But the franchise did succeed in getting a handle on its salary situation, and from about 2005 it has ranked near the bottom of the league in payroll most years. In turn, this means that he has been involved with various banks in various other banks as well, with an excellent example being his investment in Woodforest National Bank. 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. 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. After a 1995 name the team contest conducted by the Arizona Republic in 1995, the nickname Diamondbacks was chosen for the team. D-Backs Minority Owners Suing Managing Partner Ken Kendrick over Why Diamondbacks Owners Are Suing the Majority Owner Phoenix Suns Media Relations. Arizona Diamondbacks: Minority owners suing over forced buyouts Weber is a retired minor league pitcher who is now president and CEO of ProCuro LLC/BCRx Inc. This assertion, Cohen explains, isnt supported by any evidence and seems to belie how the Diamondbacks operate: Kendrick allegedly runs the team without consequential input from partners. This article was written byClayton Trutor, This article was published in the Team Ownership History Project. According to the complaint, Kendrick effectively controls about 90% of the Diamondbacks' partnership through his own stake and through his influence over other limited partners. Kendrick, the . Diamondbacks minority owners sue Ken Kendrick over buyouts 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/. 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. Odds & lines subject to change. The move came soon after a drug scandal that threatened the franchises squeaky-clean image. This appraisal indicated that Molina would need to invest another $3.8 million in order to meet the 1% threshold. Besides his role as the founder of Datatel, Kendrick has spent some time as a banking executive as well. Im not sure what the ulterior motive is for such a decision, but it definitely comes off as nefarious. Learn how your comment data is processed. National Football League Media Relations. While the limited partners might not have a vote per se on club affairs, their investment can provide important capital to the club. Weber is a retired minor league pitcher who is. For those who are unfamiliar, said team started up in 1995. 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. But the status of being an owner still attracts. 6-keys: media/spln/mlb/reg/free/stories, at Its possible that MLB could help Kendrick. Former Jobs of Every MLB Owner | Stacker 25 Arizona Diamondbacks Letter to Maricopa County Board of Supervisors, January 12, 2016, BallparkDigest.com, March 30, 2016. He's been managing general partner since 2004. In contrast, the Diamondbacks on-the-field performance has been consistently inconsistent ever since those heady early years. 8 John Walters, Brazen Arizona, Sports Illustrated, January 29, 1996, 190-194. Colangelos Suns had engendered unprecedented enthusiasm in the region for professional sports with an exciting run to the NBA playoff finals that year. Register now to join us on March 10-12, 2023, in Phoenix, AZ. 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. Collectively, the color scheme adopted by the Diamondbacks, or DBacks, as they were soon dubbed by the local media, looked similar to the colors of Colangelos other team, the Suns, whose stature in the region was then at its peak. In addition to the BOB, Maricopa County taxpayers subsidized municipal bonds that financed the construction of a number of other downtown attractions during the 1990s, including a new library, a science center, an art museum, and a museum of Arizona history.25, The success the Diamondbacks enjoyed during their early years came at a high price. Exclusive sports coverage of Arizona high schools, Sun Devils, Suns, Cardinals and Diamondbacks plus access to USA TODAY Sports+ at no additional cost. People who pay close attention to the Arizona Diamondbacks should be familiar with Ken Kendrick. Welcome to the Jungle! Giannis Antetokounmpo joins Kevin Durant and James Harden as owners of MLS teams Antetokounmpo is not the only NBA star getting involved in the MLS. Freeze outs have been the source of lawsuits involving alleged breach of fiduciary duties, conflicts of interests and self-dealing. Never before had an expansion team reached the playoffs so quickly. Arizona Diamondbacks: Ken Kendrick - Year acquired: 1995 Ken Kendrick was part of an ownership group that brought an expansion team to Arizona, and he became the Diamondbacks' Managing General Partner in 2004. Snapshift is a Parisian startup that has recently made the news in business circles with its $45 million round of investor backing. Molina, a jeweler by trade, is chairman and CEO of Molina Fine Jewelers. 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. Moreover, he believed that unless the Diamondbacks fielded an immediately competitive team, they would not gain a foothold in the increasingly tight market for Arizona sports fans dollars. In the expansion draft, the Diamondbacks scooped up veteran starting pitchers Brian Anderson and Jeff Suppan with their first two picks. This directive goes to the meaning of the term buy-up/buy-out: a limited partner with less than 1% would need to buy up to at least 1%, or he or she would experience a buy out of their interest. Opened in 2011, the facility is on land owned by the Salt River Pima-Maricopa Indian Community. Diamondbacks owner threatened Arizona's former AG over Twitter Arizona Diamondbacks - Larry Brown Sports Between 1998 and 2000, the Diamondbacks more than doubled their payroll from $32 million to $80 million. CBS Sports is a registered trademark of CBS Broadcasting Inc. Commissioner.com is a registered trademark of CBS Interactive Inc. site: media | arena: mlb | pageType: stories | Through Kendrick, the club retained the consulting firm Bases Loaded. While limited partners lack the powers of the general partner, there are nonetheless financial implications to their equity. 30 Rebekah L. Sanders, Maricopa County Rejects Most of Arizona Diamondbacks Requested $65M for Upgrades, azcentral.com, August 8, 2016. Three minority owners sue Ken Kendrick over buy up/buy out ultimatum The buyer can then call himself or herself an owner and gain certain privileges. (Performed with evil mind is a legal term of art in Arizona; the plaintiffs are not calling Kendrick evil.). Molina, Webster and Carlisle Investments seek a declaration that Kendricks letter is of no force or effect and that Kendrick cant legally force them to increase their investment or sell their existing share. Ownership | Arizona Coyotes MLB, for instance, approves the sale of any equity in a club. Many opponents decried what they perceived as collusion between the citys political and business elite. Process almost always matters in contractual disputes. The best guide in Arizona to getaways, concerts and the dining scene. A slightly more achievable goal, at least among the very affluent, is to buy a minority stake in a team. 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. Like Scottsdale itself, Talking Stick evokes the Old Southwest with its homages to mission revival architecture, sagebrush surroundings, and views of Camelback Mountain. 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. Kendrick is reportedly waiting until after the Angels' sale is finalized to further explore the possibility of selling the minority stake. In return, the county granted the baseball team a 30-year lease and primary-tenant status. This type of petition captures the essence of the lawsuit. Cohen speculates that Kendricks potential motive is to consolidate and increase the stakes of the remaining owners who werent bought out. 22 Ken Rosenthal, All Arizona Has to Do Now, Right Now, Is Win, The Sporting News, March 12, 2001, 49; Peter Schmuck, In Hurry, a Trading Flurry After Draft, Baltimore Sun, November 19, 1997. Weber, meanwhile, was told he would need to invest another $6.1 million to meet 1%, or he could sell his share for $1.6 million. The 2001 World Series-winning team had an $84 million payroll, of which $46 million was deferred. Colangelo transformed the Suns into one of professional basketballs best managed and most consistently successful franchises. Kendrick has been one of the part-owners of the Arizona Diamondbacks since the start of the franchise. Jim Bruner, who both helped to develop the plan to pursue a baseball team and negotiated the terms of the financing deal with Colangelo, cast the deciding vote for the measure.16, The three supervisors who supported the tax faced serious consequences. Like other new spring-training facilities in Arizona, Talking Stick was subsidized in large part by the $2.50 rental-car tax that was put in place back in 1990 to revitalize the ballparks of the Cactus League.29, In 2005 Bank One merged with J.P. Morgan Chase, and Bank One Ballpark was renamed Chase Field. He and his wife, Randy, have long been conservative political activists. Despite some misgivings, Colangelo agreed to the deal. A month later Kendrick sent another letter to these three plaintiffs that by electing to not purchase a bigger stake in ownership that they are no longer a limited partner and their stakes will be bought out. He became part- owner with the team's inception in 1995. Garagiola followed Colangelo out the door in 2005. Three minority owners sue Arizona Diamondbacks' managing partner in Access to restricted areas in the ballpark, priority seating for games and exclusive meetups with players are among common perks. 2023 ABG-SI LLC. ET. For now, the plaintiffs signal a desire to remain in the partnership. 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. Diamondbacks News MLB News Three minority owners are suing Managing General Partner Ken Kendrick over recent ownership share policy changes Alfredo Molina, Jim Weber, and Carlise Investments. While these individuals are colloquially referred to as owners, they are more accurately called limited partners. Limited partners comprise a legal entitythe partnershipthat is structured to obtain tax advantages and secure immunities from personal liability. Examples range from the Barrow Neurological Institute to the Cleveland Clinic Foundation. Stone persuaded Bidwill to join him in building a stadium in the downtown area. Three Arizona Diamondbacks minority owners say they are being forced out of the ownership group illegally and have sued to remain partners or to receive higher payouts for their shares. 17 County Close to Deal on Ballpark; Arizona Republic, January 9, 1994, A1; David Schwartz and Eric Miller, Negotiators Strike Deal on Big-League Ballpark, Arizona Republic, January 15, 1994, A1; Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman.. Besides that, the place has a reputation for being the so-called Jewel of the South.. In the 1960s, Kendrick founded Datatel, Inc., a computer software developer. 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. His opposite number was Jim Bruner, a member of the Maricopa County Board of Supervisors, who also constituted the Maricopa County Stadium Authority. Montreal was less than a two-hour drive from his home in Lake Placid, New York.) 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. Phone: 602.496.1460 The trio is represented by attorney Roger Cohen and his co-counsel, Kathi Sandweiss. The actual ownership of the club has been far more divided. Diamondbacks 5, Dodgers 5: The Ties of March, Diamondbacks Spring Gameday Thread, #7: @ Dodgers. New Phoenix Suns talent Kevin Durant owns 5%. potential future revenue streams related to legalized gambling," per Buchanan. ", "Why they would want to do that, why they would treat our clients that way, to be honest, I can't imagine," he added. Call 1-800-GAMBLER. The first is Declaratory Judgment, or a request for the court to state their rights under the Partnership Agreement now and in the future. (In 1998 Bank One acquired the naming rights for 10 years at a cost of $70 million.) Showalter came aboard just days after the New York Yankees fired him in the wake of the teams playoff loss in its first postseason appearance in 14 years. He is also an attorney and the Director of the Sports and Entertainment Law Institute at the University of New Hampshire Franklin Pierce School of Law. Garrett by trade is a personal finance freelance writer and journalist. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy, Diamondbacks minority owners file lawsuit against Ken Kendrick, in a new lawsuit brought against the Diamondbacks. 16 David Fritze, David Schwartz, and Eric Miller, Play Ball: Stadium Tax Wins OK, Arizona Republic, February 18, 1994; Jerry Colangelo; Bob McManaman, Tax Foes Name-Calling Hurt Deeply, Arizona Republic, February 19, 1994, A20. Former Arizona AG Grant Woods Says D-Backs Owner Ken Kendrick Sent Him Three minority owners of the Arizona Diamondbacks are suing managing general partner Ken Kendrick after Kendrick initiated a forced buyout for stakeholders who own less than 1% of the team, according to The Athletic's Zach Buchanan . All Rights Reserved. The measure authorized the county to collect a $2.50 car-rental tax. Why Three Diamondbacks Minority Owners Are Suing Team's Majority Owner USA Basketball Media Relations. The Legislature also authorized the county Board of Supervisors to impose a 0.25 percent sales tax to help finance construction of a baseball stadium if one of the countys municipalities was awarded a franchise.6, Stone continued to pursue a major-league team for Phoenix into the early 1990s. Granted, this level of ownership doesnt provide authority over team decisions, on- or off-the-field. The limited partners insist that Kendrick has breached their partnership agreements by, among other steps, imposing the buy-up/buy-out ultimatum. Three Diamondbacks Minority Owners Sue Managing General Partner
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