Bob Levey (Barbara Tyroler)

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Q&A With Bob Levey
Washington Post Columnist
Tuesday, March 20, 2001; Noon EST

"Levey Live" appears Tuesdays at noon EST. Your host is Washington Post columnist Bob Levey. This hour is your chance to talk directly to key Washington Post reporters and editors, local officials and people in the news.

Today, Bob’s guest is Washington Capitals owner and AOL Vice Chairman, Ted Leonsis.

What role has the MCI Center played in revitalizing downtown Washington? Is a comeback in the cards for Michael Jordan and the Wizards? What’s the outlook for AOL and other dot coms in this bear market? Join Bob Levey and Ted Leonsis as they discuss a wide variety of topics including high tech development in northern Virginia and the future of the MCI center and Washington sports teams.

Ted Leonsis

Leonsis is the majority owner of the Washington Capitals and has future rights to purchase the Washington Wizards, Washington Mystics, the MCI Center and US Air Arena. He is one of the Internet’s foremost leaders and visionaries and is responsible for overseeing the development of new products and consumer services at AOL.

His past experiences include working with Apple Computers on the introduction of the Macintosh, with IBM on the PC launch, and with Wang on office automation. He has written four books on the personal computer industry and founded four personal computer magazines. He served for five years as Mayor of Orchid, FL and graduated from Georgetown University.

Submit your questions and comments before or during today's discussion.

Editor's Note: Washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.

Bob Levey: Good afternoon, Mr. Leonsis, and thanks very much for joining us today.
Obviously, you are a whiz at marketing. But you've bitten off quite a challenge with the Capitals.
We live in a region where it's almost never cold enough to skate outdoors, so very few D.C. kids have ever played hockey. We also live in a region where the Redskins rule. And now there's a fellow named Jordan running the Wizards.
How does Ted Leonsis counter all those forces and sell tickets to the Caps?

Ted Leonsis: One at a time:-)! That is how you win. And with a personal touch.

We are the best marketed team in area. Growing fast.DC is a hockey town;I was with Gary Bettman at league offices and he says we have become a model franchise..fastest growing team in league;10 sellouts oot of last 16 games. So--we are doing fine Bob.

And since you havent been to a game in awhile;why dont you and your family come and join us and see what teh fans are so in love with these days!

McLean, VA: Hi Ted - It is always fun for the fans to see you right in front cheering (or groaning, recently). We enjoyed seeing MJ there last year, and also Chelsea Clinton earlier this season. How do you choose the guests to sit in your box during the game?

Ted Leonsis: I try NOt to have celebrities in teh box. Too trite and it makes us look like we are special. I try to invite freinds and family ,and people I work with;same as Ledecky,and Fernandez. Occassionally--a celeb weasels their way in there!

Laurel: What's your position on public funding of major leauge sports arenas?

Ted Leonsis: Lol--Since we didnt get any and everyone else did--I guess I am AGAINST IT!

WashDC: MD or Georgetown?

Ted Leonsis: Hoya Saxa--BIG!!!!!!!!!!

Bob Levey: Abe Pollin took one of the biggest gambles I've ever seen a businessman take. He bet that sports fans would come downtown to MCI Center at night--the majority of them by subway--and support professional hockey and basketball.
Many people thought he had no chance. But it looks as if that bet is cashing, doesn't it?
Are you surprised that sports can prosper downtown when it's hard to drive to games and harder still to park?

Ted Leonsis: Abe is bravest man I know. MCI Arena saved downtown DC;they should rename F street Pollin way.

Time will tell how it turns out-_I am young and believe in same things as he does;so--enjoy the ride;and do your part and buy a ticket!

Bob Levey: Do my eyes deceive me, or did Ted Leonsis just invite me to a Capitals' game?
Why aren't all questions so easy?
I accept!

Ted Leonsis: Ok...but I dont want to COMPROMISE your editorial sesnisbilites!!!!!!!

Fairfax, Va.: Mr. Leonsis,

Welcome. Thank you for your passion as an owner. I can't wait to see Adam and Peter skate a lap with Lord Stanley's Cup.

There are a few loyal Bob Levey readers who have been trying forever to get Bob interested in hockey over those losers the Bullets. He is convinced that Hockey is just one big fight. Will you host Bob and his family in your box for one of the remaining games, so that he may learn more about the best game played indoors, and the best team in Washington?

Ted Leonsis: We should enroll him in our hockey 101 school. More than 1000 people have attneded,and they love it. Actually--hockey is growing faster than NBA. Hockey is innovator;first sport with trophy;with allstar game;with players names on jerseys etal.

Really today the game is like basketball in old days;speed,fast breaks and toughness.Fighting is passe.

Bob Levey: You've been quoted as saying that 60 percent of Capitals' ticket buyers are dot-com-sters from Northern Virginia. Of course, the dot-com world hasn't been doing very well lately. Layoffs are daily occurrences. Meanwhile, high-tech stocks are in the tank. How much will this hurt the Capitals' balance sheet?

Ted Leonsis: We dont have a balance sheet. I think you mean income statement? Sales are really strong. Fans love a winner--and Caps games are good dolid diversion for tough economic times. It is why Movies BOOm in bad times;peopel want diversions. And youc an buy a Caps tix for TEN DOLLARS!

Reformed Flyers Fan!: Ted-

As Bob mentioned your marketing efforts are tremendous, but it also seems like you are being more aggressive in advertising too. I love the "Always Intense" commercials and other ads I see. Have you been doing anything differently this season in particular?
Your ads never really stuck in my head until this season.

Ted Leonsis: I am using the web more than newspapers. Opt in email is working way better than petroleum based products like the Post:-)And 64 percent of our tix are ordered ONLINE. It works.

Love Hockey But...: Don't you think DC deserves a downtown baseball team to round out our sports portfolio?

Ted Leonsis: This may be controversial..BUT I would be nervous about a baseball team in town.Filling Fedex field 8 times a year is one thing;filling a baseball stadium--IN THE SUMMER--80 times is another.I wish them well;but if you think hockey is broken;check out baseball's labor woes and attendance:-)!!!!!!!!!!Phew;watch a game and see teh bleachers--sometimes..NO INE IS THERE

Bob Levey: More on the special quirks of "selling" MCI Center:
You've been quoted as saying that fans don't seem to come to hockey games directly from their downtown offices, the way they do in New York City. What can you do to change that?

Ted Leonsis: We need more housing/apts in teh city.I went to teh game last nite at MSG;unbelievable scene--with business folks along side real fans from Brooklyn.

BUT--remember--we will average 15,500 per game this year--all paid;we will pass Chicago and Boston this year! We are a growth stock in this market!

Bob Levey: I've gotten in heaps of trouble with D.C. hockey fans when I've pointed out that hockey is super-fast action--followed by lots of dead stops as they hold one more faceoff.
Granted, free throws are not the most electrifying thing in the world, and I can do without foul balls for the rest of my life. But why doesn't hockey operate nonstop the way soccer does? It would be SO much more enjoyable.

Ted Leonsis: That sound slike football to me. 30 seconds of grunting--then a huddle:-).Ted

Alexandria, Va.: What prompted you to become involved in Washington sports? Did you grow up in this area? Have you always been a hockey and basketball fan? Are you a fan of other sports too?

Ted Leonsis: I love sports,I went to Georgetown. I met Abe--liked his people philosphy and the erst is history.

Bob Levey: You have first option on the whole winter-sports package in D.C. whenever Abe Pollin wants to sellne--not just the Caps and the Wizards, but the Mystics and the arena itself. Obviously, we in the media will compare you to Daniel Snyder. What do you think the comparison will show?

Ted Leonsis: Why?

We dont play the Redskins ,do we?

But---I guess we are both young--so I dont compare--I contrast I guess.

Washington, DC: Ted,
I think you are doing a great job with the Caps. However I do have one complaint:
Walking outside the MCI Center on game night should be a fun experience. However the many unscrupulous types wanting to buy or sell tickets makes walking along F street a real hassle. Can I make a suggestion?
Set up a scalp free zone so that people with extra tickets (not scalpers) can sell them at face value or less? This has worked well for the Orioles and their fans.

PS - Bob - Give the game a chance. I am not a fight fan and I love the game!

Ted Leonsis: To be blunt--I am happy there are scalpers out there:-).It means sales are good.

Bob Levey: TV is a critical piece of the puzzle for any sports team. Yet the Capitals seem to be on local TV far less than the Wizards. Why is this? How soon will it change?

Ted Leonsis: Again--I wouldnt want facts to get in teh way of your opinions Bob.When I bought the team--we had less than 50 games on;today--we have 65 games on.We only have an 81 game season. So--we are doing well.

When there is all digital cable;and HTS wont have to choose because there will be available channel capacity--that day si coming soon.

Bob Levey: Many local officials were very worried when AOL and Time Warner "got married," because they feared that AOL would leave the Washington area. Is there any chance of that?

Ted Leonsis: NO!!!!!!!!!!!!!

We are still here--growing nicely--building new buildings--hiring folks. Steve lives here.Barry lives here.I live here.

DC: Were you ever approached about purchasing D.C. United when they were on the market?

Ted Leonsis: Yes--loved teh team;hated teh single entity structure. As an entrprenuer and only child--I hate being told what to do by others an dthen having to pay for my pro rata share. BUT--Phil Anshutz is one of the smartest business men in America--UNITED are very fortunate to have him as their new owner

Bob Levey: AOL and Time Warner have been linked for several months now. Is the "fit" what you expected?

Ted Leonsis: Yes--it is going great. We dont do what they do;they dont do what we do. We are both brand oriented--consumer based companies. Great people; great teamwork;all systems go to date

Washington, D.C.: Why is AOL better than Yahoo?

Ted Leonsis: You will have to ask our 28 MILLION customers that actually PAY us every month,I guess:-)

McLean, VA: Hi Ted - Is there any truth to the rumors that the Caps practice facility might move to Northern Virginia? Piney Orchard is so far away for the NoVa fans, it makes attending practices (and meeting the players and getting autographs) really difficult. Even a closer-in MD suburb would be better. Keep up the great work with the Caps!

Ted Leonsis: I would ove it--and we probably will somewhere in No Va in a year or two. No plans for a change now. But--I would liek to be able to go to a practice one day:-). And our fans--who all live here should be able to see teh players. They all live in Annapolis. I have been to Annapolis ONCE in my life:-)

Bob Levey: Michael Jordan has been ripped time and again in the press for not being in Washington very much. Care to comment on this? Does he need to be here to do his job?

Ted Leonsis: Just stupid talk. He should be NBA exec of year for way he did impossible job of restructuring team this year.

Do you know where Jerry West was at all Lakers games over last 10 years?

Bob Levey: I went to a Redskins game last year, and was utterly astounded to see Daniel Snyder arrive ten minutes before kickoff--BY HELICOPTER!!
Obviously, the Dan-ster doesn't like to cope with traffic. How about Ted Leonsis? Does he take the subway to Caps games?

Ted Leonsis: Car--and Metro:-)!!!!!!!!It works great.

Bob Levey: More on downtown baseball: Wouldn't the novelty fill the stands all by itself for the first couple of seasons (especially if D.C.'s team played in the National League). Also, wouldn't the success of the MCI Center (and the amazing lack of crime nearby) bring fans downtown at night?

Ted Leonsis: Novelty wears out fast!Check out teh last 3 expansion teams--at some point--you have to put a great team on the field

Bob Levey: AOL is a huge force in the development of Northern Virginia. But some would call the development over-development. After all, the Dulles corridor can't handle much more in the way of cars--yet Virginia isn't exactly breaking speed records in building a subway there. Are you concerned about gridlock in Dulles-land?

Ted Leonsis: Yes and no.

Traffic is bad---all over.

And we want to be good citizens;but having a young,dynamic growth oriented company that is an intellectual based company is good for teh area

Gaithersburg: How can I get on a list for AOL to stop sending me CDs in the mail?

Ted Leonsis: Move!!!!!!!!!!!!!

Washington, D.C.: It must be tough juggling your duties in both worlds. How do you handle it all? How do you make time to see your family?

Ted Leonsis: Make dust or eat dust,I guess. I get up at 530--do my email;breakfast with family;work out;go to work at AOl; see my family at home for dinner or we go to games together.

I dont RUN teh teams--I won them. We have great professionals as general management.I am NOT that crazy!

But i have annswered more than 16000 emails from Caps fans;some really mean spirited last 5 days. How soon they forget huh?

Bob Levey: You were once a mayor, in a town in Florida. Any political ambitions here in Middle Atlantic-land?

Ted Leonsis: No--I already am a psudo politician--I own a sports team.I have to kiss all the babies;shake all the hands; do debates like this--and face election after every season for renewals.

And I would rather win the election than the debate!

Bethesda, Md.: Mr. Levey has stated on this forum that hockey is all fights and nothing else, which is why he isn't a big fan. I have proposed the following bet. Ten bucks to Children's Hospital for every fighting major the Caps get throught the playoffs. In all likelihood there will be none, so I will add to this:

Five bucks to Children's Hospital for every Caps win. Ted, I hope there are 16 of these and I want to cut a check for $80.

Please explain to Bob that nothing beats the intensity of playoff hockey.

Thanks!

Ted Leonsis: I will match it.

Bob is clueless. Like the movie reviewer who pans the movie--BUT didnt even see it:-)

Bob Levey: You once said that you'd invite whoever sent you the 10,000th e-mail to meet with you. Did that ever happen?

Ted Leonsis: Yes. Ofcourse.

Washington, DC: I've read in the past that Steve Case is
interested in making more of an impact in
Washington. Has AOL considered opening a DC
office for some of its media services, creative,
or other areas? The NY Avenue area could be a
great spot for a DC campus...

Go CAPS!

Ted Leonsis: We have a DC based office--it has been opened for 3 years

Washington, D.C.: So let's cut to the chase. Is Jordan going to be a Wizard? How did this story come to life?

Ted Leonsis: No truth to rumour. It is funny how the media works huh? One press guy hears from an unnamed source that MJ is coming back;even after he says no--on the record. Then another media source quotes the last media source who quoted an unnamed source:-).Wonder why the newspaper business is not growing anymore:-)

Arlington, Va.: It must be exciting to be able to help so many people in need. What's your favorite charity?

Ted Leonsis: Ebuddies; Hoop Dreams are my most recent endeavours.

Bob Levey: About Wall Street, and tech stocks:
There's a whole lot of whining out there, which is plenty understandable. Yet there simply HAS to be a future for some high tech stocks, because high tech isn't about to go away. I know you believe in AOL (duh!). What other companies are high on your list?

Ted Leonsis: The market really is like a pendulum.It swings more to one side than teh other and never stands in teh middle;perhaps weher it shoudl be. The truth is that alot of companies got overvalued;and today it has swung the other way--to alot of stocks are undervalued.Stick with companies with reoccurring revenues; earnings;growth and good management--just like your Mother told you!!!!!!!

Bob Levey: You've been very active in charitable work in the Washington area. Tell us about Venture Philanthropy Partners. It concentrates on children's learning and development, doesn't it?

Ted Leonsis: Saint Mario Marino --the godfather founded it. He made us all an offer we couldnt refuse. Invest in charitable enterprises that had good management and woudl start new entreprenurial endeavours. So--we did!

Washington, D.C.: I have a question many readers would like to know. The owners and computer companies are always saying "they can't hire enough programmers, so we must increase the numbers of foreign workers brought in by visas," yet numerous colleges and trade schools are producing graduates with degrees in computer skills. These graduates are then unable to find jobs with the very companies decrying the lack of trained Americans. I have a very hard time believing there is a shortage of workers, when the message boards of this newspaper are filled with comments from people who spent thousands preparing for a career, and cannot get hired. Any answers?

Ted Leonsis: I honestly dont know;send me an email with your facts and I will ask our HR people. BUT--I believe that c plus programmers are in short supply still today

Washington, D.C.: What's it like to work with Michael Jordan? Is he fun to hang out with?

Ted Leonsis: I dont hang with MJ.

We both are partners;I do email with him all the time and see him about twice a month.We talk on the fone too alot.

But--to be honest--I do pinch myself once in a while.I will tell u all a funny story.Once--we were argiung in a freindly way about something and he held up 6 fingers to me

Washington, D.C.: Anything new and exciting happening at AOL?

Ted Leonsis: AOL by phone---28 million members;and lots of new work in messaging;broadband and music.We still innovate even though we are a maturing company:-)

Bob Levey: Why has the Washington area become Silicon Valley East? Why didn't it happen in Philadelphia, Wilmington or Timbuktu instead?

Ted Leonsis: We have brain power;great schools; teh government and telecomm infrastructure,and MCI and AOL. Stuff happens I guess!

Bob Levey: Please mediate a running battle I'm having with my 14-year-old son. He spends all day long at school with 30 or so kids. Then, as soon as his homework is done, he hops on AOL and does the instant-messaging thing with the same 30 kids (!).
His papa wonders why the kid needs to spend cyber-time with the same kids he sees all day, every day. He scoffs at me! What should I do, Papa Leonsis?

Ted Leonsis: Do what I do.Let mib be a kid--but only after he does his homework;and gets some play time outside.

But--this new social media is cool;dad.

Bob Levey: Restaurants are flocking into the area around MCI Center--but many of them are chains, not home-grown establishments. Do you expect to see that change any time soon, or is real estate around MCI so expensive now that only the chains can pay the freight?

Ted Leonsis: Bob--look around--we are a country of brands and of chains. I wish there were more small establishments---I have invested in teh Caucus Room,and even they are kind of a chain with Sam and Harrys etal.BUT--- it is better than burnt out blited building,true?

Bob Levey: At the time AOL and Time Warner merged, there was very little definite information about what would happen to magazines like Time and Sports Illustrated. Has that been decided? Will they (and others like Fortune and Money) ever be Web-only products?

Ted Leonsis: No--print lives.Magazines are important---as are newspapers,tv,music,movies etal.

We only get peopel online 1 hour per day;merger allows us to positively touch people in many ways

Washington, D.C.: Ted, I think you're doing a FABULOUS job with the Caps. The team (outside of the last few games) is great, the games are a blast & Caps-Fever seems to be rising. Congrats!

One question/comment. Can you do anything about the lines at will-call? I love ordering my tickets online from your website with no fees (hate Ticketmaster!), but having to line up in the ridiculously crowded lobby makes getting the tickets a bit traumatic. Maybe you could reorient the lobby - or encourage people NOT to bunch up in the will-call section? Anything you could do to improve this would be great...

BTW, I love the Skins, but the Caps are the best team in town --- and the best value for the buck. I don't see a certain 30-something billionaire answering e-mail or doing chats...

Keep up the great work, Ted!

Ted Leonsis: Thank you--and I will call the box office and make sure the lines are shorter. I am sorry

Bob Levey: Truth time:
My real fear is that I'd have so much fun with instant messaging that I'd never get back to work!

Ted Leonsis: Try it..it is like oxygen--you will get used to it!

Silver Spring, Md.: In your opinion, which dot-coms will survive this nasty shake out? Why?

Ted Leonsis: Dotcoms and teh whole notion of dotcoms was crazy if you think of it.

Multiple revenue stream companies work best.Loyal paying customers are improtant too.Seasoned execs that know how to run a public company helps too.

We will look back at some of teh ipos and say"WHAT WERE THEY THINKING"!!!!!

Alexandria, Va.: Did you ever in your wildest dreams imagine you'd be where you are today? What did you want to be when you grew up? What did you major in in college?

Ted Leonsis: No--I am blessed and lucky.

Alex, VA: While I am excited the Caps are doing well, and each year I make it to a game or two, I confess, I know almost nothing about hockey...how do you market to someone like me...seems there are many that could be rabid fans, but we simply don't know squat.

Ted Leonsis: Ok. Email me your phone number--I will call you and sell you on the Caps. Ted

Bob Levey: Every time I pick up the Wall Street Journal, there's another story about men over the age of 45 (I confess!), and their fear of technology.
"Stop writing about me!," I always say.
But they won't. So now I have to ask you:
How does a guy like Bob Levey overcome his total mistrust of technology?
Yes, I type on a computer all day long. But I have never bought a product on-line, never sent an instant message, never surfed e-bay, never nailed a cheapie plane ticket at the last second.
Am I just a hopeless, gray-headed, over-the-hill geek?

Ted Leonsis: Bob..Pc's were introduced in 1977!! Apple ii!!!!!!!!! That is 25 years ago---where have you been:-)..But i agree we still have a million miles to go on ease of use,and price to get into every home.

Here is an interesting stat;fastest growing pc adoption categories , I believe are woman and seniors; followe dby afro americans. That is why we are called AMERICA Online; we are a mirror of the population at large in terms of usage and signups

Vienna: I wanted to let you know that my husband and I love your recent commercials depicting the team's players in ordinary life - at the laundromat, during an anniversary dinner. Do you plan on doing more of these with other members of the team?

Ted Leonsis: Yes--we do them all teh time.I liked Crazy Ron too!

Bob Levey: Thirty years ago, when I'd talk to high school journalism classes, the kids would all say, "I want to be a TV anchorman, because they make all the money!"
Today, when I talk to high school journalism classes, the kids all say, "I want to be a dot-com zillionaire."
But you can't just snap your fingers in either business and make it big. They're both still team sports. How does Ted Leonsis evaluate a young person who wants to work for him in Dot-Com Land? What qualities does he look for? Does he get upset if a young person says he wants to get into the business to make a killing?

Ted Leonsis: Passion. Work ethic.Skill.

And no one who wants to just make money will do well starting a company. A company must be started for teh benefit of its customers--not is founder!!!!!!!!

Bethesda: Can you explain "icing" in 50 words or less?

Ted Leonsis: Something tasty on a cake--5 words

Bob Levey: Hop in a time machine and go forward five years..... Fewer dot-coms? Better dot-coms? Dot-coms that last longer than some are lasting today?

Ted Leonsis: Just like newspapers in dc-once there were many..now there are fewer with one with huge market share. Same in cars; in other industries etal.

Bowie: How dependent is the NHL, and possibly other major sports leagues, on the continued favorable economic climate. In the 1970's one NHL actually folded in mid-season. Could a downturn suddenly bankrupt some teams if corportations no longer buy luxury boxes, for instance?

Ted Leonsis: This too shall pass. I lived thru October of 87. My dad through the depression. If it doesnt kill you--it will make you stronger.

Ok--gotta go back to my real job. Thanks for spending the time with me. Bye!

Bob Levey: Many thanks to Ted Leonsis. "Levey Live" takes next Tuesday off, but it returns with a vengeance on April 3, when our guest will be Tom Holster, editor of the newsletter at the Washington Baseball Historical Society. In honor of the beginning of the season, we'll discuss baseball in D.C. That discussion will begin at noon Eastern time.

washingtonpost.com:

Thanks to Ted Leonsis and to everyone who joined us.

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