DETROIT BUSINESS MAIN 03-19-07 A 9 CDB 3/15/2007 4:15 PM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Nonprofits must collaborate, consolidate The writing is on the petitor and made to play The sector is also facing a serious must own a significant piece of solu- al Alliance for Southeastern Michi- wall, researchers who nice. However, consider dearth of leadership. In fact, a re- tion. This will mean funding more gan brought together 70 arts organi- study nonprofits will tell the reality. Between 1977 cent Stanford Social Innovation Re- collaboratives (rather than compet- zations, and they now have a voice you. Today’s economic cli- and 1997 the number of view article estimates that over the ing agencies) and providing access in regional planning discussions. mate nationally is such 501(c)(3) and 501(c)(4) orga- next decade, nonprofits will need to to flexible capital — not just money, What nonprofits cannot do, how- that nonprofits across the nizations grew 115 per- find about 640,000 new executives to but resources and expertise. Help- ever, is continue clinging to histo- board need to do some cent, according to the book fill key positions — nearly 2½ times ing nonprofits improve leadership, ry or to turf. Instead, they must deep thinking about what The State of Nonprofit the number currently employed. expand operational capacity and value cooperation and creativity. it will take to survive in a America. The private sec- Today’s young professionals improve facility-management skills The future of the sector depends on sector that will look vastly tor grew 76 percent. look more favorably at private-sec- must be key elements. our ability to let go of the past so different in 2017. Ten years later, we are tor jobs or entrepreneurial oppor- Nonprofits can help themselves that we may realize true progress. There are 31,343 Michael Brennan seeing 30,000 nonprofits tunities than nonprofit work. Add by exploring ways to work together. For more information about 501(c)(3) organizations in Michi- created annually, while the private to that the challenge regional com- For instance, Gleaners Community what the United Way is doing, read gan, including nearly 12,000 in sector is contracting. Charitable panies have in recruiting workers, Food Bank and the Food Bank of about our Agenda for Change Wayne, Oakland and Macomb giving has increased from $103.7 bil- and the cause for concern is clear. Oakland County merged, and 1.5 process at www.uwsem.org. counties, according to the Urban lion in 1975 to $260.3 billion in 2005, Although imposing, these are million more pounds of food were Michael Brennan is president Institute’s Center on Nonprofits but has not kept pace with nonprof- problems are not insurmountable, distributed in Oakland County as a and CEO of the United Way for and Philanthropy. it expansion. but the grant-making community result. The recently formed Cultur- Southeastern Michigan. While competition drives inno- vation and promotes efficiency, an overcrowded field perpetuates

waste. We have too many players TrustNorthern Banks are members FDIC. © 2007 Trust Northern Corporation. chasing after the same ball. Some- thing has to give, because the vital- ity of our nonprofit network is es- sential to the health of our region. In response, funders are encour- aging more organizations to exam- ine collaborations and consolida- tion as a means of more efficiently tapping into the resources needed to serve their communities. Obviously, no one wants to feel forced into a sandbox with a com-

LETTERS CONTINUED ■ From Page 8 certain lifestyle and natural envi- ronment — yet because the law does not allow them to exclude uses, they will never really achieve what they want. Our home rule intention is to al- low municipalities to determine their own destiny. Yet the result from having so many different mu- nicipalities is that no one is really getting what they want. Not to men- tion, in a typical day most of us live, work, shop, receive an education, are entertained and travel in and through numerous municipalities. I don’t pretend to know the ulti- mate solution, but I’ve never rid- BRO ADENING PERSPECTIVES den a horse to the township office, and I have witnessed too much waste that results from an anti- quated organizational structure. We need to begin a discussion for change, and we need to start now. people who want people who want Deborah Schutt to expand their to expand Schutt & Co. investment options their horizons Bloomfield Hills Ask more questions Editor: Your account in “Focus: Law” re- lating to Agnes Auvenshine’s suc- cess in her discrimination case against the Troy School District (“A you question of discrimination,” March 5) falls short of what we should ex- pect of the fourth estate. You state If you want to optimize the numbers in your investment portfolio — and maximize the number of stamps in your the parties “negotiated a confiden- passport — Northern Trust will help get you there. Our investment approach starts with strategic asset allocation and tial settlement.” The Troy School includes multifaceted solutions such as alternative investments, enhanced indexing and multi-manager programs. District is a public agency. A public As one of the world’s largest asset managers, our clients look to us to deliver a comprehensive investment program agency should not be allowed to keep secret the terms of a settle- that drives their overall financial plan. So you can expand your portfolio as well as your horizons. To learn more about ment of a case where it was found our investment solutions, call Buell Cole at 248-593-9207 or visit northerntrust.com. guilty of a wrong by a jury. You should have insisted on knowing the terms, and thus told your read- ers, some of whom I am sure pay taxes to the Troy School District. Avern Cohn District Judge Private Banking | Asset Management | Financial Planning | Trust Services | Estate Planning Services | Business Banking U.S. District Court Eastern District of Michigan Detroit DETROIT BUSINESS MAIN 03-19-07 A 10 CDB 3/15/2007 4:16 PM Page 1

Page 10 CRAIN’S DETROIT BUSINESS March 19, 2007 Purchase of C&A plants gives Cadence building blocks

BY RHODA MIEL The companies did not disclose can grow faster through this (ac- CRAIN NEWS SERVICE which sites are involved in the quisition) than we were doing with sale, but said they employ 3,500. the organic growth alone,” he said. Nine Collins & Aikman Corp. injec- The agreement does not guarantee Cadence has $665 million in new tion-molding plants are about to that Cadence will end up with the business booked for 2006-11. That get a new lease on life, with a very C&A plants, spread through the work includes instrument panels familiar name in control. , Mexico and Canada, for General Motors Corp.’s Saturn Cadence Innovation L.L.C. an- Outlook, Buick Enclave and GMC nounced March 7 that it has signed but it makes the firm the lead bid- Jerry Mosingo, der in an asset auction. Acadia crossover utility vehicles. a letter of intent to buy the plants. president and The deal could give Cadence The C&A plants would allow Ca- Jerry Mosingo, Cadence’s presi- CEO, says he dence to build on that business, he wants customers some prime operations, Mosingo dent and CEO, formerly was presi- said. to understand said in a March 8 telephone inter- dent and CEO of C&A, and before “I need (customers) to under- Cadence is view. Some of the facilities have that oversaw C&A’s plastics busi- stand that Cadence will be stable, ness and molding for Textron Inc.’s stable and in won honors as the top manufactur- business for the that we’re in it for the long term, automotive trim division — which ing sites in North America. long term. that we’re going to be here years C&A bought in 2001. REBECCA COOK “This feels very good, that we from now,” Mosingo said. The proposed purchase marks a continued shuffling of the fates of Troy-based Cadence and South- field-based C&A. Cadence was created in 2005 out of the remnants of once-bankrupt auto supplier Venture Holdings Co. LLC, with private-equity backing led by Harbinger Capital Partners and Yucaipa Cos. Cadence quickly brought in Mosingo to run the business. As Cadence was coming into ex- istence, C&A filed for Chapter 11 protection from creditors in U.S. Bankruptcy Court in Detroit. The company now is selling off its hold- ings. Harbinger and Yucaipa have continued to support Cadence, Mosingo said, recently providing an extra $50 million in financing. The company plans to pay for the C&A purchase through external debt financing and increased equi- ty by existing shareholders. Despite its troubles, C&A has some strong products, including instrument panels, that will be “very good” for someone, said Jim Gillette, director of supplier analy- sis for CSM Worldwide, a Northville- based consulting group. “Cadence is probably a good fit for that business,” he said. And Cadence offers something that other private-equity backers do not have, said Jeff Mengel, a partner with Southfield-based A LAW FIRM UNLIKE ANY OTHER Plante & Moran PLLC: an experi- enced manufacturing team led by Mosingo that includes key execu- tives with a solid history in the auto-supply industry. “They certainly have a team in place to handle the size of an entity that would include C&A and Ca- dence,” he said. “It’s well-struc- tured to handle a lot more mass than they have been.” Customers know the company’s team, he said, and so do suppliers and employees. Mengel warned that if the deal goes through, it will not be a com- Uncommon Name. Uncommon Approach. Uncommon Value.™ plete repeat of the Textron or Collins & Aikman experience. He expects the firm to have to do some At Dykema, we’re different from the rest. We've been doing things restructuring, and Cadence has a unlike any other law firm for more than a century by helping clients different ownership structure as a private company than the public achieve strategic business results. Dykema — uncommon value. firms did. But it may offer the mix that automakers want to ensure long-term stability. California | Illinois | Michigan | Washington, D.C. www.dykema.com “In my mind, this is a lot less risky than having private-equity money come in that doesn’t have the manufacturing experience,” he © 2006 Dykema Gossett PLLC said. From Plastics News DETROIT BUSINESS MAIN 03-19-07 A 11 CDB 3/16/2007 10:29 AM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 11

REPORTER’S NOTEBOOK Kicking up interest Bill Shea writes about media, advertising, Many have tried and failed, but entertainment, the soccer moms and youth business of sports, leagues could finally give pro and Livingston and Washtenaw soccer sticking power in counties. Detroit. Page 16. Call (313) 446-1626 or Business of sports write bshea @crain.com Bill Shea Grand Prix, PGA push sales Despite the economic doldrums plaguing metro Detroit, two premier sporting events coming to the region are confident they will reach hospitality and sponsorship fund-raising goals. The Detroit Belle Isle Grand Prix, which returns after a six-year hiatus, is slated for Labor Day weekend and is at about 40 percent of its $6 million goal, said Bud Denker, the Penske Corp. senior vice president who is chairman of the race. The PGA Championship set for Aug. 4-10, 2008, at Oakland Hills Country Club in Bloomfield Township is at 49 percent of its $12 million goal, said John Handley, director of marketing and sales for the event, one of the four major tournaments in golf. “Sales have been strong in the first quarter and we are encouraged by the large number of companies that continue to show interest,” he said. A $500,000 hospitality package at the course sold recently, the SCOTT AUDETTE priciest one available. Handley Tigers scouting executives David Chadd and Dan Lunetta work to keep the flow of Tigers talent going from the minor leagues to the majors. said privacy agreements prevent him from saying who ponied up the half-million. A $450,000 location is still available. The Grand Prix is more modestly priced — hospitality packages start at $495 per person for small groups and go to $95,000 for a 100-person suite — but has less time to sell. But Penske’s Big-game hunters triumphant chairmanship of Detroit’s Super Bowl XL efforts will likely help sales. It also doesn’t hurt that he owns Penske Racing Tigers’ scouting execs look for diamonds in the rough and is a legend of the sport. “Roger has tremendous BY BRENT SNAVELY travel easier, Chadd said. credibility within the local CRAIN’S DETROIT BUSINESS Maybin, 20, the Tigers’ first-round TIGERS OF THE FUTURE? community,” Denker said. “He has pick in 2005, is a center fielder and The Tigers’ most recent first-round great confidence and or years the promising hitter who is playing were viewed as a team that draft picks, scouted by David understanding of how to put on a with Tigers starters in spring train- Chadd’s staff: race. Being in the race business as F had to buy major-league tal- ing this year. Miller, 21, the Tigers we are, we know how to do it.” ent to have a hope of fielding a de- first-round draft pick in 2006, is a 6- cent team. Cameron The Penske name helps in a foot-6 left-handed pitcher who won Maybin time when companies are wary of But now, the Tigers’ talent stock- numerous awards in college and will spending money on sponsorships pile is loaded for several years to play for the Tigers’ single-A affiliate Drafted: 2005 and hospitality. come, thanks in part to the work of in Lakeland this year. Position: Center “The environment we’re in is David Chadd and Dan Lunetta, two Several other young pitchers, in- field difficult,” Denker said. of the top executives charged with cluding Edward Campusano, Jor- Maybin The race — which is an managing the team’s talent finders. dan Tata and Virgil Vazquez, are (right), who American Le Mans racing event on “We’re just trying to do what we also at various stages of will be only Sept. 1 and an IndyCar Series race have done in the past,” said Chadd, development. Cam- 19 on Sept. 2 — is being organized and the Tigers’ vice president of scout- pusano, a pitcher , is promoted by the Downtown Detroit ing. “All we’re trying to do is to picked up in the ranked as the sixth- Partnership with backing from the keep that talent pool ongoing.” off-season, still best prospect in Penske Corp., Denker said. But, he said, spotting talent is as has a shot to play by . Penske is chairman of the much an art as it is hard work. for the Tigers, while Tata .304 for the West Michigan partnership. With the Tigers, Chadd oversees and Vazquez will play for Whitecaps last year and was named fastest baserunner Net proceeds from the weekend about 21 scouts and has been a part of the AAA in the league. will fund improvements to the 982- two drafts. The Tigers’ most recent this year. acre island, Denker said, which will two first-round draft picks — Lunetta, 51, Tigers’ di- host the race for the next five and Andrew rector of minor-league op- years. Miller — are widely praised and are Drafted: 2006 erations, said the flow of PHOTOS BY MARK CUNNINGHAM Sales efforts began in earnest expected to soon become stars. talent picked by the Position: Pitcher this month, Denker said, with local To find such talent, Chadd is on scouts helps to strength- Baseball America ranks Miller (left) as baseball’s and national companies targeted. the road about 200 days a year. He en the Tigers’ six mi- 10th-best prospect. Was a bit wild in a callup to the “We’re pleased with where we travels so much he doesn’t live in nor-league affiliates Tigers last September (walking 10 in 10 1/3 are, but we have a long way to go, Detroit, or even in Lakeland, Fla. he oversees. innings), but reportedly was considered for the and we’re looking for more help Instead, he lives in Wichita, Kan. team’s roster. along the way,” he said. Wichita’s central location makes See Scouts, Page 12 DETROIT BUSINESS MAIN 03-19-07 A 12 CDB 3/16/2007 10:27 AM Page 1

Page 12 CRAIN’S DETROIT BUSINESS March 19, 2007

FOCUS:THE BUSINESS OF SPORTS Scouts: Big-game hunters ■ From Page 11 “We’ve had pretty good (scout- built by Dombrowski are well-run. ing) success … in our minor-league “If you look at the teams that system,” Lunetta said. “It’s ulti- have been successful with young mately the players who will make pitchers, it is a very small hand- you successful … and our scouts ful,” Angus said. “The recent have done a good job in providing Tigers are clearly right there at or us with the players.” on top of the pile.” In January the Tigers an- Angus also said major-league nounced a two-year extension of teams must have well-run minor- their player development contract league teams to develop talent. with the Mud Hens. “In minor leagues, it’s not so The Tigers’ affiliation with the much about winning today; it’s all Mud Hens dates to 1987 — making it about building skill,” Angus said. among the longest-running in base- Lunetta praised the Mud Hens’ ball. The Mud ownership for Hens have won providing a great their champi- Baseball experts say stadium and onship two years marketing. in a row. Tigers President Dave Not all major- In the age league teams are of near-$200 Dombrowski located as close million year- as the Tigers are ly player pay- is known for to their affiliates, rolls, Andy Lunetta said. Be- Appleby, attracting cause the Mud chairman Hens are only an and CEO of and hour or so away, General Sports the Tigers can, if and Entertain- developing necessary, call ment L.L.C. in up a player in Rochester and talented staff. less than a day. owner of the mi- “It’s an ideal nor-league Fort Wayne Wizards, said set-up not only for the Tigers but scouting and talent development is also for the Mud Hens,” Lunetta the least expensive way to build a said. “I believe it’s as good as a re- team. lationship can get in this busi- “Particularly, if you are not the ness.” An extension to their player- Yankees or the Red Sox … you development contract ends in 2010. need to develop your talent,” Ap- The Tigers’ relationship with pleby said. “Suddenly it seems that their AA team, the Erie SeaWolves, at every level of their organization is a bit rockier. they seem to have a lot of good In the minor leagues, the major- prospects.” league team provides the coaches The , with a and the local owners provide the payroll of $196 million, have a pay- stadium and oversee marketing. roll that is almost twice the $102 In Erie, the stadium needs some million payroll of the Tigers, ac- work, ticket sales are down and cording to data gathered by Fox the team’s record has suffered, and Sports. The have a both sides of the affiliation are payroll of $136.9 million. working to improve, Lunetta said. Baseball observers trace the “We are very happy in Erie — Tigers’ talent pipeline back to 2002, their management does a very fine when Dave Dombrowski, who was job. … They are making some capi- executive vice president and gener- tal improvements to the facility al manager of the Florida Marlins in there, and I know the fan support the 1990s, became president, CEO has not been as strong as they and general manager of the Tigers. would like. But we also have to do Management consultant and for- what we can to provide a better mer baseball reporter Jeff Angus product on the field,” Lunetta said. said Dombrowski is known for at- The SeaWolves finished their tracting and developing talented 2006 season with a 60-81 record. staff. They are owned by Las Vegas- “There are a handful of teams, or, based Mandalay Entertainment Group. if you will, families in baseball Lunetta said the Tigers’ agreement known for producing talented scouts with the SeaWolves expires in 2008. and managers. The , “Ultimately, with that relation- for example, are known as a talent- ship … Erie management will have production base,” Angus said. “And to make evaluations on their own Dombrowski is another one of these as to whether we want the rela- who have generated a vast number tionship to continue to exist be- of management talent.” yond 2008,” Lunetta said. Both Chadd and Lunetta worked Still, Lunetta said the Tigers’ for the Marlins while Dombrowski overall minor-league operations was there and cited him as the are in good shape. main reason they joined the Tigers. The Tigers own the Lakeland Lunetta said he first worked Tigers, a single-A team and have af- with Dombrowski in the early filiations with the West Michigan 1980s and said there are a number Whitecaps, a single-A team; the of Tigers execs whose baseball ca- Oneonta Tigers, a single-A team; and reers intersected with Dombrows- the GCL Tigers of the Rookie-level ki’s before they came to the Tigers. Gulf Coast League. The Tigers’ “This is a very strong manage- agreements with West Michigan ment team,” Lunetta said. “It’s a and Oneonta don’t expire until 2010. group that has worked together for “I think the state of our farm an extended period of time.” system is much like the state of Angus said that the wealth of our major-league club,” Lunetta pitching talent the Tigers have de- said. “Things are going very well.” veloped shows that the scouting Brent Snavely: (313) 446-0405, staff and minor-league operations [email protected] DETROIT BUSINESS MAIN 03-19-07 A 13 CDB 3/16/2007 9:52 AM Page 1

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 13

FOCUS:THE BUSINESS OF SPORTS

SUITE SUCCESS A flagging economy may have made corporate suite renewals a tougher prospect, but Detroit’s sports venues say creative packaging and winning teams have kept interest high. What can you expect from the cushy digs on game day? We checked out the amenities, and price tags, of Detroit’s major sports arenas. Here’s what we found: Palace of Auburn Hills The Palace of Auburn Hills announced a $25 million plan to add a new north entrance and add eight luxury suites in October 2005, the same month Troy- based Delphi Corp. declared Chapter 11 bankruptcy. The news chilled local corporations’ willingness to spend money on corporate suites, said Dave Wieme, director of strategic communications for AW]ZKWUXTM\MÅVIVKQIT[WT]\QWV Palace Sports & Entertainment. 2OBERTô(ALFô)NTERNATIONAL WILLôHELPôYOUôkNDôTHEôOPTIMALôBALANCEôOFôTEMPORARY Flexible leasing PROJECTôCONSULTING ôANDôFULL TIMEôkNANCIALôRESOURCESôTOôMAXIMIZEôPRODUCTIVITYôANDô options, including half- PROkTABILITYôWITHINôYOURôORGANIZATION season or eighth- season deals, have kept The Palace’s 193 ôrôRHICOM

suites about 85 percent to 87 percent full on any given night, Wieme said. ILVBOññ/%&    Suites at the Palace range from $80,000 to $250,000 a year, with the new luxury suites demanding between $400,000 to $500,000 a year. That price !CCOUNTEMPS ô2OBERTô(ALFô&INANCEôô!CCOUNTINGôANDô2OBERTô(ALFô-ANAGEMENTô2ESOURCESôAREôTHE includes an allowance of $50,000 for food and $20,000 for tickets, a suite LEADERSôINôSPECIALIZEDôkNANCIALôANDôACCOUNTINGôSTAFkNGôFORôTEMPORARY ôFULL TIMEôANDôPROJECTôPLACEMENT ôRESPECTIVELY concierge, private restrooms, and four front-row Pistons and Shock tickets, as well as eight more seats in prime locations.

Comerica Park The Detroit Tigers’ trip to the World Series last year has helped keep the corporate suites at full. Only 1.5 of the 81 suites are still available for occupation or sharing 4%-0/2!29  02/*%#4  &5,, 4)-% between companies, said Scot Pett,

director of corporate suite sales and ×ñ ñ/L?BOQñ%>ICñ&KQBOK>QFLK>Iñ&K@ ññKñ"NR>Iñ,MMLOQRKFQVñ"JM services. The park’s Champions Club, a 3,500-square-foot super-suite that opened last year, is also sold out with a 20-name waiting list. Suites average $120,000 to $130,000 a year, and include 12 prime seats, three parking passes and private restrooms. Five of the suites are sold in ten-, 15- or 20-game packages. “It’s a lead generator for full- and half-season suites,” Pett said.

Ford Field Ford Field’s 132 corporate suites range from Explore advanced degrees $75,000 to $250,000 a and speak with program year and range in capacity from 12 seats to 50. Risa directors at Lawrence Tech’s Balayem, director of Graduate Open House communications for Ford March 28, 6 - 8 p.m. Field, declined to comment on how many Application fee ($50) waived suite-holders have during Open House. renewed their contracts for the ’ next season, but the team’s Web site said that a limited number of suites are available on all levels of the stadium. Suite-holders can expect a private entrance and elevator to the suite, as well as private restrooms and access to the stadium’s club lounges. A concierge is also on hand to tend to suite-holder needs during game time.

Joe Louis Arena Joe Louis Arena has renewed contracts for three corporate suites so far this year, but has 15 contracts set to expire before year-end. John Hahn, senior Your Future in the Making director of communications for You get more than just theories and equations at Lawrence Tech. the Detroit Red Wings, said that the booking You’re exposed to the tools and practical experience you’ll need department is working to realize your dreams. on nailing down renewals. The Wings continue to The goal is simple: To prepare you to not only compete be a strong draw, Hahn within an industry, but to lead it. said, and Joe Louis Arena has been successful at tailoring packages that have Lawrence Tech offers over 60 undergraduate 21000 West Ten Mile Road kept occupancy for the Southfield, MI 48075-1058 71 suites at a high master’s, and doctoral programs in Colleges of 800.CALL.LTU level. Architecture and Design, Arts and Sciences, [email protected] www.ltu.edu The suites average $125,000 a year, Hahn said. But amenities include 20 Engineering, and Management. Your Future in the Making tickets and two parking passes, private restrooms and membership in the Olympia Club. Single-game packages start at $4,500, he said. DETROIT BUSINESS MAIN 03-19-07 A 14,15 CDB 3/15/2007 4:27 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS March 19, 2007

FOCUS:THE BUSINESS OF SPORTS The numbers Detroit sports teams’ philanthro show what we give, but the faces tell Charitable arms raised more than $2.6M in ’05 BY SHERRI BEGIN CRAIN’S DETROIT BUSINESS GIVING GAME PLANS The economy may be stagnant, but fundraising by Charitable giving among Detroit’s sports teams is the whole story. increasing. Here’s a look at when it started and where Metro Detroit’s professional sports teams isn’t. The total amount raised locally by the teams increased the money is going. each year between 2003 and 2006. Detroit Lions Charities The Detroit Lions Charities, Pistons-Palace Foundation Founded: 1990. and Ilitch Charities for Children, which collects money through Detroit Tigers and Detroit Red Wings activities, Funds: Think Detroit PAL and the Detroit Lions PAL raised $2.1 million after event costs last year. Football League, which provide a playing forum for more than 2,500 Detroit children, and Communities in That’s nearly double the amount the teams brought Schools to support the Detroit Lions Academy, an in from local supporters in 2005. alternative middle school for 140 Detroit children. Excluding a $1.5 million grant from Major League The team also participates annually in the Detroit Lions Baseball Players Association to Ilitch Charities for Chil- Courage House Banquet, which raises about $75,000 dren for Detroit’s hosting of ’s for Pontiac-based Haven’s child-abuse prevention and All-Star Game in the summer of 2005, the three teams treatment programs. raised $1.08 million that year. Grants: 81 in 2006; nine of them to out-of-state groups “While our businesses are sports, and the results associated with the foundations of past and present generally are measured on game days, we all truly are team members. An additional $32,000 was spent in involved on community outreach on as large a scale as 2006 on events-related grants and on supplies for our resources and time enable us to be,” said Tim Pen- Hurricane Katrina relief. dell, senior director of community affairs for Detroit Lions Charities and the Detroit Lions. The Pistons-Palace Foundation “Every team in town really has a commitment to Founded: 1989 philanthropy and giving back to the community,” he Funds: Through its annual Bowling for Kids fundraiser said. and others such as the Breast Health Awareness Donations to the Lions’ and Pistons’ fundraising Campaign and Black History Scholarship tour, the arms have fueled the increases the past few years. foundation makes grants to local organizations including: , And they’re not alone. Sports philanthropy is on Matrix Human Services Michigan Humane Society, Orchard Lake St. Mary’s College and the the rise across the nation, said Greg Johnson, execu- Community Foundation for Southeastern Michigan for tive director of the Sports Philanthropy Project, a renovation and upkeep of metro Detroit parks. Bethesda, Md.-based nonprofit launched 10 years ago Grants: Of the foundation’s 25 grantees in 2006, six by the Robert Wood Johnson Foundation to help sports were out-of-state nonprofits that support children. The teams and foundations focus and improve their phil- money benefited organizations including the anthropic activity. Rehabilitation Institute of Michigan, Children’s Center, Wealthy team-owners are accustomed to corporate Mentor Michigan, The Beaumont Foundation and CATCH philanthropy in their professional lives, he said. But Charity for Children, Sampier said. owners have also “come to realize how to leverage their philanthropy in conjunction with the assets of Ilitch Charities for Children the team.” Founded: 2000 Philanthropy is, in part, a new marketing model, he Funds: Ilitch Charities has given out more than said, a model that also involves a generous impulse $20,000 in scholarships to young hockey players and and a “wonderful opportunity for (giving) and to di- funded nonprofits including the Coalition on Temporary rect that toward the community good and health.” Shelter, Junior Achievement Finance Park and the Detroit Lions Charities was founded primarily to Charles H. Wright Museum of African American History. support programs that benefit Detroit youth, such as Last year, Ilitch Charities brought back the Champions the Detroit Lions PAL Football League and the De- Challenge fundraiser and became the metro Detroit host troit Lions Academy. To raise money, the Allen Park- and beneficiary of Oscar Night America, which is based nonprofit holds an annual golf outing, a bocce sanctioned by the Academy of Motion Picture Arts and ball tournament, the Detroit Lions Kickoff Luncheon Sciences. The foundation held live and silent auctions in partnership with the Detroit Economic Club, and a during its inaugural TigerFest at Comerica Park Jan. 20. special ticket-package fundraiser associated with the Ford Senior Players Championship held in Dearborn. Since 1991 the team has increased the amount it Last year, we gave Detroit Lions Charities also raises money through gives out each year nearly tenfold, from $59,200 in the sale of Lions’ memorabilia and autographed items 1991 to $582,114 in fiscal 2006, Pendell said. financial support to 1,292 at www.nflauction.nfl.com. “The fans and sponsors have been very generous organizations that improve this community. We work here. We live here. We give here. Sporting events draw $2.5

BY SHERRI BEGIN Pointe resident Ralph Wilson Jr. ters the NFL builds with Boys & CRAIN’S DETROIT BUSINESS Boys & Girls Clubs of Southeastern Girls Clubs in other host cities Michigan expects across the country, Krichko said. Hosting high-profile sporting to open the $6 “To our knowledge, the Detroit events brought in more than $2.5 million National YET and Boys & Girls Clubs will be million in grants from / the largest such center built as a Su- sports organizations to Detroit the Youth Education per Bowl legacy,” Krichko said. past two years. Town Boys & Girls Detroit also pulled in $1.5 million For serving as the host city for Su- Club on the for hosting Major League Baseball’s per Bowl XL last year, Detroit pulled in Sandy and Dick All-Star Game in 2005. The grant a $1 million grant from the NFL Own- Dauch campus, represented a third of the proceeds ers Trust, which leveraged an addi- early in May, from the All-Star Game Workout tional $5 million in gifts, including Krichko said President Day held at Comerica Park, when www.comerica.com $1.5 million from American Axle & Man- and CEO Len Krichko. fans can come into the ballpark and Member FDIC. ufacturing Holdings Inc. Chairman and When complete, it will span 32,000 watch players practice, work out CEO Richard Dauch and $2.5 million square feet, double or triple the size and participate in other activities. from Buffalo Bills owner and Grosse of most of the youth education cen- Ilitch Charities for Children, the DETROIT BUSINESS MAIN 03-19-07 A 14,15 CDB 3/15/2007 4:28 PM Page 2

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 15

FOCUS:THE BUSINESS OF SPORTS hropy on the upswing '(-*(&$1$ '$1$A21..,3.&1.6(- /$.1 + and consistent over the years,” he paying spectators than expected said. “Every year there’s something for the “Ride for the Team” motor-

that helps us in terms of getting the cycle ride rally at Comerica Park   bottom-line up, whether it’s dona- that year due to poor weather, tions from coaches, players and Cullen said. staff or Hurricane Katrina relief or In 2005, Ilitch Charities again /     other one-time donations sources had to cancel the signature we’ve been able to identify.” fundraising game when it was un- The Pistons-Palace Foundation able to coordinate player sched- has raised more than $15 million ules in time, Cullen said. But it re-

for youth recreation and educa- ported an increase in the amount : tional initiatives and programs, it raised overall in 2005, thanks to  1.63' -&(-$.%.43'6$23 +.1(# said Paul Hickey, assistant direc- a $1.5 million grant from the Major tor of community relations. One of League Baseball Players Associa- -OSTPEOPLEARESURPRISEDTOLEARN     THAT#APE#ORALISSOBIG7ITHMORE its largest programs has funded tion for hosting the All-Star Game SQUAREMILESTHANSOMEOFOURNATIONgSBEST the renovation and maintenance that summer and the unexpected KNOWNCITIES SQUAREMILES TOBEEXACT of 33 Metro Detroit parks. opportunity to hold a special silent Last season the foundation held auction during “Detroit Salute,” .OTTOMENTIONTHAT#APE#ORALISTHETHFASTEST silent auctions of memorabilia and the black-tie event that kicked off GROWINGCITYINTHE53! WITHMORETHAN  RESIDENTSANDABUILT OUTPOPULATIONOFMORETHAN autographed items during home Super Bowl week in Detroit last       Pistons and Detroit Shock games year. That auction brought in and through the teams’ Web sites. $75,000, Cullen said. 4HE#APEISAYOUNGCITY MEDIANAGE

The first-year effort brought in It’s now putting more structure     !NDWELL EDUCATED $300,000, Sampier said. around the way it operates, Cullen 7ITHAGROWINGBUSINESSBASEINCLUDINGCOMPANIES Separate from the foundation’s said. Over the past two years, it has THATDOBUSINESSAROUNDTHEWORLD fundraising activities, the Detroit formed internal divisions, Detroit Pistons raised more than $200,000 Tigers Foundation and Detroit Red )SNgTITTIMEYOUTAKEALOOKAT#APE#ORAL

during the 2005 and 2006 NBA Play- Wings Foundation, to help it better  #ALLUSFORINFORMATIONONINCENTIVES REALESTATEAND offs by opening up the Palace for manage funding requests and bet- DEMOGRAPHICS PalaceVision while the team was ter organize its fundraising efforts. #APE#ORAL%CONOMIC$EVELOPMENT/FFICE on the road. The Pistons and In 2005, the organization hired        Shock worked with Palace Sports & Kim Haranczak, who had been de- ECODEV CAPECORALNETsWWWBIZCAPECORALCOM Entertainment to collect 305 tons of velopment and civic engagement food and supplies for Hurricane manager for City Year Detroit, to Katrina relief in 2005 and tapped manage its day-to-day activities players and staff to deliver it to the and oversee its fundraising events. affected regions. Last year, the organization The newest of the professional brought in an estimated $979,500, sports charities, Ilitch Charities up from just $164,021 in local gifts for Children hasn’t fared as well as in 2005. It distributed an estimated its peers the past few years. It saw $425,000 of that — up from distribu- revenue declines beginning in 2003 tions of $96,262 in 2005 — and made when it was forced to cancel its sig- commitments to distribute in 2007 nature fundraiser, the Champions another $330,000 of the amount it Challenge game with De- raised last year, Cullen said. troit Tigers alumni versus current Like the Detroit Lions, Pistons Detroit Red Wings players, due to and Shock, the Detroit Red Wings the hockey lockout. and Detroit Lions each year donate “We had a couple fundraisers memorabilia and autographed that didn’t go as well as we had items, regular tickets, suite tickets hoped,” said Karen Cullen, vice and player appearances to nonprof- ENHANCED DECISION president of corporate communi- its in the community for use in cations for Ilitch Holdings Inc. and a their own fundraisers. member of Ilitch Charities for Additionally, “there’s so much MAKINGFRESH THINKING Children’s board of directors. good that our teams and players do The nonprofit was unable to in terms of visiting hospitals and hold the fundraiser again the fol- volunteering,” Cullen said. ACCOUNTABILITY FOR SUCCESS lowing year or to schedule player “And you can’t always put a val- appearances at other events such ue on that.” as golf outings, due to the hockey Sherri Begin: (313) 446-1694, IMPROVED PERFORMANCE lockout. And it pulled in fewer [email protected]

Business leaders require judgment that cannot be gained from books or consultants. TEC Detroit is a CEO membership organization that enables you to benefit from the wisdom and experience of other CEOs. TEC mentors clarify the vision so you not only set, but follow through 2.5M in grants on goals. TEC resources provide critical detail just when you need it most.

nonprofit that received the MLB League Baseball which was to TEC Detroit is not for every CEO. Is it right for you? gift, has delayed making grants leave a lasting legacy.” from the money while it organized The National Association Call us now and find out. the Detroit Tigers Foundation, an in- helped to fund a “Live, Learn and ternal division that will oversee Play Center” in Southeast Michigan grant requests and distribution. with the Detroit Pistons in 2004 and “I would expect that early this again in 2005 when the team made it year we would begin going ahead into the playoffs, said Dennis Sampi- and making some of the grants,” er, director of community relations Karen Cullen, vice president of for the Pistons-Palace Foundation. corporate communications for Il- The centers, built in conjunc- itch Holdings Inc., said. tion with existing schools, include 586-443-5880 www.tecdetroit.com There could be several grants, new books, furniture and new “but I can’t rule out that it could be technology such as computers, and just one grant,” she said. typically cost about $20,000 to An Affiliate of Vistage™ International The World’s Leading CEO Membership Organization “We would like to make sure it $40,000 each. This month the team truly does meet the goal of Major planned to open its 12th center. DETROIT BUSINESS MAIN 03-19-07 A 16,17 CDB 3/15/2007 2:50 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS March 19, 2007

FOCUS:THE BUSINESS OF SPORTS Kicking up interest Ignition may succeed where others have failed — making soccer a must-watch sport

BY BRENT SNAVELY running teams. CRAIN’S DETROIT BUSINESS The Rockers were members of the National Profes- sional Soccer League 1990-2001 and played at Cobo Are- he Detroit Ignition are nearing the end of their na, Joe Louis Arena, The Palace of Auburn Hills and first season, but have high hopes that they will finally at Compuware Sports Arena, but folded after PHOTO COURTESY OF DETROIT IGNITION T do what others couldn’t: make professional soc- attendance declined and the league was restructured The Detroit Ignition’s Jonathan Greenfield (in red) plays Dec. 16 in a game cer a must-watch sport in Detroit. with fewer teams. against defending MISL Champion . The Ignition won 15-4. As of March 11, the Ignition had a record of 15-10 This time, Hantz said, it’s different. Soccer has be- and were just a half-game out of come a preoccupation for parents who regularly shut- PRIMER first place in the Major Indoor Soccer League. By the end of February the tle their kids to weekend soccer matches and families The Detroit Ignition are in their first year as an expansion team in the represent a lucrative new audience for professional Westport, Conn.-based Major Indoor Soccer League. team had sold out the 3,500-seat Compuware Sports Arena in Ply- league games. Launched in August 2001, the six-team MISL is owned by a group of investors “To me, a lot of soccer has been driven by the soccer who participate in a management committee and serve as team operators. mouth for seven of its 12 home The 23-week season begins in November and ends in April. games. enthusiasts, as opposed to the kids who just wanted to see it and have fun,” Hantz said. “To me that’s the The game is played on artificial turf on a field typically the size of a hockey For team owner John Hantz, the rink, which is surrounded by dasherboards and Plexiglas with the goals sellouts and fan response show that market that nobody has gone after.” receded into the end boards. Detroit is finally ready to embrace One advantage the Ignition have, Hantz said, is America’s first generation of soccer players and fans As in hockey, teams can substitute multiple players at almost any time and and support professional indoor Hantz penalties can cause a team to sacrifice a player for two minutes, creating soccer. are now parents of America’s second generation of soc- power plays that are also similar to hockey. Each team has a maximum of six Hantz, CEO of Hantz Group, a Southfield-based finan- cer players. players on the field. cial services company, knows that indoor soccer has And families are supporting the team. A half-hour Most goals are worth two points, but goals scored from more than 45 feet failed several times before in Detroit. before a home game in January, traffic on Beck Road away from the goal are worth three points. Over the years there have been at least seven pro- was backed up waiting to get into Compuware Arena’s Teams often score 10 to 20 points per game and the high scoring potential fessional soccer teams in Southeast Michigan. The De- parking lot. From there, a sea of moms, dads, teenagers means that momentum can swing quickly from one quarter to the next. troit Wolverines/Pioneers appear to be the earliest, back and toddlers rushed towards the stadium. Once inside, Sources: MISL guidebook, MISL and Detroit Ignition Web sites. in 1946, and the Detroit Rockers were one of the longest- See Ignition, Page 17 DETROIT BUSINESS MAIN 03-19-07 A 16,17 CDB 3/15/2007 2:51 PM Page 2

March 19, 2007 CRAIN’S DETROIT BUSINESS Page 17

FOCUS:THE BUSINESS OF SPORTS Ignition: Team has drawn sell-out crowds and avid fans ■ From Page 16

fans screamed as the Ignition took Kixx. scout players who may want to he assembled about 20 sponsors sorship and is convinced the mon- on the rival Philadelphia Kixx. Bob Lilley, who is a soccer coach play this summer for the Vancouver and landed Realtor Lee Bittinger ey was well spent. Hantz also owns Hantz Group Rac- in a different professional league, Whitecaps in the United Soccer as the Ignition’s lead sponsor. “First of all, soccer is very popu- ing, a stock car team that sponsors said Bibb has a proven track Leagues, said he is impressed with Bittinger and his wife, Noel Bit- lar in the western Wayne suburbs, a driver in the Automobile Racing record. what the Ignition have accom- tinger, are brokers and owners of and it’s popular with kids and fam- In his two-plus seasons in Club of America racing series, and plished in their first season. ReMax Classic with seven offices in ilies,” Bittinger said. Philadelphia, Bibb’s leadership “Look around here,” he said said he has applied business prac- “My first impression is every- metro Detroit. produced a 40 percent increase in during the third quarter of a Janu- tices he learned from owning a rac- thing about the product on the Bittinger’s sponsorship package ticket revenue and a 130 percent ary game. “It’s mostly kids and ing team to the Ignition. In ARCA, field and the game presentation is includes a billboard around the drivers are often accessible to the growth in the club’s youth soccer women, and our business is selling first class,” Lilley said. “There is dasher boards at midfield and in fans and corporate sponsors for ap- camp program, as well as an in- homes, so our business is working no resemblance to an expansion- the goals in the end zone. pearances and autograph signings. crease in corporate sponsorships, with families.” according to a league press release. league team.” Bittinger says he spent tens of Brent Snavely: (313) 446-0405, “One of the first things for me Lilley, who was in Plymouth to For its first season, Hantz said, thousands of dollars on the spon- [email protected] when I talked with the commis- sioner,” Hantz said, “is, ‘Are you going to let us do that? Are you go- ing to let us take the fan and allow them to be part of it?’ ” Halftime at a January Ignition game was jam-packed with enter- tainment that included an appear- ance by the Ignition’s dance team, fans participating in a goal-scoring contest, a high school cheerlead- ing squad and a short youth soccer game. Team President Greg Bibb said that while the Ignition’s dance team exudes sex appeal and makes appearances at local bars to gener- MERCHANT SERVICES ate awareness, the Ignition is care- ful to make sure that “it’s not over- the-line entertainment.” The Ignition’s has ap- NEXT-DAY SETTLEMENT OF SIX-MONTH TERMINAL RENTAL – FREE peared at school assemblies, and FUNDS FOR CREDIT CARD the players are also taking part in community events. TRANSACTIONS DEDICATED BUSINESS BANKERS Hantz said he underestimated WHO COME TO YOU the demand for player appear- NO APPLICATION FEE ances. “We could have these guys out 10 times a week,” he said. Hantz said community involve- In business, having a partner you can trust is imperative. Charter One Merchant Services™ ment and finding ways to give fans access to the players helps to build is that partner. And right now, business checking customers who sign up for Merchant fan loyalty, and that in turn leads to season-ticket purchases critical Services get a six-month terminal rental – free. Plus, you can start earning Everyday Points™ to creating a profitable sports fran- chise out of the Ignition. Even so, Hantz projects that the team will toward some great rewards right away. To learn more, visit your nearest branch, go to not be profitable until its third sea- son. To get there, Hantz said he charterone.com/merchantservices or call 1-877-431-2540. needs to boost the Ignition’s sea- son-ticket holders from about 550 this season to about 1,500. “We’ll probably spend over a couple million dollars this year and bring in $1.5 million plus (from) ticket sales and sponsors,” Hantz said. “And we will probably lose about $1 million.” If your business relies on funds Still, Hantz is excited about the Ignition’s chances. Hantz paid being there tomorrow, we’re about $1.5 million to purchase two shares of the league, giving him the right to start the Ignition and a the people to rely on today. second team, after attending a Chicago Storm game in Chicago. To- day, Hantz said, the league is charging $3 million for one addi- tional share. Each share gives the sharehold- er the ability to operate a team. Eventually, Hantz said, he plans to establish a second team on the west side of the state, possibly in the Grand Rapids area. And, Hantz said, Bibb improves the Ignition’s chances of being suc- cessful in Detroit. Before Bibb joined the Ignition in September Member FDIC. See a banker for details and funds availability. All accounts and services subject to approval. Offer available only to new-to-Charter One Merchant Services merchants who have a Charter One business checking account. Standard rental 2005, he was executive vice presi- agreement is required. Six-month period begins when contract is entered. Offer subject to terms and conditions set forth in Charter One Merchant Services terminal rental agreement and is available through April 13, 2007. Contract must be signed by dent and general manager of the April 30, 2007. SBA ranking based on number of approved SBA loans from October 1, 2005, through September 30, 2006, for SBA’s defined Midwest region 5 (Illinois, Indiana, Ohio, Michigan, Minnesota and Wisconsin). Loans subject to approval. DETROIT BUSINESS MAIN 03-19-07 A 18,19 CDB 3/15/2007 5:05 PM Page 1

Page 18 CRAIN’S DETROIT BUSINESS March 19, 2007

FOCUS:FINANCE A conversation with Comerica’s new Michigan chief Buried in the aftershock of Com- watch the youngest commodore in the histo- lights of their conversation: or that might have worked better. erica Inc.’s announcement on Tigers in what ry of the Grosse Pointe Yacht Club. All things considered, I think we March 6 that it was moving its was then called He is on the board of the Detroit Zoo In hindsight, given the strong reac- did a pretty good job. There are headquarters to Dallas was that it Briggs Stadium. and has served on several other tion to the announcement, do you feelings related to this. All of us had created a new position of pres- He graduated boards over the years, including wish that in addition to the press re- had strong feelings. Should we have put Tom Ogden ident of the Michigan market and from Michigan the Coalition on Temporary Shelter. lease that went at 6:30 a.m. that you’d out there quicker? It’s a fair ques- appointed Tom Ogden, a lifelong State University In addition to his new title, Og- also scheduled a press conference for tion. We thought letting some time area resident. with a market- den will retain his old one as direc- maybe 10:30 a.m. to say, “Michigan is pass and letting some of the emo- Ogden, 58, was born in Detroit ing degree in important to me and it’s important to tor and as executive vice president tions go out of it was a fair way to and has fond memories of riding 1971, the same for global corporate banking. He Comerica”? Ogden go. electric buses downtown with his year he joined talked for 90 minutes Thursday I think the plan we executed was grandmother to have chicken pot Manufacturers National Bank. A re- about what’s ahead for Comerica a pretty good plan. No matter what Was the depth of feeling a surprise pie and layer cake at the restau- sixdent of Grosse Pointe Farms, in in Michigan with reporter Tom you do, there will be people who to you? I suppose in a way it was a trib- rant at Hudson’s, and of going to 1991, at the age of 42, he became the Henderson. Here are edited high- say this might have worked better ute to how well you folks had market- ed yourself over the years as the hometown bank. ©2007 Authorized Mercedes-Benz Dealers None of us were surprised that there was an emotional response: Anger, hurt, abandonment. I was surprised at the degree. I expected the needle to move, but it moved Weatherproof your family. farther than I thought, and I’ve lived here my whole life. Contrary to what people may think, Ralph (Babb Jr., Comerica’s The complete line of Mercedes-Benz SUVs. chairman and CEO) sweated this. He did not take it lightly. There was concern for all the constituen- cies. It was thought about and real- ly reflected on ... I think Ralph showed leadership. He didn’t shrink from the consequences. I met last week with a former local bank CFO who said that once Comeri- ca management gets to Texas, the op- erations and information-technology departments would be sure to follow. Any comment? These operations are here in Michigan and they’re staying. We do all the data processing for Cali- fornia, Arizona, Texas and Florida here, now. All of that’s here, and, frankly, there’s no reason for us to move it. There’s no advantage to be gained. We’ve got 2,000 in the Livonia Operations Center and 2,000 at our IT facility, the Auburn Hills Operations Center. The ex- pense of picking them up and mov- ing them would be humongous. That’s a technical term. Morale among Comerica employees took a pretty big hit Tuesday, too. How do you plan to address that? Part of it is to be visible. Just be- ing there, telling them and rein- forcing for them that there isn’t

another shoe to drop. We all have } 4MATIC 4-WHEEL DRIVE feelings. I can’t deny it and tell peo- ple not to be sad. People are going Electronic Traction System sensors continually monitor grip to feel what they feel. But you have to focus on what Comerica was and balance power to all four wheels as needed, providing and is, and that what it will be is going to stay the same. enhanced traction in any type of weather. I was in Jackson yesterday and there were probably 100 employees Unlike any other. in the audience. There was a Q&A and people asked me a few polite This season, outfit your family in a brand new Mercedes-Benz SUV. Each one equipped with questions. And I said, “OK, who’s The Mercedes-Benz R-Class, standard 4MATIC™ 4-wheel drive to help protect you in the harshest of driving conditions. Like going to be the one to ask, ‘It’s 200 G-Class, M-Class, GL-Class With the ML350 with its 5-star crash safety rating,* the 6-passenger R350 with seven climate jobs today but will it be 2,000 to- morrow?’ No, it won’t be. There Standard 4MATIC 4-Wheel Drive control sensors, the legendary, rugged G 500 and the 7-passenger GL 450 with uni-body will be no other shoe to drop.” And construction for a smooth, sedan-like ride. Think of it as one family looking out for another. what was nice was having some- one come up to me after and say, “It was good to meet you. You’re one of us.” Special Rates available to DCX employees You’ll be making the rounds, then? I’ll be in Auburn Hills next week Mercedes-Benz of Bloomfield Hills Mercedes-Benz of Novi Mercedes-Benz of Rochester talking to them and in Lansing the 36600 N. Woodward Ave. 39500 Grand River Ave. 595 S. Rochester Rd. week after. (248) 644-8400 (866) 524-9094 (248) 652-3800 The Western market has had a pres- ident, the Texas market has had a 2007 models shown with optional equipment. G-Class additionally equipped with standard manual locking differentials. Delayed availability for Model Year 2007 G-Class. See dealer for details. *Government star ratings are part of the National Highway Traffic Safety Administration’s (NHTSA’s) New Car Assessment Program (www.safercar.gov). For more information, call 1-800-FOR-MERCEDES, or visit MBUSA.com. See Ogden, Page 19