New ownership has 'seismic' impact

Source: St.迷你倉 Louis Post-DispatchSept. 29--In 16 months on the job, Blues owner Tom Stillman has one regret regarding the operation of the club's 16-member local ownership group."I would like to have had more meetings with the group more regularly," Stillman said. "But it's been a whirlwind year and I think there's an understanding that we've kind of had our heads down, doing a lot of blocking and tackling."After taking over in May 2012, Stillman has been busy trimming off-ice expenses and authorizing the signing of several hefty player contracts. In all, 14 extensions have been granted, totaling 39 years and nearly $150 million.Blues general manager Doug Armstrong recently called the financial commitment of the new ownership "seismic.""You go to these press conferences when there's an ownership change, and there's a lot of patting on the back and a lot of rhetoric saying 'We want to win,'" Armstrong said. "The way they showed it is with their wallet."Entering the 2013-14 season, the Blues rank No. 8 in the NHL with a team payroll of $62.3 million. It's a jump of more than $10 million from last season's mark of $52.2 million, which ranked No. 29 in the league. No club can claim a sharper rise."We're in this year with the top-paying teams," Armstrong said. "One of the excuses that we don't like is that we couldn't afford to win a Stanley Cup, we can't afford to compete. That's been erased."Much of the credit has been heaped on Stillman, but he is quick to deflect the attention onto others, including his 15 co-investors.They are all local business leaders but not much is known about their hockey interests or how the group reaches the decisions that have been shaping the organization the last 1 1/2 years.Two of the team's top investors are Jerry Kent, chairman and CEO of Suddenlink Communications and co-founder of Charter Communications, and Donn Lux, chairman and CEO of Luxco.Kent has been a Blues' season-ticket holder since 1983 and was part of a group that once tried to buy the club."I've been waiting a long time for a Stanley Cup," Kent said. "That's what I keep telling Tom. I say, 'Tom, I want to keep reminding you ... the reason I made this investment is I want to hold the Stanley Cup.'"Lux attended the Blues' inaugural game in 1967, when he was just 7 years old, and he's been a season-ticket holder ever since. His family was friends with the first owners of the Blues, the Salomons.Stillman didn't know Kent prior to the ownership venture, but he's known Lux for more than a decade and he's been associated with others in the group longer. Stillman and Tom Schlafly, founder of "The St. Louis Brewery," go back 15 years, and a relationship with Steve Maritz, chairman and CEO of Maritz Inc., dates to 20 years. He's known former U.S. Sen. John Danforth 25 years, when he married Danforth's daughter, Mary."They're just great, great people," Stillman said. "And they're experienced business people who understand how businesses work, including the balance between investing in the right areas and yet controlling expenses in the right areas ... and obviously the need to build revenues to support it all."The group also understands the hierarchy of the ownership arrangement. Per NHL guidelines, the league mandates that one person have the ability to make decisions on the day-to-day operations of the franchise, and that person is Stillman."Leagues just don't want franchises in a position where they have to make decisions by committee," Stillman said. "But even though that's the case, I like to get a sense whether the group is comfortable with something. For specific developments, I will send out an email to the entire group. Then on some big issues, I will call a few members as sort of a sounding board."For example, the investors were notified before the Blues traded for defenseman Jay Bouwmeester and what remained of his $6.68 million salary last April. It was the same with the re-signing of Bouwmeester to a five-year, $27 million extension, the re-signing of Alex Pietrangelo to a seven-year, $45.5 million deal and the addition of Brett Hull to the front office."In most cases, I know what I think we should do before calling," Stillman said. "So I'm describing my views, but also expressing the contrary view, what are the downsides. Then I'm getting their perspective. I like getting their feedback."Kent said, laughing, sometimes Stillman follows his advice and sometimes he doesn't."I have a 30-plus year career in business and so I know about making acquisitions and hopefully I learned a little bit about managi文件倉g people," he said. "And so hopefully when Tom asks for advice, I can draw upon those skills and offer sound business judgment. Just rest assured no one there calls me to have me assess the hockey talent. I leave that to the professionals."That assignment rests with Armstrong, who receives his budget from Stillman. In the case of this season's payroll, the team has already eclipsed what it projected to spend. Stillman said he's sensed in meetings that Armstrong has been visibly surprised after gaining approval on a few pricey transactions."Doug was so used to hearing 'No, we can't do that,'" Stillman said. "So we're talking and there's a bit of feeling where Doug's going, 'Oh, OK!'""Tom will say, 'I'm in,' and before he can change his mind, I get up and leave the room," Armstrong joked. "His number has been predicated on wanting to win. It's very businesslike."Stillman's financial philosophy leading a hockey team isn't necessarily how he might run a business with regard to the bottom line."If you just look at a number in a vacuum and say, 'This is going to cost X dollars, you say 'Whoa!'" Stillman said. "But once you get comfortable with what that player brings to the table, you begin to appreciate what a different team we can be. The members of the (ownership) group want to have a contending team. They have been uniformly supportive."None of the owners is looking for a monthly dividend check. Lux remembers when the group was seeking additional investors and he was turned off by one looking to make a quick buck."One guy looked at the documents and said, 'How do I measure the return on invested capital?'" Lux recalled. "I just said, 'You know what, just send me the materials back if that's what you're interested in.' This is not a return on invested capital deal. It's a civic deal. One day we might make some money, but I think we're all very comfortable with being part of something really cool."One of the perks of being a Blues' owner is being alerted to a potential move before it happens."It's very exciting," Kent said. "It's done with strict confidentiality, so it's not tempting to say anything, although my son, Matt (23 years old) tries to pry a lot. Like any rabid fan, he wants to know what's going on with the team and what the plans are."For Lux, the Hull news was hard to keep inside. He and his wife, Michelle, have been longtime friends with Hull's family."When the news broke, my wife was like, 'What are you talking about, Brett is coming back?'" Lux said. "I was like, 'Yeah, he's coming back.' She said, 'And how long have you've known this?' I said, 'I've probably known for a while.'"Schlafly also enjoys the inside knowledge."It isn't something Tom has to do," he said. "He could be an autocrat if he wanted to but that's not his style at all. I think it's very gratifying that he takes the time to keep us informed."The excitement has led to some of the investors becoming more engrossed in hockey. That includes former Senator Danforth."I think he has seen the light, that hockey is a superior sport," Stillman said. "He takes pride in kind of throwing out things that he reads in the paper. I'll see him and he'll mention some detail from that morning's article and he'll have this grin on his face like 'I'm all over it.'"Schalfly now wears a Blues' lapel pin and a tie with the team's logo."I'll have to admit that I was kind of a fairweather fan beforehand and I think having an involvement in the team has certainly enhanced my interest," Schlafly said. "The Blues are just a tremendous asset for the community. Like beer, it's a business, but it's fun."Blues players have noticed the owners' enthusiasm."When we come into the locker room on the road after a win and you see Tom there congratulating us, it's gratifying to know that we have them behind us and they want it as badly as we do," defenseman Kevin Shattenkirk said. "They have a chance to make a difference, and they're doing all they can for us."It has been an exhilarating 16 months for the 16 investors."It's gone as well as we could have expected, trying to do what Tom did with a large ownership group," Lux said. "It's been great."Added Kent: "I want to point out that it's really all about Tom and Bruce (Affleck) and Doug and the management team. Everything that's being done should be attributed to them."Perhaps those sentiments could be conveyed at the group's next meeting, whenever that is.Copyright: ___ (c)2013 the St. Louis Post-Dispatch Visit the St. Louis Post-Dispatch at .stltoday.com Distributed by MCT Information Services存倉