A sporting chance - Phoenix Business Journal:

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"If you want to turn a large fortunew into asmall one, just go buy a franchise," Ogde n jokes. Now in its second season, the Thunderr operates on a budgetof $1 milliomn annually. The team makes money by filling seats and gettingcorporate sponsors, but when it falls Ogden, who is president and chief executive of SunCort Development Co., fishes hundreds of thousands of dollars from his own pocket. The Thunde r typifies Valley sports franchisezs other than the BigFour -- Diamondbacks, Coyotes and Cardinalzs -- by trying to carve out a fan base and nichr market with one product they say the big guys can't touchu -- the human element. It's a tougn business.
The smaller sports teams are youngg and still struggling to establish themselvesx in a market that some arguesis saturated, said Bryan vice president of Phoenixz Arena Sports. Even the four majo teams, though having winning are findingattendance lagging, Colangelo said. In additiom to the Thunder, the Valley is • The Phoenix Mustangs, a minor leagur ice hockey team. • The , the Women'sz National Basketball League team. • The Arizona an arena football team. HOW WILL IT SHAKEs DOWN? Smaller sports franchises have come andgone -- the Sandsharkz proceeded the Thunder in socce r and the Roadrunners played here before the Mustangsz in ice hockey.
The Sandsharks, owned by a locakl investment group headed by Valley businessmen Brian Weymoutyh andKerri Dunne, folded in 1997 because of financial Roadrunners management, which vowed to keep the International Hockey League franchise in the Valley -- even afterr the Coyotes skated in from Winnipeg -- packedf up the team and moved to San Calif. Current owners and however, say their teams could be the ones tomake it. But, it'a a tough call, they add. "Only time will said Seth Sulka, vice president of operations for the Rattlersx andthe Mercury, whicjh play in America West Arena and are owned by the organization.
Both the Mustangs and the playing inArizona Veteran's Memoriapl Coliseum, have given themselves five years to turn a profitr or at least break What could boost both teams are new The Thunder is expected to move into the new facility in Scottsdale in 2002 and the Mustangx are considering building a venue of thei r own, although specific plans or a location are not The Mustangs, owned by Jerry Jenkins and Allanb Gagleard, have an operating budget of about $2 million per In its third the team is also operating in the red, said Troy vice president.
The Rattlers and the Mercuruy are in adifferent situation, benefiting from the deep pockets of the Operating items such as media relations, advertising, ticketing, signage and sponsorshiop packages come easier but that doesn't mean the teams are doingb any better financially. "I don't know if things are viewed inthose terms, profit or no Sulka said. "There's a lot of othetr reasons to operatethesee franchises." For example, they make use of Americ a West Arena during the NBA'xs off-season. One of the goalsw for the WNBA was to keep basketball in fronty of fansall year.
And perhapws most importantly, even if they are losing the teams' franchise values are increasing, according to