Former CEO Pannes the odd man out
Schuster lauded for ‘leadership ability’ after adding CEO duties to portfolio
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 will move forward in complete harmony.
“We’ve really been on the same song sheet internally. There hasn’t been friction,” said Caps 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 parted ways with 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 now takes over the role, adding the letters CEO to his title.
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 that 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 after two decades in the Bundesliga, where he held various executive roles with FC Schalke and FSV Mainz 05.
But he now assumes a role that’s unique among MLS teams: He’s responsible for both the business and sporting side of the Whitecaps, both jobs that require full-time attention.
Schuster, who said they’re 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.
“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 make this franchise successful on and off the pitch,” he said on 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 short-lived relationship. Barber 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 Brighton and Hove Albion.
There’s little doubt Pannes won’t be unemployed for long, either, 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 NBA’s Knicks, rising in the ranks to vice-president of marketing and helping ignite one of the longest sellout streaks in league history.
He got the chance to witness only 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 the 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.
The financial pressure on the club after the pandemic suspended play has been extreme. Mallett says the losses are in the “tens of millions,” and that the club has kept all its other staff fully employed, unlike many other organizations.