In a surprise announcement, Anheuser-Busch officials said
yesterday they will sell the Cardinals as part of a company
reorganization. In addition to jettisoning their snack food
business, closing the Tampa brewery adjacent to Busch Gardens and
lowering beer wholesaler inventories, the brewer will put the MLB
team, Busch Stadium and several parking garages owned by A-B's
Civic Center Corp. up for sale. All the moves are designed to
have the company "better focus its attention on its core
businesses." A-B reports a '95 operating loss from the team of
$12M. Chair & President August Busch III said their objective is
to keep the Cardinals in St. Louis and to remain an MLB sponsor.
Busch: "The question is whether our corporate objectives, which
are highly focused on producing value for Anheuser-Busch
shareholders, are consistent with the needs of the baseball team.
Similarly, continued ownership of the club diverts significant
management efforts away from the needs of our core businesses"
(Anheuser-Busch). A-B spokesperson John Jacob, who made the
announcement: "We have concluded that this is no longer a
compatible fit. Therefore, it is necessary to find a new owner
for the club. That search has been initiated" ("Sports View,"
CNBC, 10/25).
SHOCK IN ST. LOUIS: The story dominates the pages of this
morning's ST. LOUIS POST-DISPATCH. Mike Eisenbath writes the
union of the brewer and team "seemed a perfect example of wedded
bliss." Bill Smith & Thom Gross write, "The news sent a sudden,
unexpected October chill through this community, which, for the
past several months, has been basking in the afterglow of the Los
Angeles Rams' move to St. Louis" (ST. LOUIS POST-DISPATCH,
10/26).
WHAT'S BEHIND IT? Robert Manor writes A-B "is making its
strategy clear -- keep beer and theme parks and get rid of
everything else." Tom Pirko, a beverage industry consultant at
Bevmark Inc., said A-B is willing to sell the team and its money-
losing snack subsidiary with a "lofty goal" in mind -- "world
dominance." Pirko: "They want to be the Coca-Cola of beer."
Denise Smith Amos reports local marketing execs are divided on
whether the sale will hurt the brewer among baseball fans. Mike
Drone, owner of Drone & Mueller and Associates, noted what the
Cardinals did for A-B's national image. But Craig Kaminer, a
former outside p.r. exec for A-B, called the team a "toy" and
said A-B can get "visibility whenever they want it" through
advertising on other sports events (ST. LOUIS POST-DISPATCH,
10/26).
FAMILY VALUES? Tim O'Neil writes the announcement confirmed
what many believed -- that Busch III "has little or none of the
feeling for baseball shown by his father." A POST-DISPATCH
editorial criticizes Busch for not attending the press conference
and calls on A-B to keep its pledge to find a local buyer (ST.
LOUIS POST-DISPATCH, 10/26).
NO MOVING VANS IN SIGHT: Michael Sorkin notes, because the
team and stadium are a package deal, it will be hard for a buyer
to move the team. Rick Hummel quotes former Cards Manager & GM
Whitey Herzog, who says there "ain't no way in the world" the
team will be moved. Herzog, who believes the team could fetch
$200M, said A-B "must have a buyer in mind." Jeff Gordon notes
FINANCIAL WORLD's most recent evaluation put the team's worth at
$110M, but Edward D. Jones & Co. analyst David Presson believes
the bidding could start at $150M. Columnist Bernie Miklasz calls
it a "shameful betrayal" and slams A-B for not noting that
baseball's poor standing forced the sale. Miklasz: "ABIII is
selling without protest, ensuring that he'll keep Anheuser-Busch
products flowing in the stadiums." Mike Eisenbath reports that
Cardinals President Mark Lamping and GM Walt Jocketty say team
operations will proceed normally, and that new Manager Tony
LaRussa was informed before he accepted the job (ST. LOUIS POST-
DISPATCH, 10/26).
