Beginning in the mid-1980s, he sought either an expansion team or a relocated franchise. 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. More than two dozen limited partners bought into Arizona Baseball Inc., including executives at Bank of America, Circle K, and Phoenix radio station KTAR, trucking magnate and future Phoenix Coyotes owner Jerry Moyes, comedian Billy Crystal, and Phoenix Suns All-Star Danny Manning.11, Colangelo set to work negotiating a financing deal for a downtown ballpark. Finally, the plaintiffs are suing to force Kendrick and the Diamondbacks to provide the documentation they have requested, and they are suing for a Preliminary and Permanent Injunction to prevent the team from forcing them to relinquish their ownership stakes, although none of the three have received payment yet and, with the shutdown of sports from the coronavirus, its not clear that anything has transpired that has yet deprived them of any rights or privileges as team owners. For the fourth count of Breach of Fiduciary Duty, filed specifically against Kendrick and the General Partner, which is AZDB I the plaintiffs also seek punitive damages as they claim Kendricks actions were willful, malicious and performed with evil mind and a conscious disregard for the risk of injury to the plaintiffs. Buchanan's story has additional details on the dispute, including the six counts on which the plaintiffs are suing. Several of the Midwestern clubs in the Cactus League, particularly the Cubs, turned their spring-training homes into popular winter tourist destinations for their fan bases as well as homes away from home for seasonal residents or permanent transplants to Arizona.2. Many aspire to buy a professional sports team and call the shots. To that end, limited partners with less than 1% have been warned that the Diamondbacks could terminate their partnership interests. Moreover, Colangelo took on the responsibility of negotiating a public financing deal for a downtown baseball stadium. This could result in a potential ugly court battle, so well have the details on its resolution out here as soon as we find out. SPORTS ILLUSTRATED is a registered trademark of ABG-SI LLC. 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. The company specializes in providing web solutions for the staff management of restaurants. Very few succeed. Datatel no longer exists in the present, seeing as how it combined with a competitor to form Elucian in 2012. The three suing minority owners have countered that their stakes in the team have been valued at an "artificially low" rate that doesn't include projections for "potential future revenue streams related to legalized gambling," per Buchanan. Used by permission under Creative Commons license (CC BY-SA 2.0). See our ethics statement. As retold by Cohen, Kendricks letter claimed that the 1% floor reflected an MLB preference for clubs to streamline their ownership group and minimize the disproportionate number of owners with very small equity stakes. The letter portrayed MLB as concluding efficient club governance and financial stability would be enhanced if each partner possesses a meaningful equity position.. managing general partner Ken Kendrick, per, According to that report, they are claiming Kendrick and the Diamondbacks ownership group ", The attorney for the minority owners, Roger Cohen, said his clients weren't legally required to increase their investment and believed Kendrick's leveraging ", had to do with consolidating and increasing the ownership stake of the remaining owners. Opened in 2011, the facility is on land owned by the Salt River Pima-Maricopa Indian Community. 8 John Walters, Brazen Arizona, Sports Illustrated, January 29, 1996, 190-194. 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. They finished first in the NL West in 1999, their second season in the major leagues. 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. 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 type of arrangement can infuse millions of investor dollars into a teams operations. In fact, the target was reached four months earlier than expected, in November 1997, two years after construction began on the 48,500-seat domed stadium and four months before the first pitch.14, But even with the taxpayer-friendly amendments to the deal, widespread opposition emerged almost immediately to the public financing of a ballpark without voter input. 2015 Chase Field photo by Jacob Pomrenke/SABR. Other claims include those for breach of fiduciary duty and breach of implied covenants of good faith and fair dealing. After the initiative failed, the Legislature passed a law allowing the city to bypass a referendum in their push for big-league baseball. Arizona has four of MLB Pipelines Top 100 prospects, and is one of two organizations with three prospects within the Top 15, boasting outfielder Corbin Carroll at No. However, it took some time for the people behind it to get things done, which is why the Arizona Diamondbacks didn't play their first game until 1998. 10 NBA Notebook: Pacific, The Sporting News, October 26, 1987, 47; Steve Wilson, When Youre Colangelo, You Gotta Believe, Arizona Republic, January 16, 1994, 10; Norm Frauenheim, Colangelo-Led Group Buys Phoenix Suns, Arizona Republic, October 13, 1987, A1, A2. His presence would likely have galvanized the already stinging criticism that he and pro-stadium legislators had already faced as a result of the deal. Additionally, the BOB offered some of the most affordable prices in baseball. As a result, Showalter was fired after the 2000 season.21, The win-now approach was clearly the governing ideology of the Diamondbacks by the time of the November 18, 1997, expansion draft. (There was little indication that Stone pursued a stake in the Expos to move the franchise. The buyer can then call himself or herself an owner and gain certain privileges. If Molina, Webster and Carlisle Investments prevail on a breach claim, they would be awarded monetary damages. 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.. 23 Floating on Air, Colangelo Readies Big Party Today; Pedro Gomez, Tickled to Be in Arizona, The Sporting News, December 14, 1998, 80; All Arizona Has to Do Now, Right Now, Is Win., 24 Mike McCloy, Ballpark Looks Like a Million, Arizona Republic, October 13, 1996, B1; Don Ketchum, In the Ballpark, Arizona Republic, November 16, 1995, D4; Come Along on a BOB Tour, Arizona Republic, March 22, 1998, A1; Martin Van Der Wert, 1st Year Is a Tryout for Cooling System, Arizona Republic, March 22, 1998, BP6; Family-Style Attractions Cover All the Bases, Arizona Republic, March 22, 1998, BP10; Bill Muller, Mark Shaffer, and Richard Ruelas, BOB Takes a Bow, Arizona Republic, March 30, 1998, A1; Linda Helser, Diamondbacks May Be Best Pro Sports Bargain in Valley, Arizona Republic, March 29, 1998, C37; Pedro Gomez and Mark Topkin, Scouting the Expansion Cities, The Sporting News, March 30, 1998, 26; Fans Guide: Ticket Prices, March 30, 1998, Arizona Republic, C41. However he does like to take on other topics involving some of his personal interests like automobiles, future technologies, and anything else that could change the world. To the extent MLB has already done so in communications with clubs, the league could credibly maintain that Kendricks moves are consistent with established league policies. Arizona has been home to major-league spring training since the immediate aftermath of World War II. The Fox Sports Net Arizona deal later led to the partners splitting millions of dollars in distributions as well as obtaining additional interests in an accompanying broadcasting entity. 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. The colors were marketed as evocative of the regions cultural heritage. The more persuasively Kendricks attorneys can show that the team has adhered to established procedures and did so with sufficient transparency and accountability, the better the odds for Kendrick. In October 1989, nearly 60 percent of Phoenix voters rejected a ballot initiative that would have allowed the issuance of $100 million of the previously authorized bonds for a domed ballpark. In May 1988 Stone backed out of his deal with Phoenix, arguing that he could no longer negotiate the terms of a stadium lease from a position of strength as he had neither a franchise in hand nor another tenant with whom to share the burden of selling premium seats to the public.5, Without Stones backing for the deal, stadium plans languished. Instead, his full name is Earl G. Kendrick Jr., though to be fair, Ken Kendrick has a nice alliterative sound to it. In subsequent seasons Showalter clashed with Garagiola over the direction of the club. He was also playing a central role in negotiating the deal that led to the relocation of the National Hockey Leagues Winnipeg Jets to Phoenixs America West Arena, where they were rechristened the Phoenix Coyotes in 1996.8. 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. Get your tickets for the Guns N Roses concert on Oct. 11 at Chase Field. [Buchanan] BREAKING: Three Diamondbacks minority owners are suing the team and managing general partner Ken Kendrick over forced buyouts. 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. According to a 2015 study commissioned by the Diamondbacks, the franchise generated $8.2 billion in economic activity since it began in March 1998. Call 1-800-GAMBLER. Jensen is the co-founder of Information Technology, which develops software for the banking industry. Here are 10 things that you may or may not have known about Ken Kendrick: Ken isnt Kendricks personal name. Molina, a jeweler by trade, is chairman and CEO of Molina Fine Jewelers. This refers to the majority of a partnership pressuring those with minority interests to sell upon threat of termination. A trio of Diamondbacks minority owners have filed a lawsuit against the franchise's managing general partner Ken Kendrick, according to a report from Zach Buchanan of The Athletic. 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. Phoenix, AZ 85004 Big-league insiders had made it clear to Arizona leaders that public support for a stadium was a prerequisite for serious consideration for a franchise. The overwhelming majority of investors chose one of these options.". Molina is required to invest an additional $3.8MM or his stakes will be bought out at the same number, Weber investing another $6MM or get a $1.5MM buyout, and Carlise Investments getting a similar ultimatum for undisclosed amounts. The genesis of the lawsuit stems from a letter sent by Kendrick on Jan. 13. While it is unfortunate that the plaintiffs have chosen to decline the offer and take legal action, this decision is well within the rights of the Managing General Partner, who looks forward to the resolution of the matter.". Kendrick takes an active role in a wide range of philanthropic endeavors. Also in contention is whether Major League Baseball pushed the Diamondbacks to reduce the number of minority owners with less than a one percent stake in the team or whetherthe team took the idea to MLB. Through Kendrick, the club retained the consulting firm Bases Loaded. Metropolitan Phoenixs most significant historical connection to the majors has been as the primary host of the Cactus League. Under Colangelo and Garagiola, the Diamondbacks won division titles in 1999 and 2001 as well as the pennant and World Series in 2001. He served as the Coyotes' Majority Owner, Chairman and . 1 Rick Thompson, A History of the Cactus League, Spring Training Magazine, March 1989. Kendrick, the . The National Anthem is played before the Arizona Diamondbacks game on April 6, 2015, at Chase Field in Phoenix, Arizona. Kendrick is reportedly waiting until after the Angels' sale is finalized to further explore the possibility of selling the minority stake. First, it can come from cynwrig, which is Welsh for greatest champion. Second, it can come from cyneric, which is Anglo-Saxon for family ruler. Due to this, it can be rather challenging to tell when Kendrick refers to which potential meaning, seeing as how the Welsh and the English have been interacting with one another in various ways since the Roman withdrawal. All Rights Reserved. Initially, the BOB proved to be its own draw with an unprecedented array of amenities that appealed to spectators who were not especially interested in baseball: several playgrounds, a picnic pavilion, a day spa, and a swimming-pool party area (which could be rented for a group of up to 30 for $4,000 per game) were among the most popular attractions. 1:51. Despite some misgivings, Colangelo agreed to the deal. Per Buchanan, the team released the following statement: "The Managing General Partner of the D-backs, with the support of Major League Baseball and on advice of independent legal counsel, has chosen to streamline the ownership group and reduce the number of partners with very minimal equity stakes in the partnership. CLAYTON TRUTOR is a history instructor at Northeastern Universitys College of Professional Studies. Arizona Diamondbacks owner Ken Kendrick wants minority owners who have less than one percent stake in the team to raise their stakes or part ways with the organization. However, according to the complaint, a club attorney later clarified that Kendrick had misspoken and that a second valuation would not be possible. , "AZ Diamondbacks Team History and Encyclopedia", https://en.wikipedia.org/w/index.php?title=List_of_Arizona_Diamondbacks_owners_and_executives&oldid=1080167209, Lists of Major League Baseball owners and executives, Short description is different from Wikidata, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 30 March 2022, at 17:23. The same rate was utilized to purchase back existing units from those who declined the offer to purchase new units. (They also awarded a franchise to a Tampa-St. Petersburg-based ownership group led by businessman Vincent J. 'Get all the hitters out', Notes: Nelson's outing; new facility paying dividends, Flexing: Each team's top power-hitting prospect, Pipeline Podcast: Druw Jones talks shoulder rehab, making pro debut and more, Pfaadt 'fantastic' in debut -- and he made sure to have fun. 9 Robert Logan, Colangelo Quits Bulls to Take Phoenix Post, Chicago Tribune, February 29, 1968, C1; Bob Logan, Colangelo Has Suns Climbing for Summit, Chicago Tribune , May 23, 1976, B3; Lee Shappell, Jerry Colangelo, Arizona Republic, March 12, 1995, BB2; Colangelo Took Bait All the Way to Finals; Kevin Simpson, The Place to Be, The Sporting News, November 7, 1994, S3; Jack McCallum, Desert Heat, Sports Illustrated, May 28, 1990, 50-51; Joe Gilmartin, Suns Colangelo NBA Executive of the Year, The Sporting News, May 16, 1981, 46. Defending champs USA, Canada, Mexico, Colombia and Great Britain will square off in round-robin action. 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. 7 Martin Stone; Bob Cohn, Race for Big Leagues Begins, Arizona Republic, June 15, 1990, A1; Eric Miller, Valley Strikes Out, Arizona Republic, December 19, 1990, A1. Kendrick might argue that he does, in fact, rely on the advice and counsel of limited partners, or that he would like to, but that a large roster of limited partners makes the organization less organized. "It doesn't make any sense. Dozens of investors backed Phoenix Suns executive Jerry Colangelos original ownership group, Arizona Baseball, Inc., in 1995. Owners. As of October 2017, these executives have compiled a 1222-1208 (.503) record, [1] five National League West Division titles (1999, 2000, 2001, 2007, 2011), one National League pennant (2001), and one World Series title (2001). Montreal was less than a two-hour drive from his home in Lake Placid, New York.) This content is only available to subscribers. Welcome to the Jungle! 12 Mike Padgett, Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman, Phoenix Business Journal, March 26, 2008. The best guide in Arizona to getaways, concerts and the dining scene. Bruner and Garagiola persuaded Colangelo to spearhead the effort to bring in a baseball team. The league doesnt want the litigation to progress to pretrial discovery, where attorneys for the plaintiffs could demand that commissioners office staffwho appear to be key witnesses given their interactions with Kendrickturn over sensitive emails, other correspondences and financial records. If it so wishes, a team can have dozens of minority stake owners. Colangelo also negotiated a financing deal for a new arena to be built primarily with private money raised through JDMs limited partners and corporate sponsorship deals. Freeze outs have been the source of lawsuits involving alleged breach of fiduciary duties, conflicts of interests and self-dealing. The dispute began in January, when Kendrick informed 22 minority owners of the directive, which constitutes an effort to streamline the current ownership group. Accessed on June 17, 2016: springtrainingmagazine.com/history4.html#cactus ; Gary Rausch, The Cactus League Is a Major League Tourist Attraction in Arizona, Chicago Tribune, February 26, 1989, M23.