arizona diamondbacks minority owners

If were being honest, an owner with a minority stake experiences a mostly ceremonial involvement. Jensen is the co-founder of Information Technology, which develops software for the banking industry. The presence of the Diamondbacks hardly transformed commercial or residential patterns in Maricopa County. Cohen said his clients are not seeking a temporary restraining order, but they reserve the right to do so in the future. The. 29 Cactus League Stadium Guide: Salt River Fields at Talking Stick, FoxSports.com, February 24, 2016. However, it took some time for the people behind it to get things done, which is why the Arizona Diamondbacks didn't play their first game until 1998. Freeze outs have been the source of lawsuits involving alleged breach of fiduciary duties, conflicts of interests and self-dealing. (Performed with evil mind is a legal term of art in Arizona; the plaintiffs are not calling Kendrick evil.). Thompson, A History of the Cactus League., , May 23, 1976, B3; Lee Shappell, Jerry Colangelo,, https://sabr.org/sites/default/files/ChaseField-2015.png, /wp-content/uploads/2020/02/sabr_logo.png, Arizona Diamondbacks team ownership history, springtrainingmagazine.com/history4.html#cactus, http://ballparkdigest.com/wp-content/uploads/2016/03/OriginalDbacksletterforChairmanSupervisors03242016.pdf, http://foxsports.com/arizona/story/cactus-league-stadium-guide-salt-river-fields-arizona-diamondbacks-colorado-rockies-022416, http://azcentral.com/story/entertainment/events/2015/02/25/cactus-league-stadium-guide-salt-river-fields-at-talking-stick/24009267/. In 1990 the Arizona Legislature passed legislation that created a Maricopa County stadium district governed by the county Board of Supervisors. The franchise has had two managing general partners, the term it uses for its chief executive officer: Jerry Colangelo (1995-2004) and Ken Kendrick (2004-). Like Kendrick, Jensen and Chipman earned their fortunes in the software industry. A trio of Diamondbacks minority owners have filed a lawsuit against the franchise's managing general partner Ken Kendrick, according to a report from Zach Buchanan of The Athletic. Accessed June 10, 2016: http://seattlepi.com/sports/baseball/article/Diamondbacks-Yankees-found-success-after-1069899.php. But the downtown area slowly emerged from its doldrums, becoming a destination to visitors outside of bankers hours. This list may not reflect recent changes ( learn more ). The measure authorized the county to collect a $2.50 car-rental tax. The. Its a tech firm that provides tools necessary for efficient process deliveries, price negotiation, and trading. Get ready for plenty of action and exciting matchups all season long. After the draft they traded several of the prospects they had selected for veterans like Detroit Tigers third baseman Travis Fryman and Florida Marlins center fielder Devon White. A high-school basketball star, Colangelo gained an athletic scholarship to the University of Illinois, where he captained the basketball team and earned All Big-Ten status. Phoenix, AZ 85004 The teams apparent goal is to streamline the ownership group and reduce the number of partners with very minimal equity stakes in ownership. MLB may want to offer policy statements that support the benefits of contracting the sizes of limited partners. Cohen rejects any notion that the 1% floor constitutes MLB edict. Diamondbacks Considering Selling Minority Share Of Franchise However, they might begin to feel less fondly about the club as they battle Kendrick in court. The three minority owners in question are Alfredo Molina, CEO of a Phoenix-area jewelry company; Jim Weber, a former professional pitcher; and Carlisle Investments. A trio of Diamondbacks limited partners are taking on the principal owner of the club, Ken Kendrick. The complaint also alleges breach of contract. potential future revenue streams related to legalized gambling," per Buchanan. (There was little indication that Stone pursued a stake in the Expos to move the franchise. They've been told to increase their investment or be bought out, which they say is an unlawful ultimatum. While limited partners lack the powers of the general partner, there are nonetheless financial implications to their equity. Suffice to say that Princeton is not an uncommon name, seeing as how it is not uncommon for towns to be named for one prince or another. In the 21 years since Major League Baseball granted an expansion bid to Arizona Baseball, Inc., the Arizona Diamondbacks franchise has been characterized by the stability of its leadership. However he does like to take on other topics involving some of his personal interests like automobiles, future technologies, and anything else that could change the world. For those who are unfamiliar, said team started up in 1995. 9. AZ, CO, CT, IL, IN, IA, KS, LA, (select parishes), MD, MI, NH, NJ, NY, OH, OR, PA, TN, VA, WV, WY, CA-ONT only.Eligibility restrictions apply. They are currently being represented by Roger Cohen from the Phoenix-based Jaburg Wilk law firm. * 21+ (19+ CA-ONT) (18+ NH/WY). A general partner, sometimes referred to as the clubs principal owner, runs day-to-day operations, sets policies and oversees the hiring and firing of baseball operations and business services. In the expansion draft, the Diamondbacks scooped up veteran starting pitchers Brian Anderson and Jeff Suppan with their first two picks. The company helps connect suppliers and seafood buyers throughout Europe. Chipman was the creator and original owner of TurboTax. In return, the county granted the baseball team a 30-year lease and primary-tenant status. Several of the Midwestern clubs in the Cactus League, particularly the Cubs, turned their spring-training homes into popular winter tourist destinations for their fan bases as well as homes away from home for seasonal residents or permanent transplants to Arizona.2. In contrast, the Diamondbacks on-the-field performance has been consistently inconsistent ever since those heady early years. Former Arizona AG Grant Woods Says D-Backs Owner Ken Kendrick Sent Him A slightly more achievable goal, at least among the very affluent, is to buy a minority stake in a team. However, according to the complaint, a club attorney later clarified that Kendrick had misspoken and that a second valuation would not be possible. They also are suing for Breach of Contract and Breach of the Implied Covenant of Good Faith and Fair Dealing, for which they seek compensatory damages. ET. That is the same year Kendrick ousted Jerry Coangelo as the Managing General Partner. Molina is required to invest an additional $3.8MM or his stakes will be bought out at the same number, Weber investing another $6MM or get a $1.5MM buyout, and Carlise Investments getting a similar ultimatum for undisclosed amounts. Additionally, the BOB offered some of the most affordable prices in baseball. Such a judgment is issued by a judge and reflects a clarification of the rights and obligations of the parties. By the end of the 2004 season, the club owed more than a quarter of a billion dollars in deferred salaries.26. Welcome to the Jungle! D-backs tickets are on sale now with home games starting April 6! As an NBA executive, he ran in similar circles with MLB executives. Bearing the name of a Phoenix-based airline, it was one of the earliest examples of stadium naming rights being sold to a corporation.10, In September 1993 Colangelo announced the formation of Arizona Baseball Inc., whose purpose was to bring a major-league baseball team to Phoenix. The colors were marketed as evocative of the regions cultural heritage. 2015 Chase Field photo by Jacob Pomrenke/SABR. Register now to join us on March 10-12, 2023, in Phoenix, AZ. In October 1989, nearly 60 percent of Phoenix voters rejected a ballot initiative that would have allowed the issuance of $100 million of the previously authorized bonds for a domed ballpark. Heres the rundown of the suit in question: The plaintiffs are suing on six counts. The Cleveland Indians announced plans to move their spring-training headquarters from Tucson to Homestead, Florida. Stone persuaded Bidwill to join him in building a stadium in the downtown area. Kendrick has been one of the part-owners of the Arizona Diamondbacks since the start of the franchise. But the Maricopa County Board of Supervisors made it evident that they had no interest in supporting any such municipal investments, particularly when Major League Baseball deemed Chase Field acceptable to host its All-Star Game as recently as 2011. The win-now approach of the Colangelo-Garagiola era can take some of the blame for the diminishing returns. As a starting point, expect Kendrick to deny the complaints depiction of his ownership. In short, it started out as a business that specialized in data processing, but went on to become something much more, as shown by the fact that its latter incarnation specialized in building education platforms for institutes of higher education. Cohen also disputes the assertion that partners holding interests of less than 1% somehow undermines the financial stability of the club or disrupts management. 2 Ibid. Prospective partners must prove their mettle with different constituencies. Arizonas significant public investment in spring-training baseball helped lure a number of franchises to the Cactus League. Kendrick is reportedly waiting until after the Angels' sale is finalized to further explore the possibility of selling the minority stake. He made it clear to Colangelo that there would be no increase in the 0.25 percent sales tax unless Maricopa County residents received a good deal on the facility. 9 prospect Drey Jameson strikes out two batters in two hitless innings during his spring outing against the Giants, D-backs catcher Carson Kelly lifts a solo home run over the left-center-field wall to give Arizona a 1-0 lead in the top of the second, World Baseball Classic tickets on sale now, Watch the Hot Stove every weekday at 9 a.m. Stoneham placed his clubs spring-training camp in Phoenix. Metropolitan Phoenixs Path to the Major Leagues. Became Managing General Partner in 2004, 10. Diamondbacks minority owners sue over alleged forced buyouts 25 Arizona Diamondbacks Letter to Maricopa County Board of Supervisors, January 12, 2016, BallparkDigest.com, March 30, 2016. According to USA Today's Bob Nightengale, D'Backs managing general partner Ken Kendrick is weighing the possibility of "selling a significant, but still minority share" of the team. In the late 1990s and early 2000s, the franchise signed high-priced free agents to large contracts that deferred large amounts of salary. He is also a PhD candidate in US History at Boston College. More than just a known commodity, Colangelo had the added advantage of being close personal friends with Chicago White Sox and Chicago Bulls owner Jerry Reinsdorf, who actively championed Arizonas bid. Colangelo believed that taxpayers deserved an immediately competitive club in return for the investment they had made in Bank One Ballpark. In 1989 the eight-team Cactus League was in danger of losing one of its founding members. Molina, a jeweler by trade, is chairman and CEO of Molina Fine Jewelers. 2004-2023 CBS Interactive. For instance, profits and losses are allocated among all the partners. Inject this straight into our veins. They were approved by the commissioners office, meaning MLB reviewed their financial and legal backgrounds and deemed them sufficient. Exclusive sports coverage of Arizona high schools, Sun Devils, Suns, Cardinals and Diamondbacks plus access to USA TODAY Sports+ at no additional cost. [Buchanan] BREAKING: Three Diamondbacks minority owners are suing the team and managing general partner Ken Kendrick over forced buyouts. Gambling problem? 9 prospect Drey Jameson strikes out two batters in two hitless innings during his spring outing against the Giants D-backs Insider Group Tickets Private Suites Special Events Caesars Sportsbook at Chase Field Carson Kelly's solo home run 9 Robert Logan, Colangelo Quits Bulls to Take Phoenix Post, Chicago Tribune, February 29, 1968, C1; Bob Logan, Colangelo Has Suns Climbing for Summit, Chicago Tribune , May 23, 1976, B3; Lee Shappell, Jerry Colangelo, Arizona Republic, March 12, 1995, BB2; Colangelo Took Bait All the Way to Finals; Kevin Simpson, The Place to Be, The Sporting News, November 7, 1994, S3; Jack McCallum, Desert Heat, Sports Illustrated, May 28, 1990, 50-51; Joe Gilmartin, Suns Colangelo NBA Executive of the Year, The Sporting News, May 16, 1981, 46. They finished first in the NL West in 1999, their second season in the major leagues. CLAYTON TRUTOR is a history instructor at Northeastern Universitys College of Professional Studies. The Maricopa County Stadium Authority, which was created to save the Cactus League, played a similarly decisive role several years later in the arrival of the Diamondbacks by providing the region with a public institution capable of financing a ballpark costing several hundred million dollars. This article was written byClayton Trutor, This article was published in the Team Ownership History Project. The revenue from the tax helped revitalize existing spring-training facilities and build several new complexes, including one for the Indians, who chose to stay in Arizona, moving to the Phoenix suburb of Goodyear in 1993. The actual ownership of the club has been far more divided. managing general partner Ken Kendrick, per, According to that report, they are claiming Kendrick and the Diamondbacks ownership group ", The attorney for the minority owners, Roger Cohen, said his clients weren't legally required to increase their investment and believed Kendrick's leveraging ", had to do with consolidating and increasing the ownership stake of the remaining owners. Diamondbacks minority owners sue Ken Kendrick over buyouts Three Diamondbacks Minority Owners Sue Managing General Partner In May 1988 Stone backed out of his deal with Phoenix, arguing that he could no longer negotiate the terms of a stadium lease from a position of strength as he had neither a franchise in hand nor another tenant with whom to share the burden of selling premium seats to the public.5, Without Stones backing for the deal, stadium plans languished. Why Three Diamondbacks Minority Owners Are Suing Team's Majority Owner Three Diamondbacks minority owners are suing Ken Kendrick over forced After graduating in 1962 he eventually found work with the NBAs Chicago Bulls and rose quickly through front-office positions. Majority control of the Diamondbacks is owned by a four-person investment group that took over the club in 2004 from initial majority owner Jerry Colangelo. Arizona Diamondbacks owner Ken Kendrick wants minority owners who have less than one percent stake in the team to raise their stakes or part ways with the organization. The league doesnt want the litigation to progress to pretrial discovery, where attorneys for the plaintiffs could demand that commissioners office staffwho appear to be key witnesses given their interactions with Kendrickturn over sensitive emails, other correspondences and financial records. Kendrick, the . That brought Stones plans for a domed stadium to an end. These dollar figures, Cohen maintains, are artificially low. Cohen asserts the calculations incorporate unreasonable discounts and fail to consider, among other things, how the legalization of sports betting in many states and the potential legalization of sports betting in Arizona is poised to substantially enhance the value of a Diamondbacks ownership stake. The Diamondbacks willingness to invest heavily in elite starting pitching put them on the fast track to the postseason. (They also awarded a franchise to a Tampa-St. Petersburg-based ownership group led by businessman Vincent J. The three plaintiffs believe that Kendrick is effectively forcing them to sell their stakes and at below-market value. Report: Diamondbacks Owner Sent Threatening Email to Former Arizona AG After Criticism Nick Selbe Jul 22, 2021 After former Arizona attorney general Grant Woods criticized him on Twitter,. Among the Diamondbacks limited partners are Alfredo Molina and Jim Weber. National Football League Media Relations. Nevertheless, Bank One Ballpark has contributed to the revitalization of downtown Phoenix. However, it took some time for the people behind it to get things done, which is why the Arizona Diamondbacks didnt play their first game until 1998. The general partner is the person whom MLB generally considers the official voice of a franchise. Dozens of investors backed Phoenix Suns executive Jerry Colangelos original ownership group, Arizona Baseball, Inc., in 1995. While the limited partners might not have a vote per se on club affairs, their investment can provide important capital to the club. To pay off the deferred salaries, the Diamondbacks raised ticket prices sharply in the early 2000s and eventually traded Schilling to the Boston Red Sox in November 2003 and Johnson to the New York Yankees in December 2004 for prospects and cash. The owners Jim Weber, Alfred Molina and. The Arizona State University baseball program has been a national collegiate power since the mid-1960s. More than 800 residents, split roughly evenly between supporters and opponents, attended the February 1994 meeting at which the Board of Supervisors voted amid a heavy police presence on the stadium deal.15, After a contentious six-hour meeting, the Supervisors voted 3 to 1 with one recusal to impose the sales tax. Ken Kendrick Earl Gentry " Ken " Kendrick, Jr. (born September 2, 1943) is an American businessman who is the principal owner and managing general partner of the National League 's Arizona Diamondbacks. The financing deal provided the county with an escalating annual revenue guarantee based on ticket sales while requiring the Diamondbacks to pay for the maintenance of the ballpark. That netted him the equivalent of a .5% interest in the partnership. Bases Loaded appraised the value of a 1% interest and the value of the limited partners stakes. As such, he is responsible for running the day-to-day operations of the team as a whole. Showalter preferred a steady player-development program through a farm system while Garagiola adopted the win-now (meaning sign free agents) approach favored by Colangelo. The Fox Sports Net Arizona deal later led to the partners splitting millions of dollars in distributions as well as obtaining additional interests in an accompanying broadcasting entity. Accessed June 10, 2016: http://bizjournals.com/phoenix/stories/2008/03/31/story7.html. Kendrick, 77 and a former banking executive, first became a part-owner of the Diamondbacks when the team was founded in 1995. MLB, for instance, approves the sale of any equity in a club. The. Then in 1991, he abandoned his Arizona plans to become a partner in what turned out to be an unsuccessful effort to purchase the Montreal Expos. Im not sure what the ulterior motive is for such a decision, but it definitely comes off as nefarious. MLB will see a stake in the litigation. The complaint contains several claims. Several years earlier, the Suns owner had experienced this process while seeking public funds in support of a new venue for the Suns. Michael McCann is SIs Legal Analyst. In April 1987 the city agreed to secure $150 million in bonding to build a 70,000-seat domed stadium on a 66-acre parcel of land in the southern section of downtown Phoenix. Three Diamondbacks minority owners file lawsuit over dispute with team As retold by Cohen, Kendricks letter claimed that the 1% floor reflected an MLB preference for clubs to streamline their ownership group and minimize the disproportionate number of owners with very small equity stakes. The letter portrayed MLB as concluding efficient club governance and financial stability would be enhanced if each partner possesses a meaningful equity position.. Three minority owners of the Diamondbacks claim that the club and managing general partner Ken Kendrick is illegally trying to force them to either increase their investment in the team or relinquish their stakes at a price the minority owners say is unfairly discounted, according to a lawsuit filed Tuesday in Maricopa County Superior Court. In the context of sports, a limited partnership involves a group of investors and businesses who own respective shares. As a result, Showalter was fired after the 2000 season.21, The win-now approach was clearly the governing ideology of the Diamondbacks by the time of the November 18, 1997, expansion draft. Thompson, A History of the Cactus League.. Later that year, Colangelo and Garagiola hired Buck Showalter as the clubs first manager. Diamondbacks Considering Selling Minority Share Of Franchise Among the Diamondbacks' limited partners are Alfredo Molina and Jim Weber. Royer was an executive in the cable television industry.27, Colangelos tenure as managing general partner (1998-2004) coincided largely with Joe Garagiola Jr.s term as general manager (1997-2005). The stadium was to serve as the springboard to a $500 million downtown redevelopment plan that would include public and private investments in commercial and retail space, hotels, and housing. By the time he left the Bulls six years later, Colangelo was the franchises director of marketing and its chief scout. The ballparks retractable roof allowed fans to enjoy the sun while sitting in air-conditioned comfort. In 1947, the Cleveland Indians began taking up preseason residence 120 miles southeast of Phoenix in Tucson, the winter home of the clubs new owner, Bill Veeck. Colangelo transformed the Suns into one of professional basketballs best managed and most consistently successful franchises. In addition, partners can be called upon to contribute toward fees in a transaction. This content is only available to subscribers. "It doesn't make any sense. In 1952 the Chicago Cubs, who had previously trained on owner Phil Wrigleys Catalina Island (California) estate, began training in Mesa, just to the east of Phoenix. More than 2.5 million people attended games at the Bank One Ballpark (nicknamed the BOB) in each of the franchises first seven seasons. Besides that, the place has a reputation for being the so-called Jewel of the South.. The Diamondbacks gave Showalter the additional responsibility of overseeing the development of its minor-league system. Odds & lines subject to change. If the offered price to buy them out increases, they might ultimately say yes. Arizona Diamondbacks Three minority owners sue Arizona Diamondbacks' managing partner in pic.twitter.com/m2n2BoWrVa, D-backs No. The complaint also asserts that Kendrick has manipulated the clubs equity structure to put the plaintiffs in a bind. In 1968, the expansion Phoenix Suns basketball franchise hired the 29-year-old Colangelo as their first general manager, making him the youngest in major professional sports. Kendrick wrote to the teams limited partners in a letter entitled Buy-Up/Buy-Out. As summarized by Cohen (and Sandweiss), the letter informed the partners that, as part of a restructured limited partnership, each would be required to own at least 1% of the clubs partnership or their interest would be bought out. Attorneys for Kendrick are also poised to assert that the teams buy-up/buy-out requirement is fully compliant with partnership agreements. Category:Arizona Diamondbacks owners - Wikipedia To the extent MLB has already done so in communications with clubs, the league could credibly maintain that Kendricks moves are consistent with established league policies. Minority owners Molina and Weber initially invested in the Diamondbacks in 2004, while Carlisle Investments has been involved in team ownership since 1998. After the vote, Bruner, as he had planned, resigned from the board to run for an open congressional seat. This site uses Akismet to reduce spam. The suit names AZPB Limited Partnership (Ownership Group), the groups managing partner, and Kendricks wife as the defendants. pic.twitter.com/mdZE3bNqBO, Lourdes Gurriel Jr. gives the D-backs their first run of the game with an RBI double to right field, bringing in Josh Rojas in the 5th, Proof anything can be an album cover. He's been managing general partner since 2004. The genesis of the lawsuit stems from a letter sent by Kendrick on Jan. 13. 6 Robert Barrett, Stadium Fails, Goddard Wins, Arizona Republic, October 4, 1989, A1. Kendrick also allegedly pledged that the club would resolve differences between the numbers supplied by the two firms (Based Loaded and the firm hired by the limited partners). Colangelos Suns had engendered unprecedented enthusiasm in the region for professional sports with an exciting run to the NBA playoff finals that year. He has participated in SABRs Biography Project since 2012. Short listed for "Leaders in Luxury" Featured in Cover Story Top 30 Marketing Executives in America Colangelo, the public face of the stadium project, skipped the meeting. 7 Martin Stone; Bob Cohn, Race for Big Leagues Begins, Arizona Republic, June 15, 1990, A1; Eric Miller, Valley Strikes Out, Arizona Republic, December 19, 1990, A1. 4 Raymond Schultze, Stadium Developer Quits Deal, Phoenix Gazette, May 27, 1988, A1, A11; David Schwartz, Martin Stone Quits Pact for Dome; Plan in Peril, Arizona Republic, May 27, 1988, A1, A8; Christopher Broderick, Agreement Reached on Stadium, Arizona Republic, April 10, 1987, A1. Three minority owners of the Diamondbacks claim that the club and managing general partner Ken Kendrick is illegally trying to force them to either increase their investment in the team or. Learn how your comment data is processed. Other claims include those for breach of fiduciary duty and breach of implied covenants of good faith and fair dealing. Martinez and allows three runs in 1 2/3 innings in his second start of Spring Training, Perfect day for a nice stroll around the bases. The Diamondbacks won the NL West in 2007 and 2011, but more often than not have finished well out of contention, including at least three last-place finishes since 2009. Taken together, these claims assert that Kendrick, as the general partner of the partnership, has operated in bad faith by imposing new requirements on limited partners ownership. Majority control of the Diamondbacks is owned by a four-person investment group that took over the club in 2004 from initial majority owner Jerry Colangelo. It was no secret that Bill Bidwill, owner of the NFLs St. Louis Cardinals, intended to move to Phoenix. New Phoenix Suns talent Kevin Durant owns 5%. The trio is represented by attorney Roger Cohen and his co-counsel, Kathi Sandweiss. Carlisle Investments has. Molina became a limited partner in 2004, when he invested $3 million. Accessed June 3, 2016: http://azcentral.com/story/sports/mlb/diamondbacks/2014/09/27/jerry-colangelos-shadow-remains-prominent-diamondbacks/16344607/. Datatel no longer exists in the present, seeing as how it combined with a competitor to form Elucian in 2012. Per Buchanan, the team released the following statement: "The Managing General Partner of the D-backs, with the support of Major League Baseball and on advice of independent legal counsel, has chosen to streamline the ownership group and reduce the number of partners with very minimal equity stakes in the partnership. The attacker told the press, I shot Supervisor Mary Rose Wilcox to try to put a stop to the political dictatorship of Jerry Colangelo in pushing the baseball stadium tax. Wilcox survived the attack, which she blamed on the harsh opposition to the tax that remained a fixture of Phoenix talk radio.18. Owners. Montreal was less than a two-hour drive from his home in Lake Placid, New York.) Ken Kendrick leads a four-man ownership group that also includes Jeffrey Royer, Michael Chipman, and Dale Jensen, all of whom have owned at least a portion of the club since its inception. Access to restricted areas in the ballpark, priority seating for games and exclusive meetups with players are among common perks. In fact, the target was reached four months earlier than expected, in November 1997, two years after construction began on the 48,500-seat domed stadium and four months before the first pitch.14, But even with the taxpayer-friendly amendments to the deal, widespread opposition emerged almost immediately to the public financing of a ballpark without voter input.