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Chuck Sullivan
Chuck Sullivan
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Charles William Sullivan (born December 4, 1942) is an American former lawyer and sports executive who was the vice president of the New England Patriots of the National Football League and owned the team's stadium, Foxboro Stadium.

Key Information

Early life

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Sullivan is the eldest son of Patriots' founder Billy Sullivan.[2] While attending Boston College, Sullivan worked for the Patriots as assistant publicity director.[3] He also dabbled in concert promotion, bringing Duke Ellington and The Kingston Trio to BC.[4] After graduating from Boston College Law School, Sullivan spent two years in the United States Army during the Vietnam War as a captain.[2] He spent one year at Fort Benning and one year in Thailand and helped organize Bob Hope's 1968 tour of Vietnam.[2][4] After leaving the Army, Sullivan earned a Master of Laws degree from Harvard Law School.[2]

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After graduating from Harvard, Sullivan became an associate at Sullivan & Cromwell, where he worked on Ford Motor Company's defense in a federal antitrust lawsuit and represented First Boston for Bangor Punta in their legal battle with Chris-Craft Industries for control of Piper Aircraft.[2] In 1971, Sullivan assisted the NFL in its defense against an antitrust suit filed by former Patriot quarterback Joe Kapp.[2] He later worked for Edwards & Angell and was a partner in O'Melveny & Myers.[5][6]

Patriots

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In 1970, Sullivan replaced Phil Fine on the Patriots board of directors after Fine resigned to head up the company building the team's new stadium.[7] In 1977, Sullivan was elected chairman of the National Football League Management Council's executive committee.[8]

Buyout of minority shareholders

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After Billy Sullivan was ousted as team president in 1974, Chuck Sullivan aggressively worked to regain control of the team.[2] He arranged for $5.3 million in loans from LaSalle Bank and Rhode Island Hospital Trust National Bank and executed a squeeze-out, which forced minority shareholders to sell their shares to the Sullivan family.[9][10] In 1986, the Massachusetts Supreme Judicial Court ruled that the Sullivans' buyout of the Patriots' nonvoting shareholders was illegal. The usual remedy for such an illegal deal would be to rescind it, however it the Court found that it wouldn't be appropriate in this case because of the amount of time that had passed.[11]

Dispute with Chuck Fairbanks

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Contract squabbles between the Sullivan family and offensive linemen John Hannah and Leon Gray soured head coach Chuck Fairbanks on Chuck Sullivan, who had forced Fairbanks to renege on his proposed contracts with Hannah and Gray.[12] In 1978, Fairbanks worked out a contract extension with Darryl Stingley, but after Stingley suffered paralysis following a violent hit in a preseason game, Chuck Sullivan reneged on the deal. Fairbanks resolved to leave the team after the season.[13] Hours prior to the final regular season game, Sullivan suspended Fairbanks for breaking his contract by agreeing to become head coach for the University of Colorado.[14] Fairbanks was reinstated a few days later,[15] well ahead of their divisional round playoff game (and the franchise's first home playoff game), but the second-seeded Patriots were upset 31–14 by the Houston Oilers.[16][17] The Patriots sued Fairbanks for breach of contract, but on April 2, 1979, a group of CU boosters bought out his contract, making it possible for him to leave New England.[18][19][20]

Acquisition of Schaefer Stadium

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In 1981, Sullivan purchased Schaefer Stadium from Stadium Realty Trust for $6.28 million after winning a proxy fight with SRT management, which sought to sell the stadium to Canadian businessman Nelson Skalbania.[21][22] In 1983, the stadium was renamed Sullivan Stadium. That same year, Sullivan acquired a 10-year lease on Foxboro Raceway from owner Eddie Andelman.[23]

Victory Tour

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Sullivan's Stadium Management Corp. financed The Jacksons 1984 Victory Tour. Sullivan offered the Jacksons two-thirds of the tour's gross revenue against a guaranteed $40 million, promised the group 83.4% of gross potential ticket revenues, which was at least 25% more than the industry standard for the time, and guaranteed the Jacksons an advance of $36.6 million.[24] He also had to pay the Jacksons' parents and Don King, who first announced the tour and then was reportedly pushed aside by Michael Jackson.[25] The tour was expected to gross $70–80 million and Sullivan expected to make up to $13 million. He put Sullivan Stadium up as collateral for a $12.5 million loan to pay the first installment shortly before the tour started.[24]

The tour sold what was then a record number of tickets.[26] The opening shows were widely covered in the national media and sold out.[27] By the later shows, the novelty had worn off and the shows were failing to sell out. Dates planned for Pittsburgh were cancelled and by early October, the time of the shows in Toronto's Exhibition Stadium, a total of 50,000 tickets had gone unsold. In late November, the shows at Sun Devil Stadium in Tempe, Arizona, were canceled. Officially the reason was that Jermaine was too sick with the flu to perform, but there was some speculation that slow ticket sales played a role as well. Sullivan was so short of cash he stopped payment on a $1.9 million check to the group after the Vancouver dates. Immediately afterwards, he suffered a minor heart attack, and left the hospital early to renegotiate with the Jacksons again, claiming losses of $5–6 million.[24]

Financial difficulties

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Estimates of SMC's losses on the Victory Tour ranged from $13 million to $30 million.[24][28] Sullivan himself put the figure around $25 million ($7 million to $8 million on the tour and $18 million on a merchandising deal with Michael Jackson).[29] In August 1985, The Boston Globe reported that the Sullivans were looking to sell the Patriots, Sullivan Stadium, and their lease on Foxboro Raceway due to the family's financial and legal problems.[30]

In 1986, Foxboro Raceway president Joe Sullivan left the track after a dispute with Sullivan, who reportedly owed him around $170,000.[31] Later that year, the Massachusetts Racing Commission denied Sullivan's request for 1987 race dates due to the "financial insolvency" of Sullivan's Commonwealth Sports Properties and issues with the facility.[32] On February 16, 1987, the track's owners seized the facility after Sullivan defaulted on his lease.[33] Three months later, foreclosure proceedings were started against Sullivan after he failed to make payments on a 60-acre parcel of land across from Sullivan Stadium.[34]

In July 1987, The Boston Globe reported that the Sullivans were in $77.7 million in debt (the Patriots were in $33.4 million in debt, Stadium Management Corp. was $19.1 million in debt, Commonwealth Sports Properties was $7.75 million in debt, and Premier Properties was $6.4 million in debt). The Patriots had lost money despite making Super Bowl XX in 1986 and selling out all of its games at the highest ticket prices during the 1986 season.[28] One month later, Kidde filed a lawsuit in the United States District Court for the Southern District of New York claiming that Sullivan was in default on $11.8 million he owed the company, which had guaranteed a $12 million loan he took out from the Bank of Nova Scotia.[35]

On November 6, 1987, the Massachusetts Land Court ruled that Connecticut Bank and Trust could sell Sullivan Stadium at auction. CBT was the stadium's second second mortgage holder and Sullivan had reportedly borrowed $9 million from CBT to help purchase the lease on Foxboro Raceway.[36] On February 23, 1988, Stadium Management Corp. filed for Chapter 11 bankruptcy protection to prevent the auction.[37] On July 13, 1988, United States bankruptcy court judge James N. Gabriel removed Sullivan from management of Sullivan Stadium and ruled that US Trustee Vivan Grieman should begin proceedings to find a trustee to oversee SMC.[38] Robert Kraft outbid several competitors to buy the stadium out of bankruptcy court for $22 million.[39]

On March 17, 1988, the National Football League created a four-man committee to sell the deal or work out a deal to settle its $120 million in debts.[40] On March 30, 1988, it was announced that the Sullivans had agreed to sell the Patriots to Paul Fireman and Fran Murray.[41] That July, Sullivan negotiated the sale of the team to Victor Kiam.[42]

Post-Patriots

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Since leaving the Patriots, Sullivan has practiced corporate law in New York City, run an event management business, and consulted for Veritone, an artificial intelligence company.[43][44]

In 1998, Sullivan's license to practice law in New York was suspended indefinitely after he informed officials investigating allegations that he failed to return or misappropriated $1.4 million in investor funds that he was too ill to complete their interviews. In 2001, Massachusetts bar officials placed him on inactive disability status, which prevented him from practicing in that state as well.[45]

On April 5, 2002, the Securities and Exchange Commission accused Sullivan of taking part in a $52 million investment scam with Dreyfus Corporation fund director Martin Fife, Raymond James Financial broker Dennis Herula, and British citizen Michael Clarke.[46][47] On November 7, 2006, Sullivan agreed to pay back $910,884 in profits, $402,961 in interest, and a civil penalty of $120,000 to settle the case.[48]

References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Charles William "Chuck" Sullivan (born December 4, 1942) is an American attorney and former sports executive best known for his role as executive vice president of the of the () from 1970 to 1988, during which he helped guide the franchise to its first appearance. Born into a family deeply involved in professional football, Sullivan is the son of William H. "Billy" Sullivan Jr., who founded the Boston Patriots in 1959 as one of the original (AFL) franchises, later rebranded as the upon the leagues' merger in 1970. A graduate of and its law school, Sullivan earned a master's degree from and studied at ; he served as a U.S. Army infantry captain in before joining the prestigious New York law firm . Initially serving as the Patriots' assistant publicity director starting in 1964 and the team's first in 1960, he rose to the in 1970 and became executive vice president, overseeing business operations and stadium management through his company, Stadium Management Corporation, which owned (later renamed ; the site is now home to ). Under Sullivan's leadership in business affairs, the Patriots achieved on-field success, including a 31–14 victory over the in the 1985 and a berth in against the in January 1986, though they lost 46–10. However, the era was marred by financial struggles, exacerbated by a failed $126 million bond issue in 1988 intended to build a new , which led to the franchise's bankruptcy filing and forced sale to for $83.7 million later that year. Sullivan also faced internal controversies, such as a 1978 dispute with Chuck Fairbanks that contributed to Fairbanks' abrupt departure for the . Following the sale, his father William H. Sullivan Jr. pursued legal action against the , alleging that the league's ban on public ownership violated antitrust laws and forced a below-market sale of the team; a 1993 jury initially awarded $38 million (trebled to $114 million under the Sherman Act), but appeals led to a 1994 vacating of the verdict, ultimately resulting in an $11.5 million settlement in 1996. In , Sullivan had been elected chairman of the NFL Management Council's executive committee, a position influencing labor negotiations with the players' union. After leaving the Patriots, he engaged in and advisory roles focused on media and acquisitions.

Early life and education

Family background

Chuck Sullivan was born on December 4, 1942. He is the son of William H. "Billy" Sullivan Jr., who founded the Boston Patriots franchise in 1959 as one of the original teams, later becoming the in the . Billy Sullivan played a pivotal role in introducing his son to professional football from an early age, immersing Chuck in the world of the sport through family discussions and behind-the-scenes access to team operations. The Sullivan family relocated to the area in the late after a period in , where Billy had worked in film production. This move aligned with Billy's career in sports promotions, which provided young Chuck with direct exposure to the sports media landscape and the growing professional football scene in . During the AFL era of the 1960s, Chuck gained hands-on experience with the Patriots as a , attending games and assisting at practices, which deepened his early fascination with the business and operations of . This familial environment, centered around his father's entrepreneurial ventures in football, shaped Sullivan's foundational interest in sports management and ownership.

Academic and military career

Sullivan earned an undergraduate degree from before pursuing legal studies, obtaining a from and subsequently a from ; he also studied at . In the mid-1960s, while attending college, Sullivan took on a part-time role as assistant publicity director for the Patriots, drawing on his family's longstanding connection to the franchise through his father, William H. "Billy" Sullivan Jr., the team's founder. Sullivan's early professional qualifications were further shaped by his in the U.S. Army during the era, where he served two years on active duty and attained the rank of infantry captain, including a one-year assignment in . In his role as a , he contributed to morale-boosting efforts by co-producing and organizing Bob Hope's 1968–1969 USO Christmas tour across and .

New England Patriots

Executive roles and rise

Chuck Sullivan joined the organization in a formal capacity in 1970 when he was appointed to the team's on November 19, replacing Phil David Fine, who had stepped down to lead Stadium Realty Trust. This appointment marked Sullivan's initial step into executive oversight within the family-owned franchise founded by his father, William "Billy" Sullivan Sr. Under his father's leadership as team president, Sullivan advanced through the ranks, first promoted to by 1977. He later rose to executive vice president, a position that solidified his influence over the club's administrative structure during the latter half of the decade. In 1977, Sullivan was elected chairman of the Management Council's executive committee, succeeding owner and gaining a prominent voice in league-wide matters such as and operational policies. His legal background from proved instrumental in these negotiations. By the mid-1970s, Sullivan had emerged as the leader of the Patriots, assuming responsibility for day-to-day operations, including contract negotiations with players and staff, as well as managing team finances. This role positioned him as the primary decision-maker in the organization's business affairs, reflecting his growing authority amid the team's evolving management dynamics.

Shareholder buyout

In the mid-1970s, William "Billy" Sullivan, founder and principal owner of the , sought to consolidate full control of the franchise by buying out minority shareholders, a process in which his son Chuck Sullivan played a key role as an emerging executive. By April 1974, Billy Sullivan had increased his holdings to 23,718 voting shares and 5,499 nonvoting shares, setting the stage for a comprehensive acquisition. In November 1975, he completed the purchase of all 100,000 outstanding voting shares at approximately $102 per share, financed through $5.348 million in personal loans, primarily from the , valuing the team at around $10 million overall. This step eliminated external voting influence from original investors who had joined when the franchise was established in 1959. To address the remaining 400,000 nonvoting shares held by minority investors, the Sullivans orchestrated a merger between the original Patriots corporation and a newly formed entity, offering $15 per nonvoting share in cash—a price contested as grossly undervalued given the franchise's growing value. Shareholder David A. Coggins and others filed suit, alleging the merger served only to repay Billy Sullivan's personal debts using corporate funds, violating fiduciary duties without a legitimate business purpose. In a landmark 1986 ruling by the in Coggins v. New England Patriots Football Club, Inc., the merger was deemed illegal due to its sole aim of benefiting Sullivan personally, as "the merger did not further the interests of the corporation." The court invalidated the transaction but, recognizing its decade-long completion, opted against full rescission and instead awarded rescissory damages to plaintiffs based on the present of the shares plus interest, rather than the original $15 appraisal. The buyout's financing imposed significant financial strain on the Sullivan family, with ongoing loan repayments contributing to a mounting debt burden that exceeded $126 million by the late across the team and related assets. These obligations, including the additional damages from the court ruling, exacerbated pressures and limited operational flexibility for the franchise. The legal resolution delayed the Sullivans' unchallenged full ownership, as the protracted litigation and heightened payout requirements prolonged minority shareholder claims until settlements were reached, ultimately undermining family control and paving the way for the 1988 sale of the team.

Coaching disputes

In 1973, Chuck Sullivan, as executive vice president of the , hired as head coach from the , granting him significant authority over personnel and operations in a five-year contract that positioned him as both coach and general manager. Relations between Sullivan and Fairbanks deteriorated over the mid-1970s due to Sullivan's increasing interference in coaching decisions and contract negotiations, which undermined Fairbanks' autonomy and led to ongoing tensions by 1977. For instance, in 1977, Sullivan intervened in Fairbanks' negotiations with players John Hannah and Leon Gray, disrupting a finalized deal just before the season opener and forcing , which contributed to a disappointing 9-5 record that year despite a talented roster. Similar meddling, including Sullivan's involvement in other player contracts like that of , exemplified the owner's hands-on approach that Fairbanks found intolerable, eroding trust within the organization. The conflict reached a breaking point in late when Fairbanks, amid the Patriots' 10-3 season, accepted an offer to become at the and attempted to resign effective after the playoffs; Sullivan refused the resignation, citing , and suspended Fairbanks without pay on December 18, , just before the final regular-season game. Assistants Hank Bulluck and served as interim coaches for that contest, and Sullivan reinstated Fairbanks briefly for the playoff loss to the on December 31, only to fire him outright after the season ended. The fallout included multiple lawsuits that underscored Sullivan's determination to maintain control over personnel; the Patriots sued the in federal court for with Fairbanks' contract, securing a preliminary in January 1979 to block his hiring, though the case proceeded to arbitration under NFL Pete Rozelle. Ultimately, after negotiations and a settlement involving Colorado boosters covering potential damages up to $600,000, Fairbanks joined in April 1979, highlighting Sullivan's aggressive enforcement of team authority but also the personal and legal costs of such disputes.

Stadium acquisition

In 1981, Chuck Sullivan orchestrated the acquisition of Schaefer Stadium, the ' home venue, by forming Stadium Management Corporation as a to manage the purchase and operations. Sullivan, serving as the sole shareholder of the corporation, initiated a to gain control of Stadium Realty Trust, the stadium's owner since 1970, ultimately securing a majority stake and buying out minority holders at $12 per share for a total cost of $6.28 million. The transaction provided the Sullivan family with full ownership of the facility, which was positioned as a distinct asset separate from the Patriots franchise to support broader financial strategies. Under Stadium Management Corporation, Sullivan oversaw upgrades to the , including immediate improvements aimed at enhancing the venue for the , such as better facilities to meet league standards and attract events beyond football. The corporation handled day-to-day operations, including leasing arrangements with the Patriots and hosting non-team events to generate revenue. Additionally, the served as collateral for loans that bolstered the family's investments in team operations, underscoring its role in stabilizing the franchise's infrastructure amid growing financial pressures. In , the stadium was renamed Sullivan Stadium to honor the Sullivan family, particularly founder , reflecting the personal stake Chuck and his relatives held in the asset's legacy and control. This renaming emphasized the venue's status as a family-controlled entity, independent of the team's direct ownership structure, which allowed for flexible management of events and financing.

Victory Tour

In 1984, Chuck Sullivan, through his company Stadium Management Corp., organized and financed portions of the Jackson family's Victory Tour at Sullivan Stadium in , securing the venue for multiple performances as part of the 55-date North American concert series featuring and his brothers. Sullivan's ownership of the stadium enabled this hosting arrangement, positioning it as a key site for the tour's high-profile events. Sullivan played a central role in negotiations with tour promoters, including initially partnering with Edward DeBartolo Jr. before assuming primary responsibility after DeBartolo's withdrawal due to unfavorable contract terms; he also navigated disputes with co-promoter , ultimately taking over production to ensure the tour proceeded. To fund the venture, Sullivan secured a $12.5 million loan from Crocker Bank, using Sullivan Stadium, the franchise, and a family-owned racetrack as collateral. This financing provided immediate relief, staving off short-term risks for Stadium Management Corp., but it significantly increased the company's overall burden. The Victory Tour resulted in substantial losses for Sullivan and Stadium Management Corp., estimated at least at $20 million, stemming from exorbitant production costs—including a massive 160-ton stage setup—poor planning that led to overestimations of attendance, and revenue shortfalls from ticket sales and merchandising. These financial setbacks were compounded by renegotiated profit-sharing terms that reduced Stadium Management Corp.'s take from 83% to 75% in favor of the Jacksons, further straining resources despite gross tour revenues exceeding $100 million. The ordeal exacerbated long-term debt issues, contributing to Sullivan's personal health strain from the stress of ongoing disputes and operational challenges.

Financial difficulties and sale

By 1987, the Sullivan family's holdings related to the had accumulated nearly $78 million in debt, stemming from previous shareholder buyouts, substantial loans, and operational losses including the Victory Tour. In February 1988, amid escalating financial strain and pressure from the to stabilize the franchise, Chuck Sullivan, as owner of Stadium Management Corporation, filed for Chapter 11 bankruptcy protection to reorganize the company's debts and prevent an auction of Sullivan Stadium. In March, the assumed temporary control of the Patriots' operations due to the family's inability to meet financial obligations, marking a significant intervention to avert further instability. The culminated in the sale of the Patriots in October 1988 to for $84 million, allowing the Sullivan family to exit ownership of the team. Separately, Sullivan Stadium was sold out of court to for $25 million later that year, severing the family's control over both the franchise and its primary venue.

Post-Patriots career

Business and consulting activities

In the ensuing years, Sullivan founded and served as president of Premier Event Management, Inc., a New York-based firm specializing in high-profile events that blend , and cultural elements, such as international galas and performances at venues like . The company organized initiatives promoting cross-cultural exchanges, including collaborations between American and Chinese artists to foster greater mutual understanding through entertainment productions. Sullivan later engaged in consulting and advisory roles, drawing on his sports and media expertise. In the early 2010s, he retained Endeavor Advisory Group as his investment banker to explore media and sports-related acquisitions, though specific transactions remained undisclosed. Following his tenure with the , Charles W. Sullivan, who had previously maintained a practice in , faced significant professional disciplinary actions that curtailed his legal career. In 1998, the New York Supreme Court, Appellate Division, suspended Sullivan's license to practice law indefinitely for professional misconduct, stemming from his failure to cooperate in a disciplinary investigation involving the handling of client funds. In April 2002, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint accusing Sullivan, then a non-practicing New York lawyer and director of a Dreyfus Corporation fund, of participating in a fraudulent high-yield investment scheme that defrauded investors of at least $52 million between 1999 and 2001. The SEC alleged that Sullivan incorporated Brite Business Corporation, made false representations to investors about a fictitious trading program promising exorbitant returns, and misappropriated funds, including using investor money for personal "loans." The case resolved in November 2006 through a consent judgment, in which Sullivan neither admitted nor denied the allegations but agreed to a permanent against future securities violations and to repay $1.43 million in , prejudgment interest, and civil penalties. These disciplinary measures effectively ended Sullivan's ability to practice , prompting a transition to non-legal consulting and business activities in subsequent years.

References

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