SBD/14/Franchises

PACK AND THE GREEN STOCK: TAGLIABUE APPROVES STOCK OFFERING

          NFL Commissioner Paul Tagliabue has given the Packers
     "permission" for a proposed stock split and subsequent sale
     of new shares, according to Bob McGinn of the MILWAUKEE
     JOURNAL SENTINEL.  The Packers first new stock sale since
     1950, which could raise "up to" $80M, "will require" 67%
     approval from the current shareholders.  Shareholders will
     vote on the stock offering, "tentatively 400,000 shares at
     $200 per share," at a special meeting on November 13.  The
     Packers said new shareholders "would receive voting
     privileges", but that current shareholders would still hold
     a "substantial majority of voting rights."  If approved, the
     team said that the sale would begin "almost immediately." 
     In exchange for Tagliabue's OK, the Packers agreed to
     "restrictions on how the revenue could be used,"
     specifically agreeing not to use any of the funds for player
     costs.  The stock revenue would be "segregated from other
     revenues and invested" for use when the Packers decide to
     replace Lambeau Field or perhaps enlarge or restructure its
     60,790-seat capacity (MILWAUKEE JOURNAL SENTINEL, 10/10). 
     The AP reported that details of the Packers proposal show
     that the team "would split the current 10,000 shares into 10
     million shares," of which 4.628 million would be held by
     current stockholders.  Of the remaining 5.372 million
     shares, the team could then sell "up to" 1 million to new
     buyers.  The proposal would limit purchases to "a maximum
     of" 200 new shares, and would "bar" current shareholders
     with 200 or more shares from buying new shares (AP, 10/12). 
     On "Fox NFL Sunday," James Brown reported that "several NFL
     teams are against" the proposed stock sale, as "opponents
     believe the team would use the bulk of that new money" to
     re-sign their young free agents (Fox, 10/12).

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