Published: April 08, 2009 11:49 pm      

Future of Chiefs remains uncertain

In the next few days, perhaps we’ll finally know the fate of Johnstown’s ECHL Chiefs.

We might also discover whether the Bassewitz Group’s Operational Performance Assessment of the War Memorial Arena is followed – regardless of who owns the Chiefs – or if the $37,500 study isn’t worth the paper it was printed on back in September.

Chiefs majority owner Neil Smith made his position clear in a Wednesday e-mail to The Tribune-Democrat that eventually was posted on the team’s Web site.

Smith wrote:

“As a result of the county’s decisions to ignore the independent economic feasibility study which they authorized and paid for, cease negotiations with the management of the Chiefs, and to continue to operate the Cambria County War Memorial Arena themselves, I am left with no alternative but to examine all options for the future of the Chiefs in Johnstown. These Cambria County decisions have taken away any hope that the Chiefs can survive economically in Johnstown.

“Unfortunately my options include selling the team, moving the team or terminating the membership in the ECHL.”

Smith did not return a phone call to The Tribune-Democrat on Wednesday night. Nor did Graeme Roustan, chairman and CEO of both Roustan United and Roustan Capital, which ironically emerged as one of at least 10 suitors hoping to purchase the storied $400 million Montreal Canadiens NHL franchise, according to published reports on Tuesday and Wednesday. Chiefs minority owner Ned Nakles could not be reached for comment.

During a brief phone conversation on Tuesday night prior to his doing color commentary for a NHL game in San Jose, Smith responded to rumors that the team’s departure from Johnstown was imminent.

“The team is not done,” Smith said Tuesday. “It’s just disappointing what’s gone on there with the county paying for a study to be done on how to maximize revenues for the building then go against their own study. That’s where all the trouble emanates from. The county commissioners haven’t really used their own study.”

On March 30, the three Cambria County commissioners halted negotiations between the county and the tandem of Roustan United – current manager and prospective owner of the Chiefs – and renowned arena operator Global Spectrum.

Roustan and Global Spectrum had submitted a Request For Proposal (RFP) as outlined in the Bassewitz study and negotiations to privatize the arena operations in accordance with the study had been ongoing to that point.

The county was uneasy about a switch that put Roustan as the arena’s primary manager instead of Global. The commissioners’ contention that Roustan refused to cap the county’s annual allocation to the arena also was a point of disagreement.

Cambria County Commissioners P.J. Stevens and Bill Harris each said on Wednesday night that even with Global Spectrum out of the picture, the county is willing to continue negotiations to secure the Chiefs as a tenant. The Bassewitz study revealed the Chiefs accounted for 72 percent of events at the War Memorial.

“We hope to meet with them pretty soon. Nothing is set but we hope so,” Stevens said Wednesday. “I hope a deal can be done. We want to keep the Chiefs as a tenant and that’s what we’re working toward.”

Stevens reiterated that Global Spectrum won’t be part of negotiations.

“The way they wanted it structured wasn’t doable or in the best interest of the taxpayers,” Stevens said. “We’re looking for a relationship with the Chiefs as a tenant. We’ll address the War Memorial after we get this one put away.”

The ECHL originally set a Jan. 20 deadline for teams to finalize plans for the 2009-10 season. The Chiefs had been granted an extension, but a tersely worded March 25 letter from ECHL Commissioner Brian McKenna to Chiefs GM Bill Bredin stated, “If documentation of a lease and a firm commitment to play are not provided to the League by April 10, 2009, the Chiefs will not be included in the 2009-10 schedule.”

McKenna has been a staunch supporter of the Chiefs, citing the franchise’s status as the only original member still playing in the same city.

“We’re trying to get to the bottom of this,” McKenna said Tuesday. “Obviously we’re not happy with the situation right now. The deadline was Jan. 20. Here we are now. We need to know what’s going on and continue to move forward.”

McKenna said there is another important consideration that ultimately will affect the team’s success if it does return next season.

“The longer it delays, people have got to realize that this is the selling point of the season,” McKenna said. “Every week that goes by is $20,000 to $25,000 in lost opportunities in season tickets, partial season tickets, advertising and corporate sponsorship. Most of our teams already have 40, 50 or 60 percent of their sponsorship sold by now. From the team’s standpoint they are costing themselves a lot of money.”

Harris is hoping that situation is addressed, perhaps as early as today.

“We’ve had some communications back and forth but there is not yet a final agreement with Roustan,” Harris said. “We’re still hoping we will be able to do a lease with the Chiefs that will be in an acceptable timeframe for the league, which is coming up on us. We’re still driving and trying. We hope that we can do a lease with the Chiefs, no matter who the manager of the War Memorial turns out to be. We still want to keep the Chiefs. That’s the goal. We realize things are coming down to the wire here. We’re still communicating via

e-mail and telephone. I spoke to them Tuesday evening. (Today) we three commissioners will be together up there (at the courthouse).”

If the county discards the privatization recommendation, it’s unlikely a deal will be reached with the Roustan group.

In a conference call with The Tribune-Democrat last week, Roustan’s Scott Branovan, president of the Chiefs, was disappointed that negotiations had broken off.

“Let’s get back to the central issue, which is the county paid for a study to be done,” Branovan said then. “The study outlined what is wrong and made some very clear recommendations. This is the recommendation of a $40,000 study that was done by some of the best sports executives in the business. They didn’t have a hidden agenda. They didn’t have a reason for doing anything other than to make a professional recommendation on how the county would not have to subsidize the War Memorial or the Northern Rec Center and how the Chiefs could sustain themselves. The study recommended a team-led single strategy with no duplication, all of the things that ended up going into the RFP (Request for Proposal).

“It eliminates any further subsidies for the Northern Rec Center, and it minimizes the first year subsidies needed for the Cambria County War Memorial, and increases the number of non-hockey events to 103 events. The study shows there were 12 non-hockey events last year. So, (that’s a) drastic improvement in performance and a blended structure for the RFP.”

Meanwhile rumors swirled of a potential Eastern Professional Hockey League team landing in Johnstown to replace the Chiefs.

The EPHL is a few notches below the ECHL. In its infancy, the league is much closer to the East Coast Hockey League, circa 1988. EPHL Commissioner Jim Riggs was involved in the former All-American Hockey League during the Chiefs’ first season and is familiar with Johnstown hockey.

Riggs felt it was necessary to address talk of a EPHL team moving here.

“On behalf of the Eastern Professional Hockey League, I want to clear up any confusion regarding the Eastern Professional Hockey League’s interest in Johnstown,” Riggs wrote via e-mail. “As Johnstown is and continues to be a proud member of the ECHL (since 1988), we have no interest in Johnstown as an expansion market. Mr. John Burley, through a third party, did contact us last week. However, at that time we made it very clear that we (the Eastern Professional Hockey League) do not go into markets that are already established by other professional hockey leagues. Outside of speaking with Mr. Burley on the phone, I have never met the man. We apologize for any confusion on this matter and wish both Johnstown and the Chiefs continued success in the ECHL.”

A junior team named the Johnstown Junior A Jets lists the War Memorial as its home arena on the United Junior Hockey League Web site.

McKenna hopes the Chiefs will remain the primary tenant at the arena.

“It’s very important for us,” McKenna said. “There is a core base of fans there that know hockey and have supported ECHL hockey there for two decades. The Chiefs are very competitive on the ice. It’s an important market. We appreciate the tradition that Johnstown brings and we want to make sure that continues into the future.”

The uncertainty has perplexed the team’s most devoted fans. Will they be purchasing season tickets or planning other winter excursions? The situation is frustrating for many, including longtime season ticket holder Randy Rowser of the West End.

“It needs to be understood even for people who aren’t hockey fans that the Chiefs are an entity that puts Johnstown on the map from New Jersey to Florida to California,” Rowser said.

“Elected officials are expected to solve and overcome obstacles, not become them. That’s not what they are elected for. The quality of life in this area continues to erode and this is a perfect example of just how it happens. If Johnstown were to lose their franchise, it has to be understood that getting it back would be too expensive to consider.”

Rowser makes a good point. We don’t need a $37,500 study to realize that much.



Mike Mastovich is a sports writer for The Tribune-Democrat.