Post by Banana Cat on Apr 3, 2012 23:04:22 GMT -5
A great example of "bad business practices." As a businessman it's unethical to make promises regarding money and compensation with no intention of backing them up (or hoping they'll be able to back them up by selling lots of tickets, which seldom works) ... yet many seem to think it's normal standard practice that is no big deal. People like that are just outright liars to begin with, so trying to open their eyes will never work.
Even though the previous owner of the Generals made those promises, the new owner definitely didn't do his due diligence on seeing what he was getting into when he bought the team ($50k in debt is no small sum for small business owners). It's a good PR move to go to the press and open the books in order to get support to your cause though, but I seriously doubt any sponsors will step up at this point. A local investor is probably his only hope, a long shot at best.
www.wjactv.com/news/sports/johnstown-generals-unable-pay-players/nMJTG/
Even though the previous owner of the Generals made those promises, the new owner definitely didn't do his due diligence on seeing what he was getting into when he bought the team ($50k in debt is no small sum for small business owners). It's a good PR move to go to the press and open the books in order to get support to your cause though, but I seriously doubt any sponsors will step up at this point. A local investor is probably his only hope, a long shot at best.
www.wjactv.com/news/sports/johnstown-generals-unable-pay-players/nMJTG/
Johnstown Generals Unable To Pay Players
Debt, lack of business support puts arena football on edge
By Matt Maisel
Video:
JOHNSTOWN, Pa. — The Johnstown Generals arena football team has been unable to pay their players on a consistent basis this season, a 6 Sports investigation has learned.
Generals owner Jeff Bollinger spoke to 6 Sports on Tuesday, saying a combination of debt from the previous ownership group, plus the lack of support from local businesses, has made it difficult to keep up on payments.
"We have gotten behind on the payments with the players," Bollinger told 6 Sports.
Bollinger added there is uncertainty if the Generals will make it to the end of the season before folding, saying the team is fighting to stay on the edge. He equated the team's current financial situation to riding a see-saw.
Generals starting quarterback Andre Coles said some players have received compensation this season, but most have not been paid anything.
"We have not been told when [we will be payed], but we have been in communication with the owner as to what the problems are," Coles told 6 Sports.
Those problems stem from the previous ownership, according to Bollinger, who bought the team from Georgia businessman Cecil VanDyke in the offseason. Bollinger said it wasn't until after he purchased the Generals he found out the team was $50,000 in debt, largely the result of unpaid promises.
"There were houses and money promised," Bollinger said of VanDyke. "So many promises were made that you can't make as a businessman without having the money to do it."
Calls to VanDyke were not immediately returned.
The Generals are also receiving little to no support from Johnstown businesses. Bollinger confirmed that a recent sponsorship drive in the offseason netted less than three local sponsorships out of approximately 300 approached businesses.
"The Johnstown Generals cannot survive without the community's help," Bollinger said. "I'm not saying to go out and buy $5,000 to $6,000 sponsorships, but at least buy tickets to the game."
(These numbers are very similar to many teams at this level. New owners always think things will be different for them, but the reality is that the majority of teams lose money hand over fist. - BC)
Bollinger opened his books for 6 Sports on Tuesday, using Friday's home game against the Western PA Sting as an example to show the Generals cash-strapped franchise. He said around 1,300 people attended the game, but 948 tickets were comped, meaning they were given by the team to local businesses. The Generals brought in nearly $5,400 on Friday, but after paying the Cambria County War Memorial $3,500 rent, while another $1,200 goes to gameday operations (referees, medical, and announcers) the Generals made a net profit on Friday of $659.
War Memorial general manager Michael Silva told 6 Sports the Generals have made all rent payments, and are in good financial standing with the arena.
Debt, lack of business support puts arena football on edge
By Matt Maisel
Video:
JOHNSTOWN, Pa. — The Johnstown Generals arena football team has been unable to pay their players on a consistent basis this season, a 6 Sports investigation has learned.
Generals owner Jeff Bollinger spoke to 6 Sports on Tuesday, saying a combination of debt from the previous ownership group, plus the lack of support from local businesses, has made it difficult to keep up on payments.
"We have gotten behind on the payments with the players," Bollinger told 6 Sports.
Bollinger added there is uncertainty if the Generals will make it to the end of the season before folding, saying the team is fighting to stay on the edge. He equated the team's current financial situation to riding a see-saw.
Generals starting quarterback Andre Coles said some players have received compensation this season, but most have not been paid anything.
"We have not been told when [we will be payed], but we have been in communication with the owner as to what the problems are," Coles told 6 Sports.
Those problems stem from the previous ownership, according to Bollinger, who bought the team from Georgia businessman Cecil VanDyke in the offseason. Bollinger said it wasn't until after he purchased the Generals he found out the team was $50,000 in debt, largely the result of unpaid promises.
"There were houses and money promised," Bollinger said of VanDyke. "So many promises were made that you can't make as a businessman without having the money to do it."
Calls to VanDyke were not immediately returned.
The Generals are also receiving little to no support from Johnstown businesses. Bollinger confirmed that a recent sponsorship drive in the offseason netted less than three local sponsorships out of approximately 300 approached businesses.
"The Johnstown Generals cannot survive without the community's help," Bollinger said. "I'm not saying to go out and buy $5,000 to $6,000 sponsorships, but at least buy tickets to the game."
(These numbers are very similar to many teams at this level. New owners always think things will be different for them, but the reality is that the majority of teams lose money hand over fist. - BC)
Bollinger opened his books for 6 Sports on Tuesday, using Friday's home game against the Western PA Sting as an example to show the Generals cash-strapped franchise. He said around 1,300 people attended the game, but 948 tickets were comped, meaning they were given by the team to local businesses. The Generals brought in nearly $5,400 on Friday, but after paying the Cambria County War Memorial $3,500 rent, while another $1,200 goes to gameday operations (referees, medical, and announcers) the Generals made a net profit on Friday of $659.
War Memorial general manager Michael Silva told 6 Sports the Generals have made all rent payments, and are in good financial standing with the arena.