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A RE-VISIT TO THE QUESTION OF TEAM-SPONSORED PHYSICIANS
The way teams pick their medical care providers is re- visited by "Scorecard" in the current SPORTS ILLUSTRATED. The issue was first examined by ABC's Armen Keteyian on the November 1st "Nightline." Because of the "intense publicity that comes with the job, doctors and hospitals are willing to pay handsomely to become a team's 'official health-care provider.'" After examining the deals struck by the NFL's newest teams, the Jaguars and Panthers, with their health care providers, SI notes, "The ultimate victim of priorities so skewed that medical care is put up for bid are the men who play America's most violent game." Arthur Caplan, Dir of UPenn's Center for Bioethics: "I'd like to suggest an unbreakable rule that requires every professional league to issue a Miranda-style warning to every player informing him that he not only has the right but the obligation to get his own personal physician" (SPORTS ILLUSTRATED, 5/8 issue).
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BULLETS USE OF LOCAL GYM CHALLENGED
Students at Bowie State Univ. are reportedly upset at the fact that the Bullets pay only $9,000 annually for the use of a gym there as a practice facility and is not open for use when the team is not using it. The maintenance cost to the school is $21,500 and nearly $140,000 in public funds have been spent on repairs. Students argue that the team pay more for the use of the facility. Other schools that have pro teams as practice tenants have much better deals. The Knicks practice at SUNY- Purchase, where they pay $100,000 a year and made a one-time $1M capital improvements investment (David Montgomery, WASHINGTON POST, 5/3).
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CELTICS ISSUE RESPONSE TO FINANCIAL WORLD PIECE
In a letter to the editor released to THE SPORTS BUSINESS DAILY, Celtics CFO Joseph DiLorenzo accused FINANCIAL WORLD of including "numerous errors of fact" and drawing the "erroneous conclusion" that the Boston Celtics Master Limited Partnership has been a poor investment for its 93,000 public unitholders. In its May 9 issue, FINANCIAL WORLD examined the Celtics stock concluding, among other things, that the recent sale of Boston TV station WFXT to Fox was a good deal for the general partners, but a bad one for the numerous limited partners. DiLorenzo writes, "Nothing could be further from the truth. In fact, when the Celtics repurchased the TV station in 1993, the principal partners effectively reduced their own stake in the extremely profitable TV station from 83 percent to 60 percent, before Fox's option to purchase presented itself, which benefited all unitholders of the Boston Celtics Limited Partnership. The article also insinuated exclusive profits from an affiliated television sale that never took place and incorrectly stated both the price of the Initial Public Offering and per unit administrative costs associated with the master limited partnership." DiLorenzo concluded by stating that ownership, chaired by Paul Gaston since '92, "has raised the net asset value of the company and has increased cash flows dramatically. As an organization, the Celtics take as much pride in delivering for our investors as we do in delivering for our fans" (Celtics).
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NEW ROYALS OWNER: GREATER KANSAS CITY COMMUNITY FOUNDATION
The IRS approved a complicated plan established by the late Royals Owner Ewing Kauffman that would allow for the team to be owned by local Kansas City charities, according to this morning's K.C. STAR. The team will have six years to find a buyer that promises to keep the team in K.C., before opening up bidding to an outside entity. The charitable group that will own the team is the Greater Kansas City Community Foundation and Affiliated Trusts -- a collection of smaller groups managing 400 charitable funds and 11 affiliated trusts with combined assets of $170.6M. Although the foundation is to own the team, the Royals will be directed by a five-member group led by current Royals Chair/ Wal Mart CEO David Glass. Royals President Michael Herman also will be on that board. The Kauffman plan still needs to be approved by MLB owners (Charles Crumpley, K.C. STAR, 5/3). HOW IT WORKS: The Foundation must raise $50M in donations from the community at large, with the interest (perhaps as much as $3M/year) directed towards some of the losses the team regularly incurs. Any additional losses would be paid from a different reserve fund of $37.5M that Kauffman donated before he died. The six-year search for a new owner could begin as soon as June, when the team is expected to be officially turned over to the Foundation. When a buyer emerges, the $50M would "flow back to the community foundation." A large share of any funds beyond the $50M purchase price also would flow into "special donor accounts at the community foundation, and that money also would be given to various charities." Among the donors to the $50M fund: $5M each from Kauffman and his late wife, Muriel; $1m from the Kansas City Star Co. and a foundation tied to its parent, Cap Cities/ABC (KANSAS CITY STAR, 5/3). THE FINANCIAL SHAPE: Kauffman came up with the plan to buy time for the city in the hope that MLB's new economics would help the small markets. Last year the team lost a reported $25M, but Herman said with cost-cutting measures they hope to break even in a couple of years. Kauffman had said "several times that no one would want to buy a baseball team that consistently loses millions of dollars and had little prospect of making money because it was in a small city." Glass has expressed interest in buying the team but was unavailable for comment (KANSAS CITY STAR, 5/3). -
OTTAWA SUMMIT YIELDS LITTLE SUPPORT FOR CANADIAN TEAMS
"The fate of struggling franchises in Winnipeg and Quebec City remains in doubt today after the federal government signaled it's not prepared to sign a blank cheque to keep teams from moving to the United States," according to Mark Kennedy & Ken Warren in today's OTTAWA CITIZEN. Human Resources Minister Lloyd Axworthy and Finance Minister Paul Martin met with NHL Commissioner Gary Bettman, Jets Owner Barry Shenkarow and Nordiques Owner Marcel Aubut. Axworthy emerged from the meeting citing a "hard dose of reality" (OTTAWA CITIZEN, 5/3). The meeting provided "no magical solution" for the Jets and Nordiques, according to the Toronto GLOBE & MAIL. "There is no standing federal offer to save pro franchises for the sake of pride in the national game" (Toronto GLOBE & MAIL, 5/3). ANTI-AMERICANISM: ESPN's Al Morganti noted that Winnipeg fans booed the U.S. National Anthem last night, saying that they view the Jets' situation as "a Canada-U.S. thing rather than a small market-large market thing." Asked what can be done for the smaller markets, Morganti cited the necessity for some form of revenue sharing. But he added, "Thus far, the owners haven't put their heads together to get this done, and I think at some point Gary Bettman's going to have to bang those heads together or just give up everything on the small markets" ("National Hockey Night," ESPN, 5/2). In a speech before the annual Canadian Press meeting in Toronto, Bettman acknowledged the NHL will be a "scapegoat" if the Jets and Nords move, but he defended the need for team "stability." Bettman: "This is not an attempt to take the game away from Canada, but to make the game as strong as possible." Bettman was hopeful Canadian losses would end with the two teams (Toronto GLOBE & MAIL, 5/3). Jets GM John Paddock, asked about the small-market/large-market issue during last night's game: "If we can't remain competitive, we shouldn't be here" ("National Hockey Night," ESPN, 5/2). THE WORD FROM QUEBEC: In Montreal, columnist Don MacPherson writes, "Here in Quebec, with a possible referendum looming, it's considered only a question of time until the Parizeau government announces that it will spend public funds to help the Nordiques wipe out their debt, build a bigger arena with luxury boxes, or both." But MacPherson considers any assistance for the Expos "a waste of public funds" (MONTREAL GAZETTE, 5/3). The Expos drew 46,515 for their home opener last night (GLOBE & MAIL, 5/3). -
PAM SHRIVER MAY HAVE A PIECE OF THE NEW BALTIMORE AHL CLUB
Baltimore's new AHL club is expected to announce its ownership group, NHL affiliation and ticket prices at a May 15 news conference. Sources indicate the group may include minority Orioles owner Pam Shriver. Baltimore AHL owner Bob Teck said he is not sure if they will be ready to reveal their name, logo and colors. Suggestions for team names include: Beavers, Bulldogs, Bobcats, Badgers and Blades (Sandra McKee, Baltimore SUN, 5/3).
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WAS IT FAREWELL OR AU REVOIR FOR WINNIPEG FANS LAST NIGHT?
The Jets may have played their last game in Winnipeg last night, a 2-1 loss to the L.A. Kings. According to sources cited in this morning's WINNIPEG FREE PRESS, the team could be headed to Minnesota "as early as today under a deal brokered by NHL Commissioner Gary Bettman." The reported deal would be for $75M and is said to have been negotiated over the weekend by Bettman and Dana Warg, who manages Minneapolis' Target Center. The MN group "has apparently been told to get its financing ready by today and that they could be selling season tickets in Minneapolis by early tomorrow." Bettman would neither confirm nor deny that he has had contact with possible investors. Bettman: "People call me on a regular basis wanting to buy an NHL team" (Douglas & Taylor, WINNIPEG FREE PRESS, 5/3). DON'T START THOSE MOVING VANS YET: The Manitoba Entertainment Complex (MEC), "refused to say die last night as they worked to cobble together a last-minute deal to keep the franchise in Winnipeg and build a new arena." Jets Owner Barry Shenkarow had extended his May 1 midnight deadline for MEC, which had turned to the federal government for financial support. MEC is said to have attracted a new C$10M investor, but they "did not get what they wanted" from federal Human Resources Minister Lloyd Axworthy. In addition, last night, Shenkarow said that MEC's option to buy 64% of the team for C$32M had expired and that the price is now doubled -- a development which MEC members disputed (Douglas & Taylor, WINNIPEG FREE PRESS, 5/3). Axworthy said that MEC has applied for federal funds under a federal-provincial infrastructure plan, but that any deal depends on the existence of an "acceptable business plan." The Toronto GLOBE & MAIL reports that an emergency meeting of the Winnipeg City Council will take place today to examine a new MEC plan. An MEC source said the group may be able to produce an extra C$18M to rescue their bid for the team (Christie/Delacourt/Roberts, Toronto GLOBE & MAIL, 5/3). FROM LAST NIGHT'S GAME: Shenkarow held a press conference between the 2nd and 3rd periods of last night's game, which was carried by ESPN. ESPN's Bill Clement: "I think we can describe it best as a non-press conference." Clement, on Shenkarow's assertion that for the team to survive, it would need to have a new rink built, play rent free and receive all concession revenue: "Is that going to happen? Unh-unh." In a subsequent interview, Jets GM John Paddock said of the situation: "There could be a chance, but it doesn't look good" ("National Hockey Night," 5/2). BETTMAN READY TO PULL THE TRIGGER: Bettman, on the Jets: "If this team is pre-ordained to move, then I think we should get it over with and not, at taxpayer expense, build a white elephant" (Mary Ormsby, TORONTO STAR, 5/3). Bettman, from ESPN: "The problem we're having in Winnipeg is that nobody wants to stand behind the franchise. It's almost as if they want to make a charitable contribution to the opera, and if it doesn't work, have it go out of business. Well, you can't do that with a professional sports franchise" ("National Hockey Night," ESPN, 5/2). PLAIN SPEAKING: Columnist John Dafoe notes that no MEC member was willing to assume enough risk to convince the NHL that the team would be secure. Dafoe writes, "The message from that is very simple. If the private investors were not sufficiently convinced of the soundness of the arena and Jets deal to invest their own money in it, there was no way on earth that governments should make their taxpayers take that risk" (WINNIPEG FREE PRESS, 5/3). OFF TO MINNESOTA? While Shenkarow denied having received any formal offers for the team, one NHL source said "Barry's ready to open his mail now" -- suggesting that there have been inquiries. According to this morning's Minneapolis STAR TRIBUNE, the Nederlander family from New York -- brothers Harry, James and Robert, all partners in the Yankees and Broadway investors -- have joined the leading MN-based group, led by health care entrepeneur Richard Burke. A representative of the Nederalanders is expected in Winnipeg today. The Metropolitan Sports Facilities Commission met yesterday to discuss possible public funding, but MSFC Chair Harvey Savelkoul said any such talk is "premature." However, the Target Center's Warg called for some "creative" public financing. Warg: "We could be playing 41 games and playoffs next season" (Jay Weiner, Minneapolis STAR TRIBUNE, 5/3). IT WON'T BE ATLANTA: Both Turner Sports President Harvey Schiller and Braves/Hawks President Stan Kasten said it is highly unlikely that Ted Turner would bring an NHL team to Atlanta before a new arena is built. Schiller said there have been no talks between Turner and the Jets -- or any other NHL team. Recent reports have had Turner offering $65M for the Jets. Kasten: "Our first priority is the arena. Anything else would be putting the cart before the horse" (Tim Tucker, ATLANTA CONSTITUTION, 5/3).




