Gretzky Unfazed by Financial Losses in McNall Dealings

The motivating force behind Wayne Gretzky’s high-profile business partnership with Bruce McNall was never to build a financial empire, he says. It was mainly to have fun.

At first, it was just that. They were co-owners of the Toronto Argonauts of the CFL, which won the Grey Cup in 1991. And one of their thoroughbred horses, Golden Pheasant, won the Arlington Million.

And with McNall’s financial empire in disarray, and Gretzky’s losses from his partnership with the embattled club president estimated at less than $2 million, he remains philosophical.

“I took my lumps, but I knew that going in,” Gretzky said. “I went into the whole thing knowing the downside. I was disappointed but it’s not going to kill me. It taught me a lot about the business of sports and partnerships.”

The financial losses weren’t enough to damage their friendship. Gretzky said he talks to McNall on a regular basis and attempts to offer support. “I get about two phone calls a day,” he said.

Instead of being partners with a close friend, Gretzky is in business with creditors and bankruptcy trustee R. Todd Neilson. He owns four thoroughbreds with his new partners, including one horse that is having a great deal of success racing in New Zealand. Then there is the rare baseball card, a 1910 Honus Wagner, in which Gretzky has a 50% stake. It was bought for $450,000.

“I won’t be partners with anybody else,” Gretzky said Monday on opening day of the Kings’ training camp at Iceoplex in North Hills. “At a certain point in time, (the trustee) will want to auction off their 50% to raise capital. If I can buy the other 50% and put it away, I’ll do that.

“I really didn’t communicate about (business) a whole lot with Bruce, so I’m not communicating a lot with these people. I don’t worry much about it. I’m an athlete. It’s something I bought for fun. I didn’t buy it to say, ‘OK, this is something I’m going to buy to build an empire.’ This is something I did for my personal enjoyment.”

McNall’s financial slide has focused some attention on Gretzky’s finances since the two held such a prominent business relationship. Last week, a Canadian newspaper reported that Gretzky had lost as much as $5 million and that he was being threatened with several lawsuits from creditors of McNall’s Summa Stables Inc.

Gretzky’s lawyer, Ron Fujikawa, termed the report “absolute nonsense” on both fronts. Fujikawa said Gretzky was not being besieged by angry creditors and had received one letter of inquiry. Monday, Gretzky shook his head and laughed when asked about the $5 million, saying: “No way.”

Gretzky said the success with thoroughbred horses offset some of his Argonaut losses. But he never invested with McNall in rare coins and was not involved in the banking side of the McNall Sports and Entertainment.

He owned 18% of the Argonauts as did the late actor John Candy. When the team won the Grey Cup and still lost money due to so-so attendance and a poor lease at the SkyDome, Gretzky tried to convince McNall to sell the team.

Now, Gretzky obviously is concerned about McNall as a friend, not as a partner. McNall, the former majority owner of the Kings, has agreed to plead guilty to four criminal counts stemming from a federal bank fraud investigation, sources close to the case said.

“Now he has to go through the justice system and hopefully it works out positive for him,” Gretzky said. “It’s really out of our hands. It’s not something that really involves the hockey players, it’s more his personal business. . . . I think it’s tougher on me than most guys because I’m a friend. It’s easy to be friends with a guy when you’re on top of the world. I think true friendship comes through when people are down-and-out, that you try to stick by them as best you can.”

New majority owners Jeffrey P. Sudikoff and Joseph M. Cohen were at camp Monday. McNall was not there, but he briefly spoke to the team at a meeting Sunday. He introduced the owners and said the team would probably be asked a lot of questions about his status, according to one of the players.

Gretzky was asked how difficult it was to fathom the seriousness of McNall’s current situation.

“I’m disappointed for everyone,” he said. “It’s bad for everybody. Hopefully, it’s something that won’t hurt too many people.”

King Notes

There were 53 players in camp. The only absentee was Keith Redmond, who had personal problems. He is expected to report later this week. . . . Right wing Rick Tocchet on his recovery from back surgery: “I’m not 100% yet, but I’m getting there. The quickness, hopefully over the next month I’ll get that back.” Coach Barry Melrose put Tocchet on the left wing with Wayne Gretzky and Jari Kurri. But Melrose said he wants to keep both Tocchet and Kurri on the right wing. . . . Goaltender Kelly Hrudey said he worked with a personal trainer for the first time in his career. He was not surprised the Kings drafted goaltender Jamie Storr and was impressed with him. “From all accounts, he is a franchise player,” Hrudey said. “The thing is, I’m not going to give my job to anyone. He’s going to have to earn it. It’s no different than when I beat out Billy Smith in New York.” . . . By and large, players were not optimistic about avoiding some sort of work stoppage. Gretzky, for his part, has kept a close eye on the baseball strike. “We’re not as powerful and we don’t have the history that baseball does, especially in areas like Florida and California, so we’re just gaining momentum in those areas,” he said. “It would be tough to lose a lot of those fans at this point in time because fans are fed up with sports in general, not just hockey.” . . . The Kings will hold a scrimmage open to the public Wednesday at 9:45 a.m. and an intrasquad game Saturday at 1:30 p.m. Both events are at Iceoplex and cost $5 per person, with the proceeds going to youth hockey programs.