The Expos ownership group is considering a plan to
allow the team to issue public shares "that would offer
generous tax breaks to corporations and individuals who help
finance the team's proposed downtown stadium," according to
David Johnston of the Montreal GAZETTE. Under the proposal,
those who contribute to the stadium financing would have the
right to deduct from their income, some, all or even more
than 100% of their contribution. They could qualify for an
ownership share in the team, or "have the right to invest in
a specially designed mutual fund. That fund would offer
both an ownership slice of the Expos and equity in some of
the profitable companies that own the team." The new plan
was prepared by team partner Nesbitt Burns and RBC Dominion
Securities. Expos President Claude Brochu said that the
ideas the owners like best "will be adopted, made public and
put into effect early next month" (GAZETTE, 7/20).
PSL WOES: The Expos had planned to raise C$100M through
the sale of PSLs, but a source close to the owners' group
said that the plan "is failing because Montreal doesn't have
the same head-office strength of other large cities" where
similar PSL sales have been successful. The source said
that sales reps are encountering "a lot of resistance" from
small- and medium-sixed business owners (GAZETTE, 7/20).
