Isles co-Owner Howard Milstein and MD business exec
Daniel Snyder signed an agreement yesterday with the estate
of the late Jack Kent Cooke to purchase the Redskins and
Jack Kent Cooke Stadium for "approximately" $800M, according
to sources of Thomas Heath of the WASHINGTON POST. The sale
price for the team and the stadium surpasses the previous
record for an NFL franchise -- Al Lerner's deal for the
Browns -- by more than $250M. Redskins President John Kent
Cooke, whose family has operated the team since '79, made a
final bid "approaching" $700M. Heath writes that Cooke was
able to make a "credible effort" and offer more money than
many people believed was possible. Cooke was not available
for comment last night. The deal was "unanimously approved"
yesterday afternoon after a "lengthy" negotiating session
between Milstein and Snyder and the estate's advisors. The
record sale price is a result of team's $55M per year cash
flow, which, before taxes and debt, is among the highest in
the league. The team also "has the potential" to increase
its cash flow by $25M a year through the sale of additional
advertising, naming rights, corporate sponsorships and the
construction of more luxury boxes. The sale price, which is
a gross figure and doesn't include the remaining debt for
the stadium, "will put about" $500M in the Jack Kent Cooke
Foundation after about $155M in debt is paid on the stadium
and after John Kent Cooke receives his 10% share, which
"should be worth about" $60M. The deal must still receive
approval from two-thirds of the league's owners, and sources
said the contract "has been viewed and meets all league
regulations and guidelines." Milstein and Snyder hope to be
approved before the league owners' meeting the last week in
January (WASHINGTON POST, 1/11). Milstein will have to sell
all or part of his 45% stake in the Isles "to comply" with
the NFL's cross-ownership rules (N.Y. TIMES, 1/11).
COOKE'S LOSS: In DC, Eric Fisher reports that Cooke was
able to "up his bid" to $780M (WASHINGTON TIMES, 1/11). In
DC, Mark Maske writes that many in the Redskins organization
"were left sad and unsettled" after learning that Cooke was
unsuccessful. People close to Cooke described him as
"distraught" and "very upset" (WASHINGTON POST, 1/11).
THE NUMBERS GAME: One source told the AP that the value
of the sale "depends on how you count the money." The
source put the sale price at $800M gross, but $750M net,
because the group will pay $800M and get $50M back
immediately from money in a Redskins bank account and other
assets (AP, 1/11). ESPN's Chris Mortensen puts the deal at
$780M (ESPN.com, 1/11). In the WALL STREET JOURNAL, Stefan
Fatsis puts it "around" $750M (WALL STREET JOURNAL, 1/11).
