Business & Tech
Glencoe Businessman is Minor League Owner, Has Major League Aspirations
Andrew Berlin is taking lessons from his packaging company and trying to revive South Bend's Silver Hawks, which could be a precursor for bigger things in baseball ownership.
Money isn’t an absolute end-all goal for Glencoe’s Andrew Berlin, who has run Chicago-based Berlin Packaging for the past two decades. The 570-employee company was founded by his father, Melvin Berlin, and generates $600 million annually in business.
Yet it sure helps, whether it’s using millions of his own cash to purchase the South Bend Silver Hawks minor-league baseball team and renovating its stadium, or spending $9,000 to purchase up-to-date rifles for the Glencoe Police Department in his new role on the village’s Public Safety Commission.
The money he has spent so far in both public and private good works will pale in comparison if the energetic, forthright Berlin, 52, attains his ultimate goal — ownership of a Major League Baseball team within an hour’s-plus flight of home.
Find out what's happening in Winnetka-Glencoefor free with the latest updates from Patch.
“We’re both familiar with the adage you spend money to make money,” Berlin said in a wide-ranging interview last week. “I’d add an important footnote: If you spend money wisely, with a plan in place, then you can get a return."
Berlin didn't shy from spending money on the Silver Hawks, which he purchased when the team was on the precipice of financial ruin last November. A year ahead of schedule, he expects to make a profit this season on the Class A Midwest League team, affiliated with the Arizona Diamondbacks. Berlin wasted no time in reviving the debt-ridden franchise to save it for South Bend and become a force in the city’s effort to renew its sagging downtown.
Find out what's happening in Winnetka-Glencoefor free with the latest updates from Patch.
Berlin paid “multi-millions” in cash for the team, he said, and paid an additional $2.5 million in cash on renovating the stadium.
Earning back fans' business
Berlin came into baseball ownership after having a small stake in the White Sox, having bought out five other investors over the past five years. He first looked at independent teams that were not affiliated with big-league parents clubs.
Finding their business models unappealing, Berlin cast about for the nearest affiliated team. The Silver Hawks, just a 90-minute drive from his downtown Chicago office, was the nearest one, and in desperate need of a financial and marketing angel.
“It was a team that had been troubled,” Berlin said. “Five years ago, former Indiana Gov. Joe Kernan and investors bought the team (after it threatened to move). But in doing so, they took on a lot of debt. That debt service precluded them investing in the team and the stadium. As a consequence the purchase price was right.”
Berlin hired experienced minor-league baseball executive Joe Hart as team president, upgraded the front-office staff and hit the ground to sell baseball to the 700,000-strong “Michiana” area around South Bend and southwest Michigan.
“What you learn in business, especially in the area of marketing and advertising, is you have to be able to execute on the promise,” Berlin said.
“We weren’t going to be raising prices this year because we felt we needed to earn the business back from fans who used to come in droves," he said. "I don’t think you’d even talk about raising prices until you earn that business.”
Attention to details drives up attendance
Berlin, who attends at least one Silver Hawks and White Sox game on each of their homestands, got his staff to fine-tune every aspect of the fan experience. As a result, attendance is up 200 percent from last year, when the Silver Hawks drew just 113,000.
Management first looked at fans sitting in traffic coming in, working with South Bend to change signage, re-direct streets and pave parking lots. Golf carts were provided to transport seniors and children from far points of the lot to turnstiles. Ushers were instructed to look for fans, such as mothers with strollers or diaper bags, and offer assistance.
Berlin built a giant splash pad — an area with fountains for kids to play in — in right field for kids and changing rooms so they could switch to dry clothes afterwards. Fire pits were installed for fans to toast marshmallows or just sit around telling campfire stories. Three-story inflatable slides rose in left field. Berlin heard the Boston Red Sox had the best hot dogs in the majors, so he contracted with that team’s vendor for his hot dogs. The Oakland Athletics’ play well-received Sixties and Seventies music in their stadium, so the oldies-but-goodies get play over the Coveleski Stadium PA system.
“Best promotion of all is our Flat-Screen Fridays,” Berlin said. “We give away a 32-inch flat-screen TV every inning of every Friday night game. The quid pro quo is folks have to fill out registration cards for the drawing, and we’re able to collect demographics, contact information and e-mail addresses for future advertising and promotions."
And Berlin is loving every minute of it.
“My goodness, it’s fun," he said. "I have five kids. It’s very gratifying for my family. My (Berlin Packaging) customers and suppliers love affiliated ball.”
The big dog in South Bend, of course, is Notre Dame University. Berlin has established good diplomatic relations.
“Notre Dame’s been fantastic,” he said. “It’s really in their interest that South Bend be successful. The Silver Hawks and the renovation of the stadium are part of the effort. They’ve been sending patrons and customers, and they’ve been contributing beautifully by being a great customer.”
His goal: major-league ownership
Just like a minor-league player working his way up to the majors, Berlin hopes to do likewise as an owner.
So he can quickly commute from his base, he’s only interested in a Central Division team in either the National or American league. That narrows the field down to the Cubs, White Sox, Milwaukee Brewers, St. Louis Cardinals, Pittsburgh Pirates, Cincinnati Reds, Detroit Tigers, Cleveland Indians, Kansas City Royals and Minnesota Twins.
“The right people in the business of buying and selling major-league teams know who I am and know of my interest,” he said.
But values of franchises, if they ever become available, seem to start on the far side of $500 million. Berlin doesn’t blink.
“For a seller these rising values are fantastic,” he said. “As a buyer it certainly gives you pause. But I understand the numbers involved and I’m prepared.”
A backer of Glencoe police
Amid his active business life, Berlin has found the time and money to give back to Glencoe. Recently joining the Public Safety Commission, he funded the $9,000 purchase of new riles.
“There’s a big push in law enforcement to replace shotguns with rifles,” said Mike Volling, chief of the Public Safety Dept. “We had some surplus rifles obtained from the military. They’re serviceable, but big and bulky, and not ideal. We had no money in the budget to buy rifles. Andrew offered to come forward. His thought was we’re a department that protects the community, so we should be better equipped.”
Said Berlin: “Every municipal budget is strapped these days. Our police departments, if not taken for granted, (residents) say we don’t live in a very violent part of the country, they can just make do with the equipment they have. If police say they need equipment to upgrade, to operate with the best tools possible, they ought to have them. If I can afford it, if I can help them, then I’m going to do it.”
When an opening came up on the Public Safety Commission, Berlin’s name came up. The commission meets on an irregular basis to evaluate new-officer candidates and review personnel.
“He was a big supporter of the department,” Volling said. “He would always take time to stop officers to ask how they’re doing. He’s good with people, someone with an ability to read people and interview new officers.”
And someone in Volling’s eyes who’d probably make an ideal big-league baseball owner.
“Absolutely,” he said. “He strikes me as the kind of guy who was made for that. “It’s probably his calling.”
