Family Affair: Loneys, Zoldan and Penguins
YOUNGSTOWN, Ohio -- Bruce Zoldan could have sold his Youngstown Phantoms franchise for $1.5 million to investors who wanted to move the team to Phoenix, he says, or to a second group that also wanted to take the team out of town, or to a third prospective buyer who promised to keep the team here.
Instead, “I decided to make my deal” with retired National Hockey League player Troy Loney and his wife Aafke. “That’s all I’m going to say” when asked to describe the financial terms of the transaction.
The 50-50 partnership was announced Thursday at a press event at the Covelli Centre. Zoldan, in Washington, D.C. on business, was interviewed via telephone.
“It was time for me to find a partner who understands hockey and comes from a hockey background,” he says.
His goals were to keep the team here, “keep continuity with the Covelli Centre,” secure a new source of capital and develop greater ties with the NHL Pittsburgh Penguins.
Loney played left forward for the Pittsburgh Penguins, first when the team was owned by the DeBartolo family and then through its 1991 and 1992 Stanley Cup championship years when the team was led by hall-of-famer Mario Lemieux, today the co-owner and chairman of the Penguins.
Loney laughs when asked how much money he and his wife invested in the Phantoms, a team that has lost money since its first season in 2009.
“Enough money to be equal partners with Bruce,” he says, and enough money to “understand that we have to make a profit to stay in business.”
Loney will oversee the team’s day-to-day operations and develop its business plan, strategy and mission, “which were probably a little lacking in the past,” he observes. That means creating a larger fan base, educating the public “about what hockey is – the most exciting sport in the world,” and employing Hollywood entertainment values so fans leave the games saying, “ ‘That was a blast.’ ”
After leaving the Penguins, Loney played two seasons with the Anaheim, Calif., Mighty Ducks, which was owned by the Disney company. “Trust me, the Ducks were in the entertainment business,” he says. “When Tinkerbelle comes down and slashes you with her wand after you score a goal, you know you’re in the entertainment business.”
Investing in the Phantoms and taking control of its front office, “brought all the pieces together” for Loney, most recently a senior executive in a Fortune 250 company, and Aafke, who co-owns Business and Education Connected, a Pittsburgh company that provides career coaching for students and work-linked learning experiences.
One of the couple’s sons, Ty, played for the Phantoms four years ago, which gave them the opportunity “to see and learn about the Youngstown areas, the Phantoms and the USHL, and how kids go on to college,” Loney says.
During his son’s time here, Ty “billeted” with Todd Franko, managing editor of The Vindicator, and his family. He now plays NCAA Division 1 hockey for the University of Denver.
Aafke Loney plans to support her husband in the front office and “work to help the billet families … the players’ home away from home.
With my son playing for the Phantoms, and now playing Division 1 hockey, I know what these players are going through,” she says.
“We all know they’re very strong athletes and I’d like to work with them to help them discover who they are not only as an athlete but what their next steps are going to be [for post-secondary education options] and provide them with the knowledge and confidence they’ll need when they get there.”
Once the United States Hockey League approves the Loney’s ownership interest in the Phantoms, their first task will be to negotiate a new lease with the Covelli Centre. The Phantoms play their final game of the season there in April, when its lease expires.
Then the hard work begins – creating and implementing a turn-around plan that will put at least 2,000 fans in the seats for every game, the break-even point. This season’s attendance averaged less than 1,200 per game, according to published reports.
“They did it in Pittsburgh,” Loney replied when asked if it’s possible to turn the greater Youngstown area into a hockey town, “…and I don’t see any reason why we can’t repeat the same thing [here].”
Which brings us back to the Pittsburgh Penguins, Loney’s relationship with Lemieux, and his and Zoldan’s relationship with its CEO and president, David Morehouse.
“I wanted to bring someone from Penguins family into the Phantoms to help develop the fan base,” Zoldan says.
“It’s a 50-50 partnership now but down the road, if Troy wants to buy more of the team, I’d be willing,” he continues. “And if there’s a Penguin player out there who wants to buy in, I’d be willing to sell a portion of my ownership.”
Loney says he’s had “some in-depth discussions with the Penguins,” and the team’s management is “very excited” about working with the Phantoms and growing their fan base “in all areas surrounding Pittsburgh.”
He characterizes his conversations with the Penguins as “advice and support. “How do we develop? How do we improve what we offer, not only to the marketplace but also from a staffing, marketing or coaching perspective? .. Their support and involvement and my relationships with Mario [Lemieux] and David Morehouse are really important. They’ve been really supportive throughout this process. This is not something I sprung on them yesterday. I’ve had a lot of discussions.”
Copyright 2014 The Business Journal, Youngstown, Ohio.
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