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| Tom Golisano (Photo: Mark Dellas) |
B. THOMAS GOLISANO
Owner
It is said that the right man at the right time can make all the difference. This is perhaps nowhere more evident than the remarkable journey of the Buffalo Sabres and Tom Golisano.
The 2002-03 NHL Season was a dark time for Western New York hockey. The Sabres were floundering both on and off the ice. The team was mired in 29th place and had not made the playoffs in two years. Off the ice matters were even worse. The franchise was a financial wreck, operating in bankruptcy against a backdrop of limited fan support. A sense of defeat had set in, and the organization lacked the confidence and leadership needed for resuscitation. Further darkening this picture was a looming work stoppage and state of the NHL game itself.
This was the state of the Sabres in April 2003. Things certainly have changed.
Golisano knew the importance of what the Sabres meant to the community, and he immediately began shaping the organization using the management and leadership skills that have made him one of the most successful businessmen in North America. In the four seasons since Golisano purchased the Sabres, fans have flocked back to HSBC Arena in record numbers as the Sabres have become one of the most exciting teams in the NHL. Buffalo came within one win of the Stanley Cup Finals in 2006, and followed that up with a Presidents’ Trophy in 2006-07, and a return trip to the Conference Finals.
In the process, names like Miller, Vanek, Roy and Pominville have evolved from Sabres prospects to NHL stars. All four players were drafted by General Manager Darcy Regier, who is entering his 12th year as General Manager, and is considered to be one the sharpest minds in the game. Golisano recognized Regier’s value and commitment to the organization by signing him to a two-year contract extension in September that will keep him in Buffalo through the 2010-11 season.
Off the ice, season ticket sales have climbed to an all time high of 14,800 from a low point of 5,800 three years ago, along with a waiting list of several thousand. Buffalo sold out 39 of 40 home games last season, after selling out all 41 regular season home games and all nine playoff home games in 2006-07, a feat not achieved since 1970-80 in the old Memorial Auditorium. While Sabres tickets have become a hot commodity in Western New York, sales of Sabres merchandise remains among the best in the NHL, dating back to the launch of the team’s new uniform scheme in 2006. That trend is expected to continue this year, as the Sabres’ debuted a new third jersey in September that drew rave reviews from fans at its public debut.
Sabres fans were able to show their passion to a North American audience on January 1, 2008, as Buffalo played host to the NHL Winter Classic. The outdoor New Year’s Day game between the Sabres and Penguins drew an NHL-record 71,217 fans to Ralph Wilson Stadium in Orchard Park, NY. In addition, NBC’s television ratings were the highest for an NHL game in 11 years.
The Sabres are now financially stable. Although challenges remain, the fact that the team has operated in the black for the past three seasons shows hope for future sustainability in Western New York.
Sabres management continues to retain the young core players that many observers believe will keep the team competitive for years to come. This off-season saw the Sabres avoid impending free agency with goaltender Ryan Miller (28) and right winger Jason Pominville (25), by signing them to five-year contract extensions while each player was in the final year of their current deal. They join Thomas Vanek (24), who led Buffalo’s with 36 goals last season while in the first year of his seven year deal; and Derek Roy (25), who is entering the second year of a six-year contract after leading the team in scoring with 81 points last season. Rather than sign players to shorter-term contracts as he had done in the past, Golisano adjusted his business practice to stay competitive in the NHL’s new economic landscape.
This didn’t happen by accident. It was the result of careful planning and the infusion of the Golisano entrepreneurial spirit.
Golisano is often fond of challenging the management team of the Sabres with the question, “What are we doing to differentiate ourselves from our twenty nine competitors?” That single question and Golisano’s determination has framed the whole approach and plan of the new Sabres.
Although the Sabres approach may seem counter-intuitive at times, it reflects the Golisano philosophy of differentiation. The Sabres cut prices but increased revenue. Contrary to a popular outcry to fire the coach and general manager, Golisano retained both and extended their tenure. The hockey department reduced the live coverage of its scouting department but doubled the number of reviewed games through video technology. Despite the need for a makeover, the team reduced its focus on trading players and committed to develop drafted players and those already in the system. Although the team facilities were relatively new, updates and changes were in store. The arena has undergone major renovation; player facilities have been completely overhauled. A philosophy of patient development and accountability was employed, utilizing existing coaching staff and, with a few key additions and subtractions, many of the same players together with the organization’s youthful prospects. A particular emphasis was placed on the development of the franchise’s minor league prospects by hiring a full-time strength and conditioning coach and goaltending instructor for their AHL team.
Golisano’s influence has been felt at the league level as well. Since taking ownership of the Sabres, Golisano has become a strong voice on the NHL’s Board of Governors, encouraging rule changes to open up the game and permit league’s best players to showcase their world-class skills. Golisano was also behind a couple of experiments designed to make the game more fan and media friendly. During the 2004-05 lockout, HSBC Arena played host to a pair of Rochester Amerks game using blue ice to see if this would allow the ice to show up better on television while making it easier to see the flow of the puck. The Sabres also designed enlarged bowed nets to facilitate scoring in a league that had seen goal scoring decrease significantly in previous years.
Before hockey, Golisano founded Paychex, Inc., a leading national provider of payroll, human resource and benefits solutions for small- and medium-sized businesses. Golisano started Paychex in 1971 at the age of 30, with the intention of primarily serving small businesses. What started as a single operation expanded through franchise agreements and joint ventures until Paychex consolidated into one private company in 1979. By 1983, when Paychex became a public company, the potential of the small-business market had been proven, and Paychex had been named to the INC. magazine list of “The Fastest Growing, Privately Held Companies in the U.S.” Since then, Paychex has regularly enjoyed double-digit growth.
Golisano demonstrates ongoing generosity and commitment to the greater Rochester community, home of Paychex corporate headquarters, and other organizations in Upstate and Western New York. In 1985, with an initial gift of $90,000, he launched his first philanthropic endeavor by establishing the B. Thomas Golisano Foundation. Today, with assets of $25 million, the Foundation awards grants to organizations dedicated to providing opportunities for those with developmental disabilities and offering support to their families. Since then, Mr. Golisano's philanthropic contributions have totaled approximately $100 million. Some of these gifts have included:
In September 2007, Golisano donated $10 million to Rochester Institute of Technology (RIT) to create the Golisano Institute for Sustainability. The Institute, one of the first of its kind in the nation, focuses on research and education in sustainable design, pollution prevention, remanufacturing and alternative energy development. Establishment of The Golisano Institute for Sustainability is consistent with Golisano's ongoing support of the William J. Clinton Foundation. Golisano is a sponsor of the Clinton Global Initiative.
In November 2006, Golisano contributed $750,000 to the Veterans Outreach Center of Rochester, NY. The gift will be used to create the Charles P. Golisano Campus in honor of Golisano's brother who was killed in the Korean War. In October 2006, Golisano donated $1.5 million to Mercy Flight Central of Canandaigua, NY, helping to kickoff the drive to purchase a new Mercy Flight helicopter. In March 2006, he made an unprecedented $6 million gift to Our Lady of Mercy High School and Bishop Kearney High School. The gift represented the largest donation ever received from an individual or family by either private school located in Rochester.
In August 2005, Golisano pledged $100,000 towards the opening of the Lion’s Den room at Women & Children’s Hospital in Buffalo. Only the second of its kind in the country, the room is designed as a place for children to find relief from the stress of having a serious illness or injury while they are in the hospital. Golisano and former Sabres captain Pat LaFontaine were significant donors to the $300,000 project, with some of the money coming from the 2004 Companions in Courage celebrity hockey game held at HSBC Arena.
In November 2005, Golisano donated $6 million to the Central New York Children’s Hospital at University Hospital, the largest gift ever from an individual donor in SUNY Upstate history. In January 2004, Golisano contributed $2 million to WXXI Public Broadcasting in Rochester. The gift will help WXXI meet the federal mandate to begin digital broadcasting.
Golisano makes his home in Victor, N.Y.