Fran
08-04-2008, 12:26 PM
David Baker’s surprising resignation as Arena Football League commissioner comes as the league moves closer to adopting a new management structure that could include bringing in a lead executive to run the AFL’s day-to-day business affairs.
Baker, who informed the league’s ownership group just two days before the AFL’s ArenaBowl championship on July 27, said he long had been considering leaving the league. His resignation was accepted immediately, ending 12 years of steering the league through explosive franchise growth that saw teams grow in value from less than $1 million to more than $20 million.
In the past year, Baker had been leading the owners to adopt a new single-entity structure, or what the league calls a centralized business model, to operate more efficiently and sell more national sponsorships with the goal of attracting an equity partner to buy into the AFL.
As that process evolved, Baker said he felt it was time to step down at a time when the league’s business metrics; attendance, ratings and merchandise sales were all trending upward.
“The centralized business model is locked and loaded and it is one of those things the owners can get behind,” Baker said from his Southern California home a few days after his decision. “Whether it is a chief operating officer or a chief executive officer that has all teams reporting to one person, I absolutely think it should happen to create numerous efficiencies.”
Baker said he left with no animosity toward the league’s executive board, which is chaired by John Elway, and he insisted that there was not a single tipping point that spurred his resignation.
“It wasn’t personal, it is about what is best for the AFL,” Baker said. “What changes they make is up to them, and what I am seeing is a clean slate for them to come together to centralize the business. That decision is better made without me around as the 800-pound gorilla in the room.”
Baker strongly denied any conflict between himself and the ownership group. “There was no power struggle,” he said.
But another senior AFL team executive said that Baker grew frustrated with the process of establishing the new business model.
Driving the single-entity effort are three AFL owners — Columbus Destroyers owner Jim Renacci, who is also vice chairman of the league’s executive committee; Craig Spencer, co-owner of the AFL champion Philadelphia Soul; and Shy Anderson, chief operating officer of the Dallas Desperados and the son-in-law of Dallas Cowboys owner Jerry Jones.
Just last October, Baker signed a three-year contract extension, but AFL executives close to Baker said they were not necessarily surprised by his resignation because he had been considering leaving the league for more than a year. However, they were taken aback at the timing of the announcement, coming at the AFL’s championship event without warning to any league staff or team owners.
“I was shocked,” Renacci said, adding that there are no specific plans to hire a CEO. “What we are doing is developing a new business model and it would be premature to talk about the structure when we are talking to [potential] equity partners. Our goal is to come up with a conclusion [regarding a centralized business model] within the next 30 or 60 days with or without an equity partner.”
Baker, who oversaw 54 total league staff members in the New York and Chicago AFL offices, lived in New York and Southern California. His son Sam was an all-America lineman at USC and is now a rookie with the Atlanta Falcons, and the combined heavy business and personal travel was taking its toll.
The role of the next AFL commissioner could differ greatly from Baker’s tenure.
“I think that goes with how things shake out in terms of the centralized business model,” said one AFL source with close ties to the league’s business. “It may require a different function. Whether or not you have a omnipotent commissioner like David, or a division of labor for the job, remains to be seen. David was the consummate promoter and an inspirational leader, and he had to be that every day.”
AFL Deputy Commissioner Ed Policy will serve as interim commissioner, with the league expected to form a search committee within two weeks. The job likely will be filled only after the league moves ahead with its consolidated business model and settling on an equity partner who will have major input on Baker’s replacement.
Policy, who joined the AFL in 2001, would likely be one candidate to be considered. One top AFL team official said that Baker’s replacement will be “a senior executive in sports with a strong history in sales. We need to be more a sales organization than a football organization.”
Baker, who informed the league’s ownership group just two days before the AFL’s ArenaBowl championship on July 27, said he long had been considering leaving the league. His resignation was accepted immediately, ending 12 years of steering the league through explosive franchise growth that saw teams grow in value from less than $1 million to more than $20 million.
In the past year, Baker had been leading the owners to adopt a new single-entity structure, or what the league calls a centralized business model, to operate more efficiently and sell more national sponsorships with the goal of attracting an equity partner to buy into the AFL.
As that process evolved, Baker said he felt it was time to step down at a time when the league’s business metrics; attendance, ratings and merchandise sales were all trending upward.
“The centralized business model is locked and loaded and it is one of those things the owners can get behind,” Baker said from his Southern California home a few days after his decision. “Whether it is a chief operating officer or a chief executive officer that has all teams reporting to one person, I absolutely think it should happen to create numerous efficiencies.”
Baker said he left with no animosity toward the league’s executive board, which is chaired by John Elway, and he insisted that there was not a single tipping point that spurred his resignation.
“It wasn’t personal, it is about what is best for the AFL,” Baker said. “What changes they make is up to them, and what I am seeing is a clean slate for them to come together to centralize the business. That decision is better made without me around as the 800-pound gorilla in the room.”
Baker strongly denied any conflict between himself and the ownership group. “There was no power struggle,” he said.
But another senior AFL team executive said that Baker grew frustrated with the process of establishing the new business model.
Driving the single-entity effort are three AFL owners — Columbus Destroyers owner Jim Renacci, who is also vice chairman of the league’s executive committee; Craig Spencer, co-owner of the AFL champion Philadelphia Soul; and Shy Anderson, chief operating officer of the Dallas Desperados and the son-in-law of Dallas Cowboys owner Jerry Jones.
Just last October, Baker signed a three-year contract extension, but AFL executives close to Baker said they were not necessarily surprised by his resignation because he had been considering leaving the league for more than a year. However, they were taken aback at the timing of the announcement, coming at the AFL’s championship event without warning to any league staff or team owners.
“I was shocked,” Renacci said, adding that there are no specific plans to hire a CEO. “What we are doing is developing a new business model and it would be premature to talk about the structure when we are talking to [potential] equity partners. Our goal is to come up with a conclusion [regarding a centralized business model] within the next 30 or 60 days with or without an equity partner.”
Baker, who oversaw 54 total league staff members in the New York and Chicago AFL offices, lived in New York and Southern California. His son Sam was an all-America lineman at USC and is now a rookie with the Atlanta Falcons, and the combined heavy business and personal travel was taking its toll.
The role of the next AFL commissioner could differ greatly from Baker’s tenure.
“I think that goes with how things shake out in terms of the centralized business model,” said one AFL source with close ties to the league’s business. “It may require a different function. Whether or not you have a omnipotent commissioner like David, or a division of labor for the job, remains to be seen. David was the consummate promoter and an inspirational leader, and he had to be that every day.”
AFL Deputy Commissioner Ed Policy will serve as interim commissioner, with the league expected to form a search committee within two weeks. The job likely will be filled only after the league moves ahead with its consolidated business model and settling on an equity partner who will have major input on Baker’s replacement.
Policy, who joined the AFL in 2001, would likely be one candidate to be considered. One top AFL team official said that Baker’s replacement will be “a senior executive in sports with a strong history in sales. We need to be more a sales organization than a football organization.”