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Team Acquisition & Management

Fort Wayne Wizards
Case Study

EXECUTIVE SUMMARY:
The Fort Wayne Wizards were acquired by General Sports and Entertainment in May 1999 -- at a time when the franchise had experienced seven straight years of declining attendance, sagging sales, and little market enthusiasm. In just 18 months of ownership, the General Sports management team increased attendance by over 50,000 fans and successfully transformed the Wizards from a stagnant franchise into an aggressive and profitable marketing organization. The team – once burdened by low expectations – became one of the most successful in minor league baseball in terms of profitability and growth.

THE SITUATION:
The Wizards began play in Fort Wayne in 1993, following the relocation of the team from Kenosha, Wisconsin under the ownership of United Sports Ventures. The Wizards drew over 318,000 fans in the first season, but suffered from declining attendance in each of the next six years. Attendance fell to a low of 201,395 fans in the 1999 season, for a dramatic drop of over 117,000 fans from the 1993 season, and a cumulative loss of over half a million fans through the turnstiles during that six-year term.

Consistent with declining attendance, stadium per capita revenues drawn from parking, concessions, and merchandise were poor. Corporate revenues were shrinking, with contracts being largely negotiated against pricing structures set by other professional sports teams in the market, and not off the merit of the Wizards brand.

Although the economic model of a Minor League Baseball team is among the best in the industry, the Wizards were not achieving base net income goals. The Wizards simply were not profitable.

THE SOLUTION:
General Sports took a proactive and detailed approach to the turnaround of the Wizards. The operating strategies put in place by General Sports set the basis for improved attendance and revenue, and became the foundation of the organization. All decisions were based on our collective experience in both major and minor league professional sports, and were specifically created based on extensive reviews of these important areas of the business: Organizational Structure, Financial Operations, Corporate Sales, Ticket Sales, Marketing Strategies and, most importantly, the development of a Business Plan targeted toward immediate improvements and long-term growth.

THE RESULT:
Under the management of General Sports, the team created strong community and corporate partnerships that enabled General Sports to transform the Wizards from a money-losing team with little fan support into a first-class operation with significant sustainable profit while becoming the pride of the Fort Wayne community. Attendance increased every year that General Sports owned and managed the Wizards. The Wizards were named the 'Team of the Year' in Minor League Baseball's Midwest League for both the 2003 and 2004 seasons.