Louis Jacobs and Jeremy Jacobs Jr. have been named co-chief executive officers for Delaware North, along with Charlie Jacobs, who will become chief executive officer for Delaware North's Boston Holdings. Their father has served as CEO since 1968.
With the third generation of Delaware North CEOs, it seems almost fitting that the title will be split three ways among brothers Lou, Jeremy Jr., and Charlie Jacobs. Lou and Jeremy Jr. have been named co-CEOs for Delaware North, and Charlie has taken on the role of CEO Delaware North’s Boston Holdings including TD Garden, New England Sports Network, National Hockey League’s Boston Bruins, and other real estate holdings. The Jacobs family has owned the corporation since it was founded in 1915.
“This is a 100-year old company and we’ve only had two other CEOs: our father and grandfather,” said Lou Jacobs, who called the title a great honor.
All three brothers have held executive positions within the company and have been active in the business for 38 years.
The transition has actually been in the works for about 18 months. Current President Chuck Moran previously announced his intention to retire in December 2015, and CEO and Chairman Jeremy Jacobs called his sons into his office.
“He said, ‘I have these two titles and I don’t need them both. It’s time you guys figured out how you want to transition the future leadership of this company.’ Right away we asked for a pay increase,” said Jerry Jr. with a laugh.
Other than Charlie’s role with Delaware North’s Boston Holdings, the new responsibilities are somewhat fluid. There aren’t defined roles for Lou and Jeremy Jr., instead focusing on partnership and collaboration so that both are free to work in various areas of the company.
Though they have the new titles, the brothers aren’t going it alone. There is a strong executive board and Jerry Jacobs will stay on as chairman.
“He’s there to help mentor us,” said Lou. “He’s doing this at a position of strength to be able to support us in the transition.”
“And he will not hesitate to point out where we’ve turned in the wrong direction,” added Jerry Jr.
Delaware North continues to grow, with annual revenue exceeding $3 billion. Its more than 60,000 employees work in the United States, Canada, United Kingdom, Australia, New Zealand and Asia. The brothers attribute the company’s growth, in part, to being able to think long term as a private corporation, as opposed to spending time, energy and money working to please shareholders.
“We’re not working quarter-to-quarter or report-to-report; we’re thinking longterm, strategic,” said Jerry Jr.
Lou added that the Jacobses have “the great luxury of being able to look at our time horizons 10-to-30 years in the future … We will often take less profit today in the prospect of having a great relationship extending out into the future.”
Potential future plans may include going after the contract for a stadium project currently in talks by National Football League owners The Pegulas of the Buffalo (N.Y.) Bills. Delaware North Sportservice provides concessions, catering and retail at Ralph Wilson Stadium in Orchard Park, N.Y., the team’s current home. The company has held the stadium concessions contract since 1992.
“The Pegulas are good friends and important clients. We haven’t had any discussions on that particular topic,” said Lou. As to whether or not the company would be interested in partnering to help make the stadium idea a reality, Lou added, “we’re always interested. The math doesn’t always work out right, but we’re always interested and will always take a look.”
Jerry Jr. said that building a stadium in the right location of the city could create significant economic impact and development around the property.
Purchasing an additional major league team sounds less likely.
“It’s always on our buy list if we could just get the darn price right,” said Jerry Jr., who added that the company has been in the sports business since his grandfather, founder and first CEO of Delaware North, Louis Jacobs, purchased the Buffalo Bison hockey franchise in the 40s. “We always look at potential acquisitions. We tend to have the disadvantage of thinking we want to buy a team with the intention of making money, and that’s often how these don’t work out.”
Buffalo, N.Y., serves as home to the company’s headquarters, which are scheduled to move into a new office in August. The move will occur concurrently with Delaware North’s 100-year anniversary celebrations, which will center around 100 days of celebration.
Interviewed for this story: Jerry Jr. and Lou Jacobs, Wendy Watkins, (716) 858-5092