News Corp.'s Fox Group, which just three weeks ago
acquired the Dodgers, "has been granted options to buy
minority stakes" in both the Lakers and Kings, according to
John Lippman of the WALL STREET JOURNAL. In addition, News
Corp. and its partner Liberty Media Corp., have "each
acquired" a 20% stake in L.A. Arena Co., the managing
company building the Staples Center. Liberty Media "also
has the right" to join in News Corp's option for the teams,
but "said it has no plans immediately to do so." Although
terms of the deal were not disclosed, a source indicated
that "the investment is less than" $100M. News Corp. co-COO
Chase Carey said that "once league approvals are granted,
News Corp. will move quickly to convert its options into
stakes in the teams" (WALL STREET JOURNAL, 4/20). In L.A.,
Hofmeister & Elliot called news of the Fox Group's 40% stake
in the Kings a "surprising" development (L.A. TIMES, 4/18).
ANY CONFLICT? In L.A., Hofmeister & Elliot wrote that
Fox currently owns a "passive" stake in the Rangers, and NHL
rules currently prohibit single entities having stakes in
more than one team. But the league "is in the process of
reviewing its ownership rules and is said to be predisposed
to the NBA's approach to multiple ownership." But Walt
Disney Co. has "vigorously opposed" any relaxing of the
rules. Anaheim Sports President Tony Tavares: "Multiple
ownership is clearly in violation of league rules. ... It's
not good for any league any time there are trades or
competitive issues" (L.A. TIMES, 4/18).
CLIPPERS NEW PORT: L.A. Arena execs also confirmed on
Friday that the Clippers will join the Lakers and Kings as
Staples Center tenants when the facility opens in '99.
Clippers Exec VP Andy Roesser said he was "delighted" with
the team's six-year deal at Staples. Although the new deal
doesn't directly affect the team's TV pact with Fox, which
has three years remaining, officials at the team and the net
said that it "makes a longer TV relationship more likely."
The Clippers will play eight games next season in Arrowhead
Pond, but any games in the facility beyond that "are in
doubt" (Barbara Kingsley, ORANGE COUNTY REGISTER, 4/18).
