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Michael McCann is SIs Legal Analyst. Ken Kendrick photo courtesy of the Arizona Diamondbacks. The first concerted civic effort to secure a major-league franchise began as metropolitan Phoenix, with almost 2 million residents, became the nations 14th largest metropolitan area in the late 1980s. A native of West Virginia, Kendrick made his fortune in the software business as the founder of Datatel Inc., a Virginia-based company that provided high-tech services and software to colleges and universities. 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. Inject this straight into our veins. Martin Stone, the owner of the Phoenix Firebirds, the San Francisco Giants Triple-A affiliate, was the driving force behind the push. Like many of his predecessors in New York, the intense Showalter butted heads frequently with the clubs domineering owner, George Steinbrenner. Montreal was less than a two-hour drive from his home in Lake Placid, New York.) Colangelo persuaded the other partners in Arizona Baseball Inc. to call the team the Arizona Diamondbacks rather than the Phoenix Diamondbacks to cultivate a statewide sense of pride and ownership. The limited partners contend that Kendrick lacks the requisite authority to condition their continued association to the partnership on a demand that isnt expressed in the agreements. Carlisle Investments has been a part of the ownership group from 1998 with Molina and Weber buying stakes in 2004, when the team had an operating deficit of $300MM. Colangelo transformed the Suns into one of professional basketballs best managed and most consistently successful franchises. 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. They were to begin playing in the 1998 season. pic.twitter.com/m2n2BoWrVa, D-backs No. Arizona has been home to major-league spring training since the immediate aftermath of World War II. According to Buchanan, the lawsuit has nothing to do with any potential relocation as Kendrick controls a voting bloc of 90% of the ownership (Kendrick himself does not have 90% of the ownership shares). Kendrick takes an active role in a wide range of philanthropic endeavors. Martinez and allows three runs in 1 2/3 innings in his second start of Spring Training, Perfect day for a nice stroll around the bases. However, they might begin to feel less fondly about the club as they battle Kendrick in court. Both are diehard Diamondbacks fans and season-ticket holders. This content is only available to subscribers. While Martin Stone spent a half-decade in single-minded pursuit of big-league baseball for the Phoenix area, the bid that actually brought a major-league team to Arizona came together more serendipitously. While there's no actual baseball going on because ofthe novel coronavirus pandemic, some palace intrigue within the ownership ranks of the Arizona Diamondbacks has come to light. The suit names AZPB Limited Partnership (Ownership Group), the groups managing partner, and Kendricks wife as the defendants. Andrew Barroway is the Coyotes' Minority Owner & Alternate Governor. People who pay close attention to the Arizona Diamondbacks should be familiar with Ken Kendrick. Register now to join us on March 10-12, 2023, in Phoenix, AZ. 25 Arizona Diamondbacks Letter to Maricopa County Board of Supervisors, January 12, 2016, BallparkDigest.com, March 30, 2016. There are some significant issues in the Arizona Diamondbacks' ownership group right now. He is also a PhD candidate in US History at Boston College. The same rate was utilized to purchase back existing units from those who declined the offer to purchase new units. The colors were marketed as evocative of the regions cultural heritage. [1] This appraisal indicated that Molina would need to invest another $3.8 million in order to meet the 1% threshold. 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. 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. 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. AZ International Auto Show & New Car Buyer's Guide 2020 Model Year, Your California Privacy Rights/Privacy Policy. 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. With over 10 years experience he's covered businesses, CEOs, and investments. 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 Diamondbacks fielded their first affiliated minor-league teams in 1996. Among the Diamondbacks' limited partners are Alfredo Molina and Jim Weber. Defending champs USA, Canada, Mexico, Colombia and Great Britain will square off in round-robin action. As of 2016 the Sun Devils have won five NCAA championships, appeared in 22 College World Series, and produced numerous major-league stars, including Reggie Jackson, Bobby Bonds, Dustin Pedroia, and Bob Horner. As a result, Kendrick is a figure of some note in both the MLB and beyond. Nevertheless, Bank One Ballpark has contributed to the revitalization of downtown Phoenix. Bases Loaded appraised the value of a 1% interest and the value of the limited partners stakes. 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. Get your tickets for the Guns N Roses concert on Oct. 11 at Chase Field. The partners also satisfied requirements found in their Diamondbacks agreements. 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. 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. Join Matt Vasgersian and Harold Reynolds on MLB Network for the latest news, analysis and more, weekdays at 9 a.m. Very few succeed. The creation of a number of new institutions and attractions in downtown Phoenix added vibrancy to the once moribund area. Like Kendrick, Jensen and Chipman earned their fortunes in the software industry. 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. Welcome to the Jungle! Diamondbacks 5, Dodgers 5: The Ties of March, Diamondbacks Spring Gameday Thread, #7: @ Dodgers. Veeck persuaded New York Giants owner Horace Stoneham to join the Indians in Arizona. potential future revenue streams related to legalized gambling," per Buchanan. Such a judgment is issued by a judge and reflects a clarification of the rights and obligations of the parties. The overwhelming majority of investors chose one of these options.". It was no secret that Bill Bidwill, owner of the NFLs St. Louis Cardinals, intended to move to Phoenix. The Diamondbacks assert that Chase Field needs significant upgrades or replacement after nearly two decades of use. (There was little indication that Stone pursued a stake in the Expos to move the franchise. Over the past two decades, hes founded numerous startups, most of which have been subsequently acquired by the likes of Facebook, Google,, Read More 10 Things You Didnt Know about Yuri GurskiContinue, John Foley, the founder, and CEO of Peloton, a fitness company, worked so hard to get his company off the ground that at one time, his son asked him if he loved the business more, Read More The History of and Story Behind the Peloton LogoContinue, As stated by its name, 3D printing is a process that creates a three-dimensional object using the information stored in a digital file. 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. This type of petition captures the essence of the lawsuit. 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. That is the same year Kendrick ousted Jerry Coangelo as the Managing General Partner. If Molina, Webster and Carlisle Investments prevail on a breach claim, they would be awarded monetary damages. It gave ownership of the ballpark to the county and guaranteed the county one-third of the annual earnings from naming rights. 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. The same is true of Carlisle Investments, whose principal is Charles Carlisle. 9 prospect Drey Jameson strikes out two batters in two hitless innings during his spring outing against the Giants D-backs Insider Group Tickets Private Suites Special Events Caesars Sportsbook at Chase Field Carson Kelly's solo home run The revenue from the tax helped revitalize existing spring-training facilities and build several new complexes, including one for the Indians, who chose to stay in Arizona, moving to the Phoenix suburb of Goodyear in 1993. Attorneys for Kendrick and the club will answer the complaint. 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. Many opponents decried what they perceived as collusion between the citys political and business elite. Naimoli.) Suffice to say that Princeton is not an uncommon name, seeing as how it is not uncommon for towns to be named for one prince or another. Bullpen reinforcements: those we didnt sign. Colangelo later said that taking the lead in the baseball expansion effort fulfilled his desire to play a more prominent role in increasing the national profile of the Valley of the Sun. The answer will deny the claims and likely offer additional information that attempts to rebut or qualify assertions contained in the complaint. 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 | Under Colangelo and Garagiola, the Diamondbacks won division titles in 1999 and 2001 as well as the pennant and World Series in 2001. Given MLBs interest in seeing this litigation resolve without being implicated, the league might urge Kendrick to find a solution. In response, the plaintiffs have demanded, in writing, that Kendrick and the Diamondbacks provide evidence that corroborates the buy-up/buy-out ultimatum. CLAYTON TRUTOR is a history instructor at Northeastern Universitys College of Professional Studies. In short, it started out as a business that specialized in data processing, but went on to become something much more, as shown by the fact that its latter incarnation specialized in building education platforms for institutes of higher education. Molina invested an additional $250,000 in the club between 2009 and 2014. Alternatively, his entire interest could be bought out for $3.9 million. Accessed June 3, 2016: http://foxsports.com/arizona/story/cactus-league-stadium-guide-salt-river-fields-arizona-diamondbacks-colorado-rockies-022416 ; Cactus League: Salt River Fields, azcentral.com, February 24, 2016. In other words, both Molina and Weber are owners of the Diamondbacks, but their stakes in the team are under 1%. During the 2016 Republican presidential primaries, the Kendricks made headlines in Arizona for their strident opposition to Donald Trumps bid for the nomination. To that end, he is barred from acting in ways that deny the limited partners of their benefits of the partnership. Kendrick, 77 and a former banking executive, first became a part-owner of the Diamondbacks when the team was founded in 1995. If you buy something from an SB Nation link, Vox Media may earn a commission. This is less than 0.5 percent of the total economic activity in Maricopa County in that same time period. 1 Rick Thompson, A History of the Cactus League, Spring Training Magazine, March 1989. 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. Other claims include those for breach of fiduciary duty and breach of implied covenants of good faith and fair dealing. The Cleveland Indians announced plans to move their spring-training headquarters from Tucson to Homestead, Florida. Short listed for "Leaders in Luxury" Featured in Cover Story Top 30 Marketing Executives in America ", The team respondedin a statement, saying that with the backing of Major League Baseball, ithas "chosen to streamline the ownership group and reduce the number of partners with very minimal equity stakes in the partnership. (They also awarded a franchise to a Tampa-St. Petersburg-based ownership group led by businessman Vincent J. 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. Accessed June 10, 2016: http://articles.baltimoresun.com/1997-11-19/sports/1997323118_1_red-sox-pedro-martinez-rosters. Arizonas significant public investment in spring-training baseball helped lure a number of franchises to the Cactus League. If were being honest, an owner with a minority stake experiences a mostly ceremonial involvement. Cronkite School at ASU Despite some misgivings, Colangelo agreed to the deal. This refers to the majority of a partnership pressuring those with minority interests to sell upon threat of termination. To pay off the deferred salaries, the Diamondbacks raised ticket prices sharply in the early 2000s and eventually traded Schilling to the Boston Red Sox in November 2003 and Johnson to the New York Yankees in December 2004 for prospects and cash. In April 1987 the city agreed to secure $150 million in bonding to build a 70,000-seat domed stadium on a 66-acre parcel of land in the southern section of downtown Phoenix. The measure authorized the county to collect a $2.50 car-rental tax. He is a staff writer for Down the Drive, SB Nations University of Cincinnati athletics website. After the vote, Bruner, as he had planned, resigned from the board to run for an open congressional seat. pic.twitter.com/mdZE3bNqBO, Lourdes Gurriel Jr. gives the D-backs their first run of the game with an RBI double to right field, bringing in Josh Rojas in the 5th, Proof anything can be an album cover. For now, the plaintiffs signal a desire to remain in the partnership. Accessed June 10, 2016: http://bizjournals.com/phoenix/stories/2008/03/31/story7.html. 30 Rebekah L. Sanders, Maricopa County Rejects Most of Arizona Diamondbacks Requested $65M for Upgrades, azcentral.com, August 8, 2016. The Diamondbacks apparently no longer classify the plaintiffs as limited partners. The teams apparent goal is to streamline the ownership group and reduce the number of partners with very minimal equity stakes in ownership. Several years earlier, the Suns owner had experienced this process while seeking public funds in support of a new venue for the Suns. Bearing the name of a Phoenix-based airline, it was one of the earliest examples of stadium naming rights being sold to a corporation.10, In September 1993 Colangelo announced the formation of Arizona Baseball Inc., whose purpose was to bring a major-league baseball team to Phoenix. The company helps connect suppliers and seafood buyers throughout Europe. Watch on MLB.TV or listen on At Bat Saturday as Brandon Pfaadt faces S.D., or listen to the game vs. S.F. The Diamondbacks adopted a quintessentially late 1990s palette of team colors: purple, turquoise, black, and copper. Later that year, Colangelo and Garagiola hired Buck Showalter as the clubs first manager. In the 21 years since Major League Baseball granted an expansion bid to Arizona Baseball, Inc., the Arizona Diamondbacks franchise has been characterized by the stability of its leadership. These dollar figures, Cohen maintains, are artificially low. Cohen asserts the calculations incorporate unreasonable discounts and fail to consider, among other things, how the legalization of sports betting in many states and the potential legalization of sports betting in Arizona is poised to substantially enhance the value of a Diamondbacks ownership stake.