Reds limited partners Carl Lindner, George Strike and
Bill Reik signed an agreement with team CEO Marge Schott
yesterday to purchase 5.5 of her 6.5 shares -- and control
of the team -- for $67M, according to MacGregor & Fay of the
CINCINNATI ENQUIRER. Though MLB owners still must approve
the deal, Lindner, Strike and Reik "have already been
approved by owners in the past." Reds Managing Exec John
Allen: "I would expect it to fly through." Exactly which of
the three limiteds will own the two general partnership
shares that control the team "was not disclosed," but
sources familiar with the negotiations said that Lindner "is
the head of the new controlling group." Allen, who has run
the Reds since Schott's suspension from MLB in '96 and
"guided them back to financial solvency after she sent the
club into debt," will remain the team's Managing Exec until
the sale is approved. Allen, who is "likely" to stay with
the club, said, "I don't see any major changes. We'll
operate under the same budget constraints we have." The
deal "assures" the Reds will stay in Cincinnati as long as
the Lindner group owns the team due to a "stipulation in the
agreement that the new owners may not move the team." The
settlement allows Schott to participate in the Findlay
Market Parade on Opening Day, keep her luxury box at Cinergy
Field and maintain her current office at the stadium.
Schott's "perks" are subject to approval by MLB, and sources
have indicated that the league might not allow her office
space. If Schott eventually chooses to sell her one
ownership share, she must sell it to the Lindner group, and
she can only receive $8M for it, as outlined by the offer
from Larry Dolan (CINCINNATI ENQUIRER, 4/21).
END OF THE REDS SCARE? In Cincinnati, John Fay examines
the Lindner ownership group and asks, "Will the new owners
put more money in the franchise?" Fay adds that of the
three limiteds, Reik "has been the most visible." Reds
broadcaster Marty Brennaman: "Mrs. Schott and Mr. Lindner
are the antithesis of one another. Mrs. Schott loves the
spotlight. In the time I've been in this city, Mr. Lindner
has stayed behind the scenes" (CINCINNATI ENQUIRER, 4/21).
