AFL reportedly to suspend operations for '09

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AFL reportedly to suspend operations for '09

ESPN.com news services


The Arena Football League, which has grown steadily in popularity and fan attendance during the past decade, is expected to cancel what would have been its 23rd season in 2009, according to multiple media reports.

The Rocky Mountain News reported Wednesday that league officials are expected to make the announcement before the end of the week. The Kansas City Star later reported that Pete Likens, communications director for the Kansas City Brigade, said the AFL players' union agreed late Tuesday to the decision.

"It's pretty much a done deal to suspend the 2009 season and work toward a single entity-league," Likens said, according to The Star. "We plan to start up again in 2010."

The league, which has been seeking ways to improve its financial footing, said Tuesday it still is not ready to announce a long-term plan. On Tuesday, the release of the 2009 schedule was delayed for the third time, and the league also put off its dispersal draft and the start of free agency.

In a statement released Tuesday, the AFL said it "is working on long-term structural improvements."

ESPN acquired national TV rights to the AFL in 2006 and has a minority stake in the indoor league. ESPN signed a five-year deal to have multimedia rights that included everything from Internet to radio to publishing to international distribution.

"We've always admired the AFL fan-first philosophy, but we have no comment on their business activity," ESPN spokesman Bill Hofheimer said.

The AFL's New Orleans franchise folded despite being near the top of the league in attendance the past two seasons. Saints owner Tom Benson, who also owned the VooDoo, said the decision was based on "circumstances currently affecting the league and the team."

The AFL has endured an offseason of uncertainty. No replacement has been named for longtime commissioner David Baker, who abruptly resigned in July two days before the ArenaBowl championship game.

Since November 2007, the AFL's board of directors has been looking into various ways to bolster the league's finances. One proposal involved individual franchise owners ceding control of the league to new investors.

Sports Business Journal reported in October that AFL owners had approved a tentative deal with Platinum Equity, in which the company would invest up to $100 million and assume management control of the league. That deal, however, has yet to be completed, and there are no guarantees of an AFL bailout. A message seeking comment was not immediately returned by Platinum Equity.

The arenafootball2 league, the official development league of the AFL, said it will continue to operate as usual and will play in 2009 -- its 10th anniversary season. The af2 operates entirely on its own and is not directly affected by the AFL's current situation.

Information from The Associated Press was included in this report.

[Bornthrilla]

Reports: AFL to call off '09 season, reorganize for 2010 return

The AFL will shut down for 2009 but plans to reorganize and return in 2010, The Cleveland Plain Dealer and New York Times have reported.

"I think it's a historic day for the league," the owner and chief executive of the Cleveland Gladiators, James L. Ferraro, told The Times in a telephone interview Sunday night. "I think this league will be much, much stronger, and it will be here for a long time because of what happened."

Citing a league source, The Plain Dealer said an official announcement would come Monday. The Times reported the announcement was conditional on approval from the players' association.

Officials held a conference call last week and announced that no consensus had been reached and that talks would continue in hopes of coming up with a better business model.

According to The Plain Dealer's source, the league's board of directors met by conference call again Sunday and voted to shut down because too many big-name owners or big-name cities said they would not return in 2009.

"We couldn't be taken seriously if we lost too many teams, especially in big markets," the source said, according to the newspaper. "That's what was going to happen. We needed to shut down and reorganize."

The AFL has endured a season of uncertainty. On Tuesday, the 16-team league delayed indefinitely the start of free agency, the release of its 2009 schedule and a dispersal draft to award players from the defunct New Orleans VooDoo.

No permanent replacement has been named for longtime commissioner David Baker, who abruptly resigned from the 22-year-old league in July two days before the ArenaBowl championship game.

ESPN has a minor, nonmanagement financial interest in the AFL.

[Bornthrilla]

www.sportsbusinessjournal.com/article/61933

Pittsburgh team part of AFL plans
By JOHN LOMBARDO
Staff writer


The Arena Football League’s restructuring effort includes an expansion team in Pittsburgh along with another run at attracting an equity partner, according to a confidential internal league document obtained by SportsBusiness Journal.

The document spells out the AFL’s plan to revive the league into a centralized business model and lays out self-imposed timelines, including getting a March 31 ratification of its newly revised collective-bargaining agreement and securing approval from ESPN, its network partner, to help promote a relaunch of the AFL for 2010 starting this April, May or June.

It will be a busy month for acting AFL Commissioner Ed Policy, who is leading the effort to relaunch the league after AFL owners voted to cancel the 2009 season.

As of March 15, all but one of the AFL’s 16 teams had submitted its local budget for a 2010 season based on a centralized business model, with the final model to be sent to the AFL’s executive board by Friday. Also due on Friday is a letter of intent from a still-to-be determined owner of an expansion franchise in Pittsburgh. The document does not disclose any potential owners or expansion fees.

“I am hoping it happens,” said Policy, who would not comment on any specific confidential information in the report. “Pittsburgh is a great football market and there is lot of interest from various groups.”

The AFL board expects to select final proposals from outsourced sponsorship and ticketing sales services and decide on office lease recommendations for new space in New York and Chicago. The AFL has offices in both cities, but the league is looking at new space in one or both cities. Initial proposals from outside agencies were due on March 16 with final decision of vendors scheduled to be made Friday.

The league has set aside the afternoon of March 30 for a full league meeting via telephone, with a possible vote on the new structure. If a vote is not taken, another board meeting will be scheduled between April 3 and April 8.

The AFL is also looking to again attract an equity partner beginning in April when the memo states that “once the centralized business model is complete, package the investment opportunity for presentation and go to market.”

Last year, the league was in serious talks with Platinum Equity, and the AFL plans to continue discussions with Platinum as well as exploring other sources of funding.

“Ownership is looking to relaunch the league on its own,” Policy said. “Once we get the model completed and outside capital is an option, we will explore the opportunities.”

While centralized sponsorship, media and ticket sales are listed as the primary “revenue drivers,” the memo also points to the development of a leaguewide Internet network and the possibility of outsourced merchandising and licensing.

Despite the relaunch timeline, the memo isn’t guaranteeing success. In a section titled “League Debt Management” the AFL says it will work through March 31 to update creditors on the development of the new model. Listed under the month of April are two options on the timeline. “If a comprehensive plan is completed and approved, work out payment plans with creditors,” the memo read. “If a comprehensive plan is not completed and approved, work with outside counsel to explore all methods and strategies for protection from creditors.”

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Monday, April 20, 2009
Avengers become latest AFL casualty
ESPN.com news services

Football fans in Los Angeles have only the college game to pin their rooting interest on after the Arena Football League's Avengers folded Sunday.

Four months after the league cancelled its 2009 season for a lack of funding, the 9-year-old Avengers joined the New Orleans VooDoo, which ended operations in October, leaving the league with 15 teams.

"It's disappointing, because I don't think it was necessary to get to this point," team owner Casey Wasserman said, according to the Los Angeles Times.

Wasserman notified acting commissioner Jim Renacci on Saturday in an e-mail, the newspaper reported. Renacci owns the Columbus Destroyers.

On Monday morning, the team's Web site had been dismantled and featured only an Avengers logo and a statement.

"The LA Avengers has terminated its participation in the Arena Football League," the site said. "The entire Avengers organization extends heartfelt thanks to the fans who cheered on their team, it was their faithful support that kept the Avengers vibrant and energized for nearly a decade."

AFL players and management reached a new collective bargaining agreement last month with hopes toward restarting play next year.

Both the players' union and the league's board must ratify the deal, which would cover four seasons from 2010 through 2013.

Previous acting commissioner Ed Policy stepped down in March, eight months after 12-year commissioner David Baker surprisingly resigned in July.

"The fans in L.A. have been passionate and supportive of professional football, and I hope one day we can all share in the excitement of its return to Los Angeles," Wasserman said, according to the Times.

Information from The Associated Press was used in this report.

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Utah Blaze: AFL Nears Opening Doors for 2010
04/24/2009 1:35 AM
by Martin Renzhofer
The Salt Lake Tribune

Although some of the fine points are continuing to be ironed out, it looks as if the Arena Football League will turn the lights back on for 2010.

A release from the AFL stated that the league "has finalized a revitalized business model that will enable the league to return to competition in time for the 2010 season. Columbus Destroyers co-owner and Chairman of the AFL Executive Committee Jim Renacci is spearheading the restructuring process, which should be completed in the next 30 days."

Brett Hopkins, chief operating officer for the Ken Garff Group, owners of the Utah Blaze, said a new plan will soon be presented to the league owners.

"We're still working out some of the details," Hopkins said. "Everybody has been pulling together on the restructuring of a new plan. We're not quite at the end of the road, but we're very close."

The AFL went dark prior to the start of the 2009 season due to substantial financial losses. The league began in 1987, with marketing aimed at low-cost family entertainment.

The Utah Blaze would have entered their fourth season in 2009 even though the team was losing money.

"We took the opportunity to call timeout and come together as an ownership group," Hopkins said.

Blaze coach Ron James had just received the news that the AFL was close to re-opening its doors.

"It won't be hard to put a team in place," he said. "The challenge is make sure you field a competitive team and, No. 2, find a front office group to do the job as well.

"We'll be going fast and furious. A lot of people are looking for jobs in this economy."

The league suffered a blow when the Los Angeles Avengers' ownership decided to pull the plug on the franchise last week. The team had been a member of the AFL for nine seasons, but owner Casey Wasserman did not agree with the reorganization plan.

In October 2008, the New Orleans Voodoo folded.

Hopkins said that the possibility remains that Los Angeles would rejoin the league. Should the Avengers not play, the AFL owns the rights to put another team in Los Angeles.