Rumors are like ripples in a cornfield. They are ephemeral, but they do indicate which way the wind is blowing. This little gem of thought comes from the book Aliens Adored by Susan J. Palmer.
In the absence of fact rumors grow and develop a life of their own. It must be Newton’s or somebody’s law that when a vacuum is created it will quickly fill with rumor and speculation.
Horatio Skeete
The newest…well as of this morning…rumor has it that Interim City Manager Skeete may be using Beacon Sports Capital, www.beaconsportscapital.com, as the City’s negotiator with any and all groups/individuals who wish to buy the Coyotes and secure the arena management contract.
Gary Sherwood
It was clear in the February 5 City Council workshop that Councilmember Gary Sherwood called for a negotiator but there was certainly no audible support offered by the other Councilmembers and there was absolutely no direction given by a majority of Council. If it turns out to be true, the use of Beacon Sports may have been an independent action by Interim City Manager Skeete, as there was a plea by CM Norma Alvarez to Mayor Weiers to relinquish his information about the many potential buyers with which he claimed personal contact.
Or perhaps direction may have been given in the less than transparent executive session following that workshop. Rather oddly, objection to executive session decision making has been a recurring theme championed of CM Norma Alvarez and the notion of transparency was a campaign platform for newly elected CMs Ian Hugh, Sammy Chavira and Gary Sherwood. Go figure.
If this latest speculation has indeed occurred where is the public announcement coupled with revelation about the cost to the City for this new consultancy contract? As a former CM, I seem to remember the need for a vote to hire a consultant unless public direction at workshop is given. I also seem to remember Councilwoman Alvarez’ two years of railing about the City’s use of consultants. Where is her outrage now or was she missing from Council yet again?
Why Beacon Sports? A long standing rumor is that they were involved in the 
Moyes bankruptcy. If that is true then what was their role during the bankruptcy? The sports industry is a tightly knit community and there is more than one source out there suggesting that Jerry Reinsdorf’s son Michael, International Facilities Group (IFG) Managing Director, www.ifgroup.cc, may have suggested the use of Beacon Sports to either Mayor Weiers, Interim City Manager Skeete or City Attorney Tindall.
IFG was hired by the City to manage the construction of Jobing.com arena. Beacon Sports was hired by the City to prepare a report issued on February, 2011 that provided a rationale for the Hulsizer deal and the City’s purchase of parking rights for $100M. It almost sounds incestuous, doesn’t it? Does Michael Reinsdorf’s suggestion to use Beacon Sports, which might have been acted upon, give Jerry Reinsdorf and John Kaites an inside track on purchasing the Coyotes?
If any of the above speculation turns out to be true, I ask you.. is this any way to run a circus…er…City?
Check back later today for more rumor mongering after I winnow through the sudden spate of opinions and secret whisperings.
[…] See Joyce Clark’s take on the Beacon information. […]
I’m not sure why it’s being touted as a “long standing rumor” about BSC. It’s listed on their website that the CoG, under “Clientele & Projects”, BSC assisted “The City of Glendale pertaining to preparing a Feasibility Study concerning the Phoenix Coyotes”. It was also widely reported around the time of the bankruptcy case that Ed B hired BSC in Oct 08′ to perform the very same feasibility study proclaimed on their site. With their affiliation with Reinsdorf, and the IFG Jobing.com “Arena assessment” prior to the BK case, and city officials confirming that IFG “recommended” BSC, why the shroud that this is a “rumor”? Seems fact to me…
I do, and “ripples in a cornfield” is an excellent analogy. Apparent, obvious, easy to spot. In this case interpret, comprehend when one stand backs, see’s it from the air. Follow the money….
Back in the fall of 2008, Shumway & Moyes approached then City Manager Ed Beasley, explaining they were in dire straights, needed some relief, looking for aide & assistance of one kind or another. Mr. Beasley, quietly and under the radar upon the advice of Michael Reinsdorf of International Facilities Group contracted ($48,000, no requirement for Council approval) Beacon, Alan Leventhal, who put together a report on the franchise & arena. The gist of it? “Need to increase attendance & pricing, non-hockey booking & revenues”. Like, duuuh….
The Beacon Report somehow wound up on John Kaites desk, working with Jerry & Michael Reinsdorf in their bid for the franchise a little less than a month before Jerry Moyes went rogue, filing for Bankruptcy. The NHL was well aware of all of this of course, the Reinsdorfs’ their hand picked successors, claims to the contrary that they were “shocked & surprised” that Mr. Moyes took such drastic action completely disingenuous.
You are quite correct as youve know doubt witnessed first hand that the arena of sports management & franchise ownership is a small world. Simple matter of connecting the dots without building some grandiose conspiracy theory. Alan Leventhal of Beacon is in fact a specialist, an expert in Real Estate Investment Trusts (REIT’s), with a direct path & connection to Eric Rosen (who earlier had worked with Daryl Jones of Ice Hedge Holdings as his Boss at Onex Corporation, and in turn of course Matthew Hulsizer & Peak6v) and Michael Dell of MSD Capital.
That Horatio Skeete may have contracted Beacon off-radar, and likely at the urging of newly minted Mayor Weiers I find plausible. There is a lot more going on & down than just the existence (or not) of a franchise here. Friends of friends of the NHL & others all hoping for a practicable solution, yet maddeningly, the league’s seeming intractability, lack of flexibility with respect to pricing & terms creating a serious obstacle in facilitating a local sale, and one that doesnt stretch the City itself to beyond a potential breaking point. Im sure hoping some sanity prevails, the NHL has an epiphany & climbs down from its demands, realizes the City done it all can, up to them now. Possible lat minute pressure from various insiders forces them to do so, but the hour, it grows late.
Rumor has it that some NHL owners, perhaps Canadian, are not too keen on carrying this on any longer. Glendale and Weiers better sharpen their pencils. There is not going to be a “White Knight” that rescues this damsel.
I dont know if its just the Canadian owners AZ. Really any of them beyond the 10 member NHL Executive Committee which includes Jeremy Jacobs of Boston & many others, American based.
Indeed, there could well be reservations in even wanting another team in Canada as the pie in terms of Canadian broadcast revenues (while doing nothing to impress NBC who no doubt are already disturbed over the loss of Atlanta) etc would shrink somewhat.
If a team is relocated, the NHL wont realize the unencumbered Expansion Fee’s they could potentially receive from a Quebec City, Markham or Hamilton Ontario, despite their protestations to the reverse that they have no interest in expanding beyond 30 teams.
Many have speculated elsewhere that Seattles efforts to secure an NBA franchise along with an NHL team, the former step one and pending as we speak is whats holding up an announcement as to the Coyotes future in Glendale. That the two issues are enjoined. Seems a bit of a stretch but who knows? Plausible.
Also plausible, possible the NHL stays parked in Glendale for another 12 months or longer. Waiting for Seattle or Quebec Cities new arenas’ to be completed. Perhaps headway actually being made in terms of facilitating a local Phoenix sale with a price drop & or terms. So many questions, no answers, no real leadership being demonstrated, at least nothing publicly.