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Herb Washington's Goal Is to Score Big with Hockey
By Dan O'BrienIn a span of five minutes, three motorists slowed down along East Front Street, a stone's throw from the site of the Youngstown Convocation Center. Two honked their horns in appreciation, while one stopped, leaned toward the passenger window and shook hands with a man he believes will help turn downtown Youngstown around."Thank you for investing in this community. It's a great thing you're doing," the motorist told businessman Herb Washington.In November, Washington bought the Central Hockey League franchise that will play in the convocation center. Reactions from those driving downtown that day reinforced his belief that he made the right decision. "Someone has got to be the trailblazer," he says.Washington, who owns 21 area McDonald's restaurants, says he is willing to go it alone if necessary to bring a hockey franchise to the Mahoning Valley. The price of the new team is not cheap -- approximately $1 million -- albeit a sum he deems reasonable, considering the value of minor league franchises is on the rise. "I'm not the first guy to pay this amount in the league," he says.Even so, Washington relates he would welcome a partner or more investors in the team. "At one point, I thought I did have a partner -- a local partner," he says, but the deal fell through.That potential partner, Washington emphasizes, was not Bruce Zoldan, president of B.J. Alan Co., Youngstown, and owner of the Ice Zone in Boardman. Nor has Zoldan inquired about becoming a partner in the venture, he says.In recent weeks, Zoldan, one of the early proponents of bringing a hockey franchise and arena to Youngstown, has raised questions as to how the city will provide gap financing for the convocation center project. Zoldan also owns the Youngstown Phantoms Hockey team, an amateur squad who plays in the North American Hockey League at the Ice Zone."Quite honestly, it's old news," Washington states. "We're two businessmen that have different views on certain things."For Washington, who played Major League Baseball, purchasing the team was a business decision, and not a decision based on his emotional ties to sports or hockey. "My experience in sports is not going to be my biggest asset in this venture," says the former member of the Oakland A's. "It's my experience in business."Washington -- a world-class track star and all-around athlete in high school in Flint, Mich., and at Michigan State University -- was drafted as a wide receiver by the Baltimore Colts in the 1973 National Football League draft, but opted to play baseball instead. He spent two seasons with the A's in 1974 and 1975 as a pinch runner. While his career in professional baseball was short-lived, his business relationship with McDonald's has lasted more than 24 years. The founders of the Central Hockey League, he notes, started in business by franchising pizza shops in Canada. Operating a minor-league sports franchise is not much different than owning and operating a restaurant chain, he observes.Transportation, lodging, equipment management -- all are factors in the daily routine of operating a sports franchise, Washington says. "There'll be a number of different logistical issues to deal with, and you've got to prepare for that," he says. "But even today, my delivery truck was three hours late at one of my restaurants. You have to build contingencies for that, too, and it all boils down to having good competent people."The potential return for Washington and the community far outweigh the risks involved with owning and operating the team, he insists. Still, he understands that the Youngstown CHL franchise will be one of only two teams in the league east of the Mississippi River. The CHL squad closest to Youngstown -- the Memphis RiverKings -- play in Southaven, Miss., only a few miles east of the river. Most of the 17 teams active in the CHL are clustered in the Southwest -- Texas, Louisiana, Oklahoma and New Mexico. Two teams are in Kansas, one in Colorado.For these reasons, the Youngstown franchise stands to incur higher travel expenses, putting Washington at a financial disadvantage with the other owners. "I'm in dealings with the league to find ways to offset travel costs so I can be on par with other teams," he says. These incentives may come in the form of the league and its parent company, Global Entertainment Corp. of Phoenix, waiving certain fees and costs associated with operating the franchise, he says, declining to be specific. "We probably won't be able to play every team in the league because of travel considerations," he offers.Global Entertainment, the company the McKelvey administration chose to develop the convocation center, also owns the CHL, and has expressed an interest in expanding the league east, Washington says. "One of the things Global understands, as do I, is that in order for the league to expand, you've got to bring in teams from out east," he says.Youngstown, he stresses, is in a perfect location to create a fan base for hockey and a test market for further expansion east. Many players in the league, for example, hail from Canada and the Great Lakes area, within driving distance of the Mahoning Valley. "It makes it possible for family members to come down and see their kids play," he says.But is local interest and the market sufficient to support and sustain a team? "Absolutely," Washington answers.He points to other parts of the country -- considered non-traditional markets for hockey -- where CHL franchises have exploded in popularity. "I don't think this market is unlike other cities that are successful. Hidalgo and Lubbock, Texas, for example, aren't cities that scream 'hockey,' " he adds.Hockey organizations have proved successful in these cities, especially when the team was accompanied by new facility, Washington finds. A trip to Hidalgo last fall encouraged his belief that it can work here. "This is a football town, but so is Hidalgo," he says. "And Texas is a huge football state." During the opening night of that region's high school football playoffs, Washington relates, some 5,100 spectators sat in Hidalgo's 5,500-seat Dodge Arena to watch the Rio Grande Valley Killer Bees hockey team play. The same support is seen in other markets, such as Loveland, Colo., where a new arena was built to host the CHL's Colorado Eagles.Trey Medlock, general partner for Hidalgo's Killer Bees, says the venture is well worth the investment that he and six others made when they formed a limited partnership and acquired the CHL team two years ago. "I don't want to get into numbers, but we are a franchise that makes money," he says.The bulk of the costs are devoted to the payroll of players and staff, Medlock adds, while other expenses include league fees, travel and rental fees. "League dues range from anywhere between $65,000 a year to $100,000 a year," he reports.What drives the success of the team are ticket sales and corporate sponsorships, which account for 85% to 90% of its revenues, Medlock states. "We've seen a solid return, a very good return on our initial investment," he adds.The CHL, he elaborates, provides each franchise with a business model as a template, and with the right people in place, the venture will succeed. "You've got to work hard at it, just like any other business," he says.About half the CHL franchises have more than one owner, Medlock says. "Herb is going to be successful," he declares. "He's a smart guy and he'll be able to do this." Washington will enjoy "tremendous support" in Youngstown once the team takes to the ice, he adds.Few Mahoning Valley residents think of the region as a market for hockey but it has more exposure to the sport than Hidalgo ever did, according to Medlock. "When the [Hidalgo] project was announced several years ago, there was a lot of skepticism in this community as to why a hockey team would be located in southern Texas. But, it's been hugely successful," he continues.Last year -- the Killer Bees' inaugural season -- the team drew an average of nearly 5,200 people per game, Medlock reports. This year, the team is struggling on the ice, posting the worst record in the CHL. Yet attendance is up, drawing nearly 5,400 per game on average. Washington says he has consulted with numerous franchise owners, and examined the business case for a team very carefully. "I've had an opportunity to spend some time with owners playing in newer facilities and discussed the ins and outs of the financial model and the operational aspects of it," he says.The facility under construction in Youngstown is superior to the one in Hidalgo, Washington states. "Global has learned from its other facilities and is putting in different modifications here," he says, such as wider aisles, a higher quality public address system and a sophisticated Jumbo Tron that features instant replays for the fans. Washington also believes the team's ability to merchandise itself should fare well in the Valley. "This is a sports-oriented town. Experiencing a hockey game is so much different than watching it on TV, and I have a few marketing ideas that will make it successful here," he says.Washington is reviewing resumes for a head coach and awaiting a response from his first choice for general manager. Once the management team is in place, recruiting players can begin. He hopes the team will take the ice sometime in late October or early November. "I'd like to open at home, but we'll see," he says.The team's name, colors, mascot and logo are still being kicked around as well. "We're down to three names at the moment," Washington says.The convocation center is precisely what's needed to draw business downtown, Washington says. "If you're happy with the way things are, then don't do anything. If you're not happy , then change it or work to help change it," he advises.Washington's not the least shy about which category he falls into: "I intend to help improve the quality of life in this city. Someone has to be the first, but there's a role for everyone to play."Contact Dan O'Brien at [email protected]"