I'd stay away from the coach and his players but that presents the Legion problem.
I thought you could have an independent Legion team if you had a Legion member associated with or a coach of the team (not really sure). Will have to do insurance through the Legion.
Are there any other Legion posts willing to sponsor/back you at least in name?
Like what doing with your team; I wouldn't break up that group of kids (and parents). Really, the whole group of you have done a good job keeping the team together. Very rare these days.
Good luck...sounds like you deserve some.