Steelers Ownership In Question As Dan Rooney Aims To Buy Shares
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Rooney Wants To Consolidate
His Control Of Steelers |
The Steelers are "secretly being shopped to potential buyers as the five sons of the football team's founder and their heirs spat over the [franchise's] future," according to John Wilke in a front-page piece for the WALL STREET JOURNAL. Steelers Chair Dan Rooney, the oldest of the brothers, "wants to consolidate his control through a 10-year plan to buy out most of their shares." But sources said that Pittsburgh-based Duquesne Capital Management Chair Stanley Druckenmiller has "expressed interest in acquiring" the team. Druckenmiller's reported interest "emerged after some of Mr. Rooney's brothers and their children raised questions about" Rooney's offer. Some of Rooney's family members have "sought an independent analysis by a top Wall Street investment bank to see whether a better deal can be put together." The family "worries that Dan Rooney's plan undervalues the team and takes on too much debt." Documents indicate that Goldman Sachs in '07 valued the Steelers operations between $800M-1.2B. Separate documents show that the Dan Rooney family's buyout proposal was presented by Societe Generale SA (SG). Wilke notes the plan "appears to value the Steelers at well below the price range envisioned by Goldman." The Rooney brothers own 80% of the Steelers, while their cousins, the McGinley family, own 20%. Under the plan developed by SG, the Dan Rooney family would "take on substantial debt and pay $35[M] to each brother and the McGinley family for a 5% stake in the team." Dan Rooney's family then would "buy more equity, at a price to be determined, over 10 years, leaving each with a 5% stake in the team." SG bankers said that the plan would "require a waiver from the NFL, because the debt would exceed league limits." Druckenmiller, who has "told the Rooney family members that he hoped to retain Dan Rooney as a partner if he buys the franchise," would not comment for this article (WALL STREET JOURNAL, 7/8).
FAMILY BUSINESS: The Steelers yesterday in a statement confirmed Dan Rooney and his son, Steelers President Art Rooney II, are arranging a financing plan to buy shares from Dan Rooney's brothers in order to continue substantial ownership of the franchise by the Rooneys. The other Rooney brothers, Art. Jr., Timothy, Patrick and John each own a stake in the franchise. The Rooney family owns race tracks in New York in Florida that in recent years have added forms of gaming inconsistent with NFL gambling policy (Steelers). A source said that several of the brothers are seeking to "sell their shares in the franchise," either to Dan Rooney or to "outside investors." The source said that the brothers in question were Timothy, Patrick and John, who are "involved with the operation" of horse tracks. In Pittsburgh, Gerry Dulac notes the Steelers have been "attempting to restructure their ownership in order to comply with NFL policy that prohibits involvement with racetrack and gambling interests." As part of that arrangement, the team has been working with former NFL Commissioner Paul Tagliabue to "remedy the situation." But the source indicated that the NFL has "not pressured the Rooney family to restructure their ownership and has not given them a timetable in which to divest their gaming interest" (PITTSBURGH POST-GAZETTE, 7/8).
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