When NHL Owners Attack...Each Other!!!
In less than one week the lawsuit between the feuding members of the Atlanta Spirit (sic) will have their day in court. Ten years from now, when people look back at the history of this franchise, they will likely consider the outcome of this trial the most important Thrashers-related event between the 2008 NHL draft and the 2009 NHL draft.
Why is this so important? Because it will end the prison sentence for NHL fans in Atlanta. The harsh reality is that the entire 2008-09 Thrashers season amounts to a marking time in a holding cell.This franchise is dead in the water.
The current group will not replace GM Don Waddell. They are not spending money on upkeep for the building. Philips Arena which is only ten years old has many un-repaired lights and broken toilet seats in the restrooms. The organization is offering every discount imaginable this season to scrap up every loose dollar bill. All that matters right now is reducing the owners operating losses--even if heavily discounted seats creates long term damage to season ticket sales. Stemming the tide of red ink has been the highest organizational priority until the ownership question is resolved.
If you're a fan of NHL hockey this season essentially amounts to watching Zach Bogosian, Bryan Little and Boris Valabik develop as players while the Thrashers "earn" yet another top 5 NHL draft pick with a bottom five payroll. Hockey fans who prefer to watch victories rather than players development have chosen to sit on the sidelines. Big NHL fans in this city have stopped buying season tickets (I can easily list off 10 long-term STH that quit buying this year). Fans who used to never miss a game now only attend intermittently. We're all waiting for some signal that this franchise intends to compete.
While the fans pass on donating their money to a team that will finish in the bottom 5 of the league (again), the "World's Most Expensive Pissing Contest" waits to be resolved. A group of very rich men and their expensive litigators maneuver and plot to legal strategies instead of hockey strategies. At the conclusion of this off-ice brawl one group will be crowned champion...and the "champ" will owe the other group a huge amount of money. Given the the current economic climate it is possible the happiest party is whichever side loses control of the teams but wins the right to receives millions in compensation.
On the one side you have the Washington and Atlanta parts of the Spirit Group who lacked sufficient capital to buy the Thrashers and Hawks on their own back in 2003-2004. So they brought in the Bostonian Steve Belkin who had even more money from his credit card logo company (wonder how that is business is doing right now).
At this point, it is impossible to know who will win the battle. But here are a few things we can be fairly certain of.
- The Thrashers/Hawks/Philips Arena are worth more than they cost to purchase. So someone is about to realize a significant capital gain.
- The operating losses of the Thrashers/Hawks/Philips Arena were much more than anticipated. So the Washington/Atlanta owners have lost a small fortune over the last five years.
- The rich men fighting over these shiny toys are not nearly as rich as they were before the stock market fell 40%, the economy tanked and the Madoff scandal hit.
- Whomever wins the lawsuit probably will need to sell either part or all of the franchises to either recoup business losses or to pay off the lawsuit "loser" and gain cash to operate the teams in a competitive fashion.
Despite the fervent desire of some Canadian hockey fans, the Thrashers are very unlikely to move to Southern Ontario. Why? The Hawks and Philips Arena are legally bound together. Whomever ends up owning Philips Arena stands to lose millions of dollars in rent and naming rights revenue if the Thrashers were moved. That's a powerful reason to find a buyer who will keep them in town.
Conclusion: Thrasher fans, your sentence is winding down. We've all been marking time while the attorneys racked up their billable hours on this thing, but eventually there will be an outcome and eventually we will see change. I don't know the day nor the hour, but change is in the air and I can smell it.
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Comments
I'm to the point where I don't care who...
wins the pissing match. They all are to blame in my eyes. Whoever wins, the first step that needs to be taken is hiring a quality sports businessman. Not some marketing cast-off from other leagues, but a true businessman. Give them martching orders to straighten out both franchises and stay out of the way.
by Blut-0 on Feb 13, 2009 8:47 AM EST reply actions 0 recs
My thoughts EXACTLY
This article sums up my exact thoughts this year. The owners know zero about hockey and DW is still here because he “does”.
Best case scenario…Owner with a face (not a group of idiots) buys a team and agrees to lease in Atlanta for 20-25 years. They also agree that a certain amount of $$ gets put back into Philips. That place is depreciating fast. I think fan interest will be huge despite the first years record because that is the biggest step in the right direction.
by Whalers on Feb 13, 2009 9:50 AM EST reply actions 0 recs
If Belkin wins, the Thrashers will be moving. Maybe not next year, but in short order. There’s no doubt in my mind. He’s publicly stated that he has/had no interest in owning a hockey franchise.
by SilverRubicon on Feb 13, 2009 10:46 AM EST reply actions 0 recs
If Belkin wins, the Thrashers will be moving. Maybe not next year, but in short order. There’s no doubt in my mind. He’s publicly stated that he has/had no interest in owning a hockey franchise.
His desire to not own a hockey franchise does not mean the team will move. He might sell the team, and that’s fine. But the smart money is on him selling to a buyer who will keep the team in town.
Unless, you know, you can see into the future. If that’s the case, please tell me the winning lottery numbers for tonight’s Mega Millions lottery.
by dj4aces on Feb 13, 2009 11:01 AM EST reply actions 0 recs
I don’t see an individual owner stepping up to purchase an NHL franchise in Atlanta. Even the Braves have had no success in finding a local owner. The only thing working in the Thrashers favor is the economy.
by SilverRubicon on Feb 13, 2009 11:05 AM EST reply actions 0 recs
That’s two different things. An owner doesn’t have to be local to keep the team in town.
The naming rights for Philips Arena is tied to the Thrashers being in Atlanta, it makes complete business sense to keep the team here. If the ownership is really hemorrhaging money like they claimed they are (really, unless we see a cash flow statement, we’re not going to know for certain, but that’s a whole other can of worms), then it’s even more important for them to keep the Philips name on the arena.
by dj4aces on Feb 13, 2009 11:25 AM EST reply actions 0 recs
How long is the Philips naming contract for?
by Whalers on Feb 13, 2009 1:44 PM EST reply actions 0 recs
A long time. I think it was a 25 year deal.
by The Falconer on Feb 13, 2009 2:54 PM EST up reply actions 0 recs
According to the AJC the naming rights deal is only worth 9 million. It’s also not a certainty that Phillips would revoke their naming rights if the Thrashers move. With the owners losing 175 million in the last 7 years, a 9 million dollar loss might be not be a bad thing if it can offset future losses. Is it easier to find another sponsor or to find a buyer to keep this team in Atlanta? Also, according to the AJC the Thrashers are not part of the bond deal with Philips and the city of Atlanta.
As a season ticket holder, I want this team to stay put. I simply see the odds of that as being fairly slim and declining game by game.
by SilverRubicon on Feb 15, 2009 8:54 AM EST up reply actions 0 recs
If that’s the case, I can’t see this group of idiots letting the team go without a long lease agreement.
by Whalers on Feb 13, 2009 4:18 PM EST reply actions 0 recs
Better Owners/Marketing
Once this squabble settles in court the victor will most likely sell the team. Doesn’t matter if the buyer is local or not. The new owner by right should be someone who has a passion for the game and would be willing to expose the team and game on a more broad level. Better and more aggressive marketing would better support the team. You need to build a more family oriented atmospere with the club in order to bring key players to build a contender. You have to be able to make players want to play there period. Examples- Have a fathers or family west coast trip to bring the players families with them when they do a trip to the teams in Cali. all on the teams expense, not just affordable ticket prices/packages that include three games with food and a drink and name them after a player like the Kovy or Bogosian package, provide players with one on one support for housing in gated communities and schooling for their kids, owners should call players when their injured directly to make sure their ok and let them know if they need anything their there to help. Its the little things and steady fan support that builds winners. I hope that this is what will come for the Thrashers for the sake of the team and Atlanta.
by ROCK 08 on Feb 14, 2009 5:49 PM EST reply actions 0 recs
New to Atlanta hockey
Hi everyone,
I moved from Chicago to Atlanta last April so this whole ownership situation strikes a certain chord with me. I grew up a Blackhawks fan (still am but am making the Thrashers my 1B now that I live here).
The Hawks were under the thumb of Bill Wirtz my entire life until he kicked the bucket right before last season began. It’s no coincidence that the Hawks became a must-have ticket in Chicago as soon as his son took over. At times it bothers me that this new family-friendly stuff sells so well but that’s what the Thrashers need to do to bring people to the arena. That and winning…but let’s not get ahead of ourselves.
What also helps is a lot of reaching out. Have the players attend public signing events. When the team is on the road, have road watch events where Thrasher fans gather at a local bar/restaurant to watch the game with the Blue Crew for contests, raffles, etc. Fan conventions prior to the start of a new season are huge events in Chicago and just think how much the people who read this blog would like to meet guys like Kovalchuk and Little. Pardon my ignorance if these things already exist.
Of course, it sounds like these things can’t and won’t be done with the current ownership situation but I hope the new owner(s) do these kinds of things.
I’m familiar with being a fan of a team with high fan interest, followed by no fan interest, then unprecedented fan interest after an owner change. I want hockey to survive in the Southeast. It just needs owners who give a damn.
What exactly is this ownership group fighting over? Do they want ownership of the team? Or are they fighting to get it off their hands? And as a fan, which one is most likely to keep the team in Atlanta or sell it to someone who will?
by antbogey on Feb 16, 2009 2:35 PM EST reply actions 0 recs
The Thrashers do many, if not all, of these things as it is.
by SilverRubicon on Feb 16, 2009 5:50 PM EST up reply actions 0 recs
There will be no contraction in the league. Period.
That being said, the NHL will probably work with the Thrashers after this litigation is completed to find new principals who will keep the team where it is and over time improve it. This is happening right now in Phoenix, as it appears the team is receiving advances from the revenue sharing plan through the league. That organization apparently has unfavorable lease terms with the jobing.com arena and much has been said and written about what Gary Bettman’s office is doing here, Mr. Bettman spoke to the Coyotes broadcasters last week about this and there is also a lengthy Wayne Gretzky piece at www.cbcsports.ca/hockey which deals with this {among other things} as well.
New ownership needs to address these issues {like doing something with or to the GM} but many things they may like to do are probably not permitted under the terms of the litigation. The litigation also probably has something to do with the big discounting of ticket prices to non STH {maybe to get people in the building in the hopes they will keep coming back}.
The on ice product will follow. Remember too, the Salary Cap is probably going to trend lower the next two seasons, if you stay well below the cap {like the Kings, for example} you will be able to attract better players – or should be able to. I see this here. The big key to this is resigning Kovalchuk. That’s another post.
Many other NHL teams {Buffalo, Pittsburgh, the Islanders, Washington, Nashville} have gone through this process. But once the litigation issue is resolved, that should help in getting a more normal, stable environment to grow the on ice product and appease the STH base as well.
The league needs the southern tier teams to survive. They will continue to make it work. It’s a good business decision. It just is taking forever.
Thought it would be a good time to come back…time to put Thrashers-Kings up for some good late night hockey…
by spiker97 on Feb 16, 2009 10:33 PM EST reply actions 0 recs
Sick and tired of being a hostage but still optimistic ...
In the expansion draft the Atlanta Flames joined the NHL in 1972 along with the New York Islanders (although I feel bad for Islanders fans, I’m feel somewhat grateful towards the team who keep us from being LAST in the league). Anyway, my dad was a STH and I remember vividly going to the OMNI to watch Atlanta Flames games and remember my disappointment when it was explained to me that the Flames were moving to Calgary in 1980. I was just a little girl then but it still warms my heart even now to see that old Atlanta Flames logo as the "A" on the alternate captains jerseys. In fact, I still cheer them on when they’re not playing the Thrashers!
As you can imagine, I was ecstatic when hockey came back to Atlanta almost 20 years later. I love having the Thrashers here.
This article is spot on. The lawsuit and the feeling of being held hostage as a diehard hockey fan is just demoralizing. The trade deadline is approaching and it will be interesting as will the town hall meeting which I wouldn’t miss for the world. I think the Thrashers have so much potential but the current owners and this lawsuit are absolutely twisting the dagger stuck in the heart of its fans … remember us? Those people who LOVE this team and want to see the team remain here. Their actions just confirm the Atlanta Spirit and Belkin couldn’t care less. GM seems completely clueless but regardless it appears his hands are tied for now.
I’m ready for this to be over so someone who cares about the team and the fans can turn this around and make Atlanta proud. Too bad Arthur Blank isn’t looking for a hockey team!
That being said, think of what you’d be feeling as a player in this organization. We all know there’s major problems but how frustrating would it be to bust your rear a few nights a week knowing the owners don’t really care about you, your fans or solving any of the problems. Like all of you, I get frustrated with the poor performance but I’m proud of my Thrashers for winning the four of the last five games (almost 5 as I just finished watched us lose a 9 round shootout with the Phoenix Coyotes) and for still playing their hearts out . The fans love ’em for it. I do anyway … watching them play a good game helps me forget about this mess for a while and reminds me why I love this game.
I remain optimistic and I hope to cheer them on next year from my seats under much better circumstances.
by atl_hockeyfan on Feb 20, 2009 1:47 AM EST reply actions 0 recs

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