Hale Announces New League

And just how are Rochester and Syracuse going to magically come up with the money to pay the ridiculous insurance policies?

 

Utica isn't going to get a team. They will be fourth tenant for dates behind the Utica Comets (AHL), Utica College (NCAA DIII), and Mohawk Valley CC (NCJAA).

 

Its very simple change the ownership group and have a new company take over and the insurance rates drop. They are high because of the amount of money that was paid out in claims and some are still being paid out.

 

I sort of disagree with that. They aren't going to get better rates. If you book 40 dateso in a real aena........... (with real costs, in a real city, with real fire code violations, real parking, real concessions and real people) .......the difference between 40 dates and 50 dates is no savings

The costs are the same.

Every real arena will also have a meeting 3 days ahead of the scheduled event, with the booking party. They will look at ticket sales and say "we were told you would sell 3000 tickets, but you've only sold 180, we need the $8.45-$14.00 per head difference between the expected gate and the ticket sales to that point"

Few MASL teams have that money, fewer AOL owners want to take the chance.

An AHL team is only going to incur the same rate per day for the arena as it already spends.

What is the difference between an AHL team with an indoor soccer franchise and a dead cat? The owner can quickly bury a dead cat

I don't see this ending well.

 

I think your wrong since masl team book 10 dates , Going with a AHL team booking and arena it should bring the cost down.

 

Segment of recent article from the Baltimore City Paper where Ed Hale talks about a new league:

"But now Blast owner Edwin F. Hale Sr., who helped to broker the merger, is signaling that he's going to take his team and move on.

"You can quote me: I'm not coming back in the MASL," he says.

The league has had its growing pains. Five teams—including the champion Monterrey Flash of Mexico, the team that outlasted the Blast in a thrilling three-game championship finale—did not return after the inaugural season. Games can be streamed on the website GoLiveSportscast.com, where they are also archived, but the site is often glitchy, and there is no cable channel carrying the games.

And some of the biggest headlines the MASL attracted in its early stage came from a lawsuit brought by cheerleaders for the Seattle franchise that alleged owner, coach, and player Dion Earl sexually assaulted them.

Not yet ready to make his plans public, Hale intimated in an interview that he wants to take part in a new league that more carefully vets the owners, both to make the league a sustainable business and to avoid any legal entanglements that might come from further malfeasance.

"I want to somehow get with a group that's gonna have properly sized arenas and proper capitalization, a sustainable business plan," says Hale, who indicated that his fellow owners think of him as the George Steinbrenner of indoor soccer. "That sounds like a lot of talk, and people are not going to give a shit about it when you're writing, but that's the truth."

Currently, MASL owners have equal shares of the league. Under Hale's plan, a more traditional franchiser-franchisee model would be put in place with a stronger central league office.

"That's just a fundamental business thing that I thought, and my attorneys think, has been wrong," says Hale, the real estate developer and former trucker, shipper, and 1st Mariner Bank head. "That's a large part of the reason for me doing this."

Is it possible the Blast could be going it alone on this?

"Possibly," says Hale.

But he assures the Blast will continue on.

"There will be some form of Baltimore Blast soccer. We may not be playing some of the people that are in the league now.""

http://www.citypaper.com/news/features/bcp-021716-feature-baltimore-blast-20160217-story.html

 

Sure ........ .if the AHL owner also owns the arena. If the AHL team is a tenant, whether they play 38 home and 2 preseason games or 38 home, 2 preseason games and the MASL or ISL team plays 10 the arena is not going to give them a different rent

Maybe they would if it was hockey......maybe a couple of arenas would. MAYBE. But AHL arenas are either owned, operated or both by professional arena management companies. If you have to amend the surface, they are going to get the same cost.

AHL teams pay about $8500 (Utica) to $22000 (Chicago, Winnipeg, Cleveland) per night for the facility. The number of unseen costs is staggering. You need paramedics, you need police, you need the fire marshall, you need parking, security.........it just adds up.

Suddenly that indoor soccer Center is looking good.

 

Do Winnipeg and Cleveland pay anything? The Jets own the Moose and the Cavs own the Monsters.

 

Yes. Both.

 

At this point, Hale's 'new league' only exists as a vaporware exercise. It has a small chance of actually happening, based on the current facts. It is good to be aware of it but I won't pay much attention until real action occurs. I don't think any indoor soccer team could afford to survive paying $10,000/night Arena rent, much less $20,000+/night. This AHL idea sounds DOA.

 

Aren't they basically paying rent to themselves? If not, who is getting the money?

 

I think your missing my Point , What I am getting at is lets say Baltimore has an AHL team and they Book 20 Games there rent I would think is going to be cheaper then the Blast rent when they only book a maximum of 12 dates. So essentially the rental rates could drop for Indoor soccer teams. Even it it did drop It would not be any type of major impact anyway. $500 & $1000 a game Max .

 

Even more from the ever-present Ed Hale:

http://www.baltimoresun.com/sports/soccer/bs-sp-blast-future-0218-20160218-story.html

Baltimore Blast owner Ed Hale plans to remove team from MASL, form new league
Glenn GrahamContact Reporter
The Baltimore Sun

Baltimore Blast plans to be on the move. Again.

Disappointed by the Major Arena Soccer League's single-entity business plan as well as the lack of stability with many of its franchises, Blast owner Ed Hale Sr. plans to leave the 20-team league at the conclusion of the season and has begun work on the creation of a new league, the Indoor Professional League.

The IPL will have a franchisor/franchisee business plan that will be headquartered in Baltimore County with Hale serving as the original franchisor.

"It will start the day after the last ball is kicked and the [MASL] championship has been decided," Hale said.

The Blast, which hosts the Missouri Comets on Friday night, is in its second season in the MASL and is currently in first place in the Eastern Division with a 13-2 mark. Since Hale bought the team back in 1998 (he was an owner of the original Major Indoor Soccer League team in the early 1980s), the team has played in five different leagues with the third version of the MISL preceding the current MASL.

<edited to avoid copyright issues....full article can be found at the URL---Mod>

 

I mean one could look at it that way but no. The Manitoba Moose and Lake Erie Monsters are owned by the parent team of the main tenant of the building.

But the parent team and the AHL team are absolutely compartmentalized in business terms. Each has a budget, revenue, costs, staff, insurance and contracts separate from the other.

Each business entity has to sink or swim on its own. They aren't run as one venture.

A MASL team would be treated in the same way, a stand alone business with stand alone costs, owned by a guy/girl/company with other business' operating concurrently

 

I'm not sure how compartmentalized the Monsters are. They certainly have to pay ushers and other arena staff out of the Monsters part of the budget, but I'm not sure that they're so compartmentalized that they are actually paying rent (they actually use some Cavaliers staff - i.e. Cavs PA announcer is one of the jumbotron hosts for the Monsters). Also, the Monsters can be profitable without making money on their team-specific budget because the company (Monsters, Cavs, and arena are all one corporation) makes money off concessions from the Monsters games (based on what I've heard from people familiar with the business of minor league hockey, this is the only way the Monsters could possibly be making a profit).

 

Also owning an arena and controlling the lease are two different things. Very few owners actually own their respective arenas even if they do operate them.

 

MLSINCLEVELAND - to be honest I don't know, as I've never been to the Q or really deal with anyone in the AHL on a day to day basis for awhile. I was much more in tune with the Lumberjacks in the IHL. So I have worked alongside Len Komoroski and Jerry Bubolz back in the day.

However, I would say, that normally, they would compartmentalize the Monsters from the Cavaliers and from the Arena league team. It's SOP for a business like this. If I was to guess, I would say the Cavs PA announcer gets a single check from the Cavs as a salary for doing both teams HOWEVER, that is rare.

The ushers, the crew, the concessions, the arena rental, the insurance, the AHL salaries, the equipment, the girls in the pro shop, the ticket sellers, the Web site admin, the team travel, the per diem, the medical, the dental, the players temp housing who are on callups, the players housing stipend, the radio ads, the media fuy, the practise pucks...........will be paid by the Monsters directly.

The will have a ledger with revenues and costs. This will all be run as a separate stand alone business.

It's run like Pizza Hut, KFC and Taco Bell, all separate entities owned by a single parent company. Hale you might see a dual KFC and Taco Bell location, they are run as independent entities for costs and revenues.

Again I don't KNOW thus as a biblical fact but it as what the Edmonton Oilers did when they ran the Edmonton Roadrunners and the Philadelphia Flyers did with the Philadelphia Phantoms.

 

Thanks for the insight!

 

迷惘的，困惑的…

 

Those rates only apply to that ownership. If new owners are in place the rates will drop. The both had rate increases because of how many claims got filed. One of Rochester's seasons I think the entire team got hurt .

 

That's a very narrow-term solution.

Unless King Ed can create a league with no injuries, players (likely more than one) WILL get hurt, causing rates to increase in subsequent years which will create the exact same problem which doomed Rochester.

Also, using that logic, couldn't Rochester have folded and come back this MASL season under new owners?

This issue is a red herring. Either unemployment insurance wasn't the reason that Rochester folded, or it is not the reason a succeeding team will be successful.

 

"Good management."

 

So he wants to go back to...never, basically? (Also, I love "somehow." Maybe by magic?)

 

Why?

No one has ever made more declarative statements about the business of the game that have been demonstrably false or ridiculous on the face of it.