Ravens Owner Art Modell has bought out two former
partners "in a massive restructuring in which the team will
take on more debt than any other" NFL team, according to Jon
Morgan of the Baltimore SUN. Modell and his family bought
out Alfred Lerner's 9% of the team and 50% of its affiliated
stadium operating company for $32M. Minority investor
Robert Gries, who owned 43% of the Browns, was bought out
for $41M. Modell: "It appears the Modell family could own
100 percent of the franchise." Morgan reported that the
Ravens are borrowing the money for the buyouts "in a
financing package being assembled that will result in taking
on" $185M in debt. NFL owners approved the transaction.
Morgan added that while NFL teams are "limited in how much
they can borrow using the team as collateral," the Ravens
"used a provision of the league's rules that allows limited
partners -- in this case, Modell's wife, Patricia, to borrow
money against the franchise." Modell: "Whatever debt I'm
taking on I'm comfortable with, and so are my lenders."
Morgan noted that "part of the impetus to restructure came
from the league," which wants to ban teams from setting up
"affiliated stadium operating companies." The team is
consolidating its debt with Fleet Financial Group of Boston
"acting as the lead lender" (Baltimore SUN, 8/27).
