Consolidated                Balance Sheets                              |   | F-3    |
|                                                                    |   |   |
| Consolidated                Statements of Operations                    |   | F-5    |
|                                                                    |   |   |
| Consolidated                Statements of Stockholders' Deficiency      |   | F-5    |
|                                                                    |   |   |
| Consolidated                Statements of Cash Flows                    |   | F-6    |
|                                                                    |   |   |
| Notes                to Consolidated Financial Statements               |   | F-7    |

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

| /s/                Michael T. Studer CPA P.C. |
|-----------------------------------------------|

----

**UNITED      STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY**

| **Consolidated                Balance Sheets** |
|------------------------------------------------|

----

| *February                29, 2008 and February 28, 2007* |
|----------------------------------------------------------|

|                                                                                                                                 |   | February 29, 2008 |       | February 28, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|-----------------------------|--------|
| **Assets**                                                                                                                           |   |                        |       |                        |   |   |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| Current                Assets:                                                                                                       |   |                        |       |                        |   |   |   |
| Cash                and cash equivalents                                                                                             |   | $                           | 17,975     |                        | $      | 4,061 |   |
| Marketable                equity securities                                                                                          |   |                        | 3,642      |                        |   | 1,149 |   |
| Inventory                                                                                                                            |   |                        | 5,000      |                        |   | 8,573 |   |
| Prepaid                expenses and other current assets                                                                             |   |                        | -          |                        |   | 600 |   |
| Due                from related parties                                                                                              |   |                        | 28,895     |                        |   | 14,459 |   |
| Total                Current Assets                                                                                                  |   |                        | 55,512     |                        |   | 28,842 |   |
| Property,                net of accumulated depreciation of $24,614 and 19,422,                respectively                          |   |                        | 252,386    |                        |   | 257,578 |   |
| Total                Assets                                                                                                          |   | $                           | 307,898    |                        | $      | 286,420 |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| **Liabilities                and Stockholders' Deficiency**                                                                          |   |                        |       |                        |   |   |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| Current                Liabilities:                                                                                                  |   |                        |       |                        |   |   |   |
| Accounts                payable and accrued expenses                                                                                 |   | $                           | 73,375     |                        | $      | 59,902 |   |
| Judgement                Reserve                                                                                                     |   |                        | -          |                        |   | 150,000 |   |
| Credit                card obligations                                                                                               |   |                        | 96,688     |                        |   | 91,                558 |   |
| Due                to related parties                                                                                                |   |                        | 994,604    |                        |   | 691,432 |   |
| Current                portion of mortgage payable                                                                                   |   |                        | 74,245     |                        |   | 10,697 |   |
| Total                Current Liabilities                                                                                             |   |                        | 1,238,912  |                        |   | 1,003,589 |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| Due                to related parties                                                                                                |   |                        | 50,000     |                        |   | 50,000 |   |
| Mortgage                Payable                                                                                                      |   |                        | -          |                        |   | 74,178 |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| Total                Liabilities                                                                                                     |   |                        | 1,288,912  |                        |   | 1,127,767 |   |
|                                                                                                                                 |   |                        |       |                        |   |   |   |
| Stockholders'                Deficiency:                                                                                             |   |                        |       |                        |   |   |   |
| Common                stock, $0.01 par value, 30,000,000 shares authorized; 3,522,502 shares                issued                   |   |                        | 35,225     |                        |   | 35,225 |   |
| Preferred                stock, $0.01 par value, 2,000,000 shares authorized; 1,105,679 shares                issued and outstanding |   |                        | 11,057     |                        |   | 11,057 |   |
| Additional                paid-in capital                                                                                            |   |                        | 2,668,155  |                        |   | 2,668,155 |   |
| Deficit                                                                                                                              |   |                        | (3,652,997 | )                           |   | (3,513,330 | ) |
| Treasury                stock, at cost; 39,975 shares of common stock                                                                |   |                        | (42,454    | )                           |   | (42,454 | ) |
| Total                Stockholders' Deficiency                                                                                        |   |                        | (981,014   | )                           |   | (841,347 | ) |
| Total                Liabilities and Stockholders' Deficiency                                                                        |   | $                           | 307,898    |                        | $      | 286,420 |   |

*See      notes to consolidated financial statements.*

----

**UNITED      STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY**

**Consolidated      Statements of Operations**

----

| *Years                  Ended February 29, 2008 and February 28, 2007*                                          |   | 2008   |      | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|
| Revenues:                                                                                                       |   |   |      |   |   |   |   |
| Initial                  franchise fees                                                                         |   | $      | -         |   | $      | - |   |
| Continuing                  franchise fees                                                                      |   |   | 98,200    |   |   | 109,250 |   |
| Advertising                                                                                                     |   |   | 45,000    |   |   | 243,500 |   |
| Other                                                                                                           |   |   | 78,198    |   |   | 60,830 |   |
|                                                                                                            |   |   | 221,398   |   |   | 413,580 |   |
| Operating                  Expenses:                                                                            |   |   |      |   |   |   |   |
| Consulting                                                                                                      |   |   | 85,500    |   |   | 106,200 |   |
| Referee                  fees                                                                                   |   |   | 33,700    |   |   | 46,141 |   |
| Salaries                                                                                                        |   |   | 58,800    |   |   | 57,678 |   |
| Travel                  and promotion                                                                           |   |   | 19,390    |   |   | 59,288 |   |
| Depreciation                                                                                                    |   |   | 5,192     |   |   | 5,192 |   |
| Judgment                  Reserve                                                                               |   |   | -         |   |   | 150,000 |   |
| Other                                                                                                           |   |   | 120,681   |   |   | 101,979 |   |
|                                                                                                            |   |   | 323,263   |   |   | 526,478 |   |
| Loss                  from Operations                                                                           |   |   | (101,865  | )      |   | (112,898 | ) |
|                                                                                                            |   |   |      |   |   |   |   |
| Other                  Income (Expenses):                                                                       |   |   |      |   |   |   |   |
| Interest                  expense                                                                               |   |   | (37,105   | )      |   | (29,009 | ) |
| Gain                  (loss) on marketable equity securities                                                    |   |   | (714      | )      |   | (3,294 | ) |
| Interest                  income                                                                                |   |   | 17        |   |   | 102 |   |
|                                                                                                            |   |   | (37,802   | )      |   | (32,201 | ) |
|                                                                                                            |   |   |      |   |   |   |   |
| Net                  Loss                                                                                       |   | $      | (139,667  | )      | $      | (145,099 | ) |
|                                                                                                            |   |   |      |   |   |   |   |
|                                                                                                            |   |   |      |   |   |   |   |
| Net                  Loss Per Common Share – basic and diluted                                       |   | $      | (0.04     | )      | $      | (0.04 | ) |
|                                                                                                            |   |   |      |   |   |   |   |
| Weighted                  Average Number of Common Shares Outstanding - basic and                  diluted |   |   | 3,487,627 |   |   | 3,483,165 |   |

*See      notes to consolidated financial statements.*

----

| **UNITED                STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY** **Consolidated                Statements of Stockholders’Deficiency** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *Years                Ended February 29, 2008 and February 28,                2007* |
|-------------------------------------------------------------------------------------|

|                                                       |   | Common Stock |            | Preferred Stock |   | Additional  |   |   |      |    |   | Total   |   |
|------------------------------------------------------------|--------|-------------------|-----------------|----------------------|--------|-------------|--------|--------|-----------|---------|--------|---------|--------|
|                                                       |   | Shares            |            |                 |   | Shares      |   |   |      | Paid-in |   |    |   | Treasury Stock |   | Stockholders’ |   |
|                                                       |   | Outstanding       |            | Amount               |   | Outstanding |   | Amount |      | Capital |   | Deficit |   | Shares |   | Amount |   | Deficiency |   |
|                                                       |   |              |            |                 |   |        |   |   |      |    |   |    |   |   |   |   |   |   |   |
| Balance, February 28, 2006                  |   |              | 3,527,602  |                 | $      | 35,276      |   |   | 1,105,679 |    | $      | 11,057  |   | $ | 2,671,929 |   | $ | (3,368,231 | ) |   | 39,975 |   | $ | (42,454 | ) | $ | (692,423 | ) |
| Cancellation                  of stock issued for services |   |              | (5,100          | )                    |   | (51         | )      |   | -         |    |   | -       |   |   | (3,774 | ) |   | - |   |   | - |   |   | - |   |   | (3,825 | ) |
| Net                  Loss                                  |   |              | -               |                 |   | -           |   |   | -         |    |   | -       |   |   | - |   |   | (145,099 | ) |   | - |   |   | - |   |   | (145,099 | ) |
| Balance,                  February 28, 2007                |   |              | 3,522,502       |                 |   | 35,225      |   |   | 1,105,679 |    |   | 11,057  |   |   | 2,668,155 |   |   | (3,513,330 | ) |   | 39,975 |   |   | (42,454 | ) |   | (841,347 | ) |
|                                                       |   |              |            |                 |   |        |   |   |      |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  Loss                                  |   |              | -               |                 |   | -           |   |   | -         |    |   | -       |   |   | - |   |   | (139,667 | ) |   | - |   |   | - |   |   | (139,667 | ) |
| Balance,                  February 29, 2008                |   |              | 3,522,502       |                 | $      | 35,225      |   |   | 1,105,679 |    | $      | 11,057  |   | $ | 2,668,155 |   | $ | (3,652,997 | ) |   | 39,975 |   | $ | (42,454 | ) | $ | (981,014 | ) |

*See      notes to consolidated financial statements*

----

**UNITED      STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY**

| **Consolidated                Statements of Cash Flows** |   |   |
|----------------------------------------------------------|--------|--------|

----

| *Years                Ended February 29, 2008 and February 28, 2007*         |   | 2008   |                        | 2007   |   |
|------------------------------------------------------------------------------|--------|--------|-----------------------------|--------|--------|
|                                                                         |   |   |                        |   |   |
| Cash                Flows from Operating Activities:                         |   |   |                        |   |   |  |   |
| Net                loss                                                      |   | $      | (139,667                    | )      | $      | (145,099 | ) |
| Adjustments                to reconcile net loss to net cash                 |   |   |                        |   |   |   |   |
| provided                by (used in) operating activities:                   |   |   |                        |   |   |   |   |
| Depreciation                                                                 |   |   | 5,192                       |   |   | 5,192 |   |
| Non-cash                compensation                                         |   |   | -                           |   |   | (3,825 | ) |
| Judgment                reserve                                              |   |   | (150,000                    | )      |   | 150,000 |   |
|                                                                         |   |   |                        |   |   |   |   |
| Change                in operating assets and liabilities:                   |   |   |                        |   |   |   |   |
| Marketable                equity securities                                  |   |   | (2,493                      | )      |   | 46,255 |   |
| Inventory                                                                    |   |   | 3,573                       |   |   | - |   |
| Prepaid                expenses and other current assets                     |   |   | 600                         |   |   | - |   |
| Accounts                payable and accrued expenses Credit card obligations |   |   | 13,473                5,130 |   |   | (15,051)                2,591 |   |
| Net                Cash Provided By (Used In) Operating Activities           |   |   | (264,192                    | )      |   | 40,063 |   |
|                                                                         |   |   |                             |   |   |   |   |
| Cash                Flows from Financing Activities:                         |   |   |                        |   |   |   |   |
|                                                                         |   |   |                        |   |   |   |   |
| Decrease                (increase) in due from related parties               |   |   | (14,436                     | )      |   | (14,459 | ) |
| Increase                (decrease) in due to related parties                 |   |   | 303,172                     |   |   | (17,212 | ) |
| Decrease                in mortgage payable                                  |   |   | (10,630                     | )      |   | (9,848 | ) |
| Net                Cash Provided By (Used In) Financing Activities           |   |   | 278,106                     |   |   | (41,519 | ) |
|                                                                         |   |   |                        |   |   |   |   |
| Net                Increase (Decrease) in Cash                               |   |   | 13,914                      |   |   | (1,456 | ) |
| Cash                and Cash Equivalents, beginning of year                  |   |   | 4,061                       |   |   | 5,517 |   |
| Cash                and Cash Equivalents, end of year                        |   | $      | 17,975                      |   | $      | 4,061 |   |
| Supplemental                disclosures of cash flow information:            |   |   |                        |   |   |   |   |
| Interest                paid                                                 |   | $      | 37,105                      |   | $      | 29,009 |   |
| Income                tax paid                                               |   | $      | _                -          |   | $      | - |   |

*See      notes to consolidated financial statements.*

----

**UNITED      STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

| **1.** | **Description                of Business and Basis of Presentation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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|   | United                States Basketball League, Inc. ("USBL"), incorporated in Delaware                on May                29, 1984, operates a professional summer basketball league through                franchises located in the eastern and midwestern parts of the United                States. USBL’s wholly owned subsidiary Meisenheimer Capital Real Estate                Holdings, Inc. (“MCREH”), owns a commercial building in Milford,                Connecticut. In December 2007, USBL announced the suspension of its                2008                season and its decision to increase the number of franchises before                scheduling the next season. At                February 29, 2008, USBL and MCREH (collectively, the “Company”) had                negative working capital of $1,183,400, a stockholders’ deficiency of                $981,014, and accumulated losses of $3,652,997. This factor, as well                as                the Company’s reliance on related parties (see notes 7 and 10), raises                substantial doubt as to the Company's ability to continue as a going                concern. The                Company is making efforts to raise equity capital, revitalize the                league                and market new franchises. However, there can be no assurance that                the                Company will be successful in accomplishing its objectives. The                consolidated financial statements do not include any adjustments                that                might be necessary should the Company be unable to continue as a                going                concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| **2.** | **Summary                of Significant Accounting Policies**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   | ***Principles                of consolidation -***                The accompanying consolidated financial statements include the accounts                of                USBL and MCREH. All significant intercompany accounts and transactions                have been eliminated in consolidation. ***Cash                and cash equivalents -***                The Company considers all highly liquid debt instruments purchased                with a                maturity of three months or less to be cash equivalents. ***Fair                value disclosures *****–**The                carrying amounts of the Company’s financial instruments, which consist of                cash and cash equivalents, marketable equity securities, due from                related                parties, accounts payable and accrued expenses, credit card obligations,                due to related parties, and mortgage payable, approximate their fair                value                due to their short term nature or based upon values of comparable                instruments. ***Marketable                equity securities –***Marketable                equity securities are recorded at fair value with unrealized gains                and                losses included in income. The Company has classified its investment                in                marketable equity securities as trading securities. The change in                net                unrealized holding gain (loss) included in earnings for the years                ended                February 29, 2008 and 2007 was $(714) and $(14,861)                respectively. ***Inventory                -***                Inventory consists of USBL trading cards, basketball uniforms, sporting                equipment and printed promotional material and is stated at the lower                of                cost or market. Certain inventory was obtained through barter transactions                whereby the USBL granted suppliers various advertising space (print)                and                airtime (television) in return for the supplier's products. These                transactions were accounted for based upon the fair values of the                assets                and services involved in the transactions. ***Depreciation                expense -***                Depreciation is computed using the straight-line method over the                building's estimated useful life (approximately 30 years). ***Revenue                recognition -***                The Company generally uses the accrual method of accounting in these                financial statements. However, due to the uncertainty of collecting                royalty and franchise fees from the franchisees, the USBL records                these revenues upon receipt of cash consideration paid or the performance                of related services by the franchisee. Franchise fees earned in                nonmonetary transactions are recorded at the fair value of the franchise                granted or the service received, based on which value is more readily                determinable. Upon the granting of the franchise, the Company has                performed essentially all material conditions related to the sale.                The                offering price of a new franchise at February 29, 2008 was                $100,000. |

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|   | **UNITED                STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY****NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS** The                Company generates advertising revenue from fees for area signage,                tickets,                and program and year book advertising space. Advertising revenue                is                recognized over the period that the advertising space is made available                to                the user. Fees                charged to teams to allow them to relocate are recognized as revenue                upon                collection of the fee. Souvenir sales, which are generated on the                Company's web site, are recorded upon shipment of the order. Essentially                all orders are paid by credit card. ***Income                taxes -***                Deferred tax assets and liabilities are determined based on differences                between financial reporting and tax bases of assets and liabilities,                and                are measured using the enacted tax rates and laws that will be in                effect                when the differences are expected to reverse. A valuation allowance                has                been fully provided for                the deferred tax asset (approximating $640,000) attributable to the                USBL                net operating loss carryforward. As                of February 29, 2008, USBL had a net operating loss carryforward                of                approximately $1,600,000 available to offset future taxable income.                The                carryforward expires in varying amounts through year ended February                29,                2028. ***Estimates                -***                The preparation of financial statements in conformity with generally                accepted accounting principles requires management to make estimates                and                assumptions that affect the reported amounts of assets and liabilities                and                disclosure of contingent assets and liabilities at the date of the                financial statements and the reported amounts of revenues and expenses                during the reporting period. Actual results could differ from those                estimates. ***Advertising                costs –***                Advertising costs are expensed as incurred and were $1,080 and $2,282                for                the years ended February 29, 2008 and February 28, 2007, respectively.                 ***Stock-based                compensation -***                Stock compensation is accounted for at fair value in accordance with                SFAS                No. 123 and 123(R) "Accounting for Stock-Based Compensation". No                stock                options were granted during the years ended February 29, 2008 and                2007 and                none are outstanding at February 29, 2008. ***Earnings                (loss) per share –***                SFAS No. 128, "Earnings Per Share" establishes standards for computing                and                presenting earnings (loss) per share (EPS). SFAS No. 128 requires                dual                presentation of basic and diluted EPS. Basic EPS excludes dilution                and is                computed by dividing net income available to common stockholders                by the                weighted average number of common shares outstanding for the period.                Diluted EPS reflects the potential dilution that could occur if stock                options or convertible securities were exercised or converted into                common                stock. The Company did not include the 1,105,679 shares of convertible                preferred stock in its calculation of diluted loss per share for                all                periods presented as the result would have been antidilutive. ***Comprehensive                income -***                Other comprehensive income (loss) refers to revenues, expenses, gains                and                losses that under generally accepted accounting principles are included                in                comprehensive income but are excluded from net income (loss) as these                amounts are recorded directly as an adjustment to stockholders' equity.                Comprehensive loss was equivalent to net loss for all periods                presented. ***Referee                fees -***                The Company's principal obligation under the franchise agreements                is to                provide referees for the league. |
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|   |  **UNITED                STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY****NOTES                TO CONSOLIDATED FINANCIAL                STATEMENTS** |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| **3.** | **Due                from Related Parties** |
|--------|---------------------------------------------|

| Due                from related parties consist of:                     |   |              |   |              |   |
|-------------------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|
|                                                                    |   | February 29, |   | February 28, |   |
|                                                                    |   | 2008              |   | 2007              |   |
| Due                from Meisenheimer Capital, Inc. (“MCI”), |   |              |   |              |   |   |   |
| controlling                stockholder of USBL, non-interest            |   |              |   |              |   |   |   |
| bearing,                due on demand                                   |   | $                 | 26,895 |              | $      | 14,459 |   |
|                                                                    |   |              |   |              |   |   |   |
| Due                from Synercom, Inc. (“Synercom”), a      |   |              |   |              |   |   |   |
| corporation                controlled by the two officers               |   |              |   |              |   |   |   |
| of                USBL, non-interest bearing, due on demand             |   |              | 2,000  |              |   | - |   |
|                                                                    |   |              |   |              |   |   |   |
| Total                                                                   |   | $                 | 28,895 |              | $      | 14,459 |   |

| **4.** | **Property,                Net**         |
|--------|------------------------------------------|
|   |                                     |
|   | Property                net consists of: |

|                                         |   | February 29,2008 |                | February 28,2007 |   |
|----------------------------------------------|--------|-----------------------|---------------------|-----------------------|--------|
| Land                                         |   | $                     | 121,253             |                  | $      | 121,253 |   |
| Building                                     |   |                  | 155,747             |                  |   | 155,747 |   |
|                                         |   |                  |                |                  |   |   |   |
| Total                                        |   |                  | 277,000             |                  |   | 277,000 |   |
| Less                accumulated depreciation |   |                  | 24,614              |                  |   | 19,422 |   |
| Property,                net                 |   | $                     |  252,386  |                  | $      | 257,578 |   |

|   | MCREH                leases the property to other tenants on a month-to-month basis. Rental                income from the other tenants (which is included in other revenues                in the                consolidated statements of operations) for the years ended February                29,                2008 and February 28, 2007 was $78,000 and $59,500,                respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| **5.** | **Judgment                Reserve** In                December 2006, the Company learned that Lexcar, LLC was granted a                default                judgment against USBL on May 9, 2006 in the amount of $186,378 in                an                action pending in the United States District Court for the Southern                District of New York. The action alleged that USBL breached its agreement                with Lexcar by failing to make a payment due of $25,000 and by failing                to                repurchase the Westchester Wildfire franchise for $150,000. At November                30, 2006, the Company provided a $150,000 reserve for the ultimate                resolution of this matter. Effective                July 31, 2007, the Company and Lexcar, LLC executed a settlement                agreement                whereby Lexcar was paid $140,000 in full and final settlement of                this                matter. The $10,000 lower amount paid then reserved for has been                reflected                in the accompanying statements of operations for the year ended February                29, 2008 as a reduction in other operating expenses.   |

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|                                                    | **UNITED                STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY****NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS**                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **6.**                                                  | **Credit                Card Obligations** USBL                uses credit cards of related parties to pay for certain travel and                promotion expenses. USBL has agreed to pay the credit card balances,                including related interest. The credit card obligations bear interest                at                rates ranging up to 30% and are due in monthly installments of principal                and interest. |
|  **7.**                                            |  **Due                to Related Parties**                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Due                to related parties consist of: |

|                                                                                                                                                                                                       |   | February 29,2008 |      | February 28,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|-----------------------|--------|
| USBL                loans payable to Spectrum Associates, Inc. (“Spectrum”), a corporation                controlled by the two officers of USBL, interest at 6%, due on                demand |   | $                     | 553,919   |                  | $      | 436,920 |   |
| USBL                loans payable to the two officers of USBL, interest at 6%, due on                demand                                                                                                |   |                  | 300,685   |                  |   | 254,512 |   |
| MCREH                note payable to mother of the two officers of USBL, interest of                6%, due December 31, 2011                                                                              |   |                  | 50,000    |                  |   | 50,000 |   |
| MCREH                note payable to Spectrum, interest at 7%, due on demand, secured                by MCREH property                                                                                     |   |                  | 25,000    |                  |   | - |   |
| MCREH                note payable to president of USBL, interest at 7%, due on demand,                secured by MCREH property                                                                            |   |                  | 45,000    |                  |   | - |   |
| MCREH                note payable to mother of the two officers of USBL, interest at                7%,                due on demand, secured by MCREH property                                            |   |                  | 70,000    |                  |   | - |   |
|                                                                                                                                                                                                       |   |                  |      |                  |   |   |   |
| Total                                                                                                                                                                                                      |   |                  | 1,044,604 |                  |   | 741,432 |   |
| Less                current portion                                                                                                                                                                        |   |                  | (994,604  | )                     |   | (691,432 | ) |
| Noncurrent                portion                                                                                                                                                                          |   | $                     | 50,000    |                  | $      | 50,000 |   |

|   | For                the years ended February 29, 2008 and February 28, 2007, interest                due                under the USBL loans were waived by the respective                lenders.                                                                                                                                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                          |
| **8.** | **Mortgage                Payable**                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                          |
|   | The                mortgage bears interest at 7.06% per annum, is payable in monthly                installments of principal and interest of $1,362 through July 2008,                and                provides for a balloon payment of $69,373 in August 2008. The                mortgage is guaranteed by the Company's officers. |

| **9.**  | **Stockholders’                Equity**                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                  |
|    | Each                share of common stock has one vote. Each share of preferred stock                has five                votes, is entitled to a 2% non-cumulative annual dividend, and is                convertible at any time into one share of common stock. |
|    |                                                                                                                                                                                                                                                                  |
| **10.** | **Related                Party Transactions**                                                                                                                                                                                                                         |
|    |                                                                                                                                                                                                                                                                  |
|    | In                each of the years ended February 29, 2008 and February 28, 2007,                USBL                included in continuing franchise fees revenues from MCI and Spectrum                of                $75,000.                                  |

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|   | **UNITED                STATES BASKETBALL LEAGUE, INC. AND SUBSIDIARY****NOTES                TO CONSOLIDATED FINANCIAL STATEMENTS** In                the years ended February 29, 2008 and February 28, 2007, USBL received                advertising revenues from Spectrum totaling $45,000 and $243,500,                respectively. In                the years ended February 29, 2008 and February 28, 2007, MCREH received                rental income from Cadcom, Inc., a corporation controlled by the                two                officers of USBL, totaling $78,000 and $55,500, respectively. In                the years ended February 29, 2008 and February 28, 2007, USBL included                in                consulting fees expenses to MCI of $75,000 and $90,000                respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **11.**       | **Commitment                and Contingencies**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|          | Rental                Agreement In                September 2007, the Company moved its office from the MCREH building                to a                building owned by Genvest LLC, an organization controlled by the                two                officers of USBL. Improvements to the company’s space there were completed                in February 2008. Pursuant to a verbal agreement, the Company is                to pay                Genvest monthly rentals of $1,000 commencing March 2008 and expiring                December 2009. Financial                Advisory Agreement On                November 28, 2007, USBL executed an agreement with Colebrooke Capital,                Inc. (“Colebrook”). The agreement provides financial advisory services to                USBL. As compensation, USBL is to pay Colebrooke monthly fees of                $3,000                commencing December 15, 2007. In the event that a financing is consummated                with a participant introduced to USBL by Colebrooke or with which                Colebrooke was in discussions with on behalf of USBL, Colebrooke                is to                receive consideration equal to 7.5% of the total capital raised.                For non                financing capital transactions, Colebrooke is to earn a cash fee                equal to                5% of the Transaction Value; alternatively and at Colebrooke’s option,                Colebrooke may receive 6% of the Transaction Value in an equivalent                form                to that received or issued by USBL. The term of the agreement is                four                months and renews automatically unless either party has provided                written                notice of cancellation. Colebrooke’s engagement may be terminated by USBL                or Colebrooke at any time upon 30 days written notice from one party                to                the other. Suspension                of 2008 Season In                December 2007, USBL announced the suspension of its 2008 season.                This                suspension may result in claims and legal actions from franchisees.                As of                June 10, 2008, no such claims and legal actions have been                made. |
|  **12.** | **Subsequent                Event**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|          |  In                April 2008, Cadcom vacated the MCREH property. Presently, MCREH has                no                tenants at the property and is not earning any rental                income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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**SIGNATURES**

| UNITED                STATES BASKETBALL LEAGUE, INC. |
|------------------------------------------------------|
|                                                 |
| /s/                Daniel T. Meisenheimer, III       |
| Daniel                T. Meisenheimer, III           |
| President                                            |

| Name                                             |   | Capacity                                                                                                                           |   | Date                           |
|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|
|                                             |   |                                                                                                                               |   |                           |
| /s/                  Daniel T. Meisenheimer, III |   |                                                                                                                               |   |                           |
| Daniel                  T. Meisenheimer, III     |   | Director                  and President(principal                  executive officer)                                              |   | June                  12, 2008 |
|                                             |   |                                                                                                                               |   |                           |
| /s/                  Richard C. Meisenheimer     |   |                                                                                                                               |   |                           |
| Richard                  C. Meisenheimer         |   | Director                  and Chief FinancialOfficer                  (principal financial andaccounting                  officer) |   | June                  12, 2008 |

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| *3(i) | Certificate                  of Incorporation (May 29, 1984) |
|-------|--------------------------------------------------------------|

| *3(i)a | Amended                  Certificate of Incorporation (Sept. 4,                  1984) |
|--------|----------------------------------------------------------------------------------------|

| *3(i)b | Amended                  Certificate of Incorporation (March 5,                  1986) |
|--------|----------------------------------------------------------------------------------------|

| *3(i)c | Amended                  Certificate of Incorporation (Feb. 19,                  1987) |
|--------|----------------------------------------------------------------------------------------|

| *3(i)d | Amended                  Certificate of Incorporation (June 30,                  1995) |
|--------|----------------------------------------------------------------------------------------|

| *3(i)e | Amended                  Certificate of Incorporation (January 12,                  1996) |
|--------|-------------------------------------------------------------------------------------------|

| *3(i)f | Certificate                  of Renewal (June 23, 1995) |
|--------|---------------------------------------------------------|

| *3(i)g | Certificate                  of Renewal (May 22, 2000) |
|--------|--------------------------------------------------------|

| *3.9 | By-Laws                  of USBL |
|------|----------------------------------|

| *3.10 | Amended                  By-Laws |
|-------|----------------------------------|

| +10.2 | Standard                  Franchise Agreement of USBL |
|-------|-------------------------------------------------------|

| 21 | Subsidiaries—Meisenheimer                  Capital Real Estate Holdings, Inc. |
|----|-------------------------------------------------------------------------------------|

| 31.1 | Certification                  of President (principal executive                  officer) |
|------|--------------------------------------------------------------------------------------------|

| 31.2 | Certification                  of Chief Financial Officer (principal financial                  officer) |
|------|----------------------------------------------------------------------------------------------------------|

| 32 | Certification                  pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*****

**+**

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