Expos Majority Owner Jeffrey Loria "has the power to
push his local partners out of control over the destiny" of
the team "if they fail to provide the extra operating money
he is demanding," according to deal documents cited by David
Johnston of the Montreal GAZETTE. The deal, signed last
December between Loria and the 15 local shareholders,
"spells out a formula to reduce the equity of the local
partners -- who together hold 76 per cent of the club -- if
they refuse to put up the money Loria claims he needs to pay
the bills and operate a winning team." The local
shareholders "have refused to comment on the record, but
some of them are said to believe that Loria is deliberately
inflating" the team's "true cash needs, in an attempt to
wear down and buy out his recalcitrant partners. And
they're considering court action against Loria, on the
grounds that his cash demands are unreasonable and that he
is not acting in the best interests of the partnership."
Meanwhile, club bylaws "prohibit a move" of the club unless
owners holding 70% of equity approve it. But a "refusal, by
even one partner," to pay its share "would kick off a
complicated process," and shareholders who are "willing to
step forward to satisfy the cash call would be rewarded with
more equity in the club than if they had invested after the
first valuation notice." Loria "could also bring in new
investors, provided they are 'not affiliated' with him and
provided" the meet MLB approval (Montreal GAZETTE, 6/13).
