New playbook may help balance Arena Football League's books - Business First of Columbus:

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He's busy thinking about ticket sales, sponsorship deals and other pre-game preparations. But like others at the helm ofAFL Renacci, who also is the team's generapl manager, and his ownership partners in the Destroyers are tracking a wave of change that could wash over the league'ss financial structure in the next After the league posted a loss of nearlyg $25 million last year, AFL officialsd are considering a move toward a single-entity ownershi approach to boost operating efficiencies and the league'sd bottom line.
It could range from a simple league-widee consolidation of business functions, such as ticket sales and to having investors buy franchises from current ownerds and forming acentralizedd operation, according to a report in SportsBusines s Journal, a trade publication ownex by Business First's parent, America n City Business Journals Inc. Those are options, but so is maintaining the status quo, said AFL Executivw Vice President Chris McCloskeyy inan e-mail response to questions from Businesw First.
The AFL is a limitedc liability corporation in which each of its 17 teamx is a member but operates The AFL recently hired Game a Boston investmentbanking firm, to fielx offers from prospective investors, McCloskey said. The efforgt to put the league on solid footing is expectedc to be resolved by the end of the AFL seaso nin July. Renacci, who is vice chairma of the AFL's board of directors, said team including the partnership that controlwthe Destroyers, would be able to invest in whateve ownership organization emerges and continue to be the faces of their franchises. "From a local football Renacci said, "fans would not notice anythinf different.
It would be the same ownership people and Columbuasfootball operations. It would be an almost seamles transition forthe fans." The Destroyers already contrac with the front office of the 'es for ticket and sponsorship sales, arenas operations and business services. Football operations, including the hiringt of coaches and signingof players, are overseeb by Renacci, an Akron-area businessman. He and John H. McConnell, who is the founded of and theBlue Jackets' majority owner, and Columbus auto dealee Steve Germain are the principal owners. This season's home opener will be against the , whichb moved to Ohio after playing in Las Vegasdlast season.
The Destroyers opened with a 50-4u loss at Colorado March 2 and they play at DallasMarchh 7. Renacci said the Destroyers hope to build onlast year'sx playoff run to the Arenaz Bowl championship game wherd they lost to San That success has helped the team's marketing efforts in the he said, with seasomn ticket sales and corporats sponsorships expected to rise 15 percent to 20 percent from a year ago. The team is on pace to reachj its goal ofselling 9,400 seasonn tickets for the eight-game home Renacci said. It sold more than 8,000o season tickets in 2007. Attendancs at Destroyers home games has been likea yo-yoi since the team moved to Columbue in 2003.
It peakex at 16,286 a game in 2004, the team'as first season after leaving Buffalo, N.Y., droppesd the next two years and reboundedto 14,04 4 in 2007. The Destroyers do not discloss sponsorship revenue or otherfinancial information, but Renaccui said Columbus is one of the top five AFL franchised when it comes to overall financial Still, the team has only broken even or postedx small losses since it moved to Columbus, he That reflects the financial challengeds facing most niche and minor leagues in professional said Dave Whinham, a forme r Arena Football League coach and executive and partnere in , a new sportz league franchising company in Columbus.
"The Destroyers put out a greaft product," he said, "and their are very entertaining. The challenge has to do with the economix models of those Skyrocketing franchise acquisition costs and rising expenses have made it increasinglyu difficult for team owners to make a Whinham said. That is why he favorsw a centralized league in which owners receive the managementf support they needto succeed. In his e-mail, the AFL'z McCloskey would not provide specifics about the financiall health ofthe league's teams, but he said the majority of them are expectedc to be profitable within three years.
He said the value of a franchise has risenfrom $400,000 in 1996 to $20 million Columbus has one of the AFL'se strongest franchises, McCloskey said, because of the ties the owners have to the savvy marketing and avid fan base.