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).
