D

Tom Hicks Maneuvering to Keep Rangers

Randy Galloway doesn’t think that’s a good thing. According to Galloway, neither does the Ranger staff:

“I work for Tom, I wanted Tom to be successful at this, but, frankly, we can’t sell Tom,” said one. “Our fans, for the most part, will not buy Tom. And our former season-ticket holders, and we’d lost a lot of those because of Mr. Hicks, will not come back if Tom is still the owner.”

Really? That’s the problem in selling tickets? The owner?

Hensarling: Build a Bank Fund, And It Will be Used

Dallas’ own Jeb Hensarling is among the opposition speaking out against financial regulatory reform legislation approved by the House Financial Services Committee today. One of the measures would require big banks to pay fees into a $150 billion fund to be used in case one of them fails.

Here’s what “the GOP’s Most Powerful Nobody” said:

“Pre-funding the fund would lead to more bailouts because the fund would be sitting and available to be used,” said Rep. Jeb Hensarling, R-Texas. “If you build it they will come, it will create an expectation that the fund would be used.”

Mary Kay Making Bank in China

The Addison-based cosmetics company says its sales in China are up 20 percent over last year, according to this piece on Slate.  Because its usual direct-sales method was outlawed until a few years ago, Mary Kay has had to work differently there, doing most of its selling out of showrooms.

Its Shanghai corporate office prominently displays maxims of founder Mary Kay Ash, in both Mandarin and English. Here’s a noteworthy tidbit:

The uplifting talk and homilies strike a lot of Americans as hokey. But in Shanghai, aspirational phrases are part of the lingua franca. We heard the motto for Shanghai’s upcoming Expo 2010 repeated for us several times yesterday: “Better Life, Better City.”

So there’s something that Shanghai and Dallas have in common: Aspirational phrases are part of the lingua franca here too: “Live Large. Think Big,” anyone?

Perot Jr. Says New Museum Has Room to Expand

Does Ross Perot Jr. know something we don’t? Speaking at today’s groundbreaking for the new Museum of Nature & Science at Dallas’ struggling Victory Park, which he helped develop, Perot said, “Mr. Mayor! Where is the mayor?!” before pointing to City Councilmember Dwaine Caraway, sitting in the audience down front. Mayor Pro Tem Caraway (pictured at far left with Deputy Mayor Pro Tem Pauline Medrano and Perot) is not quite the mayor yet, but he’ll be well-positioned if Tom Leppert ever steps down to run for the Senate. Leppert, who’s in China, nonetheless made a video appearance at today’s bash for the museum, a $185 million project that got a jump-start when Ross Jr. and his siblings donated $50 million in honor of their parents, Margot and Ross Perot Sr. The 14-story edifice on 4.7 acres can’t hurt the Victory project, which has been attempting lately to attract a better tenant/demographic mix. And, Ross Jr. said, “What people don’t understand is there’s enough room here for the museum to double in size.”

Plano’s Beal Bank Aids Trumps’ Casino Takeover

According to the Wall Street Journal, Plano-based Beal Bank was partner to “the Donald” and his daughter Ivanka Trump in their bid to regain control of the Atlantic City casino group that bears their brand name. They’ve abandoned that bid and reached a settlement.

But was Beal Bank left high and dry in the outcome?

It was unclear how Beal Bank, which holds a senior $486 million secured loan on the casinos and had been Trump’s equity partner in the takeover bid, figured into the settlement. “We are not in a position to comment at this time,” Beal Bank President Andrew Beal said through his assistant.

Ex-Hurler: Rangers’ Pitching Staff Needs Starters

While conventional wisdom holds that the Texas Rangers are set with their pitching for now–for a change–some experts like the ever-astute Evan Grant don’t necessarily agree. Grant contends that Texas still needs another “premium” pitcher, and Roberto Diaz, a salesman at the NorthPark Salvatore Ferragamo store, concurs with that assessment–and then some. Why listen to Diaz, a 51-year-old native of Puerto Rico? Because he’s a former relief pitcher in the Milwaukee Brewers organization who’s pals with the likes of Pudge Rodriguez and Juan Gonzales, who also hail from PR. (In fact, Diaz says, he moved to Dallas from Florida because of the connections.) The “Rangers are a pretty good young ball club,” says Diaz (pictured), who coaches kids at occasional baseball clinics in Plano. “But they need a couple more good quality starters, and they should go into the free [agency] market to get them.”

The People Speak; The Nasher Listens

It might seem like an odd way to steer a leading cultural institution. But Dallas’ Nasher Sculpture Center relied on the votes of people who attended a benefit party last night to embark on a major new undertaking. Attendees at the bash held at NorthPark Center were asked to vote for one of three “wishes” for the Nasher: A contemporary projects series featuring emerging artists, an illustrated catalog to accompany the exhibition Jaume Plensa: Genus and Species, or a monthly contemporary artist lecture series. Nasher director Jeremy Strick (pictured) says the winner by a substantial margin was … drumroll, please … the contemporary projects series. The Nasher, of course, was built by the late Raymond Nasher, who also developed NorthPark Center, whose marketing/media department cooked up the people’s-choice contest.

Marquez Nabs Top Business Award

Texans Can! CEO Richard Marquez (pictured) was honored Thursday by the Dallas chapter of the Texas Association of Business as the 2009 Distinguished Business Leader in Education. Marquez, profiled in 2008 in D CEO magazine, joins such previous Distinguished Business Leaders as T. Boone Pickens, Raymond Nasher, Ross Perot Sr., Ray Hunt and Ebby Halliday. Congrats, Richard!

Commercial Realty Honcho: No Recovery Til 2012

About 400 commercial real estate types turned up at the Belo Mansion last night for NTCAR’s annual Stemmons Service Award dinner. That was 150 more than showed up last year. But the bigger turnout may not indicate market optimism, one attendee said, so much as the fact that the brokers had time on their hands and needed something to do. Indeed, bigwig Lee Halford Jr.–who leads a firm founded by the Stemmons family, for whom the prestigious award is named–said the industry is facing rough sledding and won’t fully recover until, gulp, 2012. At the podium, though, Halford tried to buck up the crowd: “If Mr. [John] Stemmons were here tonight, he’d tell all of you to keep on plugging.” The Stemmons firm started in 1928, Halford noted, the year before the big stock market crash, and “it wasn’t until 1946 that anything of significance took place. So perseverance was important.” Then Halford announced this year’s Stemmons winner: Steve Lieberman (pictured) of The Retail Connection.

How Much Money Will Super Bowl XLV Bring?

I was a little confused in reading today’s Dallas Morning News story wherein Super Bowl XLV Host Committee CEO Bill Lively says the North Texas game will have a record impact, but declined to give a figure.

Lively gave us a figure just a few weeks ago: About $500 million.

Granted, the host committee hasn’t yet released any findings of the official economic impact study that it commissioned. So Lively’s number is probably just him doing what he needs to do at this point:  boost expectations. He’s optimistic that North Texas will come in higher than the record take for Arizona in 2008.

Of course some sports economists cast doubt on any estimates in the hundreds of millions of dollars.

Pro Bowl Changes Affect Super Bowl XLV Planners

Had breakfast this morning with the NFL’s “Super”-Man, Frank Supovitz (pictured). His official title is senior vice president for events, and he’s the man charged with producing the league’s biggest spectacles, including the Super Bowl. He’s in town for a few days with dozens of event planners from the league and its sponsors and partners for what they term “FAM Week.”

That’s short for “FAMiliarization Week.” (Don’t ask why those first three letters are capitalized.) The Super Bowl XLV Host Committee has organized itineraries for these folks to get to know the area, Cowboys Stadium, and a host of other venues available for events in the run-up to the big game in February 2011.

Obviously putting together a Super Bowl is a major challenge. But the NFL’s experiment of changing the timing of the Pro Bowl will throw some additional hurdles into the process. Couple that with North Texas never having hosted before, and Super Bowl XLV will put Supovitz and his staff to an unusual test. (more…)

RadioShack in Dallas to Carry IPhone

Is that a big deal? I guess for RadioShack it is.

Larry North Out of Highland Park Village

There was talk earlier this year that the new ownership wasn’t going to keep Larry North Fitness in Highland Park Village, but then they announced they were staying. But not so fast.  A law-practicing and former-co-worker-of-mine FrontBurnervian passes along this e-mail that he received today:

After 20 wonderful years in Highland Park Village, it is with great sadness and regret that I inform you, in spite of all our efforts to keep the Highland Park club open, we are forced to close our doors December 1st.  I want to thank all of the members and staff for continuing to believe in me and remaining so loyal to Larry North Fitness. The decision to close the doors at Highland Park has been the most difficult business decision in my life. As many of you know, many changes have happened in the Village during the past year and there have been circumstances beyond our control. We leave this location with many fond memories and the knowledge that we have helped thousands of people over the years become healthier and happier. Most of all, I am thankful for the incredible relationships that have evolved from this very special place. (more…)

New Pub Ups The Ante For ‘Best Workplaces’

Competition is good. It keeps you on your toes; it forces you to do better. The Dallas Business Journal might be thinking about this today, after yesterday’s Dallas Morning News debuted a new annual magazine called Top 100 Places To Work 2009. The inaugural, 44-page DMN product ranked local companies based on six criteria; The Richards Group came in No. 1. The DBJ may be feeling the heat because, for eight years, it’s had the “best workplace” field to itself here with an annual publication called Best Places To Work In The Dallas-Fort Worth Metroplex.

The scoring for both publications is handled by an outside firm: Kansas-based Quantum Market Research for the DBJ; Pennsylvania-based Workplace Dynamics LLC for the DMN. One interesting difference is that The News invites a select group of companies to participate while, under the DBJ rules, companies nominate themselves. And curiously, the DMN’s No. 2-ranked company–Southwest Airlines–hasn’t shown up on the DBJ rankings for years. But, one thing’s for sure. The opportunities for company bragging rights–”We’re the best;” “No, we are!”–just doubled around here.

UPDATE: I misunderstood her meaning when Cheryl Hall explained in the Sunday magazine: “The News and Workplace Dynamics invited more than 1,100 companies to participate in our inaugural Top 100. We at the newspaper don’t know which businesses entered.” The DMN says that any and all companies here were eligible to be nominated and to participate.

Bank Chief Explains A Star-Crossed IPO

Alan White, chairman and CEO of Dallas’ PlainsCapital Corp., seemed tired and a little wary last night–understandably so. White (pictured) was back in town after a grueling, three-week-long “road show” in support of the financial-services company’s initial public offering, which PlainsCapital abruptly yanked on Nov. 4. It had been trying to raise $225 million, about $90 million of that to pay back TARP money the bank got from the feds in 2008.

So, why did the IPO misfire so badly? During those three weeks, White said, the Dow sagged back below 10,000, and stock in a Chicago bank called PrivateBancorp lost 40 percent of its value, scaring off Wall Street. Then, when Texas banks like Cullen/Frost and Texas Capital began reporting third-quarter earnings declines, the pressure was on for PlainsCapital to reduce its offering price of $14 to $16 per share. And, White said, “I wouldn’t do that.”

Ron Steinhart, a veteran Dallas banker, says PlainsCapital’s timing was off: “The stars just didn’t line up right.” In the meantime, White said he’s in no rush to schedule another IPO–he’s got nearly 10 years to pay back the fed dough, which his bank is using to make loans–as PlainsCapital is fundamentally sound. “Like my preacher says,” White added, smiling, “I’ll just fake it ’til I make it.”

Reviving Biofueler Plans Dallas Locations

Never underestimate the ability of businesspeople to reinvent themselves. Case in point: the folks behind Dallas’ Evolution Fuels Inc. (formerly Earth Biofuels), best-known for co-owning Willie’s Place at Carl’s Corner Truckstop near Hillsboro. After nearly going bankrupt two years ago as the biofuels market was skidding downhill, the company says it has paid off tens of millions of dollars in debt and will focus now on selling “mid-range ethanol blends” at retail fueling stations/convenience stores.

Kit Chambers, Evolution’s executive VP, says the outfit has signed letters of intent to open two Dallas stores–at Travis/Knox and Lemmon/Oak Lawn–and is aiming to acquire other fueling stations in Alabama and Mississippi. In addition, says Kit (pictured), a new entity called Evolution Resources will launch soon with an ambitious plan to “repurpose existing assets to produce cellulosic ethanol.”

Guess it all makes sense. While the biofuels biz in general has had its problems, ethanol is one biofuel segment that the government seems intent on propping up.

Doc Gallagher Has History With Financial Regulators

Sorry we didn’t have this up last week, before “Doc” Gallagher was one of the featured speakers at the Jewish Community Center of Dallas’ Senior Expo.

But if you saw him there, or you’re planning to attend one of his free sessions this month at Sonny Bryan’s in Richardson, Golden Corral in North Richland Hills, or the Highland Park Cafeteria in Dallas, you might want to check out this piece from the latest D CEO.

One aspect of the story that didn’t make it into the final piece, because of space considerations, is that much of the marketing of “the Money Doctor” (who buys time weekly Saturday mornings on KAAM-AM 770) is aimed at senior citizens. He’s appeared on the cover of Mature Texan (with Ebby Halliday), for instance. And he’s done  shows on topics like the dangers of nursing homes, in addition to warning his listeners about the dangers of working with “Big Broker.”

He’s absolutely right that you’ve got to be careful from whom you take financial advice.

Warren Buffet Goes All-in With BNSF Purchase

Mega-investor Warren Buffet used gambling terminology in describing his $34 billion purchase of Fort Worth-based railroad Burlington Northern Santa Fe: “Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett. “I love these bets.”

It certainly seems like heartening news when the country’s second-richest man is willing to continue playing his hand. But am I the only one who gets nervous when our entire economic system is likened to a poker game?

Dallas-Fort Worth 5th Strongest Metro Area

Using rankings set by Brookings Institution, BusinessWeek presents the 40 strongest U.S. metropolitan economies. We rank No. 5, given props for being “sprawling, vibrant, and diverse.”

But we’re behind two other Texas cities: San Antonio (No. 1) and Austin (No. 2). And we’re behind two other areas in our region of the country: Oklahoma City (No. 3) and Little Rock (No. 4)

Leading Off (10/30/09)

1. The Highland Park Town Council doesn’t need any of your fancy studies, any of your new-fangled objective measures, or your pointy-headed cost-benefit analysis. They know the truth: Even looking at the possibility of maybe someday thinking about eventually enacting some sort of voluntary conservation ordinance to preserve houses in one of this area’s most historic neighborhoods, that alone will cause home values to plummet. Former Mayor Gifford Touchstone says so, and his word is good enough for them.

2. Dallas Police may need to review the finer points of the Lock, Take, Hide program after a SWAT supervisor’s vehicle was burgled. In related news, D CEO executive editor Glenn Hunter will no longer drive down North Fitzhugh Avenue.

3. Dallas attorney Ralph Janvey, the court-appointed receiver in the R. Allen Stanford case, is looking to recover $1.5 billion for defrauded investors. The lawyer for the investors says Janvey’s plan is “something of a fantasy.” Discussion topic: Is it more or less of a fantasy than seeing a fleet of electric cars on the roads of North Texas next year?

Super Bowl XLV Workshop Pumps Up Local Business Owners

   That’s Henry Yiu and Katherine Dress of Plano-based Pacific Dynasty International. They were among the more than 800 small business operators who showed up for the first workshop of the Super Bowl XLV Host Committee’s Emerging Business Program at the Will Rogers Memorial Center in Fort Worth this afternoon. Henry and Katherine’s company imports a whole bunch of LED devices. You’ll note the row of lights attached to the bill of Henry’s cap, and the scrolling electronic message sign hanging around Katherine’s neck. The glowing orbs that they’re holding up are LED-toting centerpieces for tables.  They’re hoping to get their products used at Super Bowl-related events.

I also met Barry King, a former creative director with Radio Shack’s in-house ad department, who has spent the last several years selling barbecue sauce made from a recipe he invented 20 years ago. His Fort Worth-based brand is Brothers, and you can find it at Central Market. “If I get my sauce in your mouth, game over,” Barry proclaimed confidently. He’s hoping to get his products into what’s sure to be a host of gift baskets and party favors handed out at events throughout the week leading up to the Feb. 6, 2011, game.

What Barry and Henry and Katherine and what seemed like a sea of PR people on the first couple rows of the big audience heard wasn’t some dry Power Point presentation going over the particulars of the procurement process. This is the North Texas Super Bowl, and it’s clear that our local host committee plans to do everything big. Even its business workshops. (more…)

How to Make Money Off Super Bowl XLV

I previously mentioned that the Super Bowl XLV Host Committee is having its first Emerging Business Program workshop tomorrow at the Will Rogers Memorial Center in Fort Worth.

One correction: While the Emerging Business Program is only for minority- or women-owned businesses, any local business owner or entrepreneur is invited to attend the first workshop. Participants can learn about the procurement process for providing Super Bowl-related services.

With between $300 million and $500 million in local economic impact expected from the big game in 2011, there are lots of pie pieces available.

Will TXI Be Sold and What Does That Mean to Your Air Quality?

As a living, breathing organism, you are no doubt closely following recent developments at cement maker TXI. Having read our story from 2005 about how the company fouls our air in North Texas by belching forth pollutants in Midlothian, you are wondering what it means to our air quality now that a rogue group that controls 10 percent of TXI has gotten elected three of its people to TXI’s board in what is being described as an idictment of current management by the shareholders. Right?

Well, I asked Jim Schermbeck of Downwinders at Risk about all this. Schermbeck is a watchdog who has been hounding these cement makers in Midlothian to clean up their act for years. I found his take on the situation instructive. In short, he thinks the new guys on the board might be getting ready to try to sell the company. Read on only if you have lungs:

(more…)

How Much Will Ed Bailey Make When He Sells 63 McDonald’s?

You, of course, know who Ed Bailey is. He owns the Patrizio restaurants and the new Bailey’s Prime Plus. He’s also one of the biggest McDonald’s franchisees in the country — for now. Bailey is set to sell his 63 restaurants, probably by year’s end. Which got us to wondering what 63 McDonald’s might be worth. I asked someone who’d know. Here’s his back-of-the-envelope ciphering:

These types of franchises are typically valued at 5 to 6 times EBITDA. A McDonald’s unit will gross around $2.2. This is huge volume. The average sale per person is $3, and about 88 percent of that is the cost of sale. So 12 percent of $3 is 36 cents. That’s EBITDA per customer. 2.2 million divided 3 equals 733,333 customers per year. 733,333 times 36 cents gives you EBITDA of $264,000. $264,000 times 5 equals $1,320,000. Obviously there are many other factors, but $1.3 million is probably very close.

Let’s round up, then, and call it $80 million. To Ed Bailey, we say: nice.

Correction: The answer was correct, but the math was a bit hinky when I first posted this; it has been corrected.

Incompetence Reigns in Rick Perry’s Texas

As the unemployment rate hits a 22-year high, local food banks are sending out word to anyone who will listen (including me) that they are at the breaking point. Not only did the recently laid-off have a hard time getting benefits — thanks to Perry’s initial refusal of stimulus funding (he quietly reneged later) – now they are having a hard time even getting food. The Texas food-stamp program is in disarray.

Really, I’m telling you, he’s been there too long. At some point Texas needs a governor who is capable of more than looking good on TV.