Failed BlueSox sale hits hard
The rejected sale of the Butler parks authority’s share of the Butler BlueSox was a substantial blow for the authority that is struggling to pay its bills.
The Parks Recreation Grounds and Facilities Authority announced at its meeting Friday that it defaulted on its roughly $9,000 mortgage payment in February on Kelly Automotive Park.
Chairman Ed Codi said the default stems from last month’s rejected sale of the authority’s 40 percent share of the Butler BlueSox baseball team to the Nonprofit Development Corporation of Butler for $40,000.
“We were expecting to use that money to make the payment,” he said.
The Prospect League rejected the sale to the private nonprofit group, saying it was not in the best interest of the team or of the league.
The league’s board is composed of one representative from each of the league’s 11 teams.
The decision perplexed Codi.
“I don’t understand that at all,” he said. “How is the sale in any way a detriment to the BlueSox or the league?”
The league offered no explanation to the authority or to the nonprofit group.
“Right now we are really hurting and that sale would have helped us,” Codi said.
Perfect Game LLC, the team’s majority ownership group, has opposed the authority’s sale to the nonprofit since it was announced in December.
Wink Robinson, one of the five owners in the majority group, said at the time the majority had first right of refusal to buy the club, citing a 2009 joinder agreement. However, the authority debated the interpretation of that clause.
Robinson, who is the BlueSox representative on the league board, said his group wants to buy the team for the same $40,000 price tag offered to the nonprofit group.
Codi said that isn’t going to happen.
Codi said he is fearful to sell the 40 percent share to the majority owners because that would give them complete control to possibly relocate the team.
“If we sell the 40 percent to them and the team is sold, then where are we?,” Codi asked.
The authority, which receives more than $300 per game from the club through a lease agreement, depends on the BlueSox as a primary source of revenue for the ballpark.
The board said there have been reports that the majority group would potentially move the team, but did not elaborate.
Robinson, who was at the meeting, told the board that was not true.
“It’s never been discussed to sell the team outside of Butler,” he said. “We’ve never discussed relocation.”
Jack Cohen, the treasurer of the authority, said the board should explore a sale to the majority ownership group.
“We don’t have money to pay our bills,” he said. “This is our only option.”
Cohen said the league likely would reject any proposed sale to an outside agency so that the authority is essentially forced to sell to the majority group.
But Codi said that he didn’t want to give into the pressure from the majority owners.
“That’s part of the plan to nail us to the wall,” he said.
Codi said the only way he would want the board to consider a sale to the majority owner is if the group locked into a long-term lease agreement with the stadium with a “substantial” buyout option.
The BlueSox have typically signed two-year agreements in the past.
The current lease agreement expires after this summer season.
Authority solicitor Leo Stepanian II said he has a meeting scheduled with Robinson for Monday to have preliminary discussion on a potential five-year lease with a sixth year option.
Cohen said that would be a good offer for the authority.
“We should be glad to get that,” he said.
Robinson hopes the two sides can work out a lease agreement.
“A long-term lease would be a win-win for all,” he said.
Robinson said the majority group and the authority need to move past what has happened.
“This issue spun out of control on both sides,” he said. “The mutual paranoia needs to be solved.”
Board member Art Cordwell said a long-term lease with the BlueSox needs to be the top priority.
“Try to get those things ironed out because we’re not getting anywhere now,” he said.
Board member Nick Ban Jr. agreed the two sides need to sit down and work together.
“I’m cautiously optimistic this can get resolved with everyone winning,” he said.
Cordwell said the pressure to find a resolution is on because the five banks involved with the mortgage, headed by Dollar Bank, are concerned with where the authority will get its money in the future.
“They want to know how we plan on generating income,” he said.
Codi said the Nonprofit Development Corporation will reapply to buy the club.
The nonprofit group will help the authority manage Kelly Automotive Park this season.
The original sales agreement between the group and the authority also had the nonprofit taking over managing the park.
Mike Robb, the executive director of the nonprofit, said his group will be working with the authority “in good faith.”
The BlueSox team of college players is set to play 30 games at Kelly Automotive Park this season.
