No suitors for the Indians "publicly surfaced
yesterday," but business analysts said the team could be
sold for "about" $300M, according to Lubinger & Schiller of
the Cleveland PLAIN DEALER. But "an expanded pool of rich
buyers," combined with Indians Owner Richard Jacobs'
"willingness to scrap the whole idea if not presented with a
deal that suits him, could drive up the price." Jacobs said
yesterday "that he would consider selling to a corporation
depending on who at the company would be responsible for
running the franchise, and that he expected ballpark naming
rights to become a negotiating issue." Meanwhile,
speculation continued on prospective bidders. Charles and
Larry Dolan are prominently mentioned, but Larry sent out a
statement saying that it "was premature to say whether or
not I am a prospective buyer." Browns Owner Al Lerner said
he was not interested in owning both teams: "I've got enough
to worry about with football." Also, Cavs Owner Gordon Gund
issued a statement that said he was not a candidate to buy
the Indians. Local business execs Thomas Murdough and Bart
Wolstein said "they weren't interested in making an offer,"
although Wolstein "left the door open about taking a
possible minority interest if asked" (PLAIN DEALER, 5/14).
In Akron, David Adams reports that some business analysts
state that the Indians could "ultimately go for" $300M, or
about $20 a share -- "nearly" a 120% premium over last
week's price. Murdough: "The costs of these teams are such
that it's hard to ever make a profit" (AKRON BEACON JOURNAL,
5/14). Also in Akron, Sheldon Ocker wonders if GE or CBS
would "be interested" in the team (AKRON BEACON JOURNAL,
5/14). Jacobs could earn as much as $180M alone by selling
his interest in the team (AKRON BEACON JOURNAL, 5/14).
WHY NOW? Astros Owner Drayton McLane said that Jacobs
"expressed his concerns about putting his finances in order
for inheritance purposes." McLane: "We've talked about it,
and the single biggest issue for Dick is estate planning"
(Crasnick & Newman, BLOOMBERG NEWS, 5/14). The Bonham Group
President Dean Bonham: "He's getting out because he can't
make any more money with the Indians unless he sells it to
somebody else" (BLOOMBERG NEWS, 5/14).
ON THE STREET: News of the sale drove shares of
Cleveland Baseball Inc. up $6.3125, or 64%, to $16.25 in
NASDAQ trading. More than 1.1 million shares changed hands,
"nearly ninety times" the average daily volume. The WALL
STREET JOURNAL's Stefan Fatsis writes that the speculated
$300M sale price is about 20% more than the team's current
market valuation (WALL STREET JOURNAL, 5/14). Based on
market value, the team is worth $224M. Jacobs: "It'll go
for more than that" (N.Y. TIMES, 5/14). On CNBC's "Business
Center," Tyler Matheson reported that analysts say the
Indians are "worth around $300 million. Jacobs thinks $800
million" ("Business Center," CNBC, 5/13). In N.Y., Richard
Wilner reports that one of the reasons for the high sale
price is that the team's lease arrangement at Jacobs Field
is "a sweetheart deal," as it paid just $230,000 in rent
last year on $144.6M in revenue (N.Y. POST, 5/14).
JACOBS' LEDGER: In Cleveland, Paul Hoynes notes Jacobs'
initial $40M investment in the Indians in '86, and writes,
"Quiet and calculating, Jacobs financed a baseball
renaissance in Cleveland" (PLAIN DEALER, 5/14). Also in
Cleveland, Bud Shaw writes, "Jacobs was a businessman
coming. He'll be a businessman going. That's a compliment,
not a criticism" (PLAIN DEALER, 5/14). In Akron, Terry
Pluto calls Jacobs "a tough, sometimes ruthless, bottom-line
guy. But he also is the best owner in the history of
Cleveland sports" (AKRON BEACON JOURNAL, 5/14).
