Hooters co-founder acquires Firebirds

Glenn Mazula, founder of the Indiana Firebirds and one of the longeststanding, owners in the Arena Football League, quietly sold his majority interest in the team in late July, raising questions about the franchise's long-term future here.

Team and league officials, however, said the new owner

Sources close to the team said the sale had been in the works for several weeks.

Dave Lageschulte, a Fort Myers, Fla., resident who made his fortune in the restaurant business, has become the Firebirds' sole owner and president. Officials at Fort Myers-based up Management Group, where Lageschulte is co-chief executive officer, said he was on vacation and not available for comment.

The team, which Mazula moved to Indianapolis from Albany, N.Y., before the 2001 season, has not officially announced the sale, but Firebirds officials confirmed the transaction, which was recently approved by the AFL board of directors.

Though terms of the deal were not disclosed, 60 percent of the franchise now known as the Georgia Force sold earlier this year for $7.2 million, valuing the team at about $12 million.

Despite Lageschulte's out-of-state residency, Firebirds General Manager Joe Hennessy said the team is in no immediate danger of moving and that Lageschulte is interested in seeking local investors to solidify its presence here.

"The new owner is committed to this community and playing at Conseco Fieldhouse," Hennessy said. "We have a threeyear plan in place."

Officials for Pacers Sports and Entertainment, who operate the fieldhouse, said their fears of the team moving have been eased since talking to Lageschulte.

"Lags loves the game and has the wherewithal to do this," said Rick Fuson, Pacers Sports and Entertainment senior vice president and executive director of Conseco Fieldhouse. "We hope and believe this will be a long-term relationship. I'm confident this [organization and its fan following] will continue to grow."

Lageschulte, 50, was one of the founders of Hooters America Inc. in 1986 and now has interests in 15 Hooters restaurants in Florida and Nevada and 12 other bars and restaurants, primarily in Florida. He formerly owned an AFL franchise, the Miami Hooters, from 1993-95.

Lageschulte became a limited partner in the Firebirds in 1997, and Hennessy said he supported the team's move to Indianapolis. Other than Lageschulte, Mazula had no ownership partners.

Still, AFL Commissioner David Baker said the league board wanted assurance Lageschulte had plans to keep the team in Indianapolis before approving the deal.

"Indianapolis is a good market and the Firebirds have done well there with a limited amount of resources," Baker said. "They've developed a good base and we think there's huge potential there. Conseco Fieldhouse is one of the best venues we have."

Baker agreed a local ownership component might be key. "Dave Lageschulte would love to pick up some local ownership," Baker said.

"Local ownership would give the team more of a connection."

The Colts appear a logical owner or partowner for the Firebirds, as several NFL owners have found AFL involvement a good way to cultivate fans and players.

But Firebirds. officials said the Colts were not contacted about buying the team. Colts officials were unavailable for comment, but sports economist Mark Rosentraub said Colts owner Jim Irsay might oppose purchasing a share in the Firebirds at this time due to fingering questions about the Colts' future.

Given the uncertainty over the Colts' future here, which appear to hinge on whether the team gets a new stadium, Rosentraub said Irsay has little incentive to further tie himself to the market.

"If Jim Irsay buys the Firebirds, that ties him in some ways to the local market, and he could lose bargaining power with the city," Rosentraub said.

Mazula founded the Firebirds in 1990-just three years after the league's formation. Mazula piloted the franchise though the tumultuous early seasons of the league while many others folded. The AFL's second-oldest franchise, the Firebirds won the 1999 ArenaBowl.

As the team's annual budget rose from $750,000 to $4 million, Mazula moved the franchise to Indianapolis, hoping to draw bigger crowds, more sponsors and increased revenue. While attendance was a strong 10,851 during the team's first season, revenue wasn't pushing the team to the breakeven point. After attendance took a tumble this year and corporate sponsorships showed no growth, Mazula, sources said, began more seriously considering selling out.

As AFL ownership groups got stronger, sources close to the team said Mazula, who still owns a team in AF2, an AFL development league, was forced to sell the team, which remains in the red. Lageschulte helped fund the team during lean times in recent seasons. Hooters became a primary sponsor this year.

While AFL league-wide attendance increased nearly 9 percent this season, Firebirds' attendance dropped more than 10 percent. Hennessy said with the backing of a new owner and an increased marketing effort, he expects attendance to rise next year. The Firebirds did almost no marketing this season, except for occasional newspaper advertisements and a few billboards.

"The level of ownership in the Arena Football League has grown dramatically including Jerry Jones, Daniel Snyder, Jerry Colangelo and William Clay Ford," Hennessy said. "As ownership gets stronger, teams and organizations get stronger, so we have to redouble our efforts."

Mazula was no longer in a position, sources said, to compete with his deeper-pocketed peers.

"When you talk about NFL owners getting involved, they see it as a cost-effective way to develop players and cultivate new fans," said Rosentraub, former dean of urban affairs at IUPUI. "That ownership trend is only going to grow."

To reverse the attendance slide, Hennessy said the Firebirds are hiring more sales and marketing staff, moving to a bigger office in Park 100 near the team's training facility and planning to launch an aggressive marketing campaign starting later this summer The Firebirds will be forced to move up their marketing timetable as the start of the season shifts from April to February.

With AFL's national television deal with NBC in place, Firebirds officials think the foundation is set for major growth in Indianapolis. At least 71 AFL games will be on NBC. NBC has agreed to spend up to $30 million promoting the league and its games, and to share advertising revenue with the league. Baker expects at least six or seven of the Firebirds' 14 regular-season games next season to be broadcast on NBC.