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ARISON FAMILY TAKES FULL CONTROL OF THE HEAT
In a deal that is promised to bring "sweeping changes" to the Heat, the Arison family Friday bought out managing partners Lewis Schaffel and Billy Cunningham for an estimated $60M. The deal still requires the approval of the NBA, which Micky Arison said he expects within two weeks. Upon approval, Micky Arison would become managing general partner. Although he "may not find the right person until after the season is over," Arison wants to hire a GM to run the team "as quickly as possible." Under the new deal, Micky's mother, Lin Arison, will hold 100% of Florida Basketball Association, "the general partnership that controls the team and has rights to 50 percent of its profits and losses." Also, she "will hold 88 percent of the limited partnership that has rights to the remaining 50 percent of profits and losses." Julio Iglesias, Raanan Katz, Robert Sturges and Amancio Suarez will remain as limited partners of the team, continuing to hold 12% of the limited partnership (Ted Reed, KNIGHT-RIDDER, 1/29). In Miami, Bob Rubin writes that the "air of uncertainty has hung over the franchise since Whit Hudson's failed bid to buy operating control has cleared" (MIAMI HERALD, 1/28). STAYING IN MIAMI? Contrary to Schaffel's belief that the team could not "survive economically" in Miami, Arison is "determined to keep the Heat in Miami, either playing in Miami Arena or nearby." Arison has not ruled out the possibility of working with Panthers owner Wayne Huizenga to build a new downtown arena (Bob Rubin, MIAMI HERALD, 1/28). -
EXPOS LOSE MINORITY INVESTOR DUE TO CONFLICT OF INTEREST
The Expos have lost one of their minority shareholders due to "conflict of interest guidelines set out by the commissioner's office." Versa Services, a Toronto-based food-concession business that holds the food rights at Olympic Stadium, has been "advised that it cannot own part of two teams" after its U.S. parent, Aramark, recently purchased a portion of the Red Sox through its acquisition of Harry M. Stevens. Versa had put close to $5M into the Expos, when it become a minority partner with 13 other shareholders when the "consortium purchased the franchise" in '91. Versa will retain its Olympic Stadium contract for the '95 season. The Expos lost close to C$22M last season, and owners still owe on a C$13M loan from the city of Montreal and a C$18M loan from the Province of Quebec. Despite the financial problems and the labor work stoppage, the Expos "consortium appears unified" and there is no indication anyone of them wants to sell. But since the group bought the team, no partner has "poured additional money" into the team and no new owners have "come on board" (Danny Gallagher, Toronto GLOBE & MAIL, 1/30).
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HELLCATS IN DOUBT AS SEASON COULD COME TO AN END
The CBA's Hartford Hellcats' season could end today unless the Connecticut Development Authority (CDA) "advances enough money to sustain the franchise," according to Roy Hasty in this morning's HARTFORD COURANT. The Hellcats will fold unless a group puts up the capital to buy the team from the Hartford Sports & Entertainment Group, "or the CDA decides to help" (Roy Hasty, HARTFORD COURANT, 1/30).
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PATRIOTS' KRAFT WEIGHS FUTURE AS HE FACES $13M LOSS FROM '94
Patriots Owner Robert Kraft, who told the BOSTON GLOBE that his team lost over $13M in '94, has called on the State of Masssachusetts to back up promises made to him when he bought the team last year. In a front page exclusive, Kraft said "commitments he thought had been made to him prior to buying the team have drowned in a sea of political rhetoric," and has left him "pondering the Patriots' future, both short-term and long- term." Kraft said Gov. William Weld and state officials have "abandoned promises of $15 million" in state aid for improvements to Foxboro Stadium and Route 1, and that a plan to "relieve the stadium's financial situation must be worked out within six months or he will have to decide to sell or move the team." Kraft: "I can last like this maybe two or three more years, but if I don't see something happen in the next six months I'll have to do some planning." Kraft originally thought $15M in state aid would go to short term stadium improvements, while plans for a megaplex in Boston moved forward. Those plans "appeared to die last week" when a summit of legislative leaders announced that private sector backers had four months to come up with money to finance a domed stadium. If there is no megaplex, Kraft is seeking "roughly $50 million in state backed financing" to allow renovation of Foxboro Stadium, including new luxury suites and club seating. Although Kraft states he "cannot go on like this indefinitely," he wants to stay in MA: "I am a local boy. I grew up in Boston" (Ron Borges, BOSTON GLOBE, 1/29).
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PIRATES SALE IN LIMBO RIGAS' LATEST BID REJECTED ON DEADLINE
Reports this morning out of Pittsburgh indicate that Pirate owners rejected Adelphia Communications Chair John Rigas' latest bid to purchase the team. Rigas had increased his initial offer to close to $90M. But the Pirates said Rigas proposed no "extra cash for the owners" instead offering stock in the team and a "pledge to try and find other investors who want to buy their stock." With both sides facing a deadline of Sunday night, negotiations increased over the weekend. Pirates owners said they would continue to talk to Rigas, made possible by a clause extanding the deadline by two months, but they would also ask their investment bank, Wertheim Schroeder of New York, to solicit other bids (PHILADELPHIA INQUIRER, 1/30).
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REPORT OF LAWSUIT AGAINST VIKINGS COACHES GOES PUBLIC
On Saturday, ESPN noted a story in the ST. PAUL PIONEER PRESS that Vikings coach Dennis Green and assistant coach Richard Solomon were named in a 1993 lawsuit "alleging the coaches participated in sexually inappropriate behavior toward women." The suit was filed by a former employee of the Vikings. KSTP-TV in Minneapolis reported that the team settled out of court and that neither Green nor the team admitted guilt in the matter, but felt it was in their best interests to settle. The Vikings released a statement: "We have had a formal and comprehensive anti-harassment policy, with training, in place since June of 1993. There has not been a single complaint under the Vikings anti-harassment policy since the adoption of that policy" (ESPN, 1/29).




