Buckycat7 wrote: Draftnik wrote:
profpolisci wrote:One wonders how Kansas City looks without Sprint? Telecommunications is a VERY risky industry.
Sprint has done very well so far employing what most analysts agree have been rather risky business practices. And, so far, their gambles (a nationwide fiber optic network -considered foolhardy by most) have paid off. But KC has given ENORMOUS tax breaks to Sprint and the the financial well being of the area is pinned to Sprint's success or failure. And should Sprint falter, the blow to KC would be profound. I'm not saying this is going to happen but would merely like to point out that Pittsburgh has survived an even greater blow to become a national leader in tech and health-care, when big steel left en masse'
I'm not a telecom expert but I do know the Nextel acquisition has been very bad for Sprint to date and likely will continue to be since Nextel subscribers are on some outdated network. Sprint laid off tens of thousands of people due to the merger and poor post-merger results. There is also speculation that Comcast will enter the wireless market this year for the quad play bundle and Sprint/Nextel or TMobile are the most logical acquisition candidates.
I know they have other large companies HQed there like H&R Block for example, but KC is not some rapidly rising metro area. I think Pittsburgh (metro area) was around 350K to 400K larger in the last census. Based on recent growth/contraction rates it probably would take decades for KC to pass Pittsburgh.
This couldn't be more wrong, Sprint has done just fine with the Nextel acquisition, there are bumps in the road but nothing you wouldn't imagine when two companies of that size join together. Fact is that Sprint is more profitable now then it's ever been.
Just an FYI...Sprint is now technically HQ in Reston, VA the operational are based in Overland Park, KS which is a suburb of Kansas City. Sprint's HQ offices in Reston are only for the companies officers.
Also before any more talk about how Kansas City doesn't have any money or would be to support a team or the Economy problems that would come up I think everyone would scan this at least:http://en.wikipedia.org/wiki/Kansas_City_Economy
KC it is much, much better shape then every gives it credit for.
Look, the health of Sprint/Nextel is of no consequence to an angry Burkle, but the long term outlook of a company in a volatile business sector, that owes plenty to the tax leniency of it's proprietary city, that has in no way established a business moat, and, could be perceived as struggling right now, could very well be of concern to the NHL.
This from the Kansas City Star earlier this month (1-11)
The job cutback announced by Sprint Nextel this week will mark the biggest such move since Sprint began slicing its payroll five years ago. Given the quality of the jobs involved, this is a dose of bad news for both Sprint workers and the Kansas City economy.
Gary Forsee, chairman and chief executive of Sprint Nextel, didnÃ¢â‚¬â„¢t try to sugarcoat the announcement. Ã¢â‚¬Å“There will be impact on Kansas City,Ã¢â‚¬ï¿¾ he said.
Forsee says about 5,000 positions will be eliminated, although it isnÃ¢â‚¬â„¢t yet known what share of the total will come from the Kansas City area job base. Between 2001 and 2005, Sprint eliminated more than 20,000 jobs companywide.
With 14,500 workers at its operational headquarters in Overland Park, Sprint Nextel is the largest corporate employer in the metropolitan area Ã¢â‚¬â€ and one with a significant effect on the local economy.
Ã¢â‚¬Å“Since 2001, when Sprint began having trouble, our local economy has been growing slower than the national average,Ã¢â‚¬ï¿¾ said Frank Lenk, research director for the Mid-America Regional Council. Ã¢â‚¬Å“I donÃ¢â‚¬â„¢t want to overstate the case Ã¢â‚¬â€ others things have been going on at the same time Ã¢â‚¬â€ but when theyÃ¢â‚¬â„¢re growing quicker, we grow quicker. When they grow slower, we grow slower.Ã¢â‚¬ï¿¾
At least this round of cutbacks comes at a time when the economy is growing, unlike the situation in 2001. But the released workers still deserve compassion and support.