General Sports swings for major leagues
Oakland Business Review
September 29 - October 5, 2005
When Andy Appleby was young, he dreamed of working for the Boston Red Sox.
When he graduated from Springfield College in 1986, the best offer he could find was an entry-level position with the Detroit Pistons. The team was preparing to move to the Palace of Auburn Hills, and a new era of sports was about to begin.
For 12 years, Appleby worked for team president Tom Wilson, whom Appleby says is the best in the business. But deciding there was nowhere for him to grow within the Pistons organization, he opted to start his own sports marketing company, General Sports & Entertainment, LLC in 1998.
Today, General Sports provides sports marketing and team consulting services, and markets artificial turf, thanks in large part to its 2003 acquisition of US Synthetic Grass. The company also owns a minor-league baseball team, the Fort Wayne Wizards, a farm team for the San Diego Patres.
Appleby and his wife, Kris, started the Suite Dreams Project in 2001, a charity to raise money to help children with debilitating illnesses.
Freelance reporter Todd Davis visited Appleby in his office at the site of the former firehouse in downtown Rochester, above the Rochester Mills Beer Co.
Q.: Did people think you lost your mind, or were crazy to leave the Pistons when you did?
A.: Who said crazy? Nobody actually said that to me. I think I was ready to take that step. It was harder than I imagined, but the optimist in us tells us things wont turn out as bad as you think.
Q.: Have there been regrets along the way, from business decisions, missed opportunities?
A.: Personally, I don't think I could have worked any harder or better than I already have. We've learned a ton from these experiences that will only serve to help us in the future. It's not just the wins but the losses; you need to lose to be able to move forward.
Q.: What is the key to your success personally, or others like yourself?
A.: A lot of them have a positive attitude. There's no room for quitters; you have to fight through adversity.
Q.: Did you always want to run your own business?
A.: People say there are natural-born entrepreneurs. That's not me. I learned a lot about the sports industry and have learned a lot more since. There's been a confluence of factors that created "me" as the entrepreneur.
Q.: Would you consider going beck to the 9-to-5?
A.: In fairness, that wasn't a 9-to-5 job. Tom Wilson instilled a sense of entrepreneurship from all levels of the organization.
Q.: Your company purchased the Fort Wayne Wizards minor-league baseball team in 1999. Tell us about that team and the future of minor-league baseball in this market?
A.: We've increased attendance every year after seven years of declining attendance. We've been "Team of the Year" for the last two years. It's a whole different ballgame. It's all about the fun and family. Baseball is secondary.
Q.: Is Major League Baseball supportive of adding minor-league teams in major-league markets?
A.: MLB shouldn't be threatened. I think minor league would create a whole new generation of baseball fans in the market.
Q.: Where do most companies go wrong when it comes to sports marketing? How do you do this better?
A.: I think the traditional sports marketing program is to throw a couple of signs up and say "See ya next year." I think there's more
pressure to get more from the marketing dollars today. At the Palace, we pioneered integrated marketing programs. We made
sure we had multiple marketing objectives for everything - brand equity, name recognition, entertaining guests.
Q.: What is your relationship with your former boss Tom Wilson, today?
A.: I think Tom and I are better friends than ever. If I could be half as good as Tom, I'd be five-times better than most.
Q.: You proposed building a minor-league ballpark for the City of Troy in exchange for some of the city's park space, but the idea struck out at Council. What went wrong?
A.: I don't think the arguments against it were valid. There aren't the negatives (of traffic) associated with it. We're more families-oriented. I think people confused it with a major-league environment.
Q.: Are you still considering another Oakland County location?
A.: Yes, though there's nothing imminent. At this point, various communities are calling. It's been a goal, but we're shifting towards looking for a major-league team.
Q.: Major league? Don't owners of most major-league teams complain they can't make any money?
A.: Most don't say that. Fro the most part, they're good investments. Most of the capital appreciation is the franchise itself, which is often sold at a profit. Most have the idea that they can invariably break even and have some fun along the way.
Q.: With the Super Bowl coming to Detroit, do you anticipate a boost in your business?
A.: I think we'll benefit like any local business. We do represent certain companies to help them facilitate their events for the Super Bowl.
Q.: What are the challenges facing professional sports heading into the next decade, from strikes, lockouts, salary caps, etc.?
A.: Fortunately, more leagues have gotten their houses in order, as arguably as they should. The pendulum swung towards player salaries in the late 1990s, the leagues suffered financially. Leagues are once again becoming more solid. More healthy (means) teams don't have to pass along to consumers the higher ticket costs.
Q.: If you asked the questions, what would you say to sum up your story?
A.: I think you realize that in an entrepreneurial situation, there's never any one point in time you're successful. It's about doing 200 positive things each day, and it's the cumulative effect of that which leads to great things.