New investors "are willing to pour" C$125M into the
Expos and help build a new downtown ballpark, "but they
won't invest unless club president and general partner
Claude Brochu agrees to a buyout," according to David
Johnston of the Montreal GAZETTE. Expos Chair Jacques
Menard said yesterday that the lead investor is multi-
millionaire N.Y. art dealer Jeffrey Loria, who is "pledging
to put up" C$70M to become the team's new general partner.
An additional 8 to 10 companies in Quebec have offered
another C$40-$55M, but Menard wouldn't name them. The
C$125M pledged by the investors would not go straight to the
ballpark fund, but would be used to cover Brochu's buyout
costs, "wipe out" C$40M in operating losses and pay for
operating losses during construction of the new ballpark.
Menard: "The key to resolving the current impasse is the
replacement of Claude Brochu. It's clear that the
shareholders have no confidence in Claude Brochu." The
Expos ownership group and Brochu have acknowledged that they
reached a verbal deal on a C$15M buyout, "but the deal fell
apart." Although Menard's group "refused" to disclose what
Brochu's actual buyout price is, reports "have suggested"
that he wants a special performance bonus as well as a
contingency clause that could earn him more than C$15M if
the Expos were ever sold and moved to the U.S. Menard did
say the group has asked MLB to appoint a mediator to settle
the buyout dispute, while asking for an extension of its
March 6 restructuring deadline. Brochu had no comment
yesterday. In other news, Menard "confirmed" that his group
has received three bids for blueprints for a new downtown
ballpark that would cost C$175M, C$75M less than Brochu's
original proposal (Montreal GAZETTE, 2/19). MLB Exec Dir of
PR Richard Levin said he hasn't received a formal request
from the team for a deadline extension, but "will consider
it" when he does (Jeff Blair, Toronto GLOBE & MAIL, 2/19).
LORIA, LORIA HALLELUJAH: The WALL STREET JOURNAL's
Christopher Chipello reports that the Expos received a
letter from MLB on February 4 that "endorsed" Loria's
potential proposal to become the team's new general partner
and "control person" (WALL STREET JOURNAL, 2/19).
NOT A LOGO IN SIGHT: In Montreal, L. Ian Macdonald
writes "there wasn't an Expos logo in sight" yesterday when
the ownership group met the media because the team's
management "wouldn't let the Expos' owners use the team's
brands." Macdonald adds that Brochu can wait for the right
buyout price because he "retains that leverage" (GAZETTE,
2/19). A GAZETTE editorial states "one hopes Mr. Brochu is
not as avaricious as his colleagues imply," and that if the
Expos leave town, it should be for reasons such as
"spiraling player salaries," not because of "internal
discord" (Montreal GAZETTE, 2/19).
