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Portland Pirates Statement on New Lease Agreement With Civic Center

November 7, 2003 - American Hockey League (AHL)
Portland Pirates News Release


The following is a statement from Brian S. Petrovek, Managing Owner/ CEO of the Portland Pirates regarding a new two-year lease extension with the option of a third year announced today by the Pirates and the Cumberland County Civic Center:

We are deeply disappointed in both the outcome of these negotiations and in the process by which they took place.

We worked diligently since May 7th when the county determined that formal negotiations would begin to bring about a mutually beneficial solution to the economic challenges which both the county and the Pirates face in a 26-year-old venue.

The result reported on today is far from mutually beneficial. The Trustees won, and the Pirates lost.

Since purchasing the franchise three years ago, we have consistently expressed a desire, both privately and publicly, to establish a long-term relationship with the Trustees and the County on mutually beneficial terms. In fact, that process began on October 30, 2000, ten days after we closed on the purchase of the team, at the Trustees' Long Range Planning Committee meeting. That session was followed by similar verbal or written requests to begin a dialogue towards establishing a long-term commitment on February 26, 2001, October 17, 2001, February 8, 2002 and again in December 2002. We were optimistic in December 2002 that our plea was being heard. However, we were told by the Trustees that talks needed to wait until they negotiated a new stagehands contract; we waited until May 7, 2003.

Forcing a business and pro sports franchise such as the one we own and operate into both a "lame-duck" contractual status, and a short-term lease relationship, is not only counterproductive to both parties and to the team's fans and sponsors but borders on unfair and unreasonable. One need only look to the relationship currently in place between the City of Portland and the Portland Sea Dogs for evidence of how a long-term, mutually beneficial partnership, which allows both parties to achieve successful business results and also provide fans with some level of comfort and certainty that there is a commitment in place long-term, can work and work well.

In addition to these facts, the public statements and references made repeatedly by Civic Center Trustees, including those made during our formal negotiations (Portland Press Herald front page story on August 21, 2003), essentially writing off the facility, have further challenged our efforts to grow our business and fan base.

Our negotiations began with the Trustees committing with us to find solutions that would result in a "win-win" outcome. To that end, we presented two attractive and fair proposals. One would have guaranteed an operating profit to the Civic Center with our assumption of the risk of losses, at a time when it operates at and is budgeted for a deficit, by allowing us to manage the building; the other would have increased our payments to the Civic Center by approximately 38% the first year and by approximately 55% the second year. Both of our proposals were summarily rejected. In turn, we were presented with a "take it or leave it" offer by the Trustees which increases our costs to present our product in the Civic Center by 84% next season and 92% the following season.

Essentially, the Trustees have refused to invest the funds necessary to maintain, never mind improve, the Civic Center since we have owned the team. They have refused during the negotiations to explore ways in which they could improve on concessions and other services provided to fans and increase revenues to our mutual benefit and have now presented us with an ultimatum to cover their losses resulting from their inaction without addressing our concerns about the state of the building or the management of it.

We are accepting those terms. Why?

* Because we are committed to the Portland market and believe the American Hockey League franchise under our ownership and management can succeed in Portland

* Because of the strong belief of our ownership and the American Hockey League that Portland is an excellent market for our exciting brand of professional hockey, as evidenced by our hosting of the 2003 Dodge AHL All Star Classic, the most successful All Star Classic ever held

* Because we have a currently functioning long-term plan already in place that represents our commitment to greater Portland as business owners and community leaders, which we will not walk away from, in the form of:

- My commitment to serve as Chair of the 2004 United Way of Greater Portland's Annual Campaign, which effectively begins today, one day after the 2003 Campaign finale, and my additional civic and charitable obligations to continue serving as a Board member of the United Way of Greater Portland, as President of 211 Maine, Inc., as a Board member of the Portland Community Chamber, as President of New Year's Portland, Inc., and as President of our newly formed Portland Pirates Foundation.

- The significant contributions of our players, coaches and staff to our community through initiatives such as our Goals For Success aspirations program in schools, Goals For Gary's House, Evening With the Pirates charity fundraiser, the United Way's Day of Caring and our partnership with the Barbara Bush Children's Hospital at Maine Medical Center, among others, all under the umbrella of the Portland Pirates Foundation.

Finally, we've signed this agreement with a firm position moving forward: we will not extend our lease with the Civic Center Trustees beyond today's extension unless we are: 1.) playing in a venue which offers the necessary amenities for our players and fans consistent with the standards of the American Hockey League, which is currently not the case, and 2.) have a more fair and reasonable set of economic terms with which to operate our business. We do not expect to have those conditions delivered to us on a silver platter. Effective with today's announcement, we will take the initiative and work tirelessly with those stakeholders in greater Portland, including other business leaders and, hopefully, the City of Portland, to get a new building project done.

We remain steadfast in our commitment to greater Portland. Our willingness to agree to these economic terms imposed upon us by the Trustees of the Civic Center reflects that commitment and should put to rest, for good, any speculation that we have any desire to move this team. Unlike many owners of professional sports franchises in similar situations, we have never threatened to move the team and have consistently worked and supported efforts towards a new or renovated venue since the day we bought the team.

We thank our loyal fans, sponsors and friends who continue to support us. From this day forward, you will not hear any further statements from me or any other representative of the Pirates concerning this negotiation, the Trustees of the Civic Center or the challenges we continue to have with the building in which we play. We may have lost this single battle with the Trustees, but we are planning to win the war and create a strong, viable, long-term position for our franchise in Portland in a venue of which we all will be proud. Our focus will not be on the past but on getting a venue project done for the future which will benefit not just our business but also the city and the region as a whole.

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The opinions expressed in this release are those of the organization issuing it, and do not necessarily reflect the thoughts or opinions of OurSports Central or its staff.

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