Star Tribune Publishes Article Concerning Minnesota Thunder’s Financial Troubles / IMS Weighs In With Editorial
The Star Tribune’s David La Vaque wrote an extensive article that was published today concerning the financial troubles of the Minnesota Thunder. As editor and writer of Inside Minnesota Soccer I feel compelled to give you some insight into the article and make some personal comments about the Thunder’s current situation.
Overall, I felt that La Vaque’s article is fair and actually could have been harder on the Thunder, and I appreciate that he gave the organization a chance to respond.
My first emotion after reading the article was relief. I’m glad this is finally out in the open and on the table. Over the last 8 months I have been emailed, called and talked to by Minnesotans involved with the Thunder who felt I should know about financial issues with the organization. Some of those people wanted me to write about these issues. I balked for several reasons. I lack the knowledge and time to do a proper job investigating and reporting a serious situation such as this. IMS is a blog which tries to bring you Minnesota Soccer News, but really, how do you report on the fact that someone is having financial problems? That is out of my league. I’m not a professional writer and this is serious business with reputations involved. I consider these people my friends and I want to support them and the Thunder. I did ask the Thunder front office on a number of occasions if they cared to comment on reports of financial issues that were being reported to me. Although it was vaguely acknowledged to some degree or another, it was never officially confirmed and no one would talk about it.
When families have financial troubles, which many are experiencing these days, the first instinct is to keep it quiet. It’s embarrassing and one often feels responsible even if it’s not necessarily their fault. I would guess it’s even harder for someone who starts their own business to admit the business is having problems. This seems to come down to two schools: the folks that finally swallow their pride and say we have a problem here and those that continue to act as if there is no problem. My experience is that the one that says I have a problem usually starts the repairs and healing faster than the one that continues to deny there’s an issue.
I’m sure Manny Lagos and Dean Johnson felt they were doing what was best to protect the organization. As an outsider looking in, I felt what was taking place was quite apparent. As previously stated, I had reports of late payments and no payments from numerous sources. It makes me wonder if the front office had talked to IMS and been more straightforward in their approach, would this have been a big enough issue to warrant a Star Tribune expose? My rationale is that in talking to Thunder supporters and Minnesotans in general, everyone is pretty understanding of the tough financial times we’re going through in this economy and many of us have been affected. The Thunder owners are in the real estate development business. We are all well aware of what happened to that market this past year.
Playing your financial situation down and minimalizing it, which is exactly what it seems Mr. Johnson is doing in this article and in past conversations with me, is in my opinion a huge mistake, and one that is a bit condescending to the people to whom he owes money. To Johnson $7,500 may not be a lot of money, but where I live it still is and it’s almost silly to say it’s not. If you owe money to someone and can’t pay it, then it certainly is a big deal.
Owning a team is not the same as owning a real estate development company. You are asking people to invest their time and money into attending games and support the team. Many of the uber fans like myself and others who do support the Thunder spend countless hours of their own time promoting and discussing the team and trying to get people out to the games though personal invitations, blogs, discussion boards and many other ways. Yes, we have chosen to do that because we want professional soccer to succeed in Minnesota and we have put a value on that. I think Johnson and Lagos both understand and appreciate that. They read the Thunder discussion boards as well as this blog and attend the Dark Clouds tailgates when possible before games. They value those supporters, but on the other hand they have not acknowledged to those same fans the problems the team is having and acknowledged that some of those issues could be related to the on-field performance of the team.
I’m a big believer in trickle down. A case in point would be preseason training in warm climates. The team had never gone South in the spring until WingField purchased the Thunder and sent the team with then coach Amos Magee South for a few weeks of preseason training and games against other USL franchises and good Division I college teams. This year the team stayed at home and played against local colleges and academy teams on artificial surfaces. In these days when USL-1 teams are flying to Africa for preseason training, or holding tournaments against MLS teams, it’s imperative that a team like Minnesota who are stuck in the cold northern climates get to warmer environment to start off on the right foot. Do I blame the Thunder for not sending the team South for preseason when they had no money? No, I think they did the right thing financially. In tough times you make tough decisions. My point is, Thunder supporters were scratching their heads this spring wondering why the team wasn’t going anywhere for training and this situation surely affected the on-field performance in the early season.
I do want to state that Johnson and his partner Henk Habbers have probably invested more money into this franchise than any other owner ever has. As the article said, the timing wasn’t very good. Financial issues are nothing new to the Thunder organization who have had numerous owners, all who have struggled to bring the team out of the red. From talking to those in the community, some of those lingering financial issues are exactly what has hurt the current owners in their attempt to attain corporate sponsorships for the Thunder.
When Habbers and Johnson took over the team, it created a new excitement and Thunder fans were ready to move to a new era. The hiring of a public relations director was something that had never been done by Thunder owners and pointed towards a bright new future with the organization. The fans were excited with a new logo, TV commercials and ad campaigns. Within months, that relationship had sadly dissolved and we have seen the Thunder fall back into a situation where there is no advertising or promotion except for word of mouth, the team’s website, emails and what duNord Futbol and Inside Minnesota Soccer have offered on their sites. Once again the Thunder have done what needed to be done to survive these times. However, let your fan base know what is happening so they understand why there are no ads in papers or on TV. Understand that with lower attendance, caused from the lack of advertising, team performance could be affected.
I am a bit frustrated that the Strib found the space to write a lengthy article concerning the negative side of the Thunder and yet most Thunder articles published by either paper in town the last several years have been small and often pushed to the back of the sports section. In 2009 the St. Paul Pioneer Press has not published one single article concerning the Minnesota Thunder. The Star Tribune has tried to cover a few games this season. I think there is an understanding that unless the team at least tries to promote itself and starts drawing fans and winning games, they will not get much coverage with either paper. With a negative record year after year, it’s tough for these Minnesota dailies to get on board and get excited about covering the Thunder.
Looking at the teams record, 2004 was the last time the Thunder had more wins than losses and since that time (2005 until current) the team has 31 wins, 59 losses and 42 draws. They have lost and drawn three times as many games as they have won the last 4 1/2 seasons. That’s not an easy thing to live with as a fan and an even harder thing to live with if you’re a sports editor at a newspaper who is concerned about keeping your paper afloat for another year. I can complain all I want that there is a bias in the sports media concerning soccer, but you can’t argue with the paper’s current situation. They need to sell papers and they’re not going to do it reporting on a team that doesn’t advertise themselves, doesn’t draw many fans or win many games. By the way, I’ve done the chicken and egg theory on this one and although I think it’s relevant to attendance, I still have some understanding and sympathy for the current market of the newspaper industry.
I believe that Johnson, Habbers and WingField are on the right track. I also believe that the WingField owners are shrewd enough to find their way out of this financial mess and move the team forward in the future. I hope all true Thunder fans will be thankful for that someday. But for now I’m calling on the Thunder organization to be more up front with their current situation and possibly ask for help from a very talented group of individuals who want the team to succeed. I call on the Thunder to mobilize those that support you and who want soccer to flourish in Minnesota and see what they can do for you. Desperate times call for desperate measures. In the big picture we are all in this together.
It might also serve Johnson well to sit down with some of those key supporters and long time season ticket holders and listen to their concerns before trying to move forward with the team.
Meanwhile, Dean Johnson has promised Inside Minnesota Soccer an interview numerous times over the past year and never seems to come though on those promises. I know these have been trying times and ones that have caused him to remain in Europe and attend to his business. I have wanted to give him a chance to tell his story–how he fell in love with the game of soccer and let him explain why he wants to build youth soccer in the State. I want him to tell us why he wants to own a professional soccer franchise and his dream for a stadium in Saint Paul. I think it’s a bit sad that story is still untold while the story of broken promises is instead being exposed. The invitation is still open Dean.
Comments are closed.
Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..
Matt Hanson
here here!
well said bq
thanks for writing that
Tough times for the Thunder. Too bad, but I hope they stick to their guns regarding their move to NSC as well as their stance on not caving in and allowing a bunch of idiotic bureaucrats in the MYSA boardroom to dictate how US pro soccer teams attempt to help develop top level players.
Maybe it’s time to look for an additional investor?
Thank you BQ!
Sometimes it’s not fun to see “behind the curtain”, but it can be helpful for outsiders to better understand what is really going on.
Since I became a season ticket holder I have never seen a winning season. And I’ve only seen one playoff game. That makes it difficult to continue to invest my time & money into more season tickets.
Hopefully things will turn around soon.
BQ – In the future, I think you need to report these things – if only because we devoted readers do want to hear them.
Well said BQ! Thanks for all of your work!
Nice write-up and good handling of a touchy situation, Brian.
I thought back to the Thunder’s jersey sponsorship. It’s the PR firm, right? The way it was worded in the announcement came to mind, something about it being in return for their work for the club, though the team reserved the right to sign on a sponsor directly. I suppose the firm was “paid” via sponsorship, rather than cash.
Anyway, best of luck to the Thunder in getting through this and getting on solid ground. Though I still wish Austin would have crushed them last weekend.
Well said, Brian. I agree with your critique. But I am still left searching for answers after reading the ST article. I guess I have a problem with missing “Academy” money. And as a MTA parent, I want to make sure my money is going to the right places (coach, trainer, field time, or things that benefit my child – which I am paying for).
I don’t want to be left feeling cheated. I would hope the Thunder and MTA would address this issue in a timely manor and make it open to the parents of the club. Because it may decide where my children play next year!
Great article Brian!
Brian, you need to clear the air about missing Academy money because as far as I know, MTA and the Thunder pro club are separate entities. No way is an MTA coach owed coaching fees by the Thunder. We pay our fees to MTA and they cut checks to our coach. This Holker coach has no idea what he’s talking about if he’s insinuating such. What a moron. This does go to show though something that parents on my son’s team have been commenting on since the fall. This boys program has no organization or leadership. MTA needs to conduct a national search for someone to come in and lead that part of their program. Girls program seem to be fine, but I wouldn’t know for sure.
It is true the they are two separate companies finically. But guidance is given to MTA from the Thunder organization as Donny Gramenz and until recently I believe Manny Lagos has sat on the board of directors. But the finances are totally separate.
As to “the Holker coach”, I know many of the MTA coaches and they are all good guys, Greg included. Greg can be outspoken but its part of what makes him one of MTA’s best coaches and one of the better boys coaches in the state. I can tell you that Greg is not a moron. I think we need to choose our words carefully when making accusations concerning individuals. Greg’s a good guy and a good coach. He is head coach of the Augsburg College Mens team and the team has been on the rise since Holker has taken over.
I have heard some of the same issues concerning the difference between the boys and girls side. Although I know they have some very good coaches on the boys side. I don’t know the depth of that talent on the boys coaching side. I just don’t know enough about it to make any comments. On top of that, youth soccer is so politically charged that it gets to the point of being ridiculous and one of the reasons I try not to cover youth soccer too much except for State Cup and other exceptional tournaments, regional etc…
Thanks to everyone for their comments and support. It wasn’t easy writing this because I knew those at the Thunder front office would not be happy with me and would strain relationships of people who I care about and have respect for. But sometimes you have to stand up and say what needs to be said. By the way Chris, yes, you did remember that correctly. The shirt sponsorship is a ad agency who had done some work for the Thunder over the years and have been supporters of the team.
Great post BQ. Very sad article to read in the strib but I agree that in order to move forward, everyone needs to address the situation and learn from the mistakes in the past. I still believe that the best days for the Thunder are ahead of us and I look forward to one day topping the league again.
MTA Parent – How stereotypical can you be? Get your head around this, things are not always as YOU are told by your coach or club. And, as you said, if your money is being sent to MTA, you cannot be entirely sure where it goes. Thanks for your support, Brian. Maybe you can talk to Holker and clarify, as some people may not beleive his side (I know Holker, and agree, he wouldn’t exactly make this up – especially as a Director of Facilities at Augsburg College – I’m sure he sees the books with BOTH organizations). That might help many MTA parents understand the situation…
I’m also an MTA parent with a boy in the program and our coach has been paid in a timely manner. I was a team manager for 2 years up until this season.
If a particular coach hasn’t been paid it’s due to players on that particular team who haven’t paid the coaching fees. That is how we’ve been told that it’s structured.
If the player/parents don’t pay how can the coach expect to be paid?
Thanks Zak.
Casey, Yes, that’s how I understand it works as well. From what I’m hearing from folks from not just MTA, but many MYSA clubs, this has been a very tough year with the economy as it is. With many peoples wages being rolled back, hours cut, overtime gone and job losses, this certainly has effected the payments from players parents with them not making timely payments or not fulfilling payment obligations at all. It’s been a tough year on a lot of us.
BQ, thanks for chiming in and acting like a concerned adult.
It’s so hard to read and listen to all the parents of soccer playing kids, so many have no clue, but want to tell others what to think and do.
I recently met Coach Holker, he appears to be a classy guy and my impression is that he wants MTA to succeed but also expects people to pay their bills timely.
My guess is the money owed to him could be either the club’s contibution for scholarship players; or possibly payment for work done for the Thunder at a camp or something similar.
Dave, it sounds as if you are exactly correct and understand the complicated and somewhat commingled finances between the two separate organizations. Most likely that is exactly what has happened.
I am not a big conspiracy type of person, but in discussion it was mention of convenient the timing of this article is. Just before Club try-outs.
As far as Coach Holker is concerned, I don’t think he’s too worked up about the money he’s supposedly owed by MTA as he coaching the same group of boys again next year.
Thanks for the comment Pat but I’m not buying the conspiracy thing at all. I could be wrong, but I willing to bet that the writer of the Strib piece, David La Vaque has no idea when club tryouts are or how that all works in conjunction with league play and high school play. La Vaque is a newbie to soccer within the last year and he is trying to learn the game while covering the Thunder. I would also be willing to bet that there isn’t one single sports writer at the Strib who knows that either. Perhaps John Millea because he has covered some of the rule changes with MSHSL that effect how and when tryouts can take place but I would guess he would be the only guy.