NFL officials "are examining" whether prospective
Redskins Owner Howard Milstein "has enough cash available to
satisfy the league's team owners," who must approve his
proposed $800M purchase of the team and Jack Kent Cooke
Stadium, according to sources of Thomas Heath of the
WASHINGTON POST. The owners are not questioning Milstein's
personal wealth, but whether he "has access" to money to run
the franchise should its cash flow decrease. While there
has been some speculation that Milstein may have to
restructure his proposed deal "before the NFL finance
committee will decide whether to approve the transaction,"
Patriots Owner Robert Kraft, who is also the Finance
Committee Chair, believes that nothing will "interfere" with
the bid being approved. Kraft: "Unless there is a smoking
gun, I believe it's in the process to go forward."
Officials at Societe Generale, the bank which reportedly
gave Milstein a three-year line of credit of nearly $500M
for the deal, said that he has the money to buy and support
the team and stadium. The league normally doesn't allow
owners to borrow more than $100M against the franchise, and
"it wants to ensure that Milstein is complying with that
rule." Societe Generale Managing Dir Salvatore Galatioto
questioned the NFL's handling of the Redskins' sale, saying,
"I'm very confused by the tack that the NFL is taking."
Sources say Milstein will repay the loan through cash flow
from the Redskins (WASHINGTON POST, 2/23).
