The Jack Kent Cooke estate trustees announced yesterday
that they have reached an agreement to sell the Redskins and
Jack Kent Cooke Stadium to the group led by MD business exec
Daniel Snyder for $800M, according to Maske & Shapiro of the
WASHINGTON POST. The deal, which would become a record sale
price for a U.S. pro sports team, still must be approved by
at least 24 of the NFL's 31 team owners. However, "there
were signs yesterday" that Snyder's bid "will be received
more favorably by the league" than the one headed by Howard
Milstein, as Snyder's package includes around $350M in cash.
Giants co-Owner Robert Tisch said he was confident that this
deal "will go right through," but another owner was "less
optimistic," saying, "I don't think it's going to sail
through, but it might go through. It's something the league
office feels we should get behind us, and this may be the
cleanest way." Of the $350M in cash, Snyder would provide
around $100M, Mort Zuckerman and U.S. News & World Report
President Fred Drasner would contribute $150M and Snyder's
father, Gerald, would put up the remaining $100M. The
trustees, in a statement, said they chose Snyder over
Redskins President John Kent Cooke because "we believe that
the Snyder bid is substantially stronger in terms of
financing and could proceed without waivers of NFL rules."
The league's Finance Committee is scheduled to meet in May,
and NFL owners could vote on the sale at the league's May
25-26 meeting in Atlanta (WASHINGTON POST, 4/27).
WHO'S IN CHARGE? In DC, Liz Clarke reports that Snyder
is expected to be the lead investor with a 33% stake in the
team, but it is "unclear" what percentage would be owned by
Zuckerman, Drasner and Snyder's family. To raise most of
his cash equity, Snyder "plans to sell" securities or bonds
(WASHINGTON POST, 4/27). The WALL STREET JOURNAL'S Fatsis &
Beatty write that Snyder said he will not sell any shares of
his company, Snyder Communications, to finish the Redskins
deal. Shares of Snyder Communications rose $1 yesterday to
close at $29.875 on the NYSE (WALL STREET JOURNAL, 4/27).
JOB SEARCH: Snyder will remain as Snyder Communications
Chair, and has not decided on a team President to handle the
day-to-day operations (WASHINGTON TIMES, 4/27).
