Breaking - Voodoo Folding

[Aaronhere]

In a letter to Arena Football League interim commissioner Ed Policy, New Orleans Voodoo owner Tom Benson said the Voodoo is folding and severing its five-year stay in the Crescent City and its affiliation with the league, VooDoo team spokesman Greg Bensel said.

Bensel also stated that Benson, who is attending NFL meetings in Florida this week, stressed that this is not an indictment on this marketplace. That he believes in New Orleans, but knows this is the right decision based on circumstances currently affecting the league and the team.

"The VooDoo fans have been the best in the AFL," said Rita Benson LeBlanc, executive vice president/owner. "Their passion, enthusiasm and support made it possible for us to bring two consecutive Arena Bowls to benefit New Orleans. It is a sad day for our community and our organization but circumstances prevented us from continuing in the AFL."

Executive Vice President/ General Manager Mickey Loomis, in a statement released by the team, said it was a tough decision to make.

"We have a very fine football staff led by head coach Mike Neu, who I think is one of the finest young coaches in this league," Loomis said in his statement. "Circumstances have led us to this decision, but I would be remiss if I did not recognize the hard work that the many people on our staff here have put into the VooDoo.
http://blog.nola.com/tpsports/2008/10/new_orleans_voodoo_to_cease_op.html

The conspiracy theorist in me says Benson is severing his sports ties with New Orleans, in preparation for moving the Saints to Los Angeles or San Antonio before another team gets in there.....

[wellington]

Interesting conspiracy theory... Benson has got to be licking his chops on a potential move to LA. Cha ching.

[rams80]

http://blog.nola.com/tpsports/2008/10/new_orleans_voodoo_to_cease_op.html

The conspiracy theorist in me says Benson is severing his sports ties with New Orleans, in preparation for moving the Saints to Los Angeles or San Antonio before another team gets in there.....

Or he's not thrilled with single entity, which is far, far more likely.

[preeths]

rams80, can you explain the single entity thing? Many here are probably not familiar with what's been going on in the AFL.

[Big Easy]

First the Copperheads, now this. It's been a tough Arena Football off season for this New Orleanean (who lives in Houston).

As for the Saints bolting, not a chance. That franchise is cemented in the Big Easy. Louisiana's new Governor has this under control. The Gov and the Saints have been working on a lease extension/facility agreement for a year. It's close to being signed. BTW, the work they've done on the Superdome is outstanding. They are now in the phase 2 portion of restoration. Once the lease extension is signed, New Orleans is going to be back in the Superbowl rotation. The old girl (the Superdome) is looking better than she ever has...and fans and sponsors are on board in full force.

Benson pulling out of the AFL has everything to do with the NFL, nothing more. Benson is actually sinking more money in New Orleans than he ever has. He recently bought a local TV station (Fox 8) and just bought an Atlanta based production company he is relocating to NOLA.

[off_the_nets]

Well, this stinks! The VooDoo were always a good organization and fielded competitive teams. Whatever the real or perceived reasons for the VooDoo demise, it is a loss for this AFL fan.

[Panthers14]

The New Orleans VooDoo folding is much more indicative to a systemic problem that now faces the AFL. The current situation is much more like the Major Indoor Soccer League breakup over ownership structure. In that case, half of that league wanted individual team ownership and the other half wanted a league wide ownership like MLS now has. Since a consensous could not be reached in the MISL, then the league disbanded to form two new leagues. I do not believe that this will happen with Arena Football; but I do believe that the old guard deep pocket investors are having a problem accepting single-entity ownership which is now being debated behind closed doors. I too believe that this is the reason that the commish resigned prior to the Arena Bowl. When a league has league wide ownership, then Franchises are sold to individual investors, but those investors have to ceed control of marketing and individual team structure to the league office, while those investors have only one vote as to the future of the respective franchise and must obide by the league decision. No wonder Benson decided to fold. The NFL does not have this set-up and although, the NFL can strongly admonish individual ownership decisions (i.e. Raiders move to L.A. then back to Oakland), the NFL can not stop such decisions. Thus, if the AFL moves to single-entity ownership, then a situation that may occur like the VooDoo Folding, could ultimatly be avoided. I.E. Benson would want out...then the league would take over the VooDoo. MLS now has this structure with investors buying into franchises like Red Bull and Auschewitz; but even those powerful investors have to ceed ultimate control of franchise decsions such as salary cap, expansion, and marketing over to the league office. MLS is growing and not teetering on the verge of collapse like the old NASL did. This is not to say that they can not screw up a good thing. If MLS over expands or does not adhere to a salary cap that makes sense, then yes...they too will go out of business someday. Until then, everybody now wants an MLS Franchise since the value of MLS under the single-entity structue is increasing...and we all know that $$$$$ talks.

Complicating matters could be the on-going talks among the AFL's owners over the direction of the league. Since last November, the AFL's board of directors has been looking into various ways to improve the league's financial position. Last summer, the AFL hired Game Plan, a financial consulting firm, to help find partners willing to pay for a stake that could range from a minority interest to a complete buyout of the league, according to a report in the Sports Business Journal. ESPN obtained a stake in the league in 2007 when it took over television broadcast rights from NBC. Some of the proposals, which involved franchise owners giving much of their control of the league to new investors, were made during a conference call Friday with the AFL's board of directors. It also doesn't help that the VooDoo is the secondary tenant at the New Orleans Arena, meaning the VooDoo must yield to the Hornets on most matters and can't generate much income from the building outside of ticket sales. Under terms of the Hornets' contract with the state, the NBA team gets first choice on playing dates at the building, and its sponsors receive exclusive advertising rights for all events at the Arena, including non-Hornets events. The Saints have a similar arrangement
at the Superdome.

So, the question is "Where do we go from here?" I truly believe that the sport will move to single-entity ownership to secure a financial footprint and ultimatly make a profit. Yes, I disagree with those of you who say that Arena Football can not make money. The NFL makes most of its profit through merchandise, TV Revenue, and Sponsorship endorsements...so too can Arena Football and any other sport...but those ventures will need to enforce restraint while most owners' egos are too big to accept that. Good luck AFL, we are all rooting for you!!!!!!!!!!!!!

[preeths]

I've been told that two more AFL teams may give up the ghost soon.

[chardale]

I've been told that two more AFL teams may give up the ghost soon. Can you say bye bye Force?

[Geoff]

I wish some of those 35,000 on the Saints Season Ticket waiting list had decided to go see the VooDoo.

[preeths]

Can you say bye bye Force?

That's one I heard mentioned.

[Sykotyk]

wouldn't surprise me. Blank is pursuing an MLS team, so he may want to stop having to run a team, that more than likely, is losing money without any signs of stopping.

Sykotyk

[NatePreds05]

Can you say bye bye Force?

Now if Arthur Blank had a problem with single entity ownership why would he put his money into a single entity owned league?

http://www.bizjournals.com/atlanta/stories/2008/10/13/daily29.html?jst=b_ln_hl

"Arthur Blank has applied for a Major League Soccer franchise.

Blank’s AMB Group LLC, which owns and operates the National Football League’s Atlanta Falcons and the Arena Football League’s Georgia Force, announced Tuesday afternoon ahead of MLS’s Oct. 15 deadline that it has chosen to formally apply.

"Our discussions with the league and potential public partners have been very positive to this point, and filing this application represents an important next step as we continue to explore the possibility of bringing Major League Soccer to fans throughout metro Atlanta,” Blank’s group said in a statement. “As part of our conversations, we're also looking at how best to create a sports and entertainment center that can not only serve as a premier soccer destination, but also a community resource for soccer enthusiasts at various levels of play throughout the region.

"We think there's an opportunity to make a significant, long-term contribution to the community, which is a key consideration in all the Blank businesses."

Blank is a co-founder and the former CEO of The Home Depot Inc.

The AMB Group said it signed a confidentiality agreement with MLS that prevents it from disclosing details of the application. The expansion fee is $40 million.

Other cities in the running include New York, which would add a second team, Montreal, Vancouver, Ottawa, St. Louis, Miami and Portland.

The Oct. 15 deadline applied to MLS’s next round of expansion in 2011. At that point, the league will have 18 teams.

MLS commissioner Don Garber has stated his interest in expanding the league to 20 teams within the next five years.

Blank’s bid must come up with a plan to build a stadium. Soccer only facilities, which seat about 25,000, have been a successful model for MLS.

Possible sites could be in Gwinnett, Cobb and College Park, south of Atlanta and near Hartsfield-Jackson International Airport.

Last week MLS spokesman Dan Courtemanche confirmed contacts between MLS and Blank with Atlanta Business Chronicle and spoke of the league’s interest in Blank.

“We have had discussions with Arthur Blank and his staff recently and those discussions are positive,” Courtemanche said.

MLS spokesman Will Kuhns said the league would announce all applications together on Wednesday at 5 p.m. “out of fairness” to all the that choose to apply."

[Caballo Diablo]

I wish some of those 35,000 on the Saints Season Ticket waiting list had decided to go see the VooDoo.
Wouldn't have mattered.
The VooDoo did better than many teams on attendance and had one of the best merchandise sales records. You could only add the number of unused seats and even sellouts don't make you profitable.

Profit wasn't their demise, it was the crumbling of all the smoke and mirrors that hid Baker behind the curtain. Baker did a great job of convincing rich people an AFL teams was worth the $20 mil franchise fee, the unlimited substitution would have swarms of NFL and NCAA fans headed out to the arenas, and they would all get rich off a billion dollar TV deal.

Baker kept promoting the league itself was sound and financially stable even though the individual teams were loosing millions per year. Once he hired an outside company to help with marketing and structure he couldn't cover up the losses anymore and ran.

The AFL admitted publicly they lost $24 mil last season, I've been told by some owners it was closer to $50 mil. I don't think Benson wanted to help cover those losses while ceding control of his own team.

The old guard owners didn't pay those outrageous franchise fees and many bought their team as a hobby. What's the difference in spending money on vacations, toys, and hobbies versus spending it on your team. The new guard owners were flim flamed into bloated appraisels and entered the league as an investment. They tried to change the rules, change the marketing, change TV network, etc. The only thing they couldn't change were the minds of the masses and get them to become fans. Advertisers had been leaving the league or scaling back on their contributions, and that's all the AFL had besides the extortionist fees they charge the af2.

The sad news for many fans has just begun. Of course they'll try to prop it up and put a new paint job on it, but until they get the salary cap under control, ESPN gets serious about the league and some advertisers step up it'll still be a long hard road to profitability.

New investors will bring in some new money to turn things around for the short term. An investor has already stepped up to buy into the league, he's been give 30 days to put his proposal together. Just hope the banking debacle hasn't hurt his line of credit too much. It does start the 5 year business cycle over again if they can get it all together in the next few months.

[Caballo Diablo]

Now if Arthur Blank had a problem with single entity ownership why would he put his money into a single entity owned league?

He already had millions upon millions invested in HIS team, the VooDoo.
Now they want to take that away from him and give him some shares of a league $25 to $50 mil in the red, gee- thanks.

The new investors that come to the single entity AFL will spend much less for their shares when you tally it all up. He realizes buying into another league might be more profitable than throwing more of his money at the people that have already defrauded him.

Maybe it wasn't all about single entity per se, maybe it was about having to pay more to lose control of his team.

[Panthers14]

Who is the new investor that may step up in the AFL and what is his proposal? Any news on expansion for the upcoming 2009 Season? Will the AFL allow the Louisville Fire of the AF2 to move up as has been proposed? Who are the two other teams that may fold due to their owners disagreements over the proposed structure of the league? (so far in this discussion we have mentioned Arthur Blank, owner of the Georgia Force as one who may quit; who is the other owner?) Is this a situation where the current NFL owners who have AFL franchises may get out? If so, then that would include Dallas (jones) and Colorado. Either team folding would be a huge loss to the league. What is the status of the AFL bringing the New Orleans VooDoo Back? They were 5th in the league in attendance, so it would make sense to have them included in this league. If Grand Rapids can have a team, then New Orleans certainly would. I have more thoughts and questions, but any information on these few would be appreciated. Last, thank each and everyone of you for your answers since this board discussion has been intelligent and informative without diagressing into nonsense. It is us fans who will keep these leagues and sports afloat with our support and intelligent discussions, and it is us fans who have put "Our Sports Central" on the map as the best source for sport information that the mainstream news either does not print or have sources for. Thanks!!!!!!!!!!!!!!

[NatePreds05]

Who is the new investor that may step up in the AFL and what is his proposal? Any news on expansion for the upcoming 2009 Season? Will the AFL allow the Louisville Fire of the AF2 to move up as has been proposed? Who are the two other teams that may fold due to their owners disagreements over the proposed structure of the league? (so far in this discussion we have mentioned Arthur Blank, owner of the Georgia Force as one who may quit; who is the other owner?) Is this a situation where the current NFL owners who have AFL franchises may get out? If so, then that would include Dallas (jones) and Colorado. Either team folding would be a huge loss to the league. What is the status of the AFL bringing the New Orleans VooDoo Back? They were 5th in the league in attendance, so it would make sense to have them included in this league. If Grand Rapids can have a team, then New Orleans certainly would. I have more thoughts and questions, but any information on these few would be appreciated. Last, thank each and everyone of you for your answers since this board discussion has been intelligent and informative without diagressing into nonsense. It is us fans who will keep these leagues and sports afloat with our support and intelligent discussions, and it is us fans who have put "Our Sports Central" on the map as the best source for sport information that the mainstream news either does not print or have sources for. Thanks!!!!!!!!!!!!!!

There is no news on who this investor is and what their proposal is. The news about an investor has not even been verified anywhere. As for 2009 expansion, there will be no new teams for 2009. Louisville wanting to be in AFL is a pipe dream and right now Louisville might not even have an af2 team in 2009.

As for the rumors of other teams that may fold, no one is really sure what teams but I think of Benson as just a disgruntled NFL owner like the owner of the Kats last season. I doubt Colorado would ever pull out, Elway is way too involved in the AFL.

As for bringing the VooDoo back, ask that question again a few years from now and maybe things will have changed. There is no chance of New Orleans having a team anytime soon. Grand Rapids has a team because they have a committed owner.