Ummm yeah so, I really didn’t want to write this one, but hey, news is news, and I am friggin shocked.
The Muskegon Lumberjacks are the only USHL team in Michigan, and LC Walker Arena is the only viable arena for the USHL in Michigan within their self described footprint.
It was only in July of 2013 that the Lumberjacks franchise was officially taken over by Joel Friedman, Ronald Friedman, Chris Ferraro, Peter Ferraro, and John Vanbiesbrouck.
At the same time, the Friedman’s and Ferraro’s were building the Twin Rinks at Eisenhower, on Long Island in New York. That project after opening 14 months ago is now in United States Bankruptcy Court after filing for Chapter 11 protection on June 8th, 2015.
It was projected originally that construction of the 165,00-square-foot facility would cost $15 million. But a balance sheet included with the affidavit shows that construction costs escalated to $52.1 million, the filings show. One would have to question the management strategy that would allow for a multiplication of costs that more than triples the original budget. Ya think ya got a little happy with the check book there boys?
Also strangely notable in the filing is Twin Rinks is projecting an operating loss of $9,816 over the next 30 days, yet the Ferraro brothers each receive a monthly salary at Twin Rinks of $10,416 plus health benefits and $500 for a car allowance. Clearly that operating loss could be eliminated by tightening the belts of Ownership/Management.
Yep you read that right kids. A loss of about ten grand, yet the Ferraro’s are taking twenty grand, plus insurance, plus a car allowance. Now that’s straight out of the Wolf of Wall Street shit right there isn’t it? Cant pay the bills? To bad. Got my paycheck there?
How does this effect the Muskegon Lumberjacks?
The Lumberjacks are trying to renegotiate terms of operating the LC Walker Arena in Muskegon. After the local authorities were asked for more investment into the building that is being managed in a questionable manner. Could local government now be looking at the management record in Long Island? Locals in Muskegon say this may be the case.
Ummmmm yeah, ya think they might wanna look at that stellar management history huh?!
People familiar with the ongoing talks with local government are also reporting that the Lumberjacks are being privately shopped to potential new owners.
Others are also saying that it is unlikely that the Lumberjacks will retain the LC Walker Arena management contract that pays the team $400,000.00 per year. The “sweetheart” deal allowed for the team to take that payment as well as all other revenue and all they had to do was pay the bills for the operation of the facility and upkeep.
TJHN has learned that some employees have been laid off. Coupled with other local business operators no longer being used by the facility or team, and the general sentiment among multiple sources is that the management group has alienated themselves from the community.
So yeah, thanks for working so hard this year and all, we might see ya back in the fall. Ummmmmm yeah, and about those paychecks…….
The future of the Muskegon Lumberjacks should be decided relatively soon. If local government resumes operating control of LC Walker Arena, the Lumberjacks would then simply become a tenant paying rent. If the Lumberjacks retain arena management, it is said to come with a price tag for building improvements, management fee’s and potential utility subsidies.
The question many are asking now is if LC Walker is owned by local government, why would they pay someone else to operate it and allow that entity to keep all the income? While it may not be an election issue now, some are saying it may become one later.
Regardless of which way the arena management contract goes, with declining attendance, no statement on the financial stability of ownership after the recent Bankruptcy filing, and the public sentiment, the Lumberjacks are not out of the woods.
*The Death Pool is a mix of comedy, and satire in connection with recent events. It is not an official report of current events although it may look as though the news is so accurate that it could one day happen or may be happening.
