Issue One

When John Rigas walks into a room, the first thing you notice about him is his stature. It’s short. In fact, the only thing that enhances his slender five-foot-five-inch frame is the lush snow-white mane that regally crowns his head. But after five minutes in his presence, Rigas’ physique becomes irrelevant. So too all the detailed information that makes his life newsworthy, such as founder and chairman of the sixth largest cable company in the United States, sole owner of the National Hockey League Buffalo Sabres, and successful businessman with a net worth trailing more zeroes than the combined population of Western New York. For over and above any of those statistical definitions, what is most outstanding about this 75-year-old business genius is that John Rigas is absolutely the genuine article–the real deal.

Rigas is a devoted family man who still frequents his childhood neighborhood and hangs out with high-school buddies. He is a businessman whose commercial interest does not solely focus on making money, but also on providing jobs with futures for his family and the communities his companies inhabit. And most recently, Rigas appears poised to take on the role of catalytic converter for the city of Buffalo’s long languishing waterfront. A position that could ultimately earn him the dual distinction of redeemer of the Buffalo Sabres and the city they call home.

The well-documented story of this cable magnate’s rise from humble beginnings to fame and fortune is scripted like a made-for-TV movie. The son of Greek immigrant parents, (his mother, Eleni, walked seventy-five miles from her hometown of Arahova to board ship and travel steerage to America for prearranged nuptials to his father, James), Rigas grew up slinging hash in his parents’ Wellsville, New York, Texas Hots Diner. "I consider myself very fortunate that I was born in that environment because I got a great sense of values. I learned the importance of family and the support they offer and also the value of education. Those were great things that you could grab on to and I’m so lucky to have had that in my life."

The formative years Rigas spent in his parents’ eatery also fortuitously exposed the young Greek to the world of customer relations. "Growing up in the environment of the restaurant I got to appreciate all the customers who came in, the mixture of adults and children and the chemistry of meeting people. It certainly was another experience that helped me as I’ve taken my journey in life."

It was Rigas’ transition from Greek cook and bottle washer to cable-TV king that provided the greatest element of serendipity in his life however. "Following my graduation from college with a degree in engineering, I returned home to my father’s restaurant. But after about seven months I didn’t really feel that I was going to make either a good engineer or a very good cook. I felt that I would be more comfortable having my own business and starting up that road."

Rigas’ parents had faith in their career-challenged son. "My mom and dad were never strong-minded people that tried to tell me what I should do. They never tried to keep me at the restaurant. They both wanted me to do what I thought was best for me." Relying on their parental support, the young entrepreneur decided that his professional path should follow the bright klieg lights of the movies—ones projected on the screen of the nearby Coudersport, Pennsylvania, Theater.

Taking over the operation of a small-town movie house was a career move that some in Rigas’ life deemed unacceptable. "I got criticism from family and friends that I didn’t pursue my engineering career; that I took something that was perceived to be much less prestigious. But sometimes you have to accept a whole lot less to start down that path of what you aspire to be, and that can be very difficult." Nonetheless, the determined college grad persevered, despite some self-doubt. "It felt right buying the theater, but it was troubling. It bothered me not to go back to the restaurant. But on the other hand, I knew that I didn’t have the real interest to wear that white apron. It just didn’t fit right. Where I wanted to be was out in the business world."

While Rigas spent his nights directing his one-man theater, his days were filled with "moonlighting" as a factory worker. It was an exhausting schedule that often found him sleeping in the theater aisles. "My mind often wanders back to those days when I sold popcorn, took the tickets and ran the projector all on my own. I still remember the first night sitting in the projection booth. I was so depressed, asking myself what had I done buying that dumpy little place. What was I going to do? How was I ever going to possibly make it?" Fortunately for Rigas, Sam Milberg had the answer.

Milberg was an RKO salesman who took a shine to the industrious, young, theater owner. He was also a discerning man who foresaw the potential collision course of the movie industry and the technologically advancing cable business. It was through Milberg’s insistence that the financially strapped theater operator scraped together the franchise fee of one hundred dollars and made his initial cable connection. A few phone calls, a friendly business deal and a four way partnership later, John and his brother Gus, officially became the labor division of the Adelphia Cable Company. Their job profile included climbing poles and stringing cable throughout north central Pennsylvania.

According to Rigas, the infant industry at that time was a hotbed of hostility. "In the early days, the cable business was not accepted by most people. Therefore we were constantly being threatened with obliteration from the face of the earth. We had many adversaries, from broadcasters who didn’t want us to succeed, to telephone companies that didn’t want us on their poles, to newspapers who didn’t welcome us into their towns."

Rigas also acknowledges a regulatory intimidation factor. "There weren’t any clear laws or regulations you could live by, other than you had this system on a line. But you never knew where the new television systems were going to pop up. You didn’t know what the FCC, under the influence of the broadcasters, was going to do. So as a consequence those were scary moments."

Why continue pursuing a livelihood in an unstable industry, immersed in conflict and fear? For Rigas, it was simple. "I never lost focus or belief that the cable industry had a future and I wanted to be part of its future. I wanted to see it through." But the prudent businessman admits to moments of intense indecision. "Many times I thought about failing. I never broke down and I never cried, but I had moments where I literally panicked. I couldn’t sleep, couldn’t eat. But when that happened I went to work and rolled up my sleeves and tried to work it out."

Forty-eight years later, working it out has earned the Greek cable tycoon a respected position of national prominence in an industry that he essentially helped establish and grow. With a corporate profile of sixth largest in the nation (through both expansion and acquisition), Adelphia has cable strung in eight million homes from California to Maine, with a work force of over ten thousand, sales of over five hundred million and debt in the ballpark of nine million.

"My philosophy was that I was always looking for opportunities and challenges, but I never aspired to be the biggest or the fastest growing. I just hoped to bring it along and make a living, and ultimately leave a business for the children to pick up if they wanted to. That was the goal."

The Adelphia Chairman has easily met and surpassed his career goal due to an instinctive decision-making ability, according to William Swan, President and CEO of First Niagara Bank. Working together on the St. Bonaventure University Board of Trustees, Swan has witnessed Rigas in action. "Certainly, John is a visionary. He has the ability, a vision, a sixth sense, if you will, to take a piece of information, decipher it and ask the questions that need to be asked in a short period of time." Then in a lighthearted tribute to his fellow CEO, Swan adds, "John may be small in stature, but he is a giant in business as a visionary."

Corporate accolades and personal tributes such as Swan’s overflow the dimensions of John Rigas’ life. His Coudersport executive office abounds with commemorative pictures, honorary plaques, industry awards and simple crayon-on-paper thank-yous, in recognition of his generous heart and business soul. The latest honor headed his way is a trade award to be presented by the Walter Katz Foundation at a black tie dinner in September. The highlight of the evening will be a film tribute produced by the A&E network, acknowledging Rigas' years of service and creative foresight in the cable trade.

Despite the significance of the honor, Rigas deflects the praise, choosing instead to focus on the industry itself. "So many of the other early pioneers have passed on, or retired. I’m one of the fortunate ones that have gone through three or four generations of cable expansion and that gives me a lot of satisfaction. I’ve helped to almost see it through. We’re not quite there, but I am still here doing what we all dreamed about and helping to finish the dreams."

Dream is a word John Rigas scatters liberally throughout his conversations. It is also a concept he has pursued throughout his life. "My mind has always been one that, at times, is a dreamer. It was my dream that I wanted to be in business. Then there were the dreams that with cable we would offer more choices and more signals. But I never dreamed that we would be at this level, of this large a company, serving a network broadcast from coast to coast."

Rigas credits his personal corporate "dream team" for Adelphia’s nationwide expansion. "We probably wouldn’t have gotten to this level this fast if it hadn’t been for the children and their contributions." The children—Michael, Timothy and James—are three of four Rigas offspring that serve as corporate officers of the family’s cable operation. (A fourth child, Ellen, is an independent film producer who recently earned a Sundance Film Festival Award for her soon-to-be-released movie, "Song Catcher.")

The proud father insists that his sons’ participation in Adelphia came of their own volition. "When they went away to college I told them all they were always welcome to come back." Then with a self-satisfied grin, Rigas reveals, " Eventually, one by one, I got their phone calls." The calls originated from such venerable institutions as Harvard, Stanford and The University of Pennsylvania’s Wharton School of Finance, all placed by graduates with cum laude and magna cum laude stamped on their degrees. Interestingly, upon each son’s return, his father did not demand that he start at the bottom of the corporate ladder. "I’m not one to say you have to pay your dues. I have confidence in my children and my approach was to let them come in and search where they might have their interests. Eventually they all found a place."

The young men’s individual searches led to the inner sanctums of Chief Financial Officer for Timothy; Executive Vice President in charge of operations for Michael; and Executive Vice President and Transfer Agent for James. Amazingly, the balance of power among these four men seems to flow smoothly, according to the senior Rigas. "We all work together and we all have our areas of expertise so it’s gotten to the point that we pretty much allow each other to do what we think is appropriate."

But when push comes to shove, who really has the last word? Once again, Rigas proclaims group jurisdiction. "We’ve evolved to where we are a partnership to a great degree and we like to do things by consensus. We all have the good judgement at this point to know that when somebody feels very strongly about an issue we all say, ‘okay, we’re behind you’." Then as a postscript, Rigas adds, "I must admit that my sons do push me though, and I’m a great believer in that."

Outside the parameters of their Coudersport headquarters, there is a growing respect for Adelphia’s executive chain of command. Buffalo Mayor Anthony Masiello and Erie County Executive Joel Giambra, who have both worked extensively with the family, agree on the strength of the Rigas corporate union. From Giambra’s perspective, "They are astute, tough business people. The sons are aggressive, smart, young entrepreneurs while their father is a very tough businessman who can also be a sweetheart."

Masiello continues the corporate analysis. "The sons have a different style than their father, very direct and to the point. But the important thing for Buffalo is that the Rigas family joins an established tradition of families in our community that form a strong foundation of private-sector entrepreneurs."

Private-sector investment has brought the Rigas family front and center on the Western New York scene. From their recent acquisition of the Buffalo Sabres to an, as yet, unfulfilled commitment to develop waterfront offices encapsulating fifteen hundred new jobs, Adelphia Communications and its owners are making their presence known. According to Rigas, there is a reason for his personal and professional commitment to the Queen City. "I grew up in Western New York and Buffalo was the city we looked to from Wellsville. My family was involved with the Greek community there and I attended church at Annunciation with my parents. So I’ve always had a warm place in my heart for Buffalo."

It was through his ownership link with the Buffalo Sabres in 1994 that Rigas began to truly develop a Queen City commitment. "I never started out thinking that I was going to go in and help Buffalo, or that I would ever be in a position to help Buffalo. But when I first got involved with the Sabres, I spent time mingling with the fans. I could see how important it was. That they just needed somebody to give them that encouragement, someone in private industry to make a presence and a commitment. And as I talked to so many people who stayed in Buffalo and believed in Buffalo and loved Buffalo, I decided that if I had the opportunity to help the situation and I could share in their growth and give them encouragement, then I would do so."

Many local residents, however, are wary of this gift-bearing Greek. They feel that the tax incentives and give-backs required to facilitate Rigas’ ownership of the Sabres (operating at a $20 to 25-million yearly loss), as well as aid future waterfront development (estimated to be a $123-million federal, state, county and city incentive package), translate into a form of "corporate welfare" with a high-end cost to middle and low-end tax payers.

Buffalo Common Council President James W. Pitts lends a strident voice to these concerned citizens using words like "extortion" and "closed door negotiations" in his dissent. Other political leaders, such as Mayor Masiello, assess the cost of helping Rigas maintain the Sabres and develop the waterfront as well worth the investment. "Having Adelphia and the Rigas family in Buffalo shows the world that we can offer employment in a cutting edge industry. That in turn gives us the ability to attract other new jobs."

Masiello further lauds the family’s corporate involvement. "John Rigas came here and liked our people and saw a bright future here. He believes in our city and wants to make sure that Adelphia and Buffalo have a long-standing relationship, and we are happy to have him as a corporate partner."

While the terms of the Adelphia waterfront deal remain mired under voluminous reels of red tape, political cost-effective debates, and an overall lethargy that has long insinuated the very core of this struggling-to-rebound city, the clear, true voice of John Rigas continues to ring out. "It’s never very pleasant to go to the public trough and begin the process of asking for cooperation and support. But this isn’t just a question of taking money from the government. It’s more the terms of a good business venture. If you believe that Buffalo has a place as one of the recognizable cities, that is a good place to live and work–if you think that, then what we’ve done is to begin that process. Created jobs for our children and given hope to people."

Providing job opportunities with bright futures are professional ideals that John Rigas strongly supports. He is also renown for his reluctance to dismiss employees. Bob Koshinski, director of Adelphia’s Empire Sports Cable Network, cringes when station employment opportunities arise. "John is an extremely kind-hearted man who does not like to cut staff or affect people’s lives in a negative way. So when I hire someone for the station, I take a lot of time interviewing them, because whether they work out or not, chances are they’re here permanently."

There has been one very public exception to John Rigas’ employment rule, and it occurred in 1998 just as the senior executive was assuming majority control of the Buffalo Sabres. The team’s head coach, Ted Nolan, was fired—a move that still provokes controversy in this sports driven town. Rigas regrets the timing. "I was on the executive committee at that point, but I didn’t control it. By the time I got involved with the team, Ted was gone." Then with a sage wisdom, Rigas carefully picks his way through the landmine field of sports ownership. " I think Ted Nolan is an extraordinary human being and what happened to him with the Sabres probably never would have happened under my watch. But then Lindy (Head Coach Lindy Ruff) and Darcy (General Manager Darcy Regier) came along and did a good job, so I didn’t think it would be wise for me to make a change. It was kind of a tragedy the way it happened."

Despite a daily existence that includes million-dollar cable deals, major league sports ownership and an income level of the rich and famous, John Rigas still professes simplicity of life. "I am a mom and pop operator. It’s in my heart. I regret that I don’t get to see all my systems as often as I would like. To go down and just hang out in some little rinkydink coffee shop and talk about the family and talk about our problems. I miss all that."

And while the boy may have left the Texas Hot Diner, the standards of Greek family life learned there have not left the boy. Rigas does admit though that his environs have definitely changed. "I do travel in different circles these days. When I go to New York City, investment people who I never dreamed of, like Solomon Brothers and Morgan Stanley, open their doors. I attend dinners and social events and sit next to Ted Turner or John Maloney or Governor Pataki. It’s really just extraordinary."

But like the comfort of a well-worn pair of slippers, no matter where his globetrotting may lead, Rigas always looks forward to returning home. "When I come back to the hometown, I come back to where my real life is–where it’s more meaningful to me. My friends, my neighbors, the ordinary guy and his troubles–who’s up in the nursing home, who’s in the hospital. These things all bring it back to what life is all about."

What life is all about. For John Rigas that definition is simply a blending of family, friends and honest business relationships bound together with a deep desire to follow his dreams. Not riches, not wealth, not an extravagant life. When challenging these life goals as fairy tale in scope, almost too good to be true, John Rigas simply throws his hands in the air, shrugs his shoulders and replies, "Well, it’s worked for me!"

An understatement outdistanced only by the stature of the character of John Rigas.