A trio of Diamondbacks minority owners have filed a lawsuit against the franchise's managing general partner Ken Kendrick, according to a report from Zach Buchanan of The Athletic. In the 1960s, Kendrick founded Datatel, Inc., a computer software developer. By the end of the 2004 season, the club owed more than a quarter of a billion dollars in deferred salaries.26. In an article from Zach Buchanan of The Athletic, Arizona Diamondbacks Managing General Partner Ken Kendrick is being sued by three minority owners: Alfredo Molina, chairman and CEO of Molina Fine Jewelers; Jim Weber, a former pro pitcher; and Carlise Investments, LLC. Never before had an expansion team reached the playoffs so quickly. MLB will see a stake in the litigation. (In 1998 Bank One acquired the naming rights for 10 years at a cost of $70 million.) They allege that Kendrick violated the law by ordering them to increase their stake in the team or sell their shares back to the team. Metropolitan Phoenixs most significant historical connection to the majors has been as the primary host of the Cactus League. The same is true of Carlisle Investments, whose principal is Charles Carlisle. Moreover, the Arizona branding of the Diamondbacks was in keeping with the previous round of baseball expansion, which brought the Florida Marlins and Colorado Rockies into existence.20, As general manager the Diamondbacks in June 1995 hired Joe Garagiola Jr., one of the founding fathers of big-league baseball in Phoenix. Such a judgment is issued by a judge and reflects a clarification of the rights and obligations of the parties. The Legislature also authorized the county Board of Supervisors to impose a 0.25 percent sales tax to help finance construction of a baseball stadium if one of the countys municipalities was awarded a franchise.6, Stone continued to pursue a major-league team for Phoenix into the early 1990s. The company helps connect suppliers and seafood buyers throughout Europe. Short listed for "Leaders in Luxury" Featured in Cover Story Top 30 Marketing Executives in America The. A high-school basketball star, Colangelo gained an athletic scholarship to the University of Illinois, where he captained the basketball team and earned All Big-Ten status. [Buchanan] BREAKING: Three Diamondbacks minority owners are suing the team and managing general partner Ken Kendrick over forced buyouts. Molina, Webster and Carlisle Investments seek a declaration that Kendricks letter is of no force or effect and that Kendrick cant legally force them to increase their investment or sell their existing share. A trio of Diamondbacks limited partners are taking on the principal owner of the club, Ken Kendrick. A native of West Virginia, Kendrick made his fortune in the software business as the founder of Datatel Inc., a Virginia-based company that provided high-tech services and software to colleges and universities. Michael McCann is SIs Legal Analyst. As general manager the Diamondbacks in June 1995 hired Joe Garagiola Jr., one of the founding fathers of big-league baseball in Phoenix. In the complaint, Cohen claims that Kendrick initially offered to let the limited partners hire their own valuation firm. A trio of Diamondbacks minority owners have filed a lawsuit against the franchise's managing general partner Ken Kendrick, according to a report from Zach Buchanan of The Athletic. Weber, meanwhile, was told he would need to invest another $6.1 million to meet 1%, or he could sell his share for $1.6 million. Welcome to the Jungle! According to the complaint, Kendrick effectively controls about 90% of the Diamondbacks' partnership through his own stake and through his influence over other limited partners. But the Maricopa County Board of Supervisors made it evident that they had no interest in supporting any such municipal investments, particularly when Major League Baseball deemed Chase Field acceptable to host its All-Star Game as recently as 2011. 9 prospect Drey Jameson strikes out two batters in two hitless innings during his spring outing against the Giants D-backs Insider Group Tickets Private Suites Special Events Caesars Sportsbook at Chase Field Carson Kelly's solo home run Call 1-800-GAMBLER. Naturally, Kendrick has been responsible for both successes and failures, as shown by both the positive and the negative coverage of his activities over the course of his career in said position. 555 N. Central Ave. #416 Cohen and Sandweiss authored the plaintiffs complaint and filed it in Maricopa County superior court on March 31. Join Matt Vasgersian and Harold Reynolds on MLB Network for the latest news, analysis and more, weekdays at 9 a.m. Thompson, A History of the Cactus League.. Metropolitan Phoenixs Path to the Major Leagues. Via Zach Buchanan of The Athletic, three of the team's minority owners have filed suit against managing general partner Ken Kendrick. 22 Ken Rosenthal, All Arizona Has to Do Now, Right Now, Is Win, The Sporting News, March 12, 2001, 49; Peter Schmuck, In Hurry, a Trading Flurry After Draft, Baltimore Sun, November 19, 1997. Under Colangelo and Garagiola, the Diamondbacks won division titles in 1999 and 2001 as well as the pennant and World Series in 2001. Kendrick is reportedly waiting until after the Angels' sale is finalized to further explore the possibility of selling the minority stake. The Diamondbacks assert that Chase Field needs significant upgrades or replacement after nearly two decades of use. This article was written byClayton Trutor, This article was published in the Team Ownership History Project. He and his wife, Randy, have long been conservative political activists. See our ethics statement. Bearing the name of a Phoenix-based airline, it was one of the earliest examples of stadium naming rights being sold to a corporation.10, In September 1993 Colangelo announced the formation of Arizona Baseball Inc., whose purpose was to bring a major-league baseball team to Phoenix. Used by permission under Creative Commons license (CC BY-SA 2.0). As a result, Showalter was fired after the 2000 season.21, The win-now approach was clearly the governing ideology of the Diamondbacks by the time of the November 18, 1997, expansion draft. Such austerity did not breed a great deal of on-the-field success. After graduating in 1962 he eventually found work with the NBAs Chicago Bulls and rose quickly through front-office positions. To pay off the construction bonds, Stone or any other prospective tenant agreed to turn over to the city the proceeds from the sale of 212 luxury skyboxes and 10,800 club seats. Colangelo transformed the Suns into one of professional basketballs best managed and most consistently successful franchises. 12 Mike Padgett, Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman, Phoenix Business Journal, March 26, 2008. Like other new spring-training facilities in Arizona, Talking Stick was subsidized in large part by the $2.50 rental-car tax that was put in place back in 1990 to revitalize the ballparks of the Cactus League.29, In 2005 Bank One merged with J.P. Morgan Chase, and Bank One Ballpark was renamed Chase Field. Became Managing General Partner in 2004, 10. In short, it started out as a business that specialized in data processing, but went on to become something much more, as shown by the fact that its latter incarnation specialized in building education platforms for institutes of higher education. As of 2016 Jeffrey Royer, Michael Chipman, and Dale Jensen remained the other general partners. The teams apparent goal is to streamline the ownership group and reduce the number of partners with very minimal equity stakes in ownership. The plaintiffs insist that Kendrick is using illegal tactics to purge them from the partnership. All Rights Reserved. The team was a near-immediate contender for a world championship. Part Owner of the Arizona Diamondbacks from the Start, 9. They were approved by the commissioners office, meaning MLB reviewed their financial and legal backgrounds and deemed them sufficient. Inject this straight into our veins. By the time the Diamondbacks played their first game at Bank One Ballpark, metropolitan Phoenix was home to teams in all four major professional leagues. 13 David Schwartz and Eric Miller, County Close to Deal on Ballpark, Arizona Republic, January 9, 1994, A1; Frank Fitzpatrick, Stadium Issues Can Explode: Take Phoenix, Philadelphia Inquirer, January 13, 1999, E1; Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman; 14 Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman., 15 County Close to Deal on Ballpark. Decision Cost Jim Bruner His Dream of Serving as U.S. Congressman.. Weber purchased the equivalent of a .25% interest in the partnership. He became part- owner with the team's inception in 1995. Colangelos insider status made Arizonas bid an immediate frontrunner in the expansion chase. ET, Here are the D-backs' 2023 Top 30 prospects, Chafin's goal for '23? Over the past two decades, hes founded numerous startups, most of which have been subsequently acquired by the likes of Facebook, Google,, Read More 10 Things You Didnt Know about Yuri GurskiContinue, John Foley, the founder, and CEO of Peloton, a fitness company, worked so hard to get his company off the ground that at one time, his son asked him if he loved the business more, Read More The History of and Story Behind the Peloton LogoContinue, As stated by its name, 3D printing is a process that creates a three-dimensional object using the information stored in a digital file. As an NBA executive, he ran in similar circles with MLB executives. Instead, his full name is Earl G. Kendrick Jr., though to be fair, Ken Kendrick has a nice alliterative sound to it. The Arizona Diamondbacks selected Druw Jones with the second overall pick in the 2022 MLB Draft in mid-July, but the team may not get to see Jones play for the Ex-Cy Young winner joins . Its clear that Kendrick wants the three plaintiffs, and other partners with very small stakes, out of the Diamondbacks partnership. The limited partners insist that Kendrick has breached their partnership agreements by, among other steps, imposing the buy-up/buy-out ultimatum. During his 35 years as a Suns executive, the team was a fixture in the Western Conference playoffs and played to large, boisterous crowds, first at the Arizona Veterans Memorial Coliseum on the State Fairgrounds and then at the downtown America West Arena. That brought Stones plans for a domed stadium to an end. The. Giannis Antetokounmpo joins Kevin Durant and James Harden as owners of MLS teams Antetokounmpo is not the only NBA star getting involved in the MLS. 5 Martin Van Der Werf, Martin Stone, Arizona Republic, March 12, 1995, BB2; Stadium Developer Quits Deal; Martin Stone Quits Pact for Dome; Plan in Peril; Agreement Reached on Stadium.. AZ, CO, CT, IL, IN, IA, KS, LA, (select parishes), MD, MI, NH, NJ, NY, OH, OR, PA, TN, VA, WV, WY, CA-ONT only.Eligibility restrictions apply. The leadership of former pitching ace Dave Stewart and Hall of Fame manager Tony La Russa, has as of 2016 failed to turn around the fortunes of the franchise, finishing well out of contention in all three seasons of their tenure.28, Since Kendrick became managing general partner, the Diamondbacks have moved into a new spring-training facility, the architecturally striking Salt River Fields at Talking Stick, an 11,000-seat facility in Scottsdale that they share with the Colorado Rockies. Report: Diamondbacks Owner Sent Threatening Email to Former Arizona AG After Criticism Nick Selbe Jul 22, 2021 After former Arizona attorney general Grant Woods criticized him on Twitter,. Many aspire to buy a professional sports team and call the shots. The Diamondbacks operate through a limited partnership. Exclusive sports coverage of Arizona high schools, Sun Devils, Suns, Cardinals and Diamondbacks plus access to USA TODAY Sports+ at no additional cost. (There was little indication that Stone pursued a stake in the Expos to move the franchise. He charges that it seemed to be Kendricks idea: Kendrick sought and obtained permission from MLB to institute the floor. While these individuals are colloquially referred to as owners, they are more accurately called limited partners. Limited partners comprise a legal entitythe partnershipthat is structured to obtain tax advantages and secure immunities from personal liability. The actual ownership of the club has been far more divided. Spent Some Time as a Banking Executive, 8. This site uses Akismet to reduce spam. Several of the Midwestern clubs in the Cactus League, particularly the Cubs, turned their spring-training homes into popular winter tourist destinations for their fan bases as well as homes away from home for seasonal residents or permanent transplants to Arizona.2. In 2016 Kendrick and the Diamondbacks organization were engaged in contentious negotiations with the Maricopa County Stadium Authority over the future of Chase Field. Later in 1993, Bruner and Garagiola set up a meeting with Phoenix Suns owner Jerry Colangelo, one of the regions most popular public figures and fervent boosters, to discuss their idea. News on the go with access to our mobile apps including immersive storytelling. "It doesn't make any sense. This list may not reflect recent changes ( learn more ). The revenue from the tax helped revitalize existing spring-training facilities and build several new complexes, including one for the Indians, who chose to stay in Arizona, moving to the Phoenix suburb of Goodyear in 1993. Stoneham placed his clubs spring-training camp in Phoenix. There is no logic to it. Accessed June 10, 2016: http://seattlepi.com/sports/baseball/article/Diamondbacks-Yankees-found-success-after-1069899.php. In addition to the BOB, Maricopa County taxpayers subsidized municipal bonds that financed the construction of a number of other downtown attractions during the 1990s, including a new library, a science center, an art museum, and a museum of Arizona history.25, The success the Diamondbacks enjoyed during their early years came at a high price. Molina, Weber and Carlisle Investments have something else in common: they are plaintiffs in a new lawsuit brought against the Diamondbacks partnership and its general partner, Ken Kendrick. However, it took some time for the people behind it to get things done, which is why the Arizona Diamondbacks didnt play their first game until 1998. Kendrick is the managing general. Taken together, these claims assert that Kendrick, as the general partner of the partnership, has operated in bad faith by imposing new requirements on limited partners ownership. Later that year, Colangelo and Garagiola hired Buck Showalter as the club's first manager. The first is Declaratory Judgment, or a request for the court to state their rights under the Partnership Agreement now and in the future. 7 Martin Stone; Bob Cohn, Race for Big Leagues Begins, Arizona Republic, June 15, 1990, A1; Eric Miller, Valley Strikes Out, Arizona Republic, December 19, 1990, A1. Later that year, Colangelo and Garagiola hired Buck Showalter as the clubs first manager. Here are 10 things that you may or may not have known about Ken Kendrick: Ken isnt Kendricks personal name. Carlisle Investments has been a part of the team's ownership group since 1998, and Molina and Weber bought in back in 2004. USA Basketball Media Relations. Despite the Diamondbacks more recent struggles in the standings, the steadiness of its leadership transformed the franchise into one of the National Leagues most respected almost immediately. This could result in a potential ugly court battle, so well have the details on its resolution out here as soon as we find out. He made it clear to Colangelo that there would be no increase in the 0.25 percent sales tax unless Maricopa County residents received a good deal on the facility. Voices, experts and personalities on the right and the left. The owners Jim Weber, Alfred Molina and. Attorneys for Kendrick and the club will answer the complaint. 4 Raymond Schultze, Stadium Developer Quits Deal, Phoenix Gazette, May 27, 1988, A1, A11; David Schwartz, Martin Stone Quits Pact for Dome; Plan in Peril, Arizona Republic, May 27, 1988, A1, A8; Christopher Broderick, Agreement Reached on Stadium, Arizona Republic, April 10, 1987, A1. In other words, both Molina and Weber are owners of the Diamondbacks, but their stakes in the team are under 1%. In 1989 the eight-team Cactus League was in danger of losing one of its founding members. The National Anthem is played before the Arizona Diamondbacks game on April 6, 2015, at Chase Field in Phoenix, Arizona. pic.twitter.com/mdZE3bNqBO, Lourdes Gurriel Jr. gives the D-backs their first run of the game with an RBI double to right field, bringing in Josh Rojas in the 5th, Proof anything can be an album cover. Between 1998 and 2000, the Diamondbacks more than doubled their payroll from $32 million to $80 million. Stone persuaded Bidwill to join him in building a stadium in the downtown area. Stones decision to withdraw his Arizona bid brought a de-facto end to Phoenixs chances to get a team during that expansion cycle, when franchises were awarded to Denver and Miami.7. According to Buchanan, Molina was. Molina became a limited partner in 2004, when he invested $3 million. 11 Baseball Panel Backs Phoenix, Tampa Bay, Arizona Republic, March 8, 1995, A1, A16; DBacks Ownership a Mixed Bag, Arizona Republic, March 30, 1998, C33; Richard Obert, Floating on Air, Colangelo Readies Big Party Today, Arizona Republic, March 11, 1995, C1. Hell probably get his wish, but it will likely cost the club more than it wants to pay. Also in contention is whether Major League Baseball pushed the Diamondbacks to reduce the number of minority owners with less than a one percent stake in the team or whetherthe team took the idea to MLB. Naimoli.) The lawsuit claims Kendrick acted illegally when coercing them into either increasing their investment in the team or relinquish their ownership stakes at $60 per unit, a number that the plaintiffs call unfairly discounted. A month later Kendrick sent another letter to these three plaintiffs that by electing to not purchase a bigger stake in ownership that they are no longer a limited partner and their stakes will be bought out. Then in 1991, he abandoned his Arizona plans to become a partner in what turned out to be an unsuccessful effort to purchase the Montreal Expos. Defending champs USA, Canada, Mexico, Colombia and Great Britain will square off in round-robin action. He is a staff writer for Down the Drive, SB Nations University of Cincinnati athletics website. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy, Diamondbacks minority owners file lawsuit against Ken Kendrick, in a new lawsuit brought against the Diamondbacks. Kendrick, the . 3 Rick Hummel, Cactus League Is Coming on Strong, St. Louis Post-Dispatch, March 7, 2010, C1; Ron Fimrite, The Selling of Spring, Sports Illustrated, March 27, 1989, 58-61. Business-wise, Kendrick might be best-known for founding Datatel Inc. Terms at draftkings.com/sportsbook. Phoenix, AZ 85004 The complaint also asserts that Kendrick has manipulated the clubs equity structure to put the plaintiffs in a bind. The measure authorized the county to collect a $2.50 car-rental tax. People who pay close attention to the Arizona Diamondbacks should be familiar with Ken Kendrick. This content is only available to subscribers. His opposite number was Jim Bruner, a member of the Maricopa County Board of Supervisors, who also constituted the Maricopa County Stadium Authority. America West Arena, the Suns new downtown home, opened in June 1992. Martinez and allows three runs in 1 2/3 innings in his second start of Spring Training, Perfect day for a nice stroll around the bases. To the extent MLB has already done so in communications with clubs, the league could credibly maintain that Kendricks moves are consistent with established league policies. He has participated in SABRs Biography Project since 2012. After the vote, Bruner, as he had planned, resigned from the board to run for an open congressional seat. Jerry Colangelo photo on March 22, 2017, was taken by Gage Skidmore. Buchanan's story has additional details on the dispute, including the six counts on which the plaintiffs are suing. 1 Rick Thompson, A History of the Cactus League, Spring Training Magazine, March 1989. 0:04. Ken Kendrick leads a four-man ownership group that also includes Jeffrey Royer, Michael Chipman, and Dale Jensen, all of whom have owned at least a portion of the club since its inception. This is less than 0.5 percent of the total economic activity in Maricopa County in that same time period. The franchises financial situation and farm system were in difficult straits at the time of the original regimes departure, but for for more than a decade this has been Kendricks franchise. The whole saga began on January 13th, when Kendrick sent out a letter to 22 minority owners with ownership stakes of less than 1% to either buy up or be bought out. During the 1997-98 baseball offseason, the Diamondbacks acquired high-profile, high-priced free agent shortstop Jay Bell and traded for third baseman Matt Williams.22, The Diamondbacks doubled down on the win-now approach in their early years, signing pitching aces Randy Johnson in 1999 and Curt Schilling in 2000 to long-term deals that deferred the big payments until the latter years of their contracts. Arizona Diamondbacks principal owner Ken Kendrick sent former Arizona attorney general Grant Woods a threatening and aggressive email June 19 before Woods was fired from the Phoenix law firm . Im not sure what the ulterior motive is for such a decision, but it definitely comes off as nefarious. According to a 2015 study commissioned by the Diamondbacks, the franchise generated $8.2 billion in economic activity since it began in March 1998. He did so through a transaction with retired Diamondbacks third baseman Matt Williams, who at the time owned a .5% interest. The three suing minority owners have countered that their stakes in the team have been valued at an "artificially low" rate that doesn't include projections for "potential future revenue streams related to legalized gambling," per Buchanan. He was also playing a central role in negotiating the deal that led to the relocation of the National Hockey Leagues Winnipeg Jets to Phoenixs America West Arena, where they were rechristened the Phoenix Coyotes in 1996.8. Barroway became the sole owner of the Arizona Coyotes in June of 2017. Contact SABR, Ibid. Despite his enthusiasm for bringing big-league baseball to the region, the fiscally conservative Bruner drove a hard bargain. 9 Robert Logan, Colangelo Quits Bulls to Take Phoenix Post, Chicago Tribune, February 29, 1968, C1; Bob Logan, Colangelo Has Suns Climbing for Summit, Chicago Tribune , May 23, 1976, B3; Lee Shappell, Jerry Colangelo, Arizona Republic, March 12, 1995, BB2; Colangelo Took Bait All the Way to Finals; Kevin Simpson, The Place to Be, The Sporting News, November 7, 1994, S3; Jack McCallum, Desert Heat, Sports Illustrated, May 28, 1990, 50-51; Joe Gilmartin, Suns Colangelo NBA Executive of the Year, The Sporting News, May 16, 1981, 46.