SBD/5/Franchises

TRUE MEMBERS OF THE TRIBE: INDIANS IPO FAILS TO CATCH FIRE

          The Indians' "opening pitch on the stock market was a
     little low and outside," but Owner Richard Jacobs raised $60
     million and "declared it a hit," according to Bill Lubinger
     of the Cleveland PLAIN DEALER.  The shares closed the day's
     trading "at a lackluster" $14.75, down $.25 a share from the
     offering price with 1.5 million shares trading hands.  On
     the price drop, Jacobs said, "Oh, that happens, for
     goodness' sake.  A lot of people buy the stock to flip it"
     (PLAIN DEALER, 6/5).  In Akron, Mary Vanac reports the IPO
     raised $55.8M and "as expected, the real interest in the
     shares came from area residents" (BEACON JOURNAL, 6/5).     
          SWING AND A MISS? CNN's Jan Hopkins reported that the
     Indians' IPO "came in dead last [Thursday] on Wall Street"
     among yesterday's debut stocks.  Hopkins: "That investor
     shutout should come as little surprise to anyone who follows
     the IPO market.  History shows that stock and sports are not
     usually a winning combination" ("Moneyline," CNN, 6/4). In
     N.Y., Aaron Lucchetti reports that while a "one-day loss
     doesn't ruin the whole season, giving up ground on the first
     day after an IPO is unusual.  The average company going
     public this year has gained 16% on its first day of
     trading."  IPO Reporter's John Fitzgibbons: "They struck
     out."   But Lucchetti writes that whether the Indians'
     investors "really care about the stock market is debatable" 
     (WALL STREET JOURNAL, 6/5).  Also in N.Y., Peter Grant
     reports that investors "were concerned about warnings that
     the company has very limited growth potential."  But he adds
     that Jacobs' success "will encourage" other team owners to
     explore IPOs.  The Bonham Group Chair Dean Bonham: "It
     unquestionably was a home run for Jacobs" (N.Y. DAILY NEWS,
     6/5).  In S.F., Mark Veverka writes that while the IPO
     "wasn't exactly a home run for shareholders," Jacobs was the
     "real winner" (S.F. CHRONICLE, 6/5).  Header of BLOOMBERG
     NEWS story in the N.Y. POST: "Cleveland IPO A Swing And A
     Miss."  Bonham: "From an investment standpoint, on a scale
     from 1 to 10, this is a 2" (N.Y. POST, 6/5).  CNBC's Scott
     Cohn said the reason for the drop in Indians' shares is that
     MLB is "a lousy business.  The sport still hasn't recovered
     from the players strike four years ago, so this would be an
     investment for love" ("The Edge," CNBC, 6/4).     
          SALARIES: USA TODAY's Hal Bodley notes the Indians'
     prospectus with the SEC lists the following salaries: Jacobs
     at $700,000; GM John Hart at $600,000; Exec VP Dennis Lehman
     and Assistant GM Dan O'Dowd at $300,000 and Marketing VP
     Jeff Overton at $225,000 (USA TODAY, 6/5). 

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