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DAVE CHECKETTS: THE SPIRIT OF AN ENTREPRENEURIAL SPORTS FRANCHISE OWNER


By Jim Baer

The date is May 28, 2008, and the St. Louis Blues and Ottawa Senators are battling for the National Hockey League’s Stanley Cup. Chris Kerber, the radio voice of the Blues, is counting the game down:

“There are just seconds to go…Manny Legace clears the puck from behind the net… passes it to Erik Johnson who blasts it along the boards to the blue line. Three, two, one… the game is over and you can bring out the Stanley Cup! The St. Louis Blues have WON the Stanley Cup as delirious teammates swarm the ice and start the celebration.”

This may be fiction, but it could happen to our fair city. We could win the Stanley Cup for the first time in 40 years, and it could be sooner than later.

It will take a great visionary leader to lead the team out of the wilderness, and that person is sports’ highly recognized team owner Dave Checketts, who brings to St. Louis an orderly plan, with passion and vision, that will put fans back in the seats and wins on the scoreboard. The right management team is firmly in place to make all this happen.

So, is Checketts really a famous team owner? Is he known worldwide? Here are some examples of his hard-earned status:

Checketts was doing advance work for the National Basketball Association (NBA) in Japan a number of years ago. A curious fan came up, scratched his chin and said “Aren’t you Michael J. Fox.”

Now, it’s hard to confuse Checketts at 6-foot-5 with Michael J. Fox who stands all of 5-foot-6 wearing platformed shoes.

Another time, Checketts was with his family on a very solemn visit to the Holy Land and the Wailing Wall in Jerusalem. Displaying the deepest of reverence, Checketts was paying homage at the site where the oldest religions in the world come together.

Just at that very moment at the wall, a guy came up to him, poked an elbow into his ribs, and said: “Hey, what’d we gonna do about those (New York) Knicks?”

Checketts can hardly hide, whether in Japan, back home in Connecticut, walking the wide boulevards of Salt Lake City, or even strolling down Madison Avenue in New York City. As a matter of fact, recently he was on one of those Manhattan strolls on a pleasant spring day when he bumped into his fellow St. Louisan and good friend Bob Costas. And now, Checketts—world traveler and recognized entrepreneur extraordinaire— has become a focal point of local sports as principal owner of the St. Louis Blues and Scottrade Center.

On June 30, 2006, SCP Worldwide closed ownership of the Blues. SCP is a growing sports, entertainment and media company founded in 2002. A hallowed and beloved 40-year-old franchise was, well, in somewhat of disarray.

But that’s just a perfect challenge for SCP Worldwide. The international firm takes perfect storms and creates orderly results.

The Blues’ new team president, legendary goalie and National Hockey League announcer John Davidson, clearly states the challenge is rebuilding the Blues—one brick at a time. His goal is to win back fans—one fan at a time.

Checketts thrives on passion and a burning desire to have the partners names etched into Lord Stanley’s Cup. It’s one thing to amass all the riches in the world, and another to float around the arena ice, hoisting that cup for the world to see.

“There is passion for our St. Louis Cardinals, and we need that same kind of passion for our Blues,” says Checketts. “We need Scottrade Center rocking and full. We need to restore pride to our proud franchise,” he says, not mincing a single word.

Owning sports teams is nothing new for the 51-year-old New Yorker. At the tender age of 28, he became president and general manager of the Utah Jazz, making him the youngest chief executive in NBA history. He became president of the New York Knicks in 1991, and he went on to become president and CEO of Madison Square Garden, the company that owns the New York Rangers, New York Knicks, and the New York Liberty of the WNBA. In 1997, MSG acquired Radio City Music Hall and rebuilt it on a $70 million dollar budget.

Owning the local hockey team is just a notch of a long string of enterprises directed by Checketts and SCP Worldwide.

Checketts is particularly big on that “vision thing.”

From the executive quarters at the Pointe 400 building downtown (the refurbished Pet Milk Building) he can gaze at the right field side of Busch Stadium, peer over the top to see a portion of the Scottrade Center, and look east overlooking the Mississippi River.

From here, critical meetings with staff, coaches, executives and movers and shakers are held on the top floor of a two-story luxury apartment decorated by Checketts’ wife Deb. Nothing on the walls or counters would suggest this is the home of a transplanted New Yorker. From the framed Manny Legace print to a bowl of Blues-logoed hockey pucks, and from the “Note By Note” coffee table book to the Blue Note emblem etched into the spiral staircase railing, the appointments are clearly all about the St. Louis Blues.

And, as his long-term lease in Pointe 400 proves, Checketts is a firm believer in downtown St. Louis’ future, and the role the Blues and Scottrade Center will play in its continuing revitalization. “Everyone is pulling for us,” Checketts says. “I was having dinner at Tony’s and the owner (Vince Bommarito) came by our table to wish us best of luck.” Put the luck aside, success is coming mainly from roll-up-the-sleeves, blue collar-styled hard work.

This past May 10, the Blues hosted a cocktail party for prospective season ticket buyers. Fans got to mingle with the likes of Davidson, Bryce Salvador, Bernie Federko and Bob Plager and try out their seats. From all accounts, the sales day event was a huge success and season ticket sales are once again bustling after several years of malaise.

Checketts now has his sights clearly set on corporate support and tabbed a local businessman, Tom Stillman, as the team’s new minority owner to help make that happen.

“Corporate support, that’s key to me,” Checketts says. “The fans are coming back. We’re filling the upper bowl with the ‘face painters’ and now we need corporate help to pack the lower bowl. We are reaching out to business people and companies of all sizes to introduce them to the new St. Louis Blues, and showing them why buying a season ticket package or becoming a sponsor or corporate partner makes sense.

“I assure you of this—we are going to deliver an excellent return on the investment by the business sector in St. Louis. We’re on the rise as a hockey team, the game-night experience in Scottrade Center will be unequaled, and we’re committed to partnership with our corporate community. We expect success in all facets of our operation, and that should be exactly what our business partners want to hear. Whether a company has a marketing package or four club seats for employees and clients, we will be a terrific value.”

Ken Munoz, one of his two major SCP partners, has been associated with Checketts going on 17 years and believes in Checketts’ promise to deliver. “Dave is just a good friend, and this whole thing is all about being entrepreneurial,” he says. “When we walk around, I’m always looking down to see what we’re stepping into, and Dave is always looking up to see what’s ahead.”

Munoz says the key to success is having multiple revenue streams from which to draw. The owners did a quick due diligence of team finances when considering the purchase, and made a rapid deal when they realized the stars were all lined up properly.

“We have revenues coming from various sources. We get the concessions, the ticket sales, the advertising, the broadcast rights; it all helps us to be potentially successful,” says Munoz. “What is really required is for the Blues to be a big part of the fabric of the City. St. Louis is a great sports town and the Blues fit right in.”

Mike McCarthy, Checketts’ other major partner, agrees.

“St. Louis is a helluva sports town,” McCarthy says. “You give the fans a product and they will come out and support your team. Attendance has always been good with the Blues. You only have to go back five years, not 40 years, to see big crowds night after night.”

McCarthy points to Scottrade Center as an impressive home for all-around entertainment. “St. Louis is the seventh largest market in the country in terms of entertainment,” he notes, “and, in population count, we are 17th overall.”

The John Davidson Factor

The partnership needed the perfect executive to run the team. Not just anyone would do. Their man was the Rangers’ great—and popular—goaltender John Davidson.

Davidson revealed that he came to St. Louis for exactly one reason—admiration for Dave Checketts. “It’s a trust/value thing. My wife and daughters know the Checketts family well. We are all good friends.”

“I could still be back in New York and I could still be in the broadcast booth,” says the new president. Davidson had what was considered near-perfect job security as an NHL announcer and broadcaster for the New York Rangers. He could always make tee time every afternoon during his off-season summers.

But he’s been in the game of hockey for 35 years without ever having his name etched on the cup.

“I see a lot of upside to owning this team,” says Davidson. “Dave and his team think big and the team is very important to downtown St. Louis. This team (SCP) owns entertainment properties all over the world and Dave is a very likeable guy. His presence is extraordinary. He relies on good people to make things happen. He’s not a ‘do it my way’ type of guy.

“We are turning this thing around, and we are turning it around dramatically.”

The moves made by the franchise owners speak volumes. For one, they hired Anheuser-Busch sports and media executive Peter McLoughlin to run all operations outside of actual team management in the capacity of CEO of Blues Enterprises. Getting Andy Murray to coach the team was still another major step forward. What looked like a hopeless season almost ended in a playoff berth this spring.

Furthermore, the team is investing heavily in Peoria, their American Hockey League player development franchise, and they have become very competitive.

Checketts says there’s much work still to be done.

For one thing, ownership stumbled out the gate, prematurely upping season ticket prices. A howling outcry by loyal fans quickly dashed that plan with an apology by the management team and the lowering of prices. Fans can still get into single games for as little as $7 a ticket at season prices.

“We are starting to establish a pipeline of talent and we have what we think is a recipe for success. We’ve made physical improvements to the building (new display board and new message ribbons and refurbished locker rooms.) We are crafting our message and we are putting together all kinds of promotions for next year,” says Checketts. “The arrival of 6-foot-5 defenseman Erik Johnson from the University of Minnesota (last year’s No. 1 overall NHL draft selection) has excited everyone.”

Media interest could not be stronger. Checketts is perfectly satisfied with the television work done by Fox Sports Net Midwest and KPLR CW 11, and the new contract with 50,000 watt KMOX Radio will put radio listenership into nine states on any given night.

What will the future bring?

Don’t laugh. St. Louis could get NBA basketball. As McCarthy points out: “Dave has such strong connections to the commissioner (David Stern) and the league in general that getting a pro basketball franchise here is always a possibility.” Scottrade Center clearly needs more tenants with the Saint Louis University Billikens moving to an on-campus arena in 2008.

Another opportunity is reopening the historic Kiel Opera House. As both Checketts and McCarthy pointed out, they amassed $70 million and put Radio City Music Hall back in full operation. For now, Checketts says identifying resources will be the first step towards re-opening the Opera House. He estimates the project to cost anywhere from $30 to $40 million.

Is there more? Sure, why not. Checketts and SCP Worldwide own the Real Salt Lake club in Major League Soccer, and are solidly supporting the efforts of Jeff Cooper and his St. Louis Soccer United group to bring an MLS expansion team to the St. Louis region. “St. Louis is a great soccer town and has a great legacy,” says McCarthy, “and Jeff Cooper is a friend of ours.”

For now, however, emphasis on the Blues’ operation is the focal point for the future. As McCarthy says: “Employees are now re-energized and we feel good about the direction we are headed.”

Checketts wants the building full every single night, and he wants all the corporate suites sold. McLoughlin has set a personal goal of upping season tickets by a resounding 30 percent.

“It’s all about supply and demand,” Checketts says. “Previous ownership (the Lauries) claimed the building was just too large. We don’t see it that way. What we need to do is deliver a winning product. We need to finally give St. Louis a Stanley Cup winner.”

Checketts is an accomplished entrepreneur, a man with a plan and the vision to to pull it off. When he strolls down the street, he stands tall and erect, always striding forward. He knows precisely where he wants to go and has the road map to get him there.

 

 

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Dave Checketts
Scott Zajac
Pierre Laclède
300-foot mural along the Riverfront Trail in North St. Louis

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U City search light
Kelly Ryan
Tim Foley, Erato
Suttle Mindlin

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