The "long-planned sale" of the United's operating
rights to N.Y.-based E.M. Warburg Pincus (WP) "is in danger
of collapsing," according to a source of Eric Fisher of the
WASHINGTON TIMES. Although United President Kevin Payne
said that the sale "would likely be done" by July 31, "no
deal is in place, and no vote is scheduled" among MLS execs
meeting today in Columbus, "as was previously hoped." WP
partner Douglas Karp: "There is no transaction at this
point. It has seemed for some time that it would be just
around the corner. But there is no transaction. I can't
say whether or when it will happen." Fisher adds that "it
remains unknown exactly what the problems preventing a deal
from being struck," as each of the principals involved
declined to comment on that. But "sources familiar with the
talks" said that "two issues have emerged that have slowed
talks," including the United and MLS "as a whole [failing]
to generate a profit" since the league's '96 inception and
with attendance and TV ratings "remain[ing] weak in many
league markets, monetary concerns remain high for the
immediate future." Also, "several" MLS team execs "remained
concerned over the tax liabilities of a United sale," as a
sale "would greatly raise the value of their operating
rights, and hence, their exposure to taxes with little
additional revenue to help pay the bill" (WA. TIMES, 7/28).
