MLS club fires CEO Mark Pannes just six months into the job
Citing a need for efficiency, team axes Pannes and names sporting director Schuster to dual role
The move to part ways with CEO Mark Pannes has hit a sour note with fans of the Vancouver Whitecaps, but the team is confident they can move forward in complete harmony.
“We’ve really been on the same song sheet internally. There hasn’t been friction,” said Whitecaps minority owner Jeff Mallett.
“It’s about … who has the best skills and the best experience base and makeup to own that for the next few years.”
Six months into a four-year contract, the Whitecaps have axed Pannes — late of Serie A side AS Roma and the NBA’s most valuable franchise, the New York Knicks — citing a need for “efficiency” and “streamlining” in their executive structure.
Sporting director Axel Schuster will take over the role, adding CEO to his title and responsibilities.
When looking at the effect the coronavirus pandemic has had on professional sports and the world at large over the past 100 days, Mallett said the leadership shakeup was made to put the best person in charge for the next 100 and beyond.
“This is a decision to be the most effective club. And when you look at it, Axel’s leadership ability went far beyond what we expected when he came into the club,” said Mallett.
“The last 100 days has just turned our entire world upside down. And with that, it was really clear we wanted to go to one voice, one culture, one process. This was the opposite of a dollar decision.
“We have three guaranteed games — that’s all — in front of us. We might go a year without seeing a fan in front of a match. That’s massive. This isn’t just ticky-tack. This is really some fundamental changes. And that’s when you look and see what you have in place, and to us there was no question: consolidate the role, get that in place.
“This is not a popularity contest,” he added. “I think the fans have seen that we have made significant changes, bringing in Marc Dos Santos, bringing in Mark, bringing in Axel. … From an inside standpoint, there’s just no question in my mind that we have the right person to do this and we’re making the right decision.
“Our job is to make sure that we are ready to grow, and Axel is the one thing we are going to rally around.”
Schuster was hired in late 2019 after a long search, coming to Vancouver from two decades in the Bundesliga in various executive roles with FC Schalke and FSV Mainz 05.
But he now assumes a role that is unique among MLS teams — being responsible for both the business and sporting side of the Whitecaps, both jobs that require full-time attention. Schuster, who said they are likely done acquiring players for this season and the scouting department is still under construction, will now turn his attention to developing the business side of the front office to help support him.
“I’m not concerned: I’m the total opposite. I’m pretty confident that we’ve got a good group together in our culture, with our tactic to to make this franchise successful on and off the pitch,” he said Tuesday.
“Can one person do everything? No. Of course not. But I really want to stop the thinking that here, one person is doing everything. I was always a team player — I don’t make decisions on my own. I rely on my leadership group everywhere.”
The situation is reminiscent of 2011, when the club and CEO Paul Barber had a shortlived relationship. He came to Vancouver from Premier League side Tottenham Hotspur, but resigned after the first MLS season. He went back to England and was named FA executive of the year in 2013 after resurrecting Championship side Brighton & Hove Albion.
There’s little doubt Pannes will find employment soon, based on his track record and short but fruitful time with the Whitecaps.
Before being hired by Vancouver on Jan. 7, Pannes was CEO of Roma and led the Italian team’s stadium project. The Texas native previously spent a decade with the Knicks, rising the ranks to vice-president of marketing and helping ignite one of the longest sellout streaks in NBA history.
He only got the chance to witness a single Whitecaps home game before the season was suspended, but elicited a massive wave of positive feedback for his fan outreach and community initiatives, including fundraising efforts with the Vancouver Aquarium and Greater Vancouver Food Bank that have crossed the $2.6 million threshold.
Pannes was unavailable for comment, but issued a statement via twitter, which read, in part: “I am grateful for having the opportunity to serve the club, however briefly. While I experienced just a single home match, I saw the potential of B.C. Place’s home pitch advantage. I am a believer,” he wrote.
“I am also deeply honoured having worked with this team’s tremendous staff. Their unrelenting enthusiasm and work ethic during the past months elevated the Whitecaps to ‘the gold standard.’ Being welcomed by the club’s support groups and fans with open arms and hail resolve was a privilege.”
The financial pressure put on the club by the pandemic suspending play has been extreme, with Mallett saying the losses are in the “tens of millions,” and that the club has kept all other employees fully employed, unlike many other organizations.
“Our job is to not let the club get thrown into the piles of other clubs and sporting franchises that are getting decimated during this time. Hundreds of football clubs — or actually now, thousands — are going into administration. The sporting landscape is upside down. We could go on to almost all the sports. Our job is to actually rise out of this time. This is something I don’t take lightly and I’m standing here today to clearly say this is the right decision for the club.”