Flood to subpoena records of Northeast Baseball Inc. (Red Barons - Phillies AAA Team)

Citizen's Voice ^ | 2/12/2004 | James Conmy

[Born Conservative]

Luzerne County Controller Steve Flood said on Wednesday he is planning to subpoena financial records from Northeast Baseball Inc., the non-profit corporation that is supposed to operate the Scranton/Wilkes-Barre Red Barons.

Flood wants to issue subpoenas within the next few days, unless Northeast Baseball, which he said has not had a board of directors meeting in "at least five years," submits the financial information he is requesting.

Items like annual reports, balance sheets and possible profit margins are all on the controller's wish list.

"We're frustrated," he said. "We don't even know who to contact. So we're going to subpoena the board that existed at one time.

"We want to find out why we are paying what we are paying and who is watching the team."

Flood claimed his office discovered a discrepancy in the interest payments on a $1 million bond taken by Luzerne County to purchase the team in the late 1980s. The lender admitted to the oversight and refunded Lackawanna and Luzerne counties more than $40,000, or about $20,000 each.

Flood said he was glad the money was paid back, but is more concerned no one realized the counties paid too much interest for almost three years.

Luzerne County still owes approximately $200,000 on the loan taken to buy the team and each county holds one of the two shares of stock.

Luzerne County's northern neighbor actually is the guarantor on about $3.5 million of debt on Lackawanna County Stadium.

"We cannot even find our share of stock," Flood explained. "I want to know where the team stands financially.

"I think because we own 50 percent of the team we're entitled to the finances."

Luzerne County taxpayers also owe about $300,000 on a $950,000 loan taken to finance the construction of the stadium, which is operated separate from Northeast Baseball by the Lackawanna Multi-Purpose Stadium Authority.

Although both counties agreed to finance the purchase of the Red Barons, they signed off on receiving any share of the profits.

Profits were supposed to be used for improvements, maintenance and upkeep of the franchise, or the team.

If the Red Barons were ever sold, each county would be entitled to 50 percent of the final profit.

All three Luzerne County commissioners, Greg Skrepenak, Stephen Urban and Todd Vonderheid, were recently quoted as saying they had no interest in selling the team and called the Red Barons' an "asset."

Flood has notified all three commissioners of his intention to subpoena the records.

"We have nothing to do with the stadium directly," Flood admitted. "But they cannot sell the team without our permission."

He was referring to the ongoing battle for control of the stadium between Lackawanna County majority commissioners Bob Cordaro and A.J. Munchak and the stadium authority.

Board member John McGee has indicated the future of professional baseball in Northeastern Pennsylvania is being jeopardized by the power struggle.

But Cordaro has said the Lackawanna County commissioners have no intentions of selling the team. They are just trying to consolidate government and save taxpayers' money.

Flood said the dispute might not involve Luzerne County, but nevertheless he wants information on the operation of the team and who is actually in charge.

"Why aren't there any meetings and shouldn't we receive annual reports?" the controller asked. "Our commissioners should sit on the board and it should be a mutual type of thing."

[Born Conservative]

Lackawanna County has finally purged themselves from Democrat control, and the new Republican majority county comissioners are cleaning house. The graft and corruption are starting to come out, but I think this is just the tip of the iceberg.