Sell more tickets and suites, the $48,000 advice from Beacon Sports

For the bullet summary, please go here.

Had the City of Glendale gotten ‘Smart’, they could have avoided ‘Kaos’

Did you know that Beacon Capital Partners had an office in France? No? Neither did I.

That is, until they came to visit the site at approximately 5 AM in the morning our time (EST), and 2 AM (PST) in Los Angeles.

Here is the visit, without the IP address showing of course:

What is equally important is that there were several key hits surrounding this visit from a couple of IP addresses located in Los Angeles and Texas. I have been tracking these IP’s and noticed a pattern of visits at specific times in the past.

Could it be a coincidence? It becomes less likely, considering the hits were from two IP adddresses in LA and Texas, in roughly the same time frame as the visit from Beacon Capital. And, it was 2 AM Los Angeles time.

Time for the City of Glendale to spend the big bucks, and 'Get Smart'

Time for the City of Glendale to 'Get Smart' and avoid further 'Kaos'


The point to be made here is, although unprovable with the information in it’s current form, it might suggest a conference call or discussion. Remember, these were not just any random IP locations, they have been watched over several weeks.

So, could there have been a discussion of the Leventhal connection between Beacon in France and parties in Los Angeles and Texas? Yes, it would seem possible.

Why would it occur?

Well, if we remember the players in the Glendale saga, we would recall that Leventhal was brought in by Michael Reinsdorf to assess the arena for the City of Glendale. The cost, as reported was $48,000, and it was reported this amount could be paid and more importantly without having to raise eyebrows. The Phoenix New Times did an excellent article to explain this in better detail:

In the fall of 2008, Coyotes owners Jeff Shumway and Jerry Moyes began explaining to City Manager Beasley just how bad the team’s financial situation was. They asked the city to sweeten the pot and give them incentives to help the team stay in Glendale.

Instead, in October, Beasley inked a deal with a small Massachusetts firm, Beacon Sports Capital Management. (Because Beasley kept the contract below $50,000, he didn’t need the city council’s involvement. To date, Beacon has come in just under the threshold, at $48,175.)

It has also been suggested that working for the City on Hockey is a way in the door to perhaps other opportunities.

We had tied Alan Leventhal to MSD Capital in previous articles, and because he is an expert in REIT’s (Real Estate Investment Trusts) it would make sense from a ‘come on over’ perspective that Michael Reinsdorf and Michael Dell would have interest in Leventhal.

We must remember that International Facilities Group (IFG) run by Michael Reinsdorf has been shown to be lease and sports facility experts. That includes experts in the area of ‘how to run your facility effectively’. This begs the question to Reinsdorf. Why bring in a competitor that does the same thing?  Would this explain the ‘real money’ is in the relationships and the land investment opportunities, not sports facility management, or owning the Coyotes for that matter? Consistentcy has been in this argument. All the pieces that are fitting into the puzzle to date have supported this.

So, again, if this blog was so far off the mark, why would we have folks in Los Angeles, up at 2AM potentially discussing the Leventhal connection with Beacon Capital in France?

Let’s face it! There is truth to what is being uncovered. There is concern for the ripple effect this uncovering of truth is going to have.

There has also been a significant activity from the same Los Angeles IP addresses to the article on ‘ The taxpayers of Glendale deserving full disclosure’. That too is obvious if you were someone involved with land sales tax gift subsidies, as in the CityNorth Phoenix area. That would be Related Companies. We know that Michael Dell has decided to invest, and has taken at least a 7% equity stake to date in this company, with promise of investing more on a case by case basis, as the opportunity arises. I think it is fair to say there is plenty of past land investment activity from MSD Capital, coupled with this venture to suggest it is a strategy for MSD moving forward.

Now, onto the advice that cost $48,000 from Beacon Sports Capital. Let’s make sure we don’t confuse that with Beacon Capital Partners, the REIT arm of Leventhal.

In this article, entitled the Yotes Notes, way at the bottom there was some pretty significant suggestions reported. But, let’s first take note of the timeframe:

The first document is a letter from Beacon Sports Capital Partners, LLC to City Manager Ed Beasley dated January 21, 2009.

Now, let’s look at some pretty obvious, why didn’t we think of that, advice that Beacon added:

The letter also recommended revenue opportunities, which include:

  • Expanding local broadcast revenue.
  • Increasing non-hockey events at the arena from the current 30 to 35, to approximately 104 to 106.
  • Additional suite sales
  • Increasing sponsorship and advertising sales.
  • Increasing ticket sales.

A letter summarizing these recommendations was sent to John Kaites on April 15, 2009, a little less then one month before Moyes put the Coyotes into bankruptcy.

I must state the obvious. Did anybody compare notes with Jerry Moyes? Because, in the same six month timeframe, Jerry and Gretzky were busy too. Again, too bad they didn’t ask Moyes what they tried to do. Might have saved them at least in part, some of the $48,000 of easy money.

From the National Post, here is an excerpt to explain:

In a Sunday interview with KSAZ, the FOX Phoenix affiliate, Moyes said he had worked for six months to find an owner willing to keep the team in suburban Glendale. Wayne Gretzky and minority owner John Breslow were part of one drive, where the aim was to find up to 11 investors each willing to part with US$20-million.

“Somebody has got to put in US$200-to-$220-million of capital into this team for it to be viable – plus, having a major contribution from the city of Glendale, of US$15-to-$20-million,” Moyes said. “If we would have gotten those two things accomplished, we probably could have had a plan to keep it in Glendale.”

Jerry Moyes, said in the television interview, that they had been working toward the obvious desire to sell suites, to increase corporate sponsorship, etc.

Wow Beacon, are you kidding us? You are suggesting the need to sell more suites and tickets? Do ya think? And, this advice cost the taxpayers of Glendale how much exactly?

And, please note Jerry Moyes’ comment in the interview that the hockey revenue could be more than compensated for with increased concerts and other activities. Perhaps the same increase Beacon suggested from 35 to 104? Yep, that would certainly increase revenues all right!

If there could have been more suites and tickets sold, don’t you think that would have been done under the Gretzky Project? Or, did you not know about what had already been done

Probably used the 'Cones of Silence' so nobody caught on

Do you think they have the 'Cones of Silence' at City Hall in Glendale?

because, oh, let me guess, you didn’t want to tell Jerry Moyes of the ‘double secret’ mission you were on to give advice to Glendale behind the current owner’s back? I’m sure you used the ‘cones of silence’ too, eh? A useful tool in the show, Get Smart.


And Glendale, of course you wouldn’t talk with Jerry Moyes or Gretzky about it, because you were doing a secret investigation with Leventhal and Beacon, right?

Let me put this bluntly, City of Glendale. You had an obligation to the existitng team and it’s owner, and you ignored him. That, in the nicest way possible is ‘negligence’.

But, could this be explained by the fact that what the City of Glendale needed above all was infrastructure growth, tax base increase, taxes paid, and influx of residents. I guess they figured Jerry Moyes couldn’t do what they really needed.

And, this takes us back to the original reason the arena was built. When the mayor said it was a business decision. And that she expected a lot of infrastructure growth.

The same problem Tom Hicks has had in the Victory Project in Dallas.

But, to the court and the lawyers, the problems the City of Glendale has should not be the problem of a hockey team owner, leasing space at arena, crying for help.

This lesson will be learned. You can go to one of Jeremy Jacobs casinos and place a wager on that!

All this Kaos? Could have been avoided!


2 responses to “Sell more tickets and suites, the $48,000 advice from Beacon Sports

  1. Pingback: Are we onto ‘Something’? Time for the ‘Real Truth’! « Make It Eight, eh? Hockey again for Winnipeg!

  2. It’s a well known fact, that Beacon Sports Capital Partners, LLC., are nothing more than the propaganda arm of the Reinsdorf’s–both Father and Son.

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