Open letter from Preds owner Craig Leipold to season ticket holders...

Discussion in 'The Business of Hockey' started by The Legend, May 24, 2007.

  1. The Legend

    The Legend GW

    Joined:
    Feb 24, 2004
    Messages:
    4,995
    Likes Received:
    96
    Trophy Points:
    101
    I thought this was very interesting...people have bashed Leipold(I was one) but I have never seen this extensive an amount of economics revealed by a team owner...if these facts are true it'd be hard to blame him, although I'm sure other owners have dealt with similar situations... Link

     
  2. Jarnberg

    Jarnberg Registered User

    Joined:
    Jul 10, 2002
    Messages:
    5,655
    Likes Received:
    11
    Trophy Points:
    141
    Location:
    Nashville
    Home Page:
    However, he doesn't mention how much money he made through Powers Management, the operation which ran the arena and got a ton of money from concessions, concerts, etc.

    If he claims he spent that much on marketing, then he didn't put the money in the right places. Our marketing was terrible.

    No doubt he wasn't making money, but he's an idiot if he thinks he can instantly build a huge market. Things were on the up swing, but I guess he couldn't take it any longer. And who can blame him when he only paid $55 million for the franchise and then resold them for $220 million.

    And frankly, I have no reason to believe what he's saying in this e-mail since it turns out most of the other things he has said have been lies.

    Edit: This has also been posted in numerous threads, but I guess you just want to make sure everyone sees it, right?
     
  3. Hawker14

    Hawker14 Registered User

    Joined:
    Oct 27, 2004
    Messages:
    3,085
    Likes Received:
    0
    Trophy Points:
    84
  4. The Legend

    The Legend GW

    Joined:
    Feb 24, 2004
    Messages:
    4,995
    Likes Received:
    96
    Trophy Points:
    101

    Pretty much...bits and pieces were posted here and there, but again I thought it was interesting if only to get an inside look into the economics of a hockey team. You also have to think that its doubtful that he's the only owner in this situation...I agree that Nashville fans seem to be getting jobbed.
     
  5. Hawker14

    Hawker14 Registered User

    Joined:
    Oct 27, 2004
    Messages:
    3,085
    Likes Received:
    0
    Trophy Points:
    84
    the press conference is starting
     
  6. trotzian brow

    trotzian brow Registered User

    Joined:
    Mar 18, 2006
    Messages:
    296
    Likes Received:
    0
    Trophy Points:
    0
    Dear god, he is reading the letter for the press conference? What a joke.
     
  7. Goallum

    Goallum Registered User

    Joined:
    Jul 23, 2003
    Messages:
    1,910
    Likes Received:
    0
    Trophy Points:
    0
    Home Page:
    I think it speaks volume that there's not a single mention of the team-moving issue. This tells me that keeping the team in Nashville is not part of the agreement and the team will be moved.
     
  8. The Legend

    The Legend GW

    Joined:
    Feb 24, 2004
    Messages:
    4,995
    Likes Received:
    96
    Trophy Points:
    101
    reporters will ask these questions, do not worry.
     
  9. likewall32

    likewall32 **putt meem hear**

    Joined:
    Feb 6, 2006
    Messages:
    3,199
    Likes Received:
    48
    Trophy Points:
    101
    Location:
    San Jose, CA
    Leipold just said Balsillie on the contract Balsillie signed, he had to sign an "NHL consent agreement" that he would have had to sign in Pittsburgh too, but it says that he has to keep the team here for at least another 7 years. If that's the case, it's good news, for now.
     
  10. The Legend

    The Legend GW

    Joined:
    Feb 24, 2004
    Messages:
    4,995
    Likes Received:
    96
    Trophy Points:
    101
    Like everything, it can be broken very easily. You would have heard about it if it meant something.

    Leipold went on to say that if no lease is in place(Preds can opt out if they don't get 14000 two years in a row) the consent agreement can be broken.
     
  11. likewall32

    likewall32 **putt meem hear**

    Joined:
    Feb 6, 2006
    Messages:
    3,199
    Likes Received:
    48
    Trophy Points:
    101
    Location:
    San Jose, CA
    Yes, it can be broken, but should the Preds draw 14,000+, they can negate the move. Balsillie can choose to be a jackass and run the team into the ground, assuring himself the ability to take the Preds elsewhere beyond next season.
     
  12. Jarnberg

    Jarnberg Registered User

    Joined:
    Jul 10, 2002
    Messages:
    5,655
    Likes Received:
    11
    Trophy Points:
    141
    Location:
    Nashville
    Home Page:
    Exactly.
     
  13. AdmiralPred

    AdmiralPred Registered User

    Joined:
    Jun 9, 2005
    Messages:
    1,923
    Likes Received:
    0
    Trophy Points:
    0
    You should read through Sotnos' "Everything you wanted to know about the Lightning" thread.
     
  14. Slats432

    Slats432 Registered User

    Joined:
    Jun 2, 2002
    Messages:
    12,756
    Likes Received:
    13
    Trophy Points:
    171
    Home Page:
    That is what I see. If he really wants to move the team, there is nothing to say that he will put in the resources to make it successful in Nashville. He would likely allow it to fail, and then have an out to move the team.
     
  15. Butch 19

    Butch 19 Go cart Mozart

    Joined:
    May 12, 2006
    Messages:
    12,979
    Likes Received:
    403
    Trophy Points:
    154
    Location:
    Geographical Oddity
    If he was making "a ton of money" why is he selling? Seriously, why sell when you're raking it in?

    Do you know the "right places" to put marketing money in the Nashville market? Seriosly, do you? Maybe the Nashville fan base is just too small and will always be stuck on NASCAR.


    He built a very competitive team and he's still selling. What other marketing is there besides winning? Maybe Nashville just can't support an NHL team. Maybe there's no one else to market to.

    Why do so many "hate-the-owner" fans doubt EVERYTHING owners say? If you owned a team, wouldn't you expect to make money when you have built a successful team?
     
  16. Jarnberg

    Jarnberg Registered User

    Joined:
    Jul 10, 2002
    Messages:
    5,655
    Likes Received:
    11
    Trophy Points:
    141
    Location:
    Nashville
    Home Page:
    I never claimed he was raking it in. In fact, I surely believe he has lost money. That being said, he'll for sure announce his losses as monumental as possible to save face. He doesn't have to disclose how much he makes with Powers, therefore making the losses seem higher. I do believe he is still losing money and does want out. You're misunderstanding me.

    I've seen a ton of ideas thrown around by people who point out where the Predators could improve. Me being from the market, and you not, I would hope you'd understand that I probably understand the team marketing a bit more then you. "Seriosly". And for your claim for NASCAR, we don't even have an official race here. Yes NASCAR is popular in the south, but you act like its all we care about. NFL football would be a more appropriate comparison.

    For your second point, you are right. Maybe Nashville cannot support a NHL team. Its a legimiate question. I'll disagree though, I think with time, any market can build a solid base. Some more then others. As for your point about a very competitive team and what other marketing? You are talking about a league whos games are shown on Versus and playoff games are cut off for pre-race shows. The league gets little coverage nationally. Its not enough to simply win when the average Joe probably has no idea how good a team is.

    You'll find while alot of us are emotional, we won't entirely blame the owner for wanting to recoup his loses. That being said, we have every right to point out when he's lied. Just as we have every right to point out if he exaggerates things. Or point out where we feel he's wrong. For instance, he's claimed corporate support has fallen off from our initial seasons (where we had our highest attendance). Yet I've seen fewer marketing. He's burned alot of bridges with local businesses. I know its simple to point out that we had a successful team. There are a TON of factors in play here.

    While I understand Craig not wanting to lose money, I can punch at some of his other claims. Especially ones where I notice he claims we have the best marketing in the league. I've seen numerous reports from Predators fans where they went to other cities and were amazed at how much other teams market compared to us. I can also punch at his claim that its entirely corporate support which is our problem. Or the fact that he thought he could instantly build a strong market in a city with little hockey history, after a lockout, with little national coverage.

    I'd hope that you'd perhaps agree with me on some of these issues. No, Nashville isn't the best hockey market right now. Will it ever "work", thats debatable, and I can't fault people for saying some of the things, especially since they don't live here. That being said, I see the building of a market. I see kids starting to play hockey now instead of football and baseball. I see our last playoff game selling out in 20 minutes. I see improvements. It takes time.

    I fully support him selling the team if he claims he's losing money. That being said, I don't have to agree with all his statements and claims.
     
  17. dafoomie

    dafoomie Registered User

    Joined:
    Jul 22, 2005
    Messages:
    14,371
    Likes Received:
    79
    Trophy Points:
    131
    Location:
    Boston
    The Titans moving to Nashville probably hurt the Preds a lot. Every sport in a city has to compete for disposable income, and the NFL is king right now.

    From the outside, it looks like Leipold did a good job with building up a base and he gave it everything he could. I just don't think the conditions in Nashville are right today for an NHL team, I don't think they would've been awarded a franchise after the Titans were there.

    Its not an indictment of the fans at all, I was surprised by how many people there care about the team. But, ultimately they're competing with the NFL for a finite amount of dollars in that city, and its a battle they can't win. Those businesses are spending their money on the Titans.

    That said, I hope they don't move. A team in Hamilton or Kitchener is a silly idea.
     
  18. hockeytown9321

    hockeytown9321 Registered User

    Joined:
    Jun 18, 2004
    Messages:
    2,358
    Likes Received:
    0
    Trophy Points:
    0
    "The Nashville Predators tallied up 216 points in the last two seasons, fifth most in the NHL, yet because of below-average attendance, the team will still have a real cash loss of $27 million during that time. Additionally, that loss is despite receiving the most money in the league from revenue sharing."



    "A partnership will ensure 30 healthy and competitive franchises with affordable ticket prices. This is a goal that we will not abandon."
    -Gary B. Bettman, October 13, 2004
    http://www.nhl.com/fancentral/livechat/transcripts/bettman101304.html

    Sure am glad we did so much damage to the league in order to get a partnership that ensured Nashville could remain in the league for another 3 years. Seems well worth it. I wonder what goal we won't abondon after the next lockout.
     
  19. BenThatcher

    BenThatcher Registered User

    Joined:
    Oct 30, 2006
    Messages:
    487
    Likes Received:
    0
    Trophy Points:
    0
    I doubt the new owner would intentionally mismanage the team in order to get attendance below 14k a game. From the sounds of it, the old owner did everything in his power to attract fans and they only averaged 12k paying customers a game. They were a very good team all year and the picked up the biggest fish at the deadline. The only other thing that might have saved the situation would have been a long playoff run.

    This really sucks for the Nashville fans, any chance this new owner moves to KC or Winnipeg instead of Ontario?
     
  20. I personally highly doubt it.
     
  21. Jaded-Fan

    Jaded-Fan Registered User

    Joined:
    Mar 18, 2004
    Messages:
    43,211
    Likes Received:
    2,183
    Trophy Points:
    186
    Agree. Balsillie did not buy the team for 1/4 billion dollars to fly to KC to see them
     
  22. Resolute

    Resolute Registered User

    Joined:
    Mar 4, 2005
    Messages:
    4,125
    Likes Received:
    0
    Trophy Points:
    0
    Location:
    AB
    Frankly, based on the past couple years, Balsillie doesn't even need to do that. If a team that battled for top spot in the league for much of the year can't draw 14,000, what chance does this team have when the majority of fans already believe the team is going to be relocated?
     
  23. multiball

    multiball Registered User

    Joined:
    Sep 12, 2005
    Messages:
    1,254
    Likes Received:
    0
    Trophy Points:
    84
    Location:
    NoHo
    First and foremost, I feel bad for hardcore Preds fans.

    This letter sounds like a well written outline of why hockey has already failed in Nashville. Almost an indictment... I'll bet it comes complete with a PowerPoint deck with several pie charts and downswing bar graphs... Scary.
     
  24. Hunter Gathers

    Hunter Gathers White guilt milquetoast piece of human garbage. Sponsor

    Joined:
    Feb 27, 2002
    Messages:
    107,850
    Likes Received:
    3,982
    Trophy Points:
    231
    Gender:
    Male
    Occupation:
    Corporate Drone
    Location:
    NJ/NYC
    While I feel bad for them, if they aren't drawing people... they kind of have it coming...
     
  25. That's the franchise's fault! Not our fault.
     

Share This Page

monitoring_string = "358c248ada348a047a4b9bb27a146148"