AFL message boarders in a panic...

[SignGuyDino]

...rumors are circulating that the AFL is in very serious trouble and may actually shut down:

http://boards.arenafootball.com/messageview.aspx?catid=4&threadid=48950&enterthread=y

[nksports]

...rumors are circulating that the AFL is in very serious trouble and may actually shut down:

http://boards.arenafootball.com/messageview.aspx?catid=4&threadid=48950&enterthread=y

it was all innuendo and out the other (with apologies to Michael Feldman). No one seemed to have a solid piece of information (or even a solid media link). It could happen, but I'll believe it when I see it.

[Sykotyk]

With the people that have insider info regularly coming out and saying it doesn't look good, I'd have to believe it doesn't look good.

Sykotyk

[Caballo Diablo]

It doesn't look good, but folding hasn't been decided.
They're in meetings again today, Platinum was going to purchase approx 40% of the league for $100 mil. After they got a look at the books, the huge losses (around $50 mil last year alone) and the line of credit the old commish (Baker) had taken out against the league they withdrew their proposal.

It was common for individual teams to lose millions a year but baker always said the league itself was profitable. Once they hired an outside company to help reorganize the books they had to publically admit losses, but they only admitted a $25 mil last season.

Platinum and the team owners don't feel they should have to pay these debts when they've already been losing their @$$, err shirts. The single entity plan was supposed to help them through the losses and turn things around but they need a buyer for a huge cash influx and now that's evaporated.

Some teams said they would fold if the single entity deal didn't go through.
The new wave billionaire owners and owners connected to the NFL joined as an investment and have only seen losses. The old guard owners that used/saw their teams as a hobby have even got tired of the new guard pushing up the franchise fees and taking bigger losses.

Baker got the franchise fee up to $20 mil -YIKES !, and with a $2 mil salary cap team losses were imminent. Most teams were hoping ticket sales to be around $1.5 mil per year, that doesn't even cover the cap. Then they needed large arenas to meet the AFL's restrictions and they were always bad and expensive deals. Concessions and parking go to the arena, some teams had to give 25% of merchandise sales to the arenas also.

The AFL priced themselves out of their niche market trying to chase the NFL fans. They foolishly believed they were the 5th major league and could spend as such. The masses never accepted Arena or Indoor football like they had promised the investors, advertisers and owners. They gave NBC the TV contract for free, then switched to ESPN in a 5 year deal last season that would give ESPN 10% ownership of the league at the end of the contract. Neither ESPN or NBC ever took the league serious or actually promoted it. Few games were broadcast and usually the same teams over and over and over. Heck, even the af2 had ALL of their games broadcast last season via nifty TV over the internet FOR FREE ! and rebroadcast all week long.

There's a 75% chance several more teams will pull out today to join the New Orleans VooDoo in folding. That's the good case scenario, we don't even want to think about the bad case scenario. Owners are scrambling to decide to restructure the league or drop their team from their portfolio.

All I can say is it doesn't look good and expect some serious changes. The sky isn't falling but Baker turned tail and ran once he knew they were going to find his closet packed full of skeletons. The smoke and mirrors have been found and the man behind the curtain resigned.

[jimlcham]

TOPIC OF CONVERSATION ON OUR TALK SHOW AT 10 AM CENTRAL: http://www.blogtalkradio.com/ufta

[Caballo Diablo]

The Columbus Dispatch
The Daily Hunter
Some think AFL may 'suspend operations' - or worse

An item in today's rumblings column that suggested trouble for the Arena Football League received a quick early morning e-mail from a California reader who says that he has a friend with close ties to one of the west coast teams. His friend says that the league will vote today on whether to suspend operations for the 2009 season and might even fold.

I'm reluctant to pass this on since I don't know the person who sent the e-mail, but I'm doing so because recent events suggest a league up to its shoulder pads in trouble. The dispersal draft of players from the defunct New Orleans VooDoo (which folded unexpectedly) has been postponed three times, the commissioner resigned and hasn't been replaced and a $100 million league ownership deal with Platinum Equity that was struck back in October hasn't been completed and may be dead.

The reader's friend posted an item on an arena football fan message board indicating that there were only six teams in the league that were trying hard to keep the league alive, the others presumably willing to suspend operations because of financial losses. He said at least four teams were likely to fold regardless of how the owners voted.

Is this just another one of those throw-some-junk-up-against-the-wall-and-see-what-sticks Internet "news"? Maybe. But if General Motors is in danger of closing up if it doesn't get an infusion of money, it doesn't seem extreme to suggest that a fringe league that was recently shopping for a $100 million suitor may be in trouble if that suitor decided to cancel the deal and safely bury the money in some coffee cans in its own backyard.

When Dispatch colleague Bill Rabinowitz, who occasionally covers the Columbus Destroyers, tried to find some info on the repeatedly postponed dispersal draft, he expressed surprise that there were so few stories about it around the country. In effect, the league was behaving suspiciously, and no cared enough to ask why.

Even if the AFL fully intends to come back for another year in 2009, that alone isn't a good sign.

Posted by Bob Hunter on December 5, 2008 8:07 AM
.................................................. .....................
Comments (1)
Khalil Carter:
I have been in and out of the arenafootball league for the past 8 years. My career was jump started by the afl and to see it go would be a tragedy. Also for all the prospective players who would be out of work it is mind boggling. I have spent the last 4 years in the CFL and trust me most of the guys in the afl couldnt play up herebut would cause a major rift still in the balance of elderstatesmen like myself who successfully made the jump to the outdoor game. the NFL doesnt want you and trust me as hard as it was for me to gain the acceptance of the cfl and its players they dont want you either. Hey I hear Kroger is hirirng.

Posted by Khalil Carter | December 5, 2008 9:17 PM

[Caballo Diablo]

Report: Platinum Deal Dead, Several Teams Could Fold
Adam Markowitz
Friday December 5, 2008

The dark offseason for the Arena Football League is getting darker by the moment.

ArenaFan.com has learned that a proposed deal which would have sold a large percentage of the League to Platinum Equity, LLC has fallen through. The proposed plan called for Platinum to use a single-entity ownership structure. A member of the Arena Football League Players Association (AFLPA) told ArenaFan, “(Platinum) looked into the books and found out the numbers… They kind of shied away from it. We are hearing that they are not on board anymore.”

ArenaFan contacted Mark Barnhill, Principal of Platinum Equity, LLC, but he would not comment on the situation, citing that it is company policy to not discuss potential business transactions.

The member of the AFLPA also told ArenaFan, “We heard that some teams will be leaving.” Unnamed sources close to the situation have reported to ArenaFan that the Colorado Crush are the most likely team to fold in the days to come.

“The Crush are still in business… [We] are planning to move forward with the 2009 season,” said Crush Public Relations Director, Jeff Graham.

Multiple sources have also reported that the Orlando Predators may be amongst the teams folding this season.

“The Predators are preparing for the 2009 season as planned,” said Orlando Predators Director of Media Relations, Jason Lucas when asked to confirm the reports.

The Georgia Force, Columbus Destroyers, Kansas City Brigade, and Dallas Desperados are also reportedly considering folding.

The AFLPA has held meetings in the past 24 hours to discuss whether the players would accept a lower salary cap to help ease the pain for some of the struggling franchises that may be on the verge of folding. A member of the AFLPA confirmed that the players will accept a lower salary cap number said to be a reduction by approximately 25%. The players reportedly remain optimistic about the chances of having a season in 2009 in spite of earlier reports in the Columbus Dispatch that the League could cease operations before starting the 2009 season.

“If the League does cease operations, my plan was to play in Arena 2. I don’t want to play in the CFL,” said Grand Rapids Rampage DB Ahmad Hawkins.

Executive Vice President of Communications, Chris McCloskey told ArenaFan in an email, “The AFL is preparing for the 2009 season with all 16 teams.”

ArenaFan will update the news as it transpires.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Adam Markowitz has followed the Arena Football League since the inaugural season of the Orlando Predators in 1991. He graduated from Florida State University in 2007 with a Bachelor of Arts degree in Music and History. Whether it be the NFL, college football, the Canadian Football League, or the AFL, Adam always makes time to get in his football fix regardless of what time of year it is.

[Caballo Diablo]

Rumors increase that Arena Football League could soon fold
League says it is working on "long-term structural improvements"
Saturday, December 6, 2008 1:12 AM
By Bill Rabinowitz
THE COLUMBUS DISPATCH

Speculation exceeds facts for now, but indications are that the Arena Football League is approaching the biggest crossroads in its 21-year history.

Two players told The Dispatch last night they'd received text messages warning that the league could soon fold. They also had heard that it might take a one-year hiatus or compete in 2009 with fewer teams.

"We're supposed to find out sometime (last night) whether we're even going to have a league anymore," said Michael Landry, a free agent who played for the Destroyers last season. "From what I know, the league's in trouble.

Others said they'd heard nothing beyond pessimistic rumors.

"I've heard it, but I hear that every year," Destroyers receiver Derek Lee said. "I hear it's a little more serious this year than in previous years. I'm worried, but I can't let it take over. I just have to hope for the best."

The Destroyers could be one of the endangered teams. Steve Germain is one of the team's three partners, and Germain Motor Co. recently announced layoffs because of the worsening economy.

Repeated attempts to reach Jim Renacci, the Destroyers president, managing partner and general manager, were unsuccessful.

The perception of serious problems grew when the league repeatedly pushed back the dates of the dispersal draft for players of the recently folded New Orleans VooDoo and of the start of free agency.

The latest postponement came this week. AFL Commissioner David Baker unexpectedly resigned at the end of last season and has yet to be replaced. The league has pursued additional financing and has been in talks with private equity firm Platinum Equity, LLC. Asked to respond to reports that the company has decided not to invest in the AFL, a Platinum Equity spokesman said last night that his company does not discuss potential transactions.

The AFL released a statement yesterday acknowledging its financial issues.

"The AFL is working on long-term structural improvements which have unfortunately delayed some important events, such as the release of the 2009 schedule, the dispersal draft, and the beginning of free agency," the statement read. "We thank our fans for their enthusiasm for these events and ask them to be patient a little longer while we finalize our long-term improvements."

AFL spokesman Chris McCloskey declined to comment beyond the statement.

First-year Destroyers coach Pat Sperduto said he was proceeding as if nothing has changed. "As far as I know, we're still on," he said. "I don't get involved in any of the league stuff, nor do I ask anything of Jim. I talk to the players. They have questions, and I say all I know is I'm preparing for a season. Anything I don't control, I don't worry about."

In another year, DeSales and Otterbein graduate Matt D'Orazio would be expecting a salary increase. Instead, winning league Most Valuable Player honors and leading his Philadelphia Soul team to the ArenaBowl championship might not translate to anything.

"Obviously, I want to play," D'Orazio said. "But if things don't work out, I'm optimistic that my family and I will move on and we'll find something else to do."

brabinowitz@dispatch.com

[Caballo Diablo]

Source says Arena League will play in 2009
by Dennis Manoloff
Friday December 05, 2008, 9:45 PM
Cleveland Plain Dealer

The disbanding of the New Orleans VooDoo in the fall, subsequent multiple delays of its dispersal draft and a postponement of the release of the 2009 schedule have whipped Arena Football League fans into an online frenzy.

At issue is the financial health of the league. Speculation of trouble brewing increased tenfold in recent days as word spread that a potentially lucrative ownership deal with Platinum Equity might have fizzled. Other happenings that fueled the fire included the AFL's failure to find a permanent replacement for Commissioner David Baker, who resigned unexpectedly in July -- two days before the ArenaBowl.

The AFL responded to rumors of its demise with a statement late Friday:

"The AFL is working on long-term structural improvements which have unfortunately delayed some important events, such as the release of the 2009 schedule, the Dispersal Draft, and the beginning of free agency. We thank our fans for their enthusiasm for these events and ask them to be patient a little longer while we finalize our long-term improvements. All AFL teams are working towards winning ArenaBowl XXIII."

League spokesman Chris McCloskey, reached Friday night, declined further comment.

An AFL source said the now-16-team league, which includes the Cleveland Gladiators and Columbus Destroyers, would play next season. The source did not want to speculate about 2010 and beyond.

The AFL debuted in 1987.

The Gladiators are entering their second season in Cleveland. They reached the Eastern Conference Championship in their inaugural season.

"It's business as usual with us," said Phil Tesar, Gladiators director of communications. "We are continuing to sell season and group tickets and looking forward to qualifying for the playoffs in 2009. Nothing's changed on our end."

Tesar said the Gladiators have a schedule in hand and are waiting for the league to officially OK the release of it.

Gladiators President Bernie Kosar could not be reached.

AFL interim Commissioner Ed Policy could not be reached.

[SignGuyDino]

Not looking good... http://www.denverpost.com/news/ci_11164660

[Caballo Diablo]

Most of the press over the past month has been discouraging but the teams are finally starting to respond to the troubles being reported and are trying to tell us all is fine and the reports are blown out of context.

When you're trying to resolve issues typically you give the company line of
"Don't worry, it'll be business as usual" - but is that really a good thing?

Maybe so, maybe no.
We do know some problems that were hidden by Ex-Commissioner Baker have been surfacing on a regular basis since his resignation just a couple of days before the Arena Bowl. I guess he was afraid to attend the league meetings during AB week.

The teams must carry on with ticket sales, PR, and marketing or will lose precious time and fans during the meeting period, if these issues are resolved
and things had been put on hold it would be much harder to restart the process.

Some league and other team reps have acknowledged and confirmed a few topics of the on going meetings.

Rattlers deny Arena League is in trouble
http://www.eastvalleytribune.com/story/132093

SaberCats: Business as usual despite dire report
http://www.berryessasun.com/ci_11172747

Amidst League Chaos, Orlando Predators sold
http://www.wesh.com/news/18232798/detail.html

WOW, one of the few teams to occasinaly escape the yearly flood of Red Ink due to presenting a 3 hour commercial with a little football mixed in. It's hard to believe someone would purchase a product involved in the leagues present turmoil.