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ELWAY LOVES L.A.! HE TALKS TO BROAD; NFL TALKS TO EISNER
John Elway will meet with Eli Broad on Thursday in L.A. to "discuss joining Broad's venture" to bring an NFL expansion team to L.A., according to T.J. Simers of the L.A. TIMES. While in town, Elway has "no plans to meet" with Michael Ovitz, but the NFL "has let it be known that it would like Elway to listen to Ovitz's overture before reaching any conclusion." NFL execs feel that Elway could be "an asset in the process." One official: "Elway sounds very passionate about the prospects of becoming involved in this. And that's something the Los Angeles process needs." Broncos Owner Pat Bowlen has extended an offer to Elway to own a small piece of his team, but he "advised Broad and Ovitz that he will most likely be unable to satisfy Elway's desire to also work in a significant management position with the team, freeing him to pursue" the L.A. opportunity. Elway's agent Marvin Demoff: "It's clear John's interests are to be involved in the day-to-day operation of a football team, whether it's in Denver, Los Angeles or someplace else in the future." Meanwhile, NFL execs met with Disney Chair Michael Eisner this past week "and left encouraged with future discussions expected." Broad also met with Steven Spielberg in an effort to broaden his ownership group. But one NFL exec noted the slow pace of progress: "We're just not seeing all that much happening so far. We're moving closer and closer to Sept. 15, and we're nowhere near to getting something resolved" (L.A. TIMES, 5/9). The SPORTSBUSINESS JOURNAL's Liz Mullen writes that "speculation is rampant" that former Dodgers Owner Peter O'Malley "could either form his own group or join an existing group" bidding for an NFL expansion team in L.A. (SBJ, 5/10 issue). NEW BUSINESS PARTNER? Michael Ovitz was profiled in the N.Y. TIMES MAGAZINE. Ovitz, on his controversial image in Hollywood: "I've left bodies in my path, believe me, because I'm aggressive and sometimes I'm insensitive. But it's a whole new world out there" (N.Y. TIMES MAGAZINE, 5/9). WHAT ABOUT US! An editorial in the HOUSTON CHRONICLE runs under the header, "NFL Is Running Out The Clock On Houston, McNair," and asks, "How many deadline extensions will the NFL be willing to grant Los Angeles while Houston's bid ripens on the vine?" (HOUSTON CHRONICLE, 5/8). -
FRANCHISE NOTES
NBA: Three of the eight NBA first-round playoff games this weekend played to less-than-capacity crowds. The Magic did not sell out Game One of its series against the 76ers, as the announced crowd of 15,267 was the team's third- smallest crowd of the season. Reports had "as many as" 3,000 tickets available at the 17,248-seat arena "as late as 90 minutes" before tip-off (ST. PETE TIMES, 5/10)....For the first time in 16 home postseason dates, the Heat failed to sell out a playoff game at Miami Arena, drawing 15,036 to the 15,200-seat facility. One thousand seats remain for tonight's game (SUN-SENTINEL, 5/9)....The Hawks drew 20,884 to Saturday's opener against the Pistons at the 21,570-seat GA Dome (THE DAILY)...The NBA Board of Governors approved the Maloofs as the new owners of the Kings. Gavin Maloof, on the league's owners: "They think we have the most exciting team in the league" (SACRAMENTO BEE, 5/9). NHL: In Pittsburgh, Bob Smizik questioned the role of local leadership -- especially Mayor Tom Murphy and County Commissioner Mike Dawida -- in efforts to keep the Penguins in town. Smizik: "People close to the negotiations maintain they have been invisible, perhaps out of fear of further offending the area's large senior citizen population, which stands firm against helping professional sports teams and athletes" (POST-GAZETTE, 5/9). Also in Pittsburgh, Mark Madden wrote the NHL "would benefit, to a degree, if it pulled the ice out from under the Penguins." It would "throw a scare into the rest of the league, encouraging teams to be more fiscally responsible," and it would "give the league strong leverage in its next labor negotiations" with the NHLPA (POST-GAZETTE, 5/8). NFL: N.Y. POST gossip columnist Neal Travis reported that "some have wondered" what Mort Zuckerman and Fred Drasner "are doing" by investing in Daniel Snyder's bid for the Redskins. While the investment might "help" Zuckerman's "social standing" in DC and "it might even get some ads" for his U.S. News & World Report, others say Zuckerman is "treating his entry into the NFL as "just another business decision, one that makes sense because -- as a first-time franchise owner -- he gets to write off the entire investment for tax purposes" (N.Y. POST, 5/9). -
HESS FUNERAL TODAY; SPECULATION HAS TEAM GOING FOR $500M
More than a thousand mourners are expected this morning at the funeral of former Jets Owner Leon Hess at the Park Avenue Synagogue in N.Y., including most of the NFL's owners, politicians, celebrities and other distinguished dignitaries (Randy Lange, Bergen RECORD, 5/10). FUTURE OF TEAM: With Hess' passing, there is speculation around the NFL that the Jets will be put up for sale, as Hess told team owners and league officials that he wanted the Jets to be sold after his death (N.Y. TIMES, 5/8). In NJ, Randy Lange reported that Hess' son, John, has said that he "is not interested in NFL ownership" and the team "is likely to be sold." Lange named Cablevision CEO James Dolan, Devils Owner John McMullen, Giants co-Owner Robert Tisch, Donald Trump and Isles co-Owner Howard Milstein as potential bidders. But a league source said that Tisch "appears happy" with the Giants and Trump would have to get rid of his casinos (Bergen RECORD, 5/8). In N.Y., Bill Pennington added Mets co-Owner Nelson Doubleday as a possible suitor. One NFL owner said that Hess "indicated he was planning to make the sale of the Jets a priority in his will," while a friend said that Hess wanted the Jets to be sold "to spare his family the angst and disappointment he experienced" during the team's losing seasons. Pennington estimated that the Jets could sell for "at least" $500M (N.Y. TIMES, 5/8). NEWSDAY's Steve Zipay put Cablevision Chair Charles Dolan, Yankees Owner George Steinbrenner, Nets co-Owners Lewis Katz & Raymond Chambers and Mets co-Owner Fred Wilpon in the mix. The Marquee Group CEO Bob Gutkowski: "The Jets are a natural for Chuck (Dolan) and what he's trying to do in this market." Other potential buyers: MetroMedia co-Founders John Kluge and Stuart Subotnick and Triarc Cos' Nelson Peltz and Peter May (NEWSDAY, 5/8). One NFL insider said that Jets President Steve Gutman will become the new Owner because Hess "put full power" in Gutman on the sale (N.Y. POST, 5/8). NO CATCH FOR THE TUNA? Jets coach Bill Parcells dismissed weekend rumors that he could lead a group interested in buying the team: "I am not part of any group, nor will I ever be part of any group, to buy the Jets" (N.Y. DAILY NEWS, 5/10). But in N.Y., Rich Cimini wrote that Parcells "is in a position of power because he's the organization's greatest asset" (N.Y. DAILY NEWS, 5/9). One league source said Parcells "has a group he can put together to buy the team" (N.Y. POST, 5/9). -
STAKE IN HORNETS BACK ON BLOCK AS JORDAN ENDS TALKS W/SHINN
After Michael Jordan pulled out of negotiations with Hornets Owner George Shinn over an ownership stake in the team, Shinn issued a statement saying that he has "received numerous inquiries from others who are interested in the possibility of a partnership in the Hornets." Shinn added that he plans to "review those opportunities and proceed accordingly" (CHARLOTTE OBSERVER, 5/8). On Friday, Jordan told the CHARLOTTE OBSERVER why talks broke down with Shinn. Jordan: "We could have agreed to a 50-50 split. But ultimately my decisions had to be it. ... It wasn't about money. I offered to buy him out. It was about control and we never were able to get that resolved." Jordan said that "there was a possibility" that talks could resume, but "only if the control issue were resolved, and if talks resumed quickly." Jordan: "I'd be open if [Shinn] called tomorrow morning and said, `Hey, I've made a terrible mistake, let's talk.' It's up to George. I could not accept a situation where I could not (have a final say)." Afterward, a source said, "Shinn doesn't deserve to take the fall on this one. He wanted Michael involved. But no one in their right mind would sell 50 percent of a business and have no decisions." Sources said that "at least two other groups" are interested in buying part of the team (CHARLOTTE OBSERVER, 5/8). COULD TALKS RESURFACE? In Chicago, John Jackson cited NBA sources as saying "there is a chance" that Shinn might "reconsider" Jordan's offer to buy 100% of the team "if the outside pressures on him continue and intensify" (SUN-TIMES, 5/9). Also in Chicago, Lacy Banks writes that Jordan has the leverage: "Let's face it: Shinn and the league need Jordan more than he needs them" (SUN-TIMES, 5/10). REAX: In Charlotte, Ron Green wrote that you can't blame Shinn for the failed deal because Jordan's "demands were so outrageous, it's difficult to believe he was serious about buying half of the team." Green called Shinn's refusal to meet Jordan's demands "noble" (CHARLOTTE OBSERVER, 5/9). Also in Charlotte, Tom Sorensen wrote that Shinn chose power over a Jordan deal because the Hornets are his "identity." Sorensen: "The Hornets are much more than a business to Shinn. They are his connection to the big time, his only connection" (CHARLOTTE OBSERVER, 5/8). THE WIZARDS KING? David Falk said that he "doesn't know" if his client has thought about buying the Wizards since he "has spent all of his recent time trying to make a deal for the Hornets" (WASHINGTON POST, 5/8). A NEW PARADIGM? In Chicago, Bernie Lincicome writes on today's pro athletes seeking ownership interests in teams. He calls Jordan's effort to buy a stake in the Hornets "not so much a corporate takeover as celebrity extortion. ... Things have gotten so very askew that when somebody finally says no to Jordan, it is Jordan who gets all the commiseration. Poor Michael. If he wants his own NBA team, why shouldn't he have one?" (CHICAGO TRIBUNE, 5/10). -
TEXAS TWO-STEP: STARS EXEC NAMED TO RANGERS POST, TOO
Stars President Jim Lites was named MLB Rangers President and is now just one of five people to lead two sports franchises, according to Gerry Fraley of the DALLAS MORNING NEWS. Lites, who replaces Tom Schieffer, "is expected to bring about significant changes" in the Rangers' marketing campaigns to ticket buyers and advertisers. Rangers Owner Tom Hicks: "What we didn't want anybody to worry about was that I was going to unleash a bunch of business suits into the sports business. We don't do that. We get the best possible people to do the job and let those people do their job. Sports people will be in charge of sports." Fraley reported that Lites' sports background, with 17 years in hockey with the Stars and the Red Wings, "figured" in Hicks' decision. Hicks, however, will "represent" the Rangers at MLB and AL meetings, with Southwest Sports Group Exec VP/Finance & Operations John McMichael, who was recently promoted from Rangers Exec VP/Business Operations (DALLAS MORNING NEWS, 5/8). NEW MODEL: In Dallas, Richard Alm wrote that the Stars and Rangers are "becoming one, forging the next generation of sports enterprise." Southwest Sports Group CEO Michael Cramer: "All the ticket sales will be run through one person. All sales of corporate sponsorships will be run through one person. All marketing will funnel through one person." Stars Marketing Dir Jeff Cogen, who has led the Stars' string of 40 straight sellouts, is taking over ticket sales for both teams (DALLAS MORNING NEWS, 5/8). THE LITES STUFF? In Dallas, Tim Cowlishaw wrote that with the Lites announcement, the "mom-and-pop organization ... is no more." Lites, on making changes to the Rangers' operations: "I think there are opportunities here that have not been maximized. You might see different things in the way the game looks and sounds. I anticipate those things changing a bit" (DALLAS MORNING NEWS, 5/8). CAPITAL GAIN: In N.Y., Kevin Sack detailed former Rangers Owner George W. Bush's stewardship of the team. The TX Gov. saw his $606,000 investment turn into a $14.9M payday when his group sold to Hicks in '98. Sack: "There's no denying the Rangers' success during Mr. Bush's tenure, both on the field and in the stands" (N.Y. TIMES, 5/8).




