Pegula said the cancellation of the NHL, AHL and NLL seasons would have a big affect on PSE's businessGETTY IMAGES
Pegula Sports & Entertainment President & CEO Kim Pegula said the company "tried to hold out as long as possible" before making any layoffs, "but it was hard," according to Lance Lysowski of the BUFFALO NEWS. PSE yesterday announced that 21 people "were laid off, 104 were being furloughed and more than three dozen would take a temporary tiered percentage pay cut." The furloughs are "expected to begin" today. Pegula said, "Some of the decisions we had to make were people who have been here a long time. ... Not a happy day here." Lysowski notes PSE will "continue to pay for health insurance for all furloughed employees." Pegula acknowledged that the cancellation of the NHL, AHL and NLL regular seasons and playoffs "would have a profound affect on PSE's business." She said, "It would be big. That's what the business is. It's the games, it's the entertainment. It's getting fans into our building. Certainly it's going to have a huge impact financially on our business and all the ancillary businesses that come with it." Meanwhile, the decision to lay off hospitality workers at its downtown Buffalo operations "sparked outrage among Sabres and Bills fans on social media because PSE has emphasized family and community under its 'One Buffalo' mantra." Terry and Kim Pegula said that the cost-cutting measures are to "ensure they can keep their business strong enough so that it can continue to contribute to the Buffalo community for the distant future" (BUFFALO NEWS, 4/15).
TOUGH CALLS: In Buffalo, Mike Harrington notes as part of the 21 layoffs yesterday, PSE "made major administrative changes by dismissing" Sabres VP/Media Relations Chris Bandura, VP/Tickets & Service John Sinclair and VP/Live Events Jennifer Van Rysdam. Bandura was in his 15th season with the team and was the "main daily contact for both local and national media when it came to the players, coaches and hockey department personnel." Communication to season-ticket holders "usually comes from Sinclair," an employee since '88. Sources said that the move was a decision to change direction "made by leadership at Pegula Sports and Entertainment, much like when the Bills reassigned" Senior VP/Communications Scott Berchtold from his post in '17. Bandura "will be replaced on an interim basis" by Sabres Coordinator of Media Relations Chris Dierken (BUFFALO NEWS, 4/15).
MATTER OF TIMING: THE ATHLETIC's John Vogl noted the Sabres' terminations "impacted numerous departments, including the Academy of Hockey at Harborcenter -- and sources stressed these were terminations, not furloughs." PSE has been "examining cost-cutting measures for some time, and some of the firings may have come this summer regardless of the COVID-19 pandemic." But the pause created by the coronavirus cancellations "apparently accelerated the timeline." Meanwhile, more than three dozen employees across PSE and Sabres execs "will take temporary tiered percentage pay cuts." These include "management, hockey staff, broadcasters, as well as contracted employees." PSE said that salaried workers paid at lower levels "will not be part of the salary-reduction group." The terminations are "more notable now because of the sheer number during this pause in the world." They also come in the wake of PSE's decisions early in the pandemic to "terminate its hospitality department and buck the sporting world's trend of paying arena workers during the postponement phase." Vogl noted the Bills "continue to operate at normal levels" (THEATHLETIC.com, 4/14).
