In a previous blog I shared the speculation that,upon the recommendation of Michael Reinsdorf, Managing Member and Co-Founder of the International Facilities Group, LLC (IFG), the City of Glendale hired Beacon Sports to negotiate with any and all potential buyers of the Coyotes. George Fallar, in his blog, www.nebulousverbosity.com, has fleshed out a great deal of information about Beacon Sports.

It’s time to revisit Beacon Sports. We know that the City hired them to produce a report, Survey of Professional Sports Venue Agreements – January 2011. There remains speculation about Beacon’s involvement in the Moyes bankruptcy. It appeared that IFG did not want to get involved in the bankruptcy and Michael Reinsdorf may have suggested the use of Beacon.

Why does any of this matter? Well, in 2005 suit was filed against Beacon Sports, IFG and Michael Reinsdorf by West Coast Arena Ventures, LLC in the Superior Court of California. That is fact. Since I do not know the disposition of the suit, I will use “allegedly” liberally.

Two groups, The Schwartz Group and John Cambianica Associates Architects formed West Coast Arena Ventures, LLC and hired Beacon to evaluate the project’s potential and to assist in development of the project. Allegedly, Gerald Sheehan, Managing Director of Beacon, signed a confidentially and non-compete clause with West Coast in pursuit of the development of a sports complex “in the High Desert of Southern California” (from filed complaint, page 3).

The suit then goes on to allege that Beacon presented the project to Michael Reinsdorf and IFG allegedly shared material confidential information without having Reinsdorf or IFG sign a confidentiality/non-compete agreement. In the complaint Reinsdorf is alleged to have met in person on behalf of IFG with officials from the City of Palmdale to present what was essentially West Coast’s project. It is claimed in the suit that as a result West Coast lost a business opportunity with Palmdale as a result. All of this information is readily available.

So what does this have to do with the City of Glendale? We know that Glendale hired Beacon
Sports to do a study in 2011 to provide a positive rationale for the Hulsizer deal. That deal included the City’s purchase of parking rights for $100M. We know that Glendale already has a business relationship with Jerry Reinsdorf, owner of the White Sox and one of the tenants of Camelback Ranch, a city owned facility. We know that the City hired IFG to manage construction of Jobing.com arena. We know that, allegedly, Beacon Sports, breached a previous confidentiality/non-compete agreement in 2004-05.

Who is to say that if the City has indeed hired Beacon Sports to negotiate a sale of the Coyotes, whether Beacon Sports would share information with a Reinsdorf?? If the Coyotes end up being purchased by a Reinsdorf, it should be examined very carefully.  Based upon the original Reinsdorf proposal to buy the Coyotes, they wanted an “opt out” clause of 5 years. That is not enough time to build the kind of fan base needed to make the team viable. From all appearances the Coyotes would be moved. How many dedicated fans are willing to invest financially and emotionally in a team that could move?