May 24,
2004
Grand Rapids Business Journal
By Mark Sanchez
MUSKEGON — The view from Jannie Scott’s
office window offers a glimpse of why she’s embarking
on a new business venture.
Looking out over Muskegon
Lake, she points up the shoreline toward downtown,
a business district that is in the early stages of
a massive revitalization push and a period of major
transformation.
“Every day I look out there
and I think what a magnificent city this is going
to be,” said Scott, who believes professional
sports would represent a nice addition to the mix.
She was awarded a franchise last November
by the minor league Continental Basketball Association
and is now preparing for the inaugural season of the
Michigan Mayhem, which will play home games in downtown’s
Walker Sports Arena beginning this fall.
Scott’s goal in forming the
team is to provide a new entertainment offering that
will draw people to downtown and contribute to the
business district’s rebirth.
The 55-year-old Scott wants to create
jobs and help business development in downtown Muskegon,
which in recent years has already drawn millions of
dollars in new investments and has millions more pending,
most notably the redevelopment of the Muskegon Mall
property into a commercial and residential neighborhood
and the development of the Edison Landing residential
and commerce park along nearby Muskegon Lake.
“This is a masterpiece city.
The potential is just …” Scott said, her
words trailing off and her arms spreading apart as
she looks out her office window up the nearby shoreline
and toward the downtown Muskegon area.
“In my mind, your foundation
of a community is your downtown. You can come down
here, but what are you going to do when you’re
here?” she said. “Why can’t Muskegon
be a destination?”
In forming a sports franchise, Scott
also sought to diversify her business interests. She’s
now the vice president of JAAR Inc., a company owned
by her husband, Arthur, that operates nine McDonald’s
fast-food restaurants in the area.
“Like any business, when you
get to a certain level, you try to venture out into
other things. So we were looking for other things
and this opportunity came about, and it just seemed
like a perfect time to expand,” she said. “I
thought, ‘This is something that is perhaps
fun to do,’ so we went with it.”
The opportunity to own a sports franchise
started with a friend introducing her to Peter Jackson,
who at the time was working for the former Grand Rapids
Hoops CBA franchise. Jackson initially was in Muskegon
seeking sponsorship from JAAR Inc. for the Hoops.
Those discussions eventually led Scott
to investigate and ultimately pursue formation of
a CBA team in Muskegon. The efforts culminated with
the November announcement that the Boise, Idaho-based
league had awarded Scott a franchise.
She later hired Jackson, who’s
from a small town in Louisiana near where Scott grew
up, as the team’s general manager.
“We’re having so much
fun. It’s a lot of work and there’s still
a lot to do because it’s building from the ground
up,” said Scott, who views the team as a kind
of philanthropic venture that will help build up downtown.
She receives no salary for her role as head of the
franchise.
“If we make money, I get something
at the end of the year. If not, oh well,” she
said. “That’s just part of me as a person.”
A Mississippi native, Scott came to
Muskegon a decade ago when husband Arthur, who previously
worked for McDonald’s Corp. for 25 years in
a number of executive positions, wanted to become
a franchise owner.
The couple, married for 38 years,
has moved often over the years, living in Grand Rapids,
Chicago, Houston, New Orleans and Memphis before settling
in Spring Lake to be near the water.
The couple travels often and Scott
says they’ve seen many examples in other communities
where a sports franchise has been a part of revitalizing
downtown business districts.
“It’s just part of development,”
said Scott, who’s trained in social work and
previously worked in child development.
To succeed, the Michigan Mayhem needs
to average about 3,500 fans per game at the 5,100-seat
Walker Arena and pre-sell 1,000 season tickets. The
Mayhem has not reached the goal of season tickets
sold but, through the strong sale of premium courtside
seats, has surpassed an equivalent revenue level,
Scott said.
While sports is a decidedly different
kind of business than any other, Scott believes the
fundamentals are essentially the same: Give the customer
a good product at a good price and they’ll come
back for more.
“Any business to me is risky; I don’t care
what it is,” Scott said. “You’ve
got to be smart and you’ve got to do things
correctly, and you’ve got to bring something
people are always going to enjoy.” BJX
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