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Joyce Clark Unfiltered

For "the rest of the story"

Jan 15

13

Coyotes sold again…period

Posted by Joyce Clark on January 13, 2015
Posted in Arizona Coyotes • City of Glendale • Gila River Arena  | Tagged With: , , , , | 22 Comments

Make no mistake. The team has a new owner…Andrew Barroway. Below is the press release on the Arizona Coyotes website with the announcement:

NHL Approves Agreement for Andrew Barroway to Become Majority Owner of the Coyotes

Wednesday, 12.31.2014 / 10:16 PM

Arizona Coyotes

FOR IMMEDIATE RELEASE: Wednesday, December 31, 2014

GLENDALE, ARIZONA — “The National Hockey League (NHL) and the Arizona Coyotes announced today that an agreement for IceArizona to sell 51 percent of the Arizona Coyotes franchise to Andrew Barroway has been finalized by the NHL’s Board of Governors. Barroway will serve as the Coyotes Chairman and Governor immediately.

‘This is truly a dream come true for me and my family,’ said Barroway. ‘I am extraordinarily grateful for the opportunity of a lifetime and look forward to working and solidifying a strong partnership with the Club’s current ownership group.

‘As a group we are committed to serving our fans with a new level of excellence and our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.’

‘Today is an exciting day for the Arizona Coyotes and our great fans.’ said Coyotes Co-Owner, President and CEO Anthony LeBlanc. ‘The addition of Andrew Barroway to our ownership group further solidifies the Coyotes long-term future in the Valley. Our entire ownership group is excited about this opportunity to work with Andrew in taking this franchise to the next level. It’s a great day for hockey in Arizona!’

Andrew Barroway is the Managing Partner of Merion Investment Management LP, an event driven hedge fund that currently manages more than $1 billion. Merion was founded in January 2009. Barroway graduated from the University of Pennsylvania Law School in 1991.”

Andrew Barroway is the new owner of the team. A simple analogy is this. You can no longer afford to make the mortgage payment on your house. You get your uncle to buy 51% of the value of your home. Then you decide you want to repaint and recarpet your house but your uncle says, “No.” Who prevails? Your uncle, of course. He is the majority owner.

It’s the same with the team. Rumors abound that the Gosbee/LeBlanc group have been missing their cash calls. Missing a cash call means that the ownership group (prior to Barroway) refused to use personal funds to cover losses. This probably made the NHL (Commissioner Bettman and the other team owners) very, very nervous. No wonder Bettman worked so hard to find another investor for the team.

One has only to look at this photo to see how thrilled George Gosbee and Anthony LeBlanc are to relinquish control of the team. While it is an old photo it reflects what each must have felt. Each looks as if their dog died.

image1

Photo credit: Matt Kartozian, USA Today Sports via Five for Howling by Brendan Porter

 

The minority owners have no choice but to put a ‘good face’ on the situation. LeBlanc’s mantra was Barroway’s purchase “further solidifies the Coyotes long-term future in the Valley.” Barroway offered “our collective goal is to put a competitive team on the ice every season and, one day, win the Stanley Cup.” Barroway’s function over the next few years will be to shore up the team financially and to cover those pesky cash calls.

On Friday, January 2, 2015 there was a press conference at the Gila River Arena to introduce Barroway to the Arizona fan base. (By the way with the name change to Gila River Arena, why does the very top of the arena, seen in aerial views, still say Jobing.com?) The presser was interesting on many levels. Anthony LeBlanc made several rather telling comments. In terms of a sale of the majority interest to Barroway, “we (the ownership group) weren’t looking for this.” They might not have been looking for it but it appears that Bettman and company most certainly were. He also confirmed that the sale consummated on the last day of 2014 “offers tax advantages for 2014.” The best face LeBlanc could offer was that the sale provides “financial flexibility.” Don Mahoney, the team’s General Manager, confirmed the importance of the sale to Barroway by saying, “we (the team) are solvent” and the sale provides “(financial) stability for long term success.”

It is no secret that Barroway has been trying to acquire a hockey team for years. Witness his attempts with the Philadelphia 76ers, the New Jersey Devils and the New York Islanders. In his case, the 4th time is a charm or as Barroway put it, “keep trying and don’t quit.” With regard to his relationship with the City of Glendale Barroway praised the “strong partnership” with the city. It seems the strong partnership is the $15 million a year the city pays the team. Le Blanc and Barroway reiterated that they are “committed to be here.”When asked about the “out clause” in the current Glendale/IceArizona deal, Barroway casually confirmed “the out clause remains in place.” As long as that option remains so will the speculation about a move after 5 years of losses. If Barroway is truly committed to keeping the team in the Valley working with Glendale to remove that stipulation would scotch the notion once and for all but don’t hold your breath. Barroway emphasized that he will be “very involved in all major decisions” and that “the buck stops with me.” LeBlanc painfully agreed by saying Barroway “wears the crown” as the majority owner of the team.

Just as every Coyotes fan, I desperately want Barroway and the team to succeed for that insures the team in Glendale for a very long time. An integral part of that scenario is constantly building a strong and ever growing fan base. That is difficult to do in today’s climate. Everyone, especially a fan base, loves a winner…a loser, not so much. The team’s performance is in a state of flux as older, experienced players are replaced with young, unproven new faces as part of a rebuilding cycle. The only star player the team will probably retain over the long haul is Shane Doan and he can’t do it alone. The financial bleeding will diminish when the team’s performance proves to be a consistent game winner.

What does the future hold for the Arizona Coyotes? Only Andrew Barroway knows and he’s not telling. Remember there is an option in the Glendale/IceArizona deal that the team can move after demonstrating 5 years of loss. Barroway, first and foremost, is a smart businessman. While he expects losses he also expects those losses to diminish over time as he works to build a more competitive and winning team. Only Andrew Barroway will decide if the team’s future includes a move to a more profitable locale with the financial resources to build his dream team that wins the Stanley Cup. We all hope that the dream of a Stanley Cup includes Glendale, Arizona. We all hope that is Barroway’s dream as well.

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

Dec 14

2

A crack in the ice

Posted by Joyce Clark on December 2, 2014
Posted in Arizona Coyotes • City of Glendale • Gila River Arena  | Tagged With: , , , | 5 Comments

Several days ago a blog follower suggested I go to Jo Jo Fraser’s FB page. Jo Jo is a good guy. He has been and continues to be a staunch supporter of the Coyotes. His recent FB posting demonstrates the, up until now, silent sentiment of many Coyotes supporters. What is so surprising is his openness in questioning the direction of the team’s ownership and plans for the team. It is the first crack in the ice of support for a team performing poorly. His post evoked replies both pro and con. Here is what he posted and a sampling of replies:

Jo Jo Fraser

November 29, 2014

“Driving home from the game tonight I couldn’t stop asking myself if I had fun tonight. I love NHL hockey as much as anything in this world but going to the arena is not fun right now. After riding the roller coaster since the great playoff run all I can see is the bleeding off of true NHL players that have not been replaced ( starting with Raffi and going through Verby ) . I have to ask myself who is to blame for this. Up till now I was unwilling to question the new ownership group because I was just so glad to have my team here but that started to change over the summer with no movement to get some quality talent to fill the holes that were vacated. I was told the idea was to put a winning product on the ice RIGHT away to start to build the fan base back. That has turned out to be all talk and no walk.  We are now heading towards our third year out off the playoffs and the team seems to be in complete disarray with no clear direction.  We are not a big team and we are not a fast team so what are we? What is the direction we are heading? GMDM says he thought we were going to be a playoff team. I am not sure what he is seeing because I see a team that is just a touch better than the oilers. I am finding myself expecting this team to lose. This is not a recipe to grow the game. If a die hard fan like myself is having a hard time getting up to go to a game how in the heck are we suppose to get new fans to come seem this team. We have the best captain in sports in the twilight of his career and he deserves better from ownership and management for his loyalty when the team was at its lowest. Oh and can someone tell me what all the great improvement to the arena over the summer were. All I see is they tore out the tile in the team shop and said it is newly remodeled. I hope something changes soon.”We are now heading towards our third year out off the playoffs and the team seems to be in complete disarray with no clear direction. We are not a big team and we are not a fast team so what are we? What is the direction we are heading? GMDM says he thought we were going to be a playoff team. I am not sure what he is seeing because I see a team that is just a touch better than the oilers. I am finding myself expecting this team to lose. This is not a recipe to grow the game. If a die hard fan like myself is having a hard time getting up to go to a game how in the heck are we suppose to get new fans to pay money to come seem this team. We have the best captain in sports in the twilight of his career and he deserves better from ownership and management for his loyalty when the team was at its lowest. Oh and can some one tell me what all the great improvement to the arena over the summer were. All I see is they tore out the tile in the team shop and said it is newly remodeled. I hope something changes soon.

Mike Doyle Well said Jo Jo. It is really sad. I’m starting to think we were sold a bill of goods by ownership to fail so they can move in 5 years.

Jon Pletcher Do you see the ownership walking around anymore? You saw that all the time last year. And they were always vocal as well. I see nor hear that no more. And honestly that really makes me nervous.

Paul Gheduzzi I’m getting really concerned, but not giving up, Jo Jo. Right now, I have a feeling that the ownership issue is getting sorted out with Andrew Barroway and afterwards we could see changes that can help improve the team on the ice. Same with their visibility. The Coyotes unfortunately are playing poorly in a number of areas while the young guys go through the growing pains. The veterans the team has are just not enough to compete in a tougher Western Conference. All I know is, the team cannot stay status quo. It can’t. And I’m not going to target either Don Maloney or Dave Tippett because this is on the players, not them. Agreed it is unfair to Shane Doan he isn’t getting to play for a winning team right now before retirement comes.

Mike Doyle They promised Doan a winner and that is why he signed a home town discount contract. Many teams offered him lots more money but being the great person Doan is he believed them just like we did.

Jeanne Ruairí I understand you’re frustrated, but the things this ownership group inherited to fix cannot be done overnight. The improvements to the arena was food, repairs, cleaning, extermination, etc that was ignored for 4yrs. As for GMDM, he’s done what he’s can with what he was given. We all want a winning team, but unfortunately it has to be rebuilt. I do still see the owners walk around, granted not as much as I think they’re probably try to figure out how to fix this funk. We’re not set up to fail, but any business bought out of 4yrs of bankruptcy doesn’t get fixed overnight.

Mike Doyle Losing 50 million to make twice that in the following 2 or 3 years is not out of the question. Tom you and I are normally on the same page but this time we differ in a huge way. I am always up beat about our team but I’m having second thoughts now. Many conversations you and I have had about internal situations are not a good sign either. I am very skeptical right now.

Paul Gheduzzi Understood, Tom. Again, I’m just concerned. But I already knew that the turnaround wouldn’t happen overnight. Just very tough because we saw some momentum after the 2012 playoff run and the securing of new ownership, keeping fans and growing the fan base is sensitive at this very stage to how the team plays. I have faith in everything working out, but it’s a concern if we don’t start seeing changes for the better in the near future.

Mike Doyle Everyone knew from the get go to get the fan base back we had to put a good product on the ice. That was a no brainer about sports teams in the valley.

Jo Jo Fraser Tom Kennedy makes some good points but I think maybe the priorities are screwed up. Nothing changes overnight but a direction for the team could be set. GMDM said we are a playoff team. That doesn’t add up. If they came out and said we are two or three years away I could get behind that. I don’t buy for a second that there are plans to move the team in four years I just want to see a direction for the team or hope for the future. I don’t like what I have seen so far. I am wrong a lot and I’m sure if I was privilege to information the big wigs have I would feel better but I don’t. I’m just a very disappointed and frustrated die hard fan. Going to a game and expecting the Coyotes to loose is not a fun place to be but it is a current reality.

There are many fans who are concerned. The unknown factor is Andrew Barroway. The general assumption is the NHL Board of Governors will approve the sale this month making him the majority owner. Little is publicly known about his plans for the team. We are sure to learn more when he is officially approved. A major take-away is Anthony LeBlanc, George Gosbee and all of the other current owners will be in the minority and can no longer determine the team’s eventual fate. It is to be expected that their visibility and cheerleading would wane given the circumstances. The bloom is off the rose as they realize they can no longer call the shots.

Jo Jo Fraser’s comments are illustrative of the growing fan base frustration and discontent. It is an issue the current owners must address quickly or their failure to grow the fan base will cause  further cracks in Coyote ice.

© Joyce Clark, 2014

FAIR USE NOTICE

This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

Jul 14

28

A peek inside the NHL’s Board of Governors

Posted by Joyce Clark on July 28, 2014
Posted in Arizona Coyotes • Jobing.com arena  | Tagged With: , , , , , , , , | 1 Comment

Image5

Anthony LeBlanc

I’ve always wondered about the NHL’s Board of Governors. Who are they? Where do they meet? What do they do? And how do they do it? Their mantle is one of secrecy. Google and you may, or may not, be able to come up with a list of all of the members. I did just that and pieced together a list of current Governors and Alternates. I offer my list at the end of this article. If I have erred, I hope readers will advise me so that I can correct the list.

Recently, I reached out to Rich Nairn, VP of Communications, with my questions. He arranged an opportunity to visit with Anthony LeBlanc, one of the Arizona Coyotes Alternates to the Board of Governors. I want to thank Mr. LeBlanc for graciously giving of his time amid a very busy schedule and patiently answering my questions. It was a good discussion and I learned a great deal.

There are 30 NHL teams. All have different ownership situations and the Arizona Coyotes are no different. In the Coyotes case they have 9 owners.  Who is the team’s Governor or Alternates on the Board of Governors? How were they chosen? There was never a formal vote by the team’s owners. George Gosbee is the largest equity partner and was charged with securing the rest of the equity partners and it was generally understood and accepted by all that he would be Governor. There are three alternates. They are Anthony LeBlanc, Craig Stewart, and Don Maloney. All have essential roles with the team. Again, there was no formal vote by the Board of Directors. These men assumed their positions because of the responsibilities they bear.

The Board of Governors meets three times a year. They typically meet in New York City in September; in Pebble Beach, California (or some other warm clime) in December; and in New York City again in June. If every team’s full compliment were to attend the same meeting there would be 123 Governors and Alternates representing the 30 teams. Some teams have as few as a Governor and 1 alternate but many have a Governor and 4 or 5 Alternates.

Since August of 2013 when the team was acquired by IceArizona, Gosbee as Coyotes Governor and two of the three Alternates, LeBlanc and Stuart, have attended the September 2013 meeting, the December 2013 meeting, and the June 2014 meeting. Due to the demands of his schedule Don Maloney attended one meeting. I asked LeBlanc if there were ever any emergency meetings of the Board of Governors. He said they do occur from time to time and used the example of the Board’s ratification of the purchase of the Coyotes by IceArizona. Since he has been attending board meetings no such special or emergency meeting has been necessary.

I also asked if any members of the Coyotes salaried management team attended in order to staff the Governor and Alternates. The answer was “no.” I asked if family members were usually taken on these trips. The answer again was “no.” Do the players’ union representatives or referees’ union representatives ever attend? Mr. LeBlanc indicated that he had not seen that, but that did not mean it didn’t happen. No one participates telephonically. If a Governor cannot attend, the team’s Alternates are charged with representing the team’s interests.

So how do these meetings work? They usually last one day in New York City and two days in a warmer location like Pebble Beach. These meetings are for the purpose of determining policy for the league. The meetings are formal with a written agenda. The agenda is prepared and distributed several weeks in advance giving each Governor and the team’s Board of Directors time to prepare. In the case of the Coyotes their Board of Director meetings are quarterly and usually occur just before the Board of Governors meeting. That gives the owners time to discuss the items on the agenda and to come to consensus on the position they want their Governor to take. As a side note, LeBlanc shared that he has informal, telephonic Coyotes Board of Directors meetings every Friday morning with as many owners participating as are available.

The Board of Governors meetings have become formal due to Bettman’s leadership. The NHL administrative staff or others make presentations and/or reports on agenda items. There can, and often is, discussion by the owners after each presentation. Robert’s Rules of Order are followed with recognition of each speaker. Each agenda item is decided by a roll call vote. Minutes are taken and distributed to each of the Governors. The meeting agendas are created by Gary Bettman, NHL Commissioner, and his staff. Bettman was the very first NHL Commissioner and has been at the helm since 1993, a period of 21 years. Bettman does not have a vote but as NHL Commissioner he often controls the flow of the meeting and requires that all Governors and Alternates defer to him with regard to press releases about any and all important decisions that flow from a Governors’ meeting. All of the Board of Governors meetings’ content remains confidential unless a public policy statement issued.

I asked Anthony if there are any opportunities for the Governors and Alternates to socialize with one another at these meetings. In the days before the Gary Bettman era the meetings had the flavor of a good ole boys meeting. Today social opportunities arise at luncheons or dinners. Breaking bread together gives the Governors and Alternates time to talk shop, share stories about their teams and renew acquaintances. It also can provide an opportunity for a Governor to gather support (or opposition) on an agenda item.

The Governors meetings are similar to what is experienced at any Executive Session of a corporate Board of Directors meeting or city council meeting. All contain the same elements; formal agendas, presentations, discussion and vote on policy items with confidentiality required. Socializations occur outside the meeting room.

Again, I want to express my thanks to Anthony LeBlanc for allowing me to take a peek into the world of the NHL’s Board of Governors meetings. He provided a rare glimpse into a world we hear very little about.

The National Hockey League Board of Governors

Chairman of the Board: Jeremy M. Jacobs

  • Anaheim Ducks
  • Governor:                         Henry Samueli
  • Alternate Governor:        Susan Samueli
  • Alternate Governor:        Michael Schulman
  • Alternate Governor:        Tim Ryan
  • Alternate Governor:        Bob Murray
  • Boston Bruins
  • Governor:                        Jeremy M. Jacobs
  • Alternate Governor:       Charles Jacobs
  • Alternate Governor:       Jeremy M. Jacobs Jr.
  • Alternate Governor:       Louis Jacobs
  • Alternate Governor:       Jarry J. Sinden
  • Alternate Governor:       Cam Neely
  • Alternate Governor:       Peter Chiarelli
  •  
  • Buffalo Sabres
  • Governor:                        Terry Pegula
  • Alternate Governor:        TedBlack
  • Alternate Governor:        Darcy Regier
  • Alternate Governor:        Ken Sawyer
  • Alternate Governor:        Cliff Benson
  •  
  • Calgary Flames
  • Governor:                         N. Murray Edwards
  • Alternate Governor:        Ken King
  • Alternate Governor:        Alvin Libin
  •  
  • Carolina Hurricanes
  • Governor:                         Peter Karmanos, Jr.
  • Alternate Governor:        Jim Rutherford
  • Alternate Governor:        Michael Amendola
  • Alternate Governor:        Jason Karmanos
  • Alternate Governor:        Ron Francis
  •  
  • Chicago Blackhawks
  • Governor:                         W. Rockwell Wirtz.
  • Alternate Governor:        Robert J. Pulford
  • Alternate Governor:        John A. Ziegler, Jr.
  • Alternate Governor:        John McDonough
  •  
  • Colorado Avalanche
  • Governor:                         Josh Kronenke.
  • Alternate Governor:        Mark Waggoner
  • Alternate Governor:        Greg Sherman
  • Alternate Governor:        Joe Sakic
  •  
  • Columbus Blue Jackets
  • Governor:                         John P. McConnell
  • Alternate Governor:        Mark Priest
  • Alternate Governor:        John Davidson
  •  
  • Dallas Stars
  • Governor:                         Tom Gaglandi
  • Alternate Governor:        Jim Lites
  • Alternate Governor:        Jim Nill
  • Alternate Governor:        Mike Modeno
  •  
  • Detroit Red Wings
  • Governor:                        Michael Ilitch
  • Alternate Governor:       Jim Devellano
  • Alternate Governor:       Ken Holland.
  • Alternate Governor:       Cristopher Ilitch
  • Alternate Governor:       Rob Carr
  • Alternate Governor:       Tom Wilson
  •  
  • Edmonton Oilers
  • Governor:                        Daryl Katz
  • Alternate Governor:       Patrick LaForge
  • Alternate Governor:       Kevin Lowe
  •  
  • Florida Panthers
  • Governor:                        Cliff Viner
  • Alternate Governor:       Bill Torrey
  • Alternate Governor:       Michael Yormark
  •  
  • Los Angeles Kings
  • Governor:                        Philip F. Anschutz
  • Alternate Governor:       Dean Lombardi
  • Alternate Governor:       Dan Beckerman
  •  
  • Minnesota Wild
  • Governor:                         Craig Leopold
  • Alternate Governor:        Philip Falcone
  • Alternate Governor:        Jac Sperling
  • Alternate Governor:        Chuck Fletcher
  •  
  • Montreal Canadiens
  • Governor:                        Geoff Molson
  • Alternate Governor:       Kevin Gilmore
  • Alternate Governor:       Fred Steer
  • Alternate Governor:       Michael Andlauer
  • Alternate Governor:       Andrew T. Molson
  • Alternate Governor:       Marc Bergevin
  •  
  • Nashville Predators
  • Governor:                        Tom Cigarran
  • Alternate Governor:       Herbert Fritch
  • Alternate Governor:       David Pole
  • Alternate Governor:       Jeff Cogen
  • Alternate Governor:       Sean Henry
  • Alternate Governor:       Joel Dobberpuhl
  •  
  • New Jersey Devils
  • Governor:                         Joshua Harris
  • Alternate Governor:        David Biltzer
  • Alternate Governor:        Lou Lamoriello
  • Alternate Governor:        Scott O’Neil
  •  
  • New York Islanders
  • Governor:                        Charles Wang
  • Alternate Governor:       Roy Reichbach
  • Alternate Governor:       Arthur J. McCarthy
  • Alternate Governor:       Michael J. Picker
  • Alternate Governor:       Garth Snow
  •   
  • New York Rangers
  • Governor:                         James L. Dolan
  • Alternate Governor:        Glen Sather
  • Alternate Governor:        Hank Ratner
  • Alternate Governor:        Dave Howard
  •  
  • Ottawa Senators
  • Governor:                        Eugene Melnyk
  • Alternate Governor:       Sheldon Plener
  • Alternate Governor:       Cyril Leeder
  • Alternate Governor:       Erin Crowe
  • Alternate Governor:       Bryan Murray
  •  
  • Philadelphia Flyers
  • Governor:                         Edward M. Snider
  • Alternate Governor:        Philip I. Weinberg
  • Alternate Governor:        Peter Luukko
  • Alternate Governor:        Paul Holmgren
  •  
  • Arizona Coyotes
  • Governor:                         George Gosbee
  • Alternate Governor:        Don Maloney
  • Alternate Governor:        Anthony LeBlanc
  • Alternate Governor:        Craig Stewart
  •  
  • Pittsburgh Penguins
  • Governor:                        David Morehouse
  • Alternate Governor:       Ronald Burkle
  • Alternate Governor:       Anthony Liberati
  • Alternate Governor:       Ray Shero
  • Alternate Governor:       Travis Williams
  • Alternate Governor:       Mario Lemieux
  •  
  • St. Louis Blues
  • Governor:                         Thomas Stillman
  • Alternate Governor:        Doug Armstrong
  •  
  • San Jose Sharks
  • Governor:                         Hasso Plattner
  • Alternate Governor:        Doug Wilson
  • Alternate Governor:        John Tortora
  •   
  • Tampa Bay Lightning
  • Governor:                         Jeff Virik
  • Alternate Governor:        Steve Yzerman
  • Alternate Governor:        Tod Leiweke
  •   
  • Toronto Maple Leafs
  • Governor:                         Larry Yanenbaum
  • Alternate Governor:        Dale Lastman
  • Alternate Governor:        Dave Norris
  • Alternate Governor:        Tim Leiweke
  •  
  • Vancouver Canucks
  • Governor:                         Francesco Aquilini
  • Alternate Governor:        Paolo Aquilini
  • Alternate Governor:        Robert Aquilini
  • Alternate Governor:        Michael Gillis
  • Alternate Governor:        Victor de Boris
  •   
  • Washington Capitals
  • Governor:                         Ted Leonsis
  • Alternate Governor:        Richard M. Patrick
  • Alternate Governor:        George McPhee
  •   
  • Winnipeg Jets
  • Governor:                         Mark Chipman
  • Alternate Governor:        Kevin Cheveldayoff
  • Alternate Governor:        Patrick Phillips

© Joyce Clark, 2014 FAIR USE NOTICE This site contains copyrighted material the use of which is in accordance with Title 17 U.S. C., Section 107. The material on this site is distributed without profit to those who have not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democratic, scientific and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in Section 107 of the US Copyright Law and who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use,’ you must obtain permission from the copyright owner.

May 13

25

Read carefully

Posted by Joyce Clark on May 25, 2013
Posted in City of Glendale  | Tagged With: , , , , , , , , , | 8 Comments

Bettman

NHL Commissioner
Gary Bettman

Daly

NHL Deputy Commissioner
Bill Daly

On May 24 media sources announced that the NHL has chosen a bride-to-be owner of the Phoenix Coyotes – Renaissance Sports and Entertainment led by George Gosbee and Anthony LeBlanc. It was also widely reported that Commissioner Bettman and Deputy Commissioner Daly along with Gosbee/LeBlanc will do a “walk around” with the Mayor and City Council on Tuesday morning, May 28th. The term “walk around” is a slang expression. It means that meeting all seven of the council at one time would violate the Open Meeting Law unless they were making a presentation at a public council workshop or meeting. To avoid violation of the Open Meeting Law these gentlemen will meet in groups of no more than 3 councilmembers (4 councilmembers would trigger a violation).

Craig Morgan is accurate in his May 24th article for Fox Sports Arizona entitled Sources: Gosbee/LeBlanc group has agreement to purchase Coyotes when he says, “ Bettman, Daly and RSE will meet with Glendale Mayor Jerry Weiers and then will hold two separate meetings, each to be attended by three councilmembers.” Here is the link: http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Sources-GosbeeLeBlanc-group-has-agreemen?blockID=905273&feedID=3702 .

Paul Giblin’s piece for the Arizona Republic of May 24th entitled NHL may lay out Coyotes ownership deal Tuesday, mayor says reports the same saying, “Bettman, Daly and RSE will meet with Glendale Mayor Jerry Weiers and then will hold two separate meetings, each to be attended by three councilmembers.” Here is the link: http://www.azcentral.com/community/glendale/articles/20130524nhl-expected-lay-out-coyotes-ownership-deal-tuesday-mayor-says.html .

So far, so good. They both report the very same fact. From here on in, read carefully, very carefully. Morgan, in his article says, “If RSE is not able to reach an agreement with Glendale, sources (my bold) have said that John Kaites’ group is still a possibility to purchase the team, as would be Greg Jamison’s group if it could gather the necessary investors. But multiple sources (my bold) have said that the NHL is no longer interested in dealing with Darin Pastor, whose bid was recently rejected by the league.” These sources with no attribution are dealing in speculation. Could be fact. Could be fiction.  Giblin, in his article, says, “Sherwood said he believes (my bold) any potential owners will want to be paid substantially more than $6 million a year, which is the figure that’s been earmarked in numerous proposed city budgets for the arena management fee.” One person’s belief, especially in this instance, is not fact when there are 6 other councilmembers who may, or may not share that belief.

board-gosbee

George Gosbee

Leblanc

Anthony LeBlanc

What have we learned that we did not already know?  Bettman, Daly, Gosbee and LeBlanc will meet the Glendale city council on Tuesday, May 28th. It appears that RSE will become the NHL’s choice as owner. That is an assumption until the NHL makes a formal announcement. Public release of the facts of the deal are essential. Questions need answers, such as:  Is there an opt-out or relocation clause? What is the time period for either? What is the ratio of equity to debt? Councilmember Sherwood stated publicly that we will hear the deal parameters at the council workshop on Tuesday, June 4, 2013.

There is another fact that is being ignored and perhaps it will be ignored permanently as the city has the discretion to ignore all or part of the Beacon RFP– and that is the Beacon Sports/City of Glendale RFP requirements on page 5:

Minimum Requirements/Qualifications for Managers.

In order to have its response evaluated, a Manager (or if an affiliate, its parent company) must demonstrate at least one of the following requirements:

i. Is a nationally or regionally recognized facility management company which manages publicly or privately-owned public assembly and/or sports and entertainment facilities;

ii. During the past three years, has successfully managed at least one NHL or National Basketball Association (“NBA”)/all-purpose arenas with a seating capacity of at least 10,000 persons; or;

iii. The Manager must have current experience in operating such a facility on behalf of a public entity, such as the City of Glendale;

The Renaissance Sports and Entertainment group was organized only recently for the express purpose of attempting to purchase the Coyotes. They have no demonstrable experience as a fledgling group in managing any sports or entertainment facilities, much less an NHL or NBA all-purpose arena.

Coalition 1 photo

Glendale City Council
CM Alvarez absent

I applaud Bettman and Daly having finally made a decision in terms of ownership but what were they thinking? The NHL must be ready to use its muscle with a “take it or leave it” strategy. Do they seriously think a MAJORITY of this council will accept as an arena manager a newly formed group with no track record in managing an arena? And do they think a MAJORITY of this council will expend more than the $6M budgeted in the soon-to-be-approved city’s Fiscal Year 2013-14 Budget? Councilmember Sherwood says he has a plan but will it turn out to be an acceptable one? Not unless this council is suddenly willing to listen to the likes of Ken Jones, Arthur Thruston and Andrew/Darcy Marwick berating them for subsidizing a sports team during the Public Comment period at every council meeting –forever.

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Apr 13

5

Glendale…will they or won’t they?

Posted by Joyce Clark on April 5, 2013
Posted in Jobing.com arena  | Tagged With: , , , , , , , , , , | 3 Comments

Late on Friday, April 4, 2013, Craig Morgan, who covers sports for Fox Sports Arizona among a growing list of other media, did an outstanding job of summarizing the recent Coyotes saga. To read his entire article, please go to http://www.foxsportsarizona.com/nhl/phoenix-coyotes/story/Coyotes-ownership-saga-hits-stretch-run?blockID=889001&feedID=3702.

board-gosbee

George Gosbee

Leblanc

Anthony LeBlanc

I have chosen some of the most salient snippets for further commentary. He said, “The group led by George Gosbee and Anthony LeBlanc has already submitted its purchase bid to the NHL, and Darin Pastor’s group submitted the paperwork for its proposal to the league on Friday. Greg Jamison’s group is still working on a proposal, but it is expected that they will submit it by the middle of next week, likely under pressure of an imposed NHL deadline.”

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Darrin Pastor

Jamison

Greg Jamison

The latest rumors say the LeBlanc/Gosbee deal is for 15 years, with no opt-out clause and an option to buy the arena. There is no word on the kind of deal submitted by the Pastor group. That’s odd after his flurry of recent publicity. I am especially gratified to see that Greg Jamison is still a player. I must admit that I hope he prevails. I have met him and talked to him in depth and it is still my belief that this man is a perfect fit for the Coyotes. Morgan offers that Matt Hulsizer may still be in the hunt as well. Maybe…maybe not. Mr. Hulsizer, a successful businessman, married into a family of wealth. They were willing to support him on his first attempt to buy the Coyotes…and why not? A hundred million dollars would have come from the City of Glendale. Yes, the family investment was still healthy but not as much was on the line as the city’s investment under Hulsizer. My guess is that there is no will to continue on the part of the family. I could be wrong for I have proven so in the past but somehow or another, I am willing to write him off.

Mr. Morgan then goes on to say, “What is likely to happen soon is that the NHL will choose an exclusive buyer, then approach Glendale to negotiate the lease agreement. The Glendale City Council hired Beacon Sports Capital in late March to solicit bids from management companies to run the arena, as well as to handle negotiations with any prospective owners.”

Bettman

Gary Bettman

This confirms my assessment in previous blogs that the League is in the driver’s seat this time. They will choose the buyer and Glendale will either come to terms with that buyer or not. The option of relocation of the team is certainly not dead yet.  This council may have thrown good money after bad in hiring Beacon Sports Capital. It appears that Beacon will have no role in the process when the NHL selects the owner. There will be no one to vet. If, however, Glendale cannot or will not come to terms with the newly selected owner, Beacon will then have a role as council will most likely Mayor Weiers’ Plan B with the use of 4 managers for the arena.

In additon, Morgan states, “What that lease agreement will look like is anyone’s guess. Glendale City Councilwoman Yvonne Knaack said recently that the annual fee to the city could “be anywhere from $6 (million) to $10 million on operating, and then maybe another $9 million on debt.” 

Councilmember Sherwood publicly recognized a figure of at least $10M to $12M annually for a lease management agreement.  Vice Mayor Knaack acknowledged a similar figure as well. She is also correct about the arena construction debt of approximately $9M a year. This is where it gets dicey. Will this council accept a deal that requires a substantial annual payment along with the annual construction debt? Combining the two, the figure will be somewhere in the $20M range annually. greed 1But that requires this council to cut expenses elsewhere to absorb the costs of the deal and to continue to build a contingency reserve fund. To date there has been absolutely no will to cut by the new council. In fact, they are considering adding 15 firefighter positions and a new $650K truck and 31 police positions to this budget. They simply cannot do both – manage the annual costs associated with the arena while creating new budgetary expenditures.

Norma Alvarez

Norma Alvarez

We have heard enough from Councilmember Alvarez to know that she wants to pay nothing for the arena and I suspect she thinks there is some group out there that will pay the city for the privilege of managing the arena. Not even her beloved Phoenix Monarch Group was willing to fall for that. If you remember, their base fee was $7M for a limited number of events…read tractor pulls. Nevertheless, she stubbornly holds to that position and has even managed to elicit support from Councilmembers Hugh and Chavira. Councilmembers Martinez and Sherwood recognize the importance of keeping an anchor tenant at the arena for the future of a vibrant Westgate that attracts new development in and around it.

Knaack

Yvonne Knaack

Weiers

Jerry Weiers

That leaves two question marks, Vice Mayor Knaack and Mayor Weiers. Vice Mayor Knaack is on the horns of a dilemma. I suspect in her “heart of hearts” she knows that keeping the team as an anchor tenant would be the right choice. But her strongest backers, the fire union, will put tremendous pressure on her if they see their 15 additional firefighter positions and new truck evaporate in this year’s budget. Mayor Weiers, on the other hand, derided the deal the previous council had with Greg Jamison. He should be reminded that Anthony LeBlanc has said publicly that any deal with the city must be similar to the previous deal on the table with Jamison. Weiers is also looking for a deal on the cheap. It will be time for these two people to decide what is more important. Is it more important to send the team packing and leave the legacy of an uncertain future for the arena and Westgate because it’s what their supporters in their previous election now expect of them? Or is it more important to accept that for the sake of Glendale, of Westgate and of West Glendale’s future development potential that sometimes one has to make the difficult and unpopular decision? We will see…soon enough. We all hope that they realize the importance of keeping an anchor tenant at the arena.

I am pleased that this long, painful Coyotes ownership saga is coming to an end. I wish all theCoyotes logo potential owners well although I continue to root for Greg Jamison.  The Coyotes team has been beleaguered and beaten for too long. They, more than anyone or anything else, have earned certainty about their futures.

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Mar 13

29

The $64,000 (maybe $6M or $10M) question

Posted by Joyce Clark on March 29, 2013
Posted in Jobing.com arena  | Tagged With: , , , , , , | 6 Comments

Leblanc

Anthony LeBlanc

board-gosbee

George Gosbee

For the past few days there has been a flurry of media reportage on a new player in the ongoing Coyotes ownership saga. According to the media Anthony LeBlanc, a previously failed would-be owner of the Coyotes, has landed a “whale.” That, I have learned, is a term used to describe someone with oodles of money. That does describe George Gosbee, a very rich Canadian indeed.  You don’t become a very rich Canadian by being dumb. Mr. Gosbee’s background is finance and not hockey. Although it certainly is possible that he is a hockey aficionado. Mr. LeBlanc must have pitched a smokin’ return on investment (ROI) to Mr. Gosbee, et al. We can only guess as to the money making strategy proposed by LeBlanc to line up his investors but it must be a doosey!

Jamison

Greg Jamison

We know that Greg Jamison is still in the hunt and has been working quietly to reassemble an investment group. It’s no secret that I have championed the possibility of his ownership of the team because I know what he stands for and that is a long-term commitment to the team and Glendale. If he fails this time as well, I will welcome any ownership group that makes the same commitment and honors it.

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Darin Pastor

Now, like wild flowers springing up from the desert floor, another possible investment group led by Darin Pastor has surfaced and issued a March 29 Press Release announcing the formation of “an exploratory committee of seasoned investment bankers and other related sports entertainment advisers”  to purchase the Coyotes. This group, as well as all of the others, has proudly proclaimed their intent to remain in Glendale.

reinsdorf

Jerry Reinsdorf

There is also the possibly of Jerry Reinsdorf, with his Beacon Sports connections, lurking about like a Great White Shark, waiting to strike.

I think I’m beginning to see a pattern emerge. Color me paranoid or suspicious. That’s OK. Just take a moment to think about the current situation. We know of a minimum of three groups seeking to purchase the Coyotes. In the scenarios of previous years, the city waited UNTIL the NHL had given its initial blessing to any of the would-be owners and THEN began negotiations on a final arena management contract. If any of those negotiations had proven successful the new owners would have then finalized a sale with the NHL.

Bettman

Gary Bettman

This time it is different. It appears that the NHL will finalize a sale of the team FIRST and THEN the new owners will begin negotiations with the City for a lease management agreement. It certainly puts the ball in this new council’s court. From everything we have seen and heard to date, this is a council that wants a cheap arena management contract. They have simply not indicated a willingness to offer a deal similar to the one that Greg Jamison had. Yet Anthony LeBlanc has said publicly that any deal with the city must be very similar to the previous deal on the table with Greg Jamison.

So there may be an impasse and the new team owners and the city may not be able to craft a deal satisfactory to both sides.  If that occurs, we will have new team owners that can relocate the team and a city willing to let the team go and settle for an arena manager of the Phoenix Monarch Group variety.

question 2Under those circumstances, as a possible owner of the team, anyone would be more than willing to publicly state an intent to keep the team in Glendale long-term. It’s a good PR move and wins the hearts and minds of many. Then upon failure to come to terms with Glendale, saying with a straight face and convincingly claiming it was the city’s fault. The critical question that all should be asking, is not who will buy the team for I am convinced the team will be sold and soon. How soon? Who knows? Once again, we heard the magical phrase of “two weeks.” The critical question is, will Glendale come to terms similar to previous deals and finally acknowledge that the team as an anchor tenant at Jobing.com is indeed important to Westgate’s future? That’s the real sixty four thousand dollar (or $6M or $10M) question.

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