January 2004

Ted Leonsis, the evangelizing vice chairman America Online (AOL) and president of AOL’s Core Service, writes a lot of email. In the pre-dawn hours and late at night he reaches out electronically to tens of thousands of hockey fans, employees, colleagues, and a few special friends that he has mentored for years. Much of Ted Leonsis’ personal and business fortunes are tied to the new medium that he helped to build. It is through a few of those new media relationships that he became an early investor in VPP.

Ted, the only child of a Greek immigrant father, grew up in Lowell, MA where his grandparents were mill workers, and later in Brooklyn, NY where his father waited tables and his mother was a secretary. When his parents moved back to Massachusetts, Ted zipped through high school, entered the University of Massachusetts, and later transferred to Georgetown University, where he finished first in his class. He went back to Lowell to work at Wang Laboratories. At age 25, he moved to Florida and began publishing LIST (Leonsis Index to Software Technology.) Just two years later, he sold the company for $40 million. A few years later, he bought back part of his enterprise and turned it into Redgate Communications, which developed shopping catalogs on CD ROM. Around that time, he also ran for public office, serving a term as mayor of the small town of Orchid, FL. That’s also when he met and married his wife, Lynn. In 1993, Ted sold Redgate to the upstart AOL and has been with the company ever since. In fact, in terms of longevity with the company today, Ted is number 22.

Leonsis, 47, described by Washingtonian Magazine as “one cool dude,” is a public relations director’s dream. His words are measured and thoughtful, but he is also passionate, personable, and can tell a good story. He likens AOL and his Washington Capitals to Greek tragedies and biblical epics like David and Goliath. First there’s the young upstart who appears out of nowhere and soars to success, only to crash to earth because of bad decisions or acts of God. But then there’s redemption and the glorious comeback. It’s the comeback that Ted is trying to lead today. He believes that it is his job to remind customers and employees of the strength of the AOL brand, which “is synonymous with the Internet...I feel very responsible and committed to the employees and partners of AOL. I love this company and I love this medium.”

He also loves his Washington Capitals, the 30-year-old hockey team that he bought in 1999. As booster-in-chief, Ted has brought to the team some of the same marketing magic that he used successfully at AOL. Since Ted purchased the Caps, the number of season ticket holders has increased from 2,900 to more than 10,000. He also makes sure that he and the players are accessible to the public. Good intentions notwithstanding, this has been a tough year for the team, but he has high hopes that the new head coach, Glen Hanlon, can turn things around.

When Ted decided to buy the Caps, he founded Lincoln Holdings, LLC, a partnership that includes several other VPP investors, Raul Fernandez, Josh Freeman, Jeong Kim, Jack Davies, and Rick Kay. Ted is the majority owner of Lincoln Holdings, which owns 100 percent of the Caps as well as a 45 percent interest in Washington Sports and Entertainment, the holding company for properties including the Washington Wizards, the Mystics, the local TicketMaster franchise, and the MCI Arena.

Ted says that owning a sports team was an important item on his famous list “101 Things To Do Before I Die.” He created the list at the tender age of 25 after a frightening episode on a malfunctioning airplane. The list has become the Leonsis strategic plan of sorts. (A quick scan of his modest and impeccably neat office tells you that this is a man who likes order and structure.) He has worked his way through 70 percent of the list so far—including a recent golf trip to Augusta with Jeong Kim and other partners, and a movie credit for helping with the production of a new documentary film, Capturing the Friedmans.

Purchasing the Caps was also a vehicle for other Leonsis passions—community and charity. “Universities and sports teams are the most enduring parts of the community…it’s also a great vehicle to give back to the community,” he says. In addition to his personal touch with fans, Lincoln Holdings has given away millions of dollars in Caps tickets and other small acts of kindness to local charities and regular people who needed a helping hand. He and his wife are making sure that son Zach and daughter Elle are also beginning to learn to give of themselves.

“This is where I’m a little different in my charity work. I write checks, but I tend to get personally involved,” says Ted. He uses the accessibility of email to create communities as well as intimate bonds. A few years ago he created e-Buddies, which forges email relationships between caring adults and people with intellectual disabilities. Ted has been exchanging daily messages with Ken Holden, his e-buddy in Florida, for four years. Similarly, after becoming a major supporter of Hoop Dreams Scholarship Fund in Washington, DC, Ted befriended Michael Hendrickson. “We have communicated every single day since he was a junior in high school. Now he’s a junior at Hampton University, Ted says, smiling. “He’s on the Dean’s List this year, and that’s a big breakthrough…He’s come out of his shell and realizes that the playing field is level…that with discipline and focus, you can excel.”

Earlier this year, Ted and some friends from his old neighborhood in Brooklyn decided to invest in the renovation and reopening of the school at Our Lady of Perpetual Help Catholic Church to recreate the Sunset Park Youth Center where Ted played basketball as a kid. The club opened a few weeks ago and is already serving 300 youngsters.

Ted says that touching people—fans, students, kids—is what motivates him. “I like these people. It’s not work. I see how they enrich my life and how their lives are [enriched] too.”