Swimming with the Sharks…

February 24, 2004

In the proxy it filed yesterday, Brocade Communications (BRCD) , notes that it has an agreement with the the limited partnership that owns the San Jose Sharks hockey team. One of the two principals in that limited partnership is Brocade Chairman and CEO Gregory Reyes, which bought the team for $147 million in March 2002, according to numerous published reports. Yet the proxy describes the deal as recent, perhaps to explain the fact that there was no mention of the arrangement in last year’s proxy. Under the agreement with the Sharks, Brocade says it incurred expenses of approximately $472,000 in marketing and advertising services in fiscal 2003 as well as use of certain facilities, presumably the executive suites at the HP Pavilion where the Sharks play. The proxy also notes that the arrangement was in place prior to Reyes’ involvement with the team and says the company is considering whether to renew the arrangement, which expires sometime in fiscal 2004.

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