Tipped Off
02-22-2008, 10:12 AM
As financial troubles mount, the league commissioner orders the Portland franchise to shake up the front office
Friday, February 22, 2008
BOAZ HERZOG
The Oregonian http://www.oregonlive.com/oregonian/
Western Hockey League commissioner Ron Robison said this week that he has ordered the Portland Winter Hawks to shake up their front office. Robison also said the junior hockey franchise probably needs to restructure its Memorial Coliseum lease to avoid further financial losses and possible relocation.
"We want to make sure this franchise is turned around immediately," Robison said.
His comments coincided with league investigations into allegations that the organization isn't paying enough of its bills on time or providing adequate care for its injured players. Team owners have denied the claims.
On the ice, the Hawks (9-50-1-1) will try to snap a team-record 16-game losing streak at Vancouver tonight. With 11 games left, it will be difficult for Portland to avoid finishing with the league's worst record for the second consecutive season.
Ten days after the Hawks wrapped up the 2006-07 season 11 months ago, majority owner Jim Goldsmith appointed himself director of hockey operations, proclaiming: "We have no intention of staying in last place." The move gave Goldsmith the final say on decisions involving drafts, recruiting and player trades.
Goldsmith, however, needs to find a replacement, Robison said. The sooner, the better, he said, but definitely by the start of next season.
"We don't believe he's experienced or qualified for that position," said Robison, who initially approved the move on a temporary basis.
Goldsmith of New York, in his second year as principal owner of the Hawks, could not be reached for comment.
Robison said Goldsmith has assured him he will relinquish his role as hockey operations overseer in the offseason. The two are compiling a list of replacement candidates, Robison said.
The league also is mandating that the Hawks restructure their Memorial Coliseum lease to stabilize the team's finances. Robison described the current arrangement, a 20-year lease that expires in June 2013, as "not acceptable" and "extremely difficult to operate within."
"We have to find a way to make it a more equitable and fair arrangement," Robison said.
He singled out the amount the Hawks pay to rent the Coliseum -- at least 10 percent of ticket sales -- as much too high, compared with other WHL teams in similar markets. Within the next two weeks, Robison said, the WHL plans to complete an analysis of all lease agreements among the league's 22-teams, then present it as evidence that proves his contention.
If a new deal cannot be struck, he said, the team might need to find a new home, in Portland, or elsewhere.
The group that controls the Winter Hawks' lease with the Rose Quarter argues that the Hawks' owners should focus on improving game attendance rather than squabble over lease terms.
"If they had the kind of attendance they had five years ago, they wouldn't be complaining about the lease," said Mike Golub, chief operating officer of the NBA's Portland Trail Blazers. Billionaire Paul Allen's Vulcan Inc. controls the Trail Blazers as well as Winter Hawks' lease.
The Hawks averaged 6,277 spectators a game five seasons ago. Average attendance dropped to 5,194 last season. It has fallen to about 4,000 this season.
"Our intent is to honor the lease, and we hope the Winter Hawks do the same," Golub said.
Falling attendance has set the franchise back financially, said Jack Donovan, the team's president and a minority owner. The Hawks franchise has lost money for several years. The Hawks ownership group, which also includes Dallas lawyer John Bryant, projected reaching profitability within three years when they bought the team in March 2006, Donovan said.
"That was all based on us having an average team," he said. "Nobody anticipated we were only going to win 26 games in two years."
As a result, the group has had to add on at least another six months to that three-year window to profitability, Donovan said.
Tough financial times have meant falling behind on bills and skimping on medical care for injured players, according to allegations the league is investigating.
The league has received assurances from team owners that they are violating no policies, Robison said, "But we're in the process of ensuring that's accurate and followed through."
A livid Donovan called the allegations unfounded, blaming them on restless fans.
"We're an easy target now, because we're in last place," he said. "We do not let any kid go by without getting medical treatment."
One of the allegations centered on the team telling Kevin Undershute, a 20-year-old forward who has missed most of the season with a shoulder injury, to get surgery in Canada, rather than the United States, where it is more expensive. Reached at his home in Medicine Hat, Alberta, Undershute, who will not undergo surgery after all, denied the claims.
"They never said that at all," Undershute said. "They totally left it up to me."
Donovan said the team is willing to go above and beyond its obligations to players. For example, the franchise paid $20,000 for 17-year-old forward Riley Boychuk to undergo hip surgery this week in Vancouver, B.C. Boychuk's injuries were caused by a birth defect, not hockey, Donovan said.
As for the team's outstanding bills, Donovan described them as a "normal course of business."
"Do we have some bills out? Sure," he said. "Do we have bills owed? Yeah. Right now, we've got more accounts receivable than accounts payable."
The franchise has lost one sponsor in the past two years and expects to add a couple of more next year, he said. To boost attendance, the team plans on offering more game promotions -- such as free hats and T-shirts -- next season.
But, of course, the best way to increase the team's fan base, Donovan said, is by putting out a winning team. To that end, he said, the front office has orchestrated a series of trades the past two years, that, combined with draft picks, has loaded the team with a group of, albeit young, hard-nosed players.
"I feel bad for our fans, but the heavy lifting has been done," Donovan said. "We're a year away from having a five-year run that will have us knocking on the door the whole way."
Boaz Herzog: 503-412-7072; boherzog@gmail.com
Friday, February 22, 2008
BOAZ HERZOG
The Oregonian http://www.oregonlive.com/oregonian/
Western Hockey League commissioner Ron Robison said this week that he has ordered the Portland Winter Hawks to shake up their front office. Robison also said the junior hockey franchise probably needs to restructure its Memorial Coliseum lease to avoid further financial losses and possible relocation.
"We want to make sure this franchise is turned around immediately," Robison said.
His comments coincided with league investigations into allegations that the organization isn't paying enough of its bills on time or providing adequate care for its injured players. Team owners have denied the claims.
On the ice, the Hawks (9-50-1-1) will try to snap a team-record 16-game losing streak at Vancouver tonight. With 11 games left, it will be difficult for Portland to avoid finishing with the league's worst record for the second consecutive season.
Ten days after the Hawks wrapped up the 2006-07 season 11 months ago, majority owner Jim Goldsmith appointed himself director of hockey operations, proclaiming: "We have no intention of staying in last place." The move gave Goldsmith the final say on decisions involving drafts, recruiting and player trades.
Goldsmith, however, needs to find a replacement, Robison said. The sooner, the better, he said, but definitely by the start of next season.
"We don't believe he's experienced or qualified for that position," said Robison, who initially approved the move on a temporary basis.
Goldsmith of New York, in his second year as principal owner of the Hawks, could not be reached for comment.
Robison said Goldsmith has assured him he will relinquish his role as hockey operations overseer in the offseason. The two are compiling a list of replacement candidates, Robison said.
The league also is mandating that the Hawks restructure their Memorial Coliseum lease to stabilize the team's finances. Robison described the current arrangement, a 20-year lease that expires in June 2013, as "not acceptable" and "extremely difficult to operate within."
"We have to find a way to make it a more equitable and fair arrangement," Robison said.
He singled out the amount the Hawks pay to rent the Coliseum -- at least 10 percent of ticket sales -- as much too high, compared with other WHL teams in similar markets. Within the next two weeks, Robison said, the WHL plans to complete an analysis of all lease agreements among the league's 22-teams, then present it as evidence that proves his contention.
If a new deal cannot be struck, he said, the team might need to find a new home, in Portland, or elsewhere.
The group that controls the Winter Hawks' lease with the Rose Quarter argues that the Hawks' owners should focus on improving game attendance rather than squabble over lease terms.
"If they had the kind of attendance they had five years ago, they wouldn't be complaining about the lease," said Mike Golub, chief operating officer of the NBA's Portland Trail Blazers. Billionaire Paul Allen's Vulcan Inc. controls the Trail Blazers as well as Winter Hawks' lease.
The Hawks averaged 6,277 spectators a game five seasons ago. Average attendance dropped to 5,194 last season. It has fallen to about 4,000 this season.
"Our intent is to honor the lease, and we hope the Winter Hawks do the same," Golub said.
Falling attendance has set the franchise back financially, said Jack Donovan, the team's president and a minority owner. The Hawks franchise has lost money for several years. The Hawks ownership group, which also includes Dallas lawyer John Bryant, projected reaching profitability within three years when they bought the team in March 2006, Donovan said.
"That was all based on us having an average team," he said. "Nobody anticipated we were only going to win 26 games in two years."
As a result, the group has had to add on at least another six months to that three-year window to profitability, Donovan said.
Tough financial times have meant falling behind on bills and skimping on medical care for injured players, according to allegations the league is investigating.
The league has received assurances from team owners that they are violating no policies, Robison said, "But we're in the process of ensuring that's accurate and followed through."
A livid Donovan called the allegations unfounded, blaming them on restless fans.
"We're an easy target now, because we're in last place," he said. "We do not let any kid go by without getting medical treatment."
One of the allegations centered on the team telling Kevin Undershute, a 20-year-old forward who has missed most of the season with a shoulder injury, to get surgery in Canada, rather than the United States, where it is more expensive. Reached at his home in Medicine Hat, Alberta, Undershute, who will not undergo surgery after all, denied the claims.
"They never said that at all," Undershute said. "They totally left it up to me."
Donovan said the team is willing to go above and beyond its obligations to players. For example, the franchise paid $20,000 for 17-year-old forward Riley Boychuk to undergo hip surgery this week in Vancouver, B.C. Boychuk's injuries were caused by a birth defect, not hockey, Donovan said.
As for the team's outstanding bills, Donovan described them as a "normal course of business."
"Do we have some bills out? Sure," he said. "Do we have bills owed? Yeah. Right now, we've got more accounts receivable than accounts payable."
The franchise has lost one sponsor in the past two years and expects to add a couple of more next year, he said. To boost attendance, the team plans on offering more game promotions -- such as free hats and T-shirts -- next season.
But, of course, the best way to increase the team's fan base, Donovan said, is by putting out a winning team. To that end, he said, the front office has orchestrated a series of trades the past two years, that, combined with draft picks, has loaded the team with a group of, albeit young, hard-nosed players.
"I feel bad for our fans, but the heavy lifting has been done," Donovan said. "We're a year away from having a five-year run that will have us knocking on the door the whole way."
Boaz Herzog: 503-412-7072; boherzog@gmail.com