Post by jhendrix70 on May 3, 2009 12:28:21 GMT -5
Coyotes should follow the Diamondbacks blueprint, if they still have time.........
Dead last in their league.
$353 million dollars in debt.
Poor attendance.
A youth movement after relying on aging talent.
The commissioner’s office closely monitoring the team’s finances.
A league still trying to recover some of its fans after a devastating work stoppage.
Questions about the team’s long-term stability and about the ownership’s capability to properly run the franchise.
You would think that is the description of the Phoenix Coyotes’ situation but you’d be wrong. It was the situation another Valley team found itself in not too long ago. The facts listed above are actually all statements that applied to the Arizona Diamondbacks in 2004, and could be used as a guide for the current position the Coyotes are in.
The Diamondbacks and their front office found themselves in a very difficult spot during the 2004 season. The teams managing general partner, Jerry Colangelo, for years had engaged in the practice of giving deferred contracts to veterans and as their production declined, the teams debt soared. Fans were skeptical of the product on the field and investors were skeptical of the club’s performance off of it. As a result, Colangelo was soon removed as managing partner by team owner Ken Kendrick.
With Colangelo gone, the task of digging out of $353 million worth of debt while suffering through a team record 111-loss season fell on the shoulders of Ken Kendrick and ownership. As a result of the team’s poor 2004 record, Kendrick and the Diamondbacks saw attendance drop to 20th in the Majors in 2005. In an attempt to right the ship, team ownership brought in a group of young and talented baseball executives including Derrick Hall as senior Vice President, Communications and Josh Byrnes as General Manager.
The combination of Hall focusing on the business plan and Byrnes focusing on the baseball plans proved to be just what the team needed. Through numerous marketing initiatives, including affordable ticket plans, new team colors, uniforms and logos and an all-around change in the organization’s approach to fans, Hall was able to re-build a loyal fan base while Byrnes rebuilt the club on the field.
By the start of the 2009 season, the team had moved back into the top half of the Majors attendance-wise, was fielding a competitive team and had reduced a majority of it’s debt. According to an interview given to the USA Today in February, Ken Kendrick believes the team will actually be completely debt-free in four years.
While the Diamondbacks haven’t completely recovered from the difficult financial circumstances that plagued them a mere five years ago, they have found the ability to operate and survive in a market that includes 4 major league professional teams and a bevy of other entertainment options.
Although Major League Baseball as a whole finds itself in a better situation than the NHL does, the Phoenix Coyotes can learn a lot from the struggles and re-emergence of the Arizona Diamondbacks.
“This market can definitely support four major teams. But they all need to be operating with financial efficiency,” Diamondbacks’ CEO Derrick Hall told Fanster. “It was not too long ago that we were struggling financially. We all need to control our expenses while fielding competitive teams and focusing a great deal on fan experience. We need to create a way to win even when we lose.”
Even though the exact financial challenge facing the Coyotes is unknown, it is believed that the team loses almost $20 million per year. In order to cut into the debt and keep the moving vans at bay, the team needs to find a way to change the business model of its on and off the ice operations.
Like the Diamondbacks, the Coyotes need to find a new fan-friendly approach that will make a game as much about what is happening on the ice as off it. They need a way to convince fans from the East Valley that driving 45 minutes out of their way on a week night will pay off even if the team loses. The ‘Yotes need to leverage the blossoming Westgate area to attract younger fans and invigorate what has been a stagnant fan base for years.
On the ice, a commitment to the youth movement is a must. It is time for the franchise to leave the signing of, or trading for, high priced veterans to the larger more wealthy teams. It’s time for them to find the Billy Beane or Josh Byrnes of the NHL. Someone capable of finding undervalued talent at affordable prices to help turn around the failing franchise. It’s time for the team to bring a “White Out” back to the desert (hands down the most electric atmosphere I’ve ever experienced in Phoenix).
All these things are easier said than done and involve a certain amount of luck. It takes the right players, the right coach and the right front office personnel at the right time.
The Coyotes seem to have some of the pieces in place. The only question is– do they have the time? If they don’t, the only phrase that may be applicable to the franchise is “the team that formerly called Phoenix home”.
Coyotes’ Cash could force them out
Dead last in their league.
$353 million dollars in debt.
Poor attendance.
A youth movement after relying on aging talent.
The commissioner’s office closely monitoring the team’s finances.
A league still trying to recover some of its fans after a devastating work stoppage.
Questions about the team’s long-term stability and about the ownership’s capability to properly run the franchise.
You would think that is the description of the Phoenix Coyotes’ situation but you’d be wrong. It was the situation another Valley team found itself in not too long ago. The facts listed above are actually all statements that applied to the Arizona Diamondbacks in 2004, and could be used as a guide for the current position the Coyotes are in.
The Diamondbacks and their front office found themselves in a very difficult spot during the 2004 season. The teams managing general partner, Jerry Colangelo, for years had engaged in the practice of giving deferred contracts to veterans and as their production declined, the teams debt soared. Fans were skeptical of the product on the field and investors were skeptical of the club’s performance off of it. As a result, Colangelo was soon removed as managing partner by team owner Ken Kendrick.
With Colangelo gone, the task of digging out of $353 million worth of debt while suffering through a team record 111-loss season fell on the shoulders of Ken Kendrick and ownership. As a result of the team’s poor 2004 record, Kendrick and the Diamondbacks saw attendance drop to 20th in the Majors in 2005. In an attempt to right the ship, team ownership brought in a group of young and talented baseball executives including Derrick Hall as senior Vice President, Communications and Josh Byrnes as General Manager.
The combination of Hall focusing on the business plan and Byrnes focusing on the baseball plans proved to be just what the team needed. Through numerous marketing initiatives, including affordable ticket plans, new team colors, uniforms and logos and an all-around change in the organization’s approach to fans, Hall was able to re-build a loyal fan base while Byrnes rebuilt the club on the field.
By the start of the 2009 season, the team had moved back into the top half of the Majors attendance-wise, was fielding a competitive team and had reduced a majority of it’s debt. According to an interview given to the USA Today in February, Ken Kendrick believes the team will actually be completely debt-free in four years.
While the Diamondbacks haven’t completely recovered from the difficult financial circumstances that plagued them a mere five years ago, they have found the ability to operate and survive in a market that includes 4 major league professional teams and a bevy of other entertainment options.
Although Major League Baseball as a whole finds itself in a better situation than the NHL does, the Phoenix Coyotes can learn a lot from the struggles and re-emergence of the Arizona Diamondbacks.
“This market can definitely support four major teams. But they all need to be operating with financial efficiency,” Diamondbacks’ CEO Derrick Hall told Fanster. “It was not too long ago that we were struggling financially. We all need to control our expenses while fielding competitive teams and focusing a great deal on fan experience. We need to create a way to win even when we lose.”
Even though the exact financial challenge facing the Coyotes is unknown, it is believed that the team loses almost $20 million per year. In order to cut into the debt and keep the moving vans at bay, the team needs to find a way to change the business model of its on and off the ice operations.
Like the Diamondbacks, the Coyotes need to find a new fan-friendly approach that will make a game as much about what is happening on the ice as off it. They need a way to convince fans from the East Valley that driving 45 minutes out of their way on a week night will pay off even if the team loses. The ‘Yotes need to leverage the blossoming Westgate area to attract younger fans and invigorate what has been a stagnant fan base for years.
On the ice, a commitment to the youth movement is a must. It is time for the franchise to leave the signing of, or trading for, high priced veterans to the larger more wealthy teams. It’s time for them to find the Billy Beane or Josh Byrnes of the NHL. Someone capable of finding undervalued talent at affordable prices to help turn around the failing franchise. It’s time for the team to bring a “White Out” back to the desert (hands down the most electric atmosphere I’ve ever experienced in Phoenix).
All these things are easier said than done and involve a certain amount of luck. It takes the right players, the right coach and the right front office personnel at the right time.
The Coyotes seem to have some of the pieces in place. The only question is– do they have the time? If they don’t, the only phrase that may be applicable to the franchise is “the team that formerly called Phoenix home”.
Coyotes’ Cash could force them out