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  • ARE THE CELTICS LOOKING TO GO PRIVATE THROUGH A BUYBACK?

         The Celtics may be exploring a buy-back of publicly held
    units in the Boston Celtics Limited Partnership in a bid to take
    the company private again, according to Joan Vennochi in this
    morning's BOSTON GLOBE.  The "goal would be to make even more
    millions for the team owners as well as protect them from the
    scrutiny that goes along with public filings."  As reported in a
    FINANCIAL WORLD piece, the reason to suspect such a move is the
    possibility that the Celtics could lose their master limited
    parntership (MLP) tax advantage at the end of '97 due to changes
    in the law.  At that point, the general partners would have to
    pay taxes on earnings at the corporate rate of 35%.  However,
    there is a proposal before Congress to preserve the MLPs' favored
    tax status, which probably would cause the stock to go up.
    Vennochi:  "In other words, there is now an ideal window of
    opporutnity to buy the stock as cheaply as possible and then lock
    in more of the Celtics profits, which wouldn't have to be
    distributed to shareholders."  Celtics CFO Joseph DiLorenzo said
    the team "really hasn't talked about" a buyback, but added that,
    generally, "it makes "100% sense to do it when the stock is
    undervalued" (BOSTON GLOBE, 5/10).
    

    Print | Tags: Boston Celtics, Franchises
  • ITT COULD MAKE DECISION ON BREAK UP SOON

         ITT Corp. reportedly plans to make a decision in the "very
    near future" about a previously announced plan to consider
    breaking up into three separate companies.  Analysts believe that
    the long-awaited split of ITT's hotel/entertainment,
    manufacturing and insurance segments would "boost" the company's
    overall value.  Since "growing speculation about the breakup and
    in response to the company's strong earnings" in mid-December,
    ITT's shares have "shot up" more than 30%.  Analysts and
    investment bankers speculate that the announcement could come as
    soon as the company's board meeting on June 13.  ITT's recent
    purchase, through a partnership with Cablevision, of Madison
    Square Garden, the Knicks, the Rangers and MSG Network would be
    included in the hotel & entertainment segment.  ITT CFO Robert
    Bowman is expected run the entertainment company on a day-to-day
    basis (Eben Shapiro, WALL STREET JOURNAL, 5/10.
    

    Print | Tags: Cablevision, Franchises, Madison Square Garden, New York Knicks
  • NORDIQUES HAVE ONE DAY TO STUDY NEW PROPOSAL

         The Nordiques have until Thursday to examine a proposal by
    the Province of Quebec intended to keep the team in Canada.
    Nordiques Co-Owner Marcel Aubut was given the proposal yesterday,
    according to Premier Jacques Parizeau. Parizeau said both sides
    agreed to keep the details of the deal a secret:  "During these
    48 hours, we will discuss it and try to get it moving" (TORONTO
    STAR, 5/10).  The offer was expected to include a demand that the
    Province have part ownership of the team, in exchange for the
    team dropping its demands that a casino or lottery help finance
    the team (Toronto GLOBE & MAIL, 5/10).  The team reportedly has a
    US $75M offer from Comsat Video to relocate to Denver.
         RAPTORS COOL TO IHL:  The Raptors' interest in buying an IHL
    team "may have cooled," according to Craig Daniels in this
    morning's TORONTO SUN.  IHL VP Communications Tim Bryant:
    "They've backed off on their interest at this time, is what they
    told us."  Raptors President John Bitove said the team's interest
    in the IHL was "preliminary at best" and that they are focused on
    their efforts to get the Air Canada Centre through the zoning
    process (TORONTO SUN, 5/10).
    

    Print | Tags: Franchises, Maple Leaf Sports and Entertainment, Toronto Raptors
  • SHENKAROW SAYS THAT JETS DEAL TO MN COULD COME TODAY

         Jets Owner Barry Shenkarow told the WINNIPEG FREE PRESS that
    a sale of his team to MN-based investors would be announced
    today.  The sale price was expected to be in the $65M range.  In
    Minneapolis, health care entrepreneur Richard Burke said an
    announcement of the sale was "reasonably imminent."  Dana Warg,
    Manager of the Target Center:  "The offer was made on Saturday.
    I don't know exactly when the deal will be announced, but I know
    it's close."  One "hurdle" was cleared yesterday when the
    Minnesota Sports Facilities Commission recommended to the MN
    State Legislature that is pass a funding package to help buy the
    franchise.  That is expected to be worth $10-$20M and could be
    passed by the end of the week.  Burke:  "It's down to haggling
    now" (Scott Taylor, WINNIPEG FREE PRESS, 5/10).  CFL and IHL
    franchise Owner Horn Chen reportedly submitted a bid to purchase
    the team and move them to Hamilton.  Chen and his group of
    investors reportedly offered $65M to Shenkarow with another $25M
    "targeted" for the Maple Leafs for territorial rights (Gary
    Picknell, TORONTO SUN, 5/10).
    

    Print | Tags: CFL, Franchises, Maple Leaf Sports and Entertainment, New York Jets, Toronto Maple Leafs
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