Steelheads in big trouble, apparently

[Sam Hill]

Financial losses threaten Steelheads' future (http://www.thetimesonline.com/articles/2005/05/25/news/top_news/26bd54e738f3e6b18625700b008074e4.txt) (Northwest Times)

Harris’ latest plea for help with Steelies is no empty threat (http://www.post-trib.com/cgi-bin/pto-story/sports/z1/05-25-05_z1_spor_05.html) (Gary Post-Tribune)

Gary Steelheads in Financial Crisis (http://www.post-trib.com/cgi-bin/pto-story/news/z1/05-25-05_z1_news_06.html) (Gary Post-Tribune)

Man, that's too bad. Not entirely unexpected, but too bad.

It's damn expensive to do this. Anybody still doubt that?

[not so fast]

It has been great going to the games at the Genesis. I certainly hope they keep the team. That mayor needs to help, that town needs something. (of course maybe they can open a new version of Never never land from their local hometown star michael jackson). The steelheads would be much better entertainment though.

[Ken, Steelheads fan]

The only news that surprised me was that I was out of sunblock for today's 12pm Railcats' game. :oops:

Beneath the surface:
It's not about minor league basketball being too expensive...at least, not here in Gary. It's not about the economy...at least, not here in Gary. It's not even about the Steelheads. It's all about the owners. It's all about the same old Gary stuff I mentioned in previous posts.

There was a seemingly unrelated article on the front page of the Gary Post-Tribune along with the Steelheads article. The articles are very much related however. Things that happened in darkness are slowly seeing the light of day.

On the surface:
It's never a good sign, in my opinion, when a minor league team feels compelled to charge participants for a free agent camp. The Steelheads didn't feel the need to even hold a free agent camp for the 2003-2004 season, yet alone charge for one. Last season, one of their only announcements was for a not so free agent camp. The Gary Railcats of the Northern League hold free agent camps yearly and don't charge a dime. What's up with that?

[Sam Hill]

It's not about minor league basketball being too expensive...at least, not here in Gary.

Dude...if it's true that the owner had to shell out $800,000 for workman's comp insurance...that's too damn expensive. I wouldn't want to own any sports team that badly if I was going to get bent over that hard on workman's comp. I don't love anything that much.

[Ken, Steelheads fan]

Sam,
I'll stand firmly by my previous post.

Here's another one for you...the owner mentioned that if the team is sold, then it is likely the team will be relocated. Yes, that is a likely scenario as long as you also relocate all the taxpayers of Gary with the team.

A little more clarity will be cast upon this situation (beginning June 1st when the letter of credit is due to the CBA) in the upcoming months.

[Sam Hill]

So, you don't think $800k out of your own pocket is expensive?

Man, I have the wrong impression about Gary, then. Y'all got lots of money, apparently.

[Ken, Steelheads fan]

Yes, we alls does. For example, the most expensive 7000 seat minor league baseball stadium in the country is located in downtown Gary--US Steel Yard. We alls recently coughed-up one million for a state of the art video scoreboard for the Steelheads too.

We alls is the taxpayers of Gary, Indiana. The money comes from casino revenue.

I'm not complaining though. I rather see the money go toward these ventures than to see too much of it going towards fixing potholes. People drive too fast around here anyway. Avoiding craters in the roadways will help slow them down :)

Follow the story though. It will get interesting.

[not so fast]

It looks like the owner has pulled a fast one on the people of Gary.

The people of gary should rally around and put pressure on the owner and mayor to keep this team up and running.

Quite frankly, I couldn't see any other reason to ever go to Gary except to see the steelheads.

[hoop1]

800,000 in workers comp insurance. I have a hard time believing that...but if true, I would run to the nearest exit. Salary isn't 800,000, how is workers comp insurance ? And if insurers in Indiana are charging that much, I recommend you move, sell, or shut it down!

[Ken, Steelheads fan]

800,000 in workers comp insurance. I have a hard time believing that...

I have a hard time believing that too, which was one of the points I was trying to make in previous posts without coming right out and saying it.

Things aren't what they seem, although it is obviously true the Steelheads are in financial trouble.

[Ken, Steelheads fan]

I have wondered for the past couple of years why the Steelheads and the Genesis Center haven't worked closer together on promotions. The following article helps answer some of my questions:

http://www.thetimesonline.com/articles/2005/06/01/news/top_news/5a951c048bc2f62986257013000f78e7.txt

I imagine the relationship between the Steelheads and the Genesis Center would be a little less strained if the already grossly under market value arena rentals were actually being paid.

This, from the same article:
"If nothing happens, the team will not play," Harris Jr. said. "It may be more feasible to play somewhere else. In terms of things staying the way they are right now without the city of Gary stepping up, basketball in Gary would be jeopardized."

It may be more feasible to play somewhere else? Please cut the comedy. The Steelheads are a mere ABA franchise without the taxpayers' support.

[Ken, Steelheads fan]

As reported in the NWI Times: Filling in the blanks LaLosa Burns, spokesperson for Gary Mayor Scott King, said the following still is required before the city can consider increasing the Steelheads' promotional funding from $150,000 to $500,000: * A draft of the agreement from the bank issuing the Steelheads a $100,000 line of credit required by the Continental Basketball Association. * A written agreement from Steelheads owner Jewell Harris Sr., giving the city the right to approve any sale or transfer of the franchise. * A written notification from the CBA of any liability the city would face under the proposed line of credit. * A personal guarantee from "main partners" Jewell Harris Sr. and Jewell Harris Jr. to repay the city any amount of money -- within 30 days -- that the city would have to pay to the CBA regarding the line of credit. * That the Genesis Center and the Steelheads both be "promoted" with the $500,000 being requested. * Written documentation that accounting records of both the Steelheads and the Genesis Center are accurate. It all makes sense to me. The city has been carrying this team since day one. Now Jewell needs to comply, then ask for a deal similar to the deal the Gary Railcats baseball team got...total control over the arena's ability to generate revenue 365 days a year.

Of course, the mayor should then understandably respond with another list of requirements for a deal like that to happen. It's all called mutual cooperation.

[not so fast]

Will the steelheads have a team or not, can someone please clear this mess up?

What is the mayor and Owner doing? Do they really dislike each other that much, to the point too where the franchise goes bye bye? Does the mayor understand that the steelheads are the only reason anyone would come to Gary from outside of Gary (certainly during the winter)?

[Tha Man*]

I see if they come back this year they wont play next season. Simple fact is there is no one in th office there as well as there has been no concentrated effort to get sponsors or ticket holders since their last game on March 13 @ the Genesis Center. I think if they go through this year it will be a loss of ALOT of money and very few fans.

[Ken, Steelheads fan]

Jewell waited more than a year too late to ask for financial help. The help was available last year (as it always has been). Last year never should have happened. The Steelheads did practically ZERO marketing. I was told by a staffer during a Steelheads' sponsored fan forum that the affordable, fan-friendly product on the court should sell itself...that was the first red flag.

One thing is certain. The Harris's will not be able to run the Steelheads like they did in the past.

not so fast,
Huh? Outsiders come into Gary 365 days a year to do many of the following: fly out of the airport, lose their money at the casino boats, study at Indiana University Northwest, work at the largest steel mill in the world, and/or purchase illegal drugs for later consumption.

Or did you mean, downtown Gary? Yeah, the Steelheads and the Railcats are pretty much the anchors there.

[not so fast]

I think most of those people are local (within a few miles of gary). i'm talking about, well lets say north or west chicago suburbs. I mean I'm sure the suburbs like Schaumburg Illinois, only see Gary on the WGN news, and thats usually your police chief or detectives talking about an unsolved murder!

Whats ticknor doing and how is his health? I hope he is okay. I had only maybe two conversations with him, and he was always polite.

[Ken, Steelheads fan]

Tha Man*,
Sponsors will return when (if?) the Steelheads receive the additional cash to strike another television deal. Fans will return when the Steelheads receive the additional cash to strike another television deal. It all depends on how the owners handle the present situation though. There will always be year-round top minor league sports in downtown Gary as long as gambling revenue continues to flow. It's all part of Gary's economic development plan.

Notice I didn't specify basketball. Early prediction: The Genesis Center will get ice and the UHL will place a team there. The new rivalry will be the Rockford Ice Hogs vs. the Gary ???. Of course, this is a worst-case scenario (BEST-case for some though). However, it will only come true if egos aren't checked at the door.

not so fast,
Ticknor is back in coaching. He has been named the head coach of his son's high school basketball team in Michigan City, Indiana (22 miles east of Gary).

[Tha Man*]

Ken -

Hopefully it's not a sign, but the Steelheads website is no longer up.. Just an FYI, maybe you can find out what's going on.

Steelie

[Pounder]

Not that this is a surprise... but, then again, by now, they could be back in business.

http://www.thetimesonline.com/articles/2005/06/21/news/top_news/8c40a46020eeefaa86257027000beee2.txt

[Ken, Steelheads fan]

Tha Man*,
You are too tall to be Steelie. :)

Try this Steelheads fan site if you're into bad to kinda ok photos.

http://gary-steelheads-fan.tripod.com

Another FYI, Steelie the Steelhead and Rusty the Railcat are the same person.

[Ken, Steelheads fan]

...if what Jewell Harris (owner) says is accurate.

Jewell recently said the Steelheads received the additional $500,000 they needed for television, marketing, and staffing from the city. Already, the Steelheads have hired back their PR man, office manager, and group sales director. A new director of operations and a finance manager have also been hired.

These new hires would indicate that the $500,000 is indeed forthcoming (or already in the bank)...I guess. The last position the mayor took to my knowledge was $500,000?!? What the...?!? :?

[Tha Man*]

Ken -

I don't think the promotional budget has been resolved. I think he has hired these people to make sure he has butts in the seats as well as sponsors advertising with the team.