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Capitals Sold to AOL Billionaire by Jason Sheehan, Washington Correspondent Seventy-five-year-old Abe Pollin knew the day would come when he would sell the Washington Capitals. That day came Wednesday, May 12. Pollin didn't want the hockey team he and the NHL established in 1974 to be split into pieces when he dies. His goal was to avoid the trouble the Washington Redskins have gone through recently resulting from the death of longtime owner Jack Kent Cooke. Pollin, though, didn't want to sell part of his sports empire to just any man with deep pockets. His No. 1 priority in selling the team was not for his own financial security. Money isn't everything, Pollin theorized. He wanted to find someone who shared his passion and love in owning a professional sports franchise. "I wanted to make sure that the Capitals would stay in Washington and would be an integral part of the community," Pollin said at the press conference that announced the sale last Wednesday. "I also wanted the Capitals to win. This man will make that happen." This man is Ted Leonsis, the 42-year-old President of AOL Studios whose net worth is estimated at about $1 billion. Leonsis, who grew up as a sports nut in Brooklyn, N.Y., owns season tickets behind the visiting team's bench at MCI Center. To Pollin's delight, these tickets are not for sale: Leonsis plans on using them again next season. The owner's private box will be used by young members of his family. "I am very excited and pleased to take the reigns for this great franchise, and we are honored that Mr. Pollin has chosen us to be his partners," Leonsis said. "It is certainly a dream come true to own a professional sports franchise in the Nation's Capital. Mr. Pollin and I share the belief that sports are a local community trust and that the fans are at the heart of everything we do. I hope to carry on that tradition. Not many people have owned franchises as long as Abe and I'm looking forward to being mentored by him." The sale likely will be finalized by the NHL next month, according to Commissioner Gary Bettman, who doesn't foresee any problems with the transaction. According to sources, the team was sold from between a range of $150 to $200 million. Figures will not be made official until the end of June. The Leonsis group is comprised of Leonsis, Washington entrepreneur Jonathan Ledecky, 41, and Capitals President Dick Patrick. Leonsis will own 60 percent of the team, Ledecky will possess 30 percent and Patrick will own 10 percent. Leonsis will not be quitting his day-job at AOL Studios. To help balance his workload, he has appointed Patrick to oversee the daily operations of the club. Besides owning the Capitals, the Leonsis group has purchased minority shares in MCI Center and the Washington Wizards of the National Basketball Association. Pollin, who insists he's not retiring yet, will give Leonsis the first crack to buy out all of his assets in Washington Sports, which consists of the Wizards, MCI Center, USAirways Arena, Ticketmaster and the management of the Patriot Center in Fairfax, Va. For now, the Capitals are a separate entity and have split from Washington Sports. Leonsis wasn't Pollin's first choice to buy the Capitals. Pollin initially wanted to keep the Capitals in his family. He offered the team and a minority interest of Washington Sports to his two sons, Robert and Jimmy. However, neither wanted to join the family business. Both are satisfied with their current occupations. Robert is an economics professor at the University of Massachusetts at Amherst; Jimmy runs a travel agency that charters cruise ships for conventions "I watched what happened to the Redskins, and I did not want that to happen to my teams, and I did not want my family, our fans or this city to go through that kind of process," Pollin said. "The decision to sell the Capitals came after extremely difficult and painstaking consideration. I deliberated for months, consulted my family and finally came to the determination that the time was right and the future owner - a man I have come to know very well - was the kind of person I felt would take good care of this franchise." Leonsis Reveals Early Plans Leonsis' first priority as owner is to increase the Capitals fan base. To accomplish this task, Leonsis will change the structure in which tickets are sold. Leonsis realizes selling tickets to first-time fans is tough, because the sport doesn't translate well on television. But it is his belief that people will love the sport once they get a chance to see it in person. Expect Leonsis to use his experience at AOL to help sell tickets. Just about everyone in America received diskettes and CDs from AOL that included a trial membership. This marketing strategy helped AOL's consumer-base skyrocket from 800,000 to eight-million members during Leonsis' three-year tenure leading the AOL Services Company. A similar plan geared to increase ticket sales is expected to be used for the Capitals. Leonsis' name and reputation, however, has not translated to immediate success at the box office. He called the ticket office on Thursday and asked how many tickets had been sold since the sale of the team was announced. The answer? None. Leonsis said he intends to speak to every season ticket holder. He wants to hear negative and positive feedback in order to learn how he can best accommodate each client. Leonsis also wants all season ticket holders to feel like they own something more than 41 game tickets. Instead, he wants season ticket holders to feel like they own a piece of the franchise. Of course, the only way to fill an arena is by icing a winning team. Winning was something the Capitals lacked this season, following a year in which it appeared in the Stanley Cup finals with a mark of 31-45-6. Obviously, the Capitals missed the playoffs, which will make the task of selling more tickets for next season harder. A winning team is likely the only formula that will bring people in droves to MCI Center to watch the Capitals next season. However, before that happens, the roster will need to be bolstered with proven talent. Leonsis hasn't discussed any plans to sign unrestricted free agents such as Colorado's Theo Fleury and former Capital Joe Juneau. However, general manager George McPhee said in a recent interview that aired on CBC that he will be meeting with Leonsis this week to discuss the direction the club will take with signing players this summer. Leonsis has indicated that McPhee and coach Ron Wilson will return next season. Out With The Old, In With The New Leonsis will build the Capitals a new practice rink close to MCI Center. The Capitals currently practice at Piney Orchard in Odenton, Md., which is located between Washington and Baltimore. The 10-year-old facility was once considered a state-of-the-art complex but is now outdated by NHL standards. Booking ice-time for practices is one problem the Capitals have had at Piney Orchard. McPhee also attributes part of the 511 man-games lost to injury this past season - an unofficial NHL record - to the poor conditions at Piney Orchard. A new practice arena would help the Capitals get closer to their fan base in Washington. Leonsis also hopes a move in practice venues will result in players buying homes closer to the District. Most players currently reside near Odenton. Leonsis also must address the ice problems at MCI Center. The arena, which opened in December 1997, has one of the worst ice surfaces in the NHL. Fans often blame puddles, bouncing pucks and injured players to the hot temperatures in the building. Unlike USAirways Arena - the Capitals' last home - MCI Center has air-conditioning. Leonsis must learn the simple rule that Washington Sports failed to follow: Ice and 72-degrees do not mix. Although MCI Center houses a basketball team and hosts concerts, fans agree that freezing the building the moment the last patron leaves the arena during hockey season would be beneficial in improving the quality of the ice. A professional should be hired by Leonsis to survey and fix the ice problems at MCI Center. Quality ice at MCI Center would definitely save coach Ron Wilson from many sleepless nights as he tries to patch together a lineup in his unconscious mind that is missing an average of six players per game because of injury.
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