Lincoln Holdings yesterday announced its purchase of
Arnold Heft's ownership stake in Washington Sports and
Entertainment (WSE). The buyout of Heft's 8% share increases
the equity stake of Lincoln Holdings in WSE to 44%. Lincoln
Holdings was formed last spring by principals Ted Leonsis,
Jonathan Ledecky and Dick Patrick (WSE). In DC, Jason La
Canfora writes that WSE, which includes the Wizards,
Mystics, MCI Center, USAirways Arena and TicketMaster
locations in DC and Baltimore "remains controlled" by Chair
Abe Pollin. Leonsis' group acquired the Capitals last year
and holds right of first refusal to acquire Pollin's
remaining shares of WSE when he decides to sell (WASHINGTON
POST, 1/12). Also in DC, Eric Fisher reports that Heft has
been associated with Pollin in sports since the early '60's.
Heft, on his move: "It was not an easy decision to sell, but
it was the right decision for me and my wife and my family"
(WASHINGTON TIMES, 1/12).
THINGS THAT MAKE YOU GO, 'HMMMMM': In Atlanta, Jeff
Schultz notes that Leonsis is president of AOL's Interactive
Properties Group and an AOL stockholder, but NHL Exec VP &
CLO William Daly dismisses any speculation on a potential
"conflict" of Leonsis' ownership of the Capitals and AOL's
new ownership of the Thrashers. Daly: "Ted (Leonsis) owns
the Capitals in his individual capacity, not as an employee
of AOL. [He] owns stock in AOL, but we don't attribute
ownership of stock as ownership of the company. He'd have
to own more than 5 percent of the company, and he doesn't
even come close" (ATLANTA CONSTITUTION, 1/12).
