THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, March 29, 1995 TAG: 9503290554
SECTION: SPORTS PAGE: C4 EDITION: FINAL
SOURCE: BY HARRY MINIUM, STAFF WRITER
DATELINE: TALLAHASSEE, FLA. LENGTH: Medium: 87 lines
The Hampton Roads Admirals apparently will not jump to the American Hockey League next season.
Sources in the East Coast Hockey League who asked not to be identified say Admirals president Blake Cullen has told them he won't move his team to the AHL for 1995-96.
Cullen's decision almost certainly cements Virginia's two other hockey franchises to the ECHL. Owners in Richmond and Roanoke, who also have held discussions with the AHL, recently said they will remain, but they have admitted they might reconsider if the Admirals jumped.
Cullen, in Tallahassee for an ECHL playoff game, declined comment. But he has said in recent days that he will hold a press conference to discuss his decision once the playoffs have ended.
One reason for saying no the the AHL became apparent over the weekend. The AHL now is seeking $1 million from each of the seven ECHL teams it has been courting. Previously, the AHL had indicated it would allow some or perhaps all of those teams to enter without charge.
Applications by Greensboro and Raleigh to move up to the AHL, made under the assumption that they would not be paying a fee, were rejected earlier this week. The teams have been invited to apply again, but only if they have a $1 million check in hand. Officials from both teams are unsure whether they will reapply.
Cullen has steadfastly maintained that he would not move up if he had to pay $1 million. He would be forced to surrender his ECHL franchise without compensation if he moved up, and the franchise is valued at more than $2 million.
The South Carolina Stingrays, who draw slightly larger crowds than Hampton Roads but are located in a smaller market, recently sold for $2.8 million.
The ECHL is a mid-level developmental league, considered one step below the AHL, which is the NHL's top minor league. AHL hockey is superior to that of the ECHL but comes at a higher price.
A move would have increased the Admirals' budget by $750,000, and ticket prices would have gone from a high of $7 to a high $12. Also, most ECHL franchises are profitable, while many in the AHL are losing money.
There was also a risk of litigation. The AHL would have required the ECHL franchises to bear the cost of any lawsuit, which ECHL officials have threatened.
AHL commissioner Dave Andrews was unavailable for comment, but he has been persistent in trying to bring the AHL to Hampton Roads. He contacted Norfolk city officials in recent weeks, offering help to bring an AHL franchise to Scope. Another group interested in bringing an AHL team to Norfolk also contacted the city, and sources say Cullen has turned down at least one offer to sell the team.
The decision apparently ends a tortured process that began in mid-February, when Cullen was approached by an ECHL general manager for what was thought to be a merger between the ECHL and the AHL.
As part of the merger, four ECHL teams, including Hampton Roads, would move up to the AHL. The four teams would not have to pay a transfer fee and would leave with the blessing of their ECHL brethren, with whom the enlarged AHL would have forged a working relationship.
A few weeks later, the story leaked to newspapers. By then it was clear that this was no merger, but an attempt by a handful of ECHL teams to engineer a transfer of the league's best markets to the AHL.
The AHL's first meeting with the ECHL clubs two weeks ago was acrimonious. The clubs were told that they would have to pay a $1 million entry fee, that they alone would be liable if the ECHL sued, that they would share in expansion fees for several years, and that they would have 36 hours to make a decision.
Cullen said he was shocked to hear those terms and requested that they be altered. He also asked for a 30-day extension of the the deadline. The extension was granted. Cullen mulled the idea of jumping leagues for several weeks before apparently deciding against it.
If Greensboro and Raleigh elect to remain in the ECHL, the league will have to approve the recent agreement for the Monarchs to purchase Raleigh. Such approval wouldn't be necessary if either team moved to the AHL.
That approval might be difficult to come by. Owners have claimed the Monarchs engineered the attempted move of seven teams to the AHL. Roanoke owner John Gagnon has accused Greensboro officials of ``trying to destroy the ECHL.''
In addition to Greensboro, Raleigh, Richmond, Roanoke and Hampton Roads, South Carolina and Charlotte have been courted by the AHL. Charlotte said it was moving to the AHL, then reversed course a few days later. On Monday, the Greensboro News and Record reported that Charlotte president Carl Scheer reaffirmed his commitment to the ECHL in writing. by CNB