Internal probation, a board-ordered $100,000 donation to a new animal welfare foundation and 1,000 hours of community service work were not enough to quell public outrage on social media about Centerplate CEO Des Hague’s beating of a dog in a Vancouver elevator.
On September 2, the sports venue catering giant with more than 300 clients in North America and Europe announced that Hague had resigned as CEO and was immediately replaced by COO Chris Verras, who became acting CEO. In a news release chairman Joe O’Donnell acknowledged the reaction of the public and others to Hague’s conduct on a surveillance video recorded July 27 at the Residences at the Hotel Georgia.
“Following an extended review of the incident involving Mr. Hague, I’d like to apologize for the distress that this situation has caused to so many; but also thank our employees, clients and guests who expressed their feelings about this incident,” said the news release. “Their voices helped us to frame our deliberations during this very unusual and unfortunate set of circumstances.”
Hague, the former IHOP president, became Centerplate’s top executive in 2009 after the $210 million takeover by Kohlberg and Co. Three years later, Olympus Partners took over for $550 million.
No other story emanating from Vancouver about someone integral to the business of sport has had so much traction or drawn so much international attention in 2014.
On August 23, the day after Hague was named in an SPCA search warrant, he apologized and took responsibility for the incident in a prepared statement released by his Vancouver lawyer, Gavin Cameron. Four days later, the board announced an internal review, placing Hague on indefinite probation and notice that any further misconduct would result in his firing. Instead of calming the masses, it inflamed them.
A Change.org petition seeking Hague’s firing attracted 75,000 supporters by August 29. It more than doubled to 180,000 supporters by Labour Day Monday. Other petitions, Facebook pages and Twitter postings called for a boycott against Centerplate and for venue operators, like BC Pavilion Corp., to cancel their contracts with Centerplate.
Neither Centerplate nor the sports venues and franchises to which it is contracted could afford the possibility of a consumer boycott campaign on the cusp of the busy fall season for professional and college sports around the continent.
Food and beverage has always been an important revenue stream at stadiums and arenas. Because of increasing competition for the sports and entertainment dollar and sheer glut of live sports on HDTV and the web, venues are offering more than hot dogs and popcorn to keep the fans (and their wallets) coming back. Centerplate is behind Major League Baseball’s best local craft brew selection at Safeco Field in Seattle and Vij’s Curry at B.C. Place Stadium in Vancouver. Hague’s work in recent months centered around the new Levi’s Stadium in Santa Clara, Calif., home of the San Francisco 49ers, which boasts a gourmet menu with most food sourced from within 100 miles of the stadium.
Centerplate’s contract with B.C. Pavilion Corporation was worth $20.58 million for the year ended March 31, 2013.
Centerplate did not immediately respond to a BIV query about whether Hague was eligible for severance or whether he remains a shareholder in the company.
Pity poor B.C. Lions president Dennis Skulsky, who was mocked on social media before, during and after the boys in black lost to the Saskatchewan Roughriders in the game he guaranteed they’d win on Aug. 24 at B.C. Place.
Call it a gimmick or call it a gamble, but it was the right move for the right time. With the Vancouver Whitecaps out of town for the weekend, the Vancouver Canucks not yet in town for training camp and the Lions on the verge of a bye week, Skulsky had to do something bold to put more bums in seats.
Even with the draw of the popular Grey Cup champs and an open roof at B.C. Place, the Lions needed to work for the sales. Only the Lions and PavCo know the precise gate count, but an attendance figure of 33,196 was announced. Those who attended are eligible for a free ticket in the same category for one of the remaining four home games.
The previous 2014 high for the Lions was 26,445 announced for their lone exhibition game against Calgary on June 20.
Compare that to 2007, before high definition TV rendered blackouts irrelevant. They reported only two games below 30,000 attendance.
Back then, the Lions sold 316,346 net tickets and paid $160,744.29 rent on $7.34 million in net ticket revenue for their home exhibition game and nine regular season games. The Lions’ contract included no charge for the first $6 million of revenue.
The David Braley-owned Lions do not release their financials and have appealed to the Office of the Information and Privacy Commissioner and B.C. Supreme Court in a bid to keep their current rent contract with PavCo secret.
