Reds limited partners Carl Lindner, George Strike and
Bill Reik filed a lawsuit against Reds President & CEO Marge
Schott Thursday over the offer she has received from former
Reds exec Steve Schott for her shares of the team, according
to Erardi & Hobson of the CINCINNATI ENQUIRER. In the suit,
the partners claim that Steve Schott's offer, which came
after one by Larry Dolan, is a "contrived agreement" that
would cost the limiteds an extra $12M -- almost $5M up front
and $7M later -- to eventually acquire all of Schott's 6.5
shares of the Reds. Included in the complaint is a list of
all the agreements Marge Schott had with cousin Steve, and
the Dolan offer of $65M. The difference in the additional
$5M initial cost for the limited partners if they choose to
match Steve Schott's offer is $2M in purchase price and a 4%
commission of $2.68M that Steve Schott would receive,
$250,000 of which would go to charity. The difference in
the $7M future fee for the limited partners if Marge Schott
decides to sell her remaining share of the team would be the
$15M she would receive from Steve Schott instead of the $8M
that Dolan has offered (CINCINNATI ENQUIRER, 4/16). Steve
Schott's offer is for Marge Schott to sell the Reds for
$67M, including $20.75M for each of her two general
partnership shares and $25M for her 3 1/2 limited shares and
a $500,000 signing bonus (CINCINNATI POST, 4/16).
