Sunday, January 15, 2017

D'JERKS

                It’s not a good idea for a business to antagonize its customers, but that news hasn’t reached Ken Kendrick, the principal owner of the Arizona Diamondbacks baseball team.  In a startling display of boneheadedness, that organization recently sued its landlord, Maricopa County, to break its 30-year lease on what’s currently called Chase Field, the ballpark in which it plays. In other words, it is suing the taxpayers of the county, who make up the large majority of its fans.
               
               Almost equally head-scratching is the argument the team has employed to support its legal position.  A year ago it demanded that the county undertake $187 million worth of repairs to the facility, including ones it pointedly linked to the facility’s safety. The county demurred, countering that the work required was largely cosmetic and, thus, the team’s responsibility. Not so, the team has declared, leaving people who attend its games to wonder whether the upper deck will collapse while they are sitting on or under it. How’s that for a sales incentive? Throw in the team’s not-so-veiled threat to move if it doesn’t get its way and you have a real trifecta of turnoffs.

                The suit might not be startling if Chase Field were a crumbling wreck, but it ain’t. While it’s not exactly a field of dreams, with dark-green seats lending a gloomy air and exposed metal work making it look industrial, it’s a thoroughly serviceable facility, topped by a retractable roof that’s hailed as state of the art and an efficient air-conditioning system that’s necessary on Phoenix’s many 100-plus-degree spring and summer nights.

                 Completed in 1998, its construction price was $364 million, of which $253 million, or close to 70%, came from a ¼-cent, countywide sales tax devoted exclusively to that purpose. Arizona is a tax-averse state and the levy wasn’t achieved without bloodshed, literally; a county supervisor who favored it was shot in the butt by an irate citizen after a contentious public hearing on the subject.

                Owner Kendrick came to the sports biz after making his pile in computer-software development and banking. He was part of the expansion team’s original partnership and succeeded to the top managerial role in 2004, when the group bought out Jerry Colangelo, the D’backs’ first top dog.

                Colangelo is a unique figure in Phoenix, maybe the city’s leading businessman of the last 50 years. A native of a blue-collar suburb south of Chicago and a basketball player at the U of Illinois, he hustled himself a job in the NBA Chicago Bulls’ front office after college in 1962, and when the then-nickel-and-dime league expanded to Phoenix in 1968 came to town as its general manager.  In due course he acquired a chunk of the Suns and ran them, moved them into a new, downtown arena, helped bring a National Hockey League franchise to the city, brought Major League Baseball there and convinced the citizenry to okay his stadium-financing plan.

                Colangelo knew that baseball would be a hard sell in a desert burg with little history of the game, where low-wage jobs predominate despite the area’s patina of palm-lined wealth and where many transplants maintain their ties to the teams of their cities of origin. Thus, he broke the expansion-team mold by paying up quickly for the likes of the pitchers Randy Johnson and Curt Schilling and surrounding them with a veteran cast. When the D’backs won the World Series in 2001— their fourth year of existence—he gave them instant identity.

                But Colangelo did not endear himself to his D’back partners, who after replacing him with Kendrick did their best to erase his mark on the team, down to changing its colors.  They also went from winners to losers, posting just three plus-.500 seasons in Kendrick’s 13 seasons at the controls. Over the same period they’ve had five general managers and six field managers, seven if you include Kendrick’s initial hire, Wally Backman. He was fired four days after he was hired in 2004 when an arrest record and financial problems that might have been revealed by a routine Google search came to light.

                The team also has distinguished itself by its last-season award of a six-year, $206 million contract to a single player— pitcher Zack Greinke. That deal works out to about $35 million a year, more than one-third of its entire 2015 payroll, and by many accounts has handcuffed the team in making moves that might improve on its 69-93 won-lost record. Greinke’s earned run average last season was 4.37, above average (that’s bad) for all big-league pitchers.

                Maybe worst, the D’backs have been a flop at the box office for more than a decade . Attendance in 2002, the season after its championship, came to 3.2 million, but it’s been downhill since and has hovered around the 2 million mark since 2005, putting it in the game’s bottom third in that category. Not only can’t the team sell tickets, it hasn’t been able to give them away; in 2011, when it was battling for a divisional crown, it offered for $5 each all upper-deck seats at Chase Field for most of the month of September. The deep discount barely moved the attendance needle.

                I think it’s worth noting that Kendrick and his wife Randy have been generous donors to the right-wing political network headed by the Koch brothers; indeed, the Kendricks received prominent mention in Jane Mayer’s book “Dark Money,” which traced the influence of the group’s often-subterranean contributions.  The Kochs, et al, hold that government-aid recipients are undeserving moochers. Apparently, Kendrick makes an exception when it’s his hand that’s out.   
               
                 
               
               

                

3 comments:

L. Marcisz said...

Spot on commentary. A business that consistently provides an inferior product should not be petitioning taxpayers for corporate welfare. The Diamondbacks should first put their own house in order before asking us to further invest in the house we built for them.

Dan Gruber said...

It'll be interesting to see whether the county supervisors have more backbone than the voters, who routinely approve big subsidies to sports team. The argument that sports delivers a big ROI in the form of increased tax revenue has been challenged (and in some markets disproved) multiple times.

Now that downtown Phoenix appears to be borderline booming with new residents, universities, and the businesses that cater to both, the (arguable) value of the D'backs to the city should be challenged.

Mike Levy said...

Well, if the upper deck was dangerous seating, it could be closed off with no loss of ticket revenue. The team stinks. It has for years. Phoenix pro teams all stink. Hockey, baseball, bastard Ball, and football. Phoenix is the Davey Jones Locker of sports teams; the equivalent of the elephant's burial ground...a place sports teams go to die. Owners spend little money to build good teams, or when they spend, they do do so foolishly. No money from Maricopa County for ballpark 'improvements'. If the Dbacks threaten to move, Phoenix needs to sue Kendricks, as well as MLB.