 |
| DeBartolo Holding LLC
Chair Edward DeBartolo Jr. |
For over two decades, EDWARD DEBARTOLO JR. owned the 49ers, arguably the NFL’s most successful franchise of the last 25 years. Under the direction of BILL WALSH and GEORGE SEIFERT, and thanks largely to the play of JOE MONTANA, RONNIE LOTT, JERRY RICE, STEVE YOUNG and others, the 49ers were in the playoffs 16 times from ‘81-‘98 and were the first team to win five Super Bowls. But in ‘98, DeBartolo pleaded guilty in federal court to a felony charge of failing to report an extortion attempt by then-Gov. EDWIN EDWARDS of Louisiana in DeBartolo’s effort to obtain a casino license. He was suspended for one year by the NFL and fined $1M. He later sold his share of the team to his sister, DENISE DEBARTOLO YORK. As Chair of DeBartolo Holdings LLC, DeBartolo admits to a busy life, but one that lacks the “action and excitement of the NFL every Sunday.” DeBartolo spoke recently with SportsBusiness Journal New York bureau chief Jerry Kavanagh.
Q: What’s the best thing about sports?
DeBartolo: Winning.
Q: You know something about that: five Super Bowl titles with the 49ers. No other owner has won that many.
DeBartolo: We’ve had some great success. We had some tough times, and we had a couple of seasons where, but for the bounce of a ball or a missed tackle or missed block, we might have been in the big game a couple more times. But I’m extremely happy that I’ve been involved with these guys and they let me tag along on this ride that we had.
Q: At the Pro Football Hall of Fame in ‘00, you said that it was your decision to get out of the NFL after the NFL-imposed one-year suspension. Any regrets?
DeBartolo: No. I thought that there would be. When the suspension was over -- and the commissioner did say the suspension was over -- I had some negotiations going on with my sister on the division of assets in the company. She took the team, which I’m not so sure she wanted to at the time, although I think they thought the value of the team was substantially more than the value of the assets I took at that time.
But you asked me about regrets. You always have some. It’s like FRANK SINATRA’s song. I remember riding in a car with Joe [Montana] in Canton. He said, “I can see that you have a little tough time with this.” I said, “Not really, Joe.” He said, “Do what I did. Just put football in your rear-view mirror.” You know, I kind of did that.
Q: How is life after football?
DeBartolo: It turned out that in those 23-plus years I made hundreds of commutes from Youngstown to San Francisco, I didn’t have a chance really to spend time with my family as they grew up. I’m getting to do that now. I have a 17-month-old grandson, and hopefully there will be more to come. Two of my three daughters live here with me in Tampa; the other lives in Boulder, Colorado. But you know what I’m doing? I’m going back and I’m spending the time and reliving those days that my wife, CANDY, and I had to spend away.
Q: Are there any restrictions that would prevent you from owning an NFL team now?
DeBartolo: To my knowledge, absolutely none.
Q: Last August, you told SAM FARMER of the L.A. Times that you were giving thought to returning to the NFL. Is that still the case?
DeBartolo: I think the only scenario would be if I went in as part of a group to buy an existing franchise, possibly be managing general partner. I don’t think I would do it any other way. I was consumed by the 49ers every waking minute. There was no offseason. I’ve talked to some of my friends here in Tampa, some very wealthy people, who wanted to take a run at the GLAZERS at one time. We found out that they weren’t interested in selling the Bucs. But if they were interested, we were interested buyers. But nothing’s really come up. I know there are a few teams for sale.
Q: What about the Magic? Did you consider that team?
DeBartolo: We looked at it a little bit, and I wouldn’t touch a sport if you gave it to me other than football. I know that [DAVID] BAKER and CARMEN [POLICY]’s son have done a really damn good job with Arena Football. Basketball, I think, is coming around. They were strapped for years with that deferred compensation problem. Baseball -- I have no idea where baseball’s going. Honestly, if I owned a baseball team, I think I’d be scared to death. That sport, as great a sport as it is -- America’s pastime -- I think it’s got so many problems that it may not be able to overcome them in the years to come.
 |
| DeBartolo Credits Family Atmosphere
As Part Of Team’s Winning Formula |
Q: You were known as a players’ owner. You bought the 49ers in ‘77 for $17.6M and built them into Super Bowl champions.
DeBartolo: I think that a lot of our success came from the relationships that I had with players. I had an opportunity to have eight or ten of them aside in Las Vegas not too long ago. We had dinner and shot the breeze. You could see what it meant to them to have an owner who was so involved, not necessarily with their contracts and their financial situations, but involved with them and their families.
Q: GLENN DICKEY, in the S.F. Chronicle in ‘03, wrote, “In the ’80s, DeBartolo’s money became a key factor in the 49ers’ success.” He also wrote, “Much of the impetus for the [NFL] salary cap came from owners who wanted to force the 49ers to cut back their spending.” Is that accurate?
DeBartolo: I think that probably at that time we were the single team most responsible for the salary cap being initiated.
Q: Just this past January, Falcons coach JIM MORA JR. compared Falcons Owner ARTHUR BLANK to you. He said, “They have a real passion to win and they’re willing to provide all the resources necessary to win. ... They’re not going to skimp.” After eight years removed from the 49ers, what are you doing now to satisfy that competitive passion?
DeBartolo: We have a commercial residential real estate development company. We probably have 8 or 9 million square feet, and there are new projects coming in all the time. My brother is a partner in the company, DeBartolo Properties and DeBartolo Development Corporation. And we’re doing a lot of venture capital work, investing in growth capital funds and fund-to-funds and hedge funds and doing a lot of personal investing, which takes a lot of time. We’ve done very well. It’s not the action and excitement of the NFL every Sunday, but we’ve been really busy. I have an opportunity to work with my kids and my sons–in-law. They are in the office with me, working on things and involved in a very large foundation that we’ve formed that does a lot of projects in Tampa. We spend a lot of time together.
Q: It’s been ten years since the last 49ers Super Bowl. In ‘04, the team was the worst in the league. It was also last in payroll (about $19M below the league average, according to the S.F. Chronicle). Is there a connection between payroll and performance?
DeBartolo: Well, first of all, they’re going to stay that way unless they get a new stadium. I don’t care if Denise comes up with all the money she has -- and she’s got a lot. There’s just no way that team can stay competitive without the revenue from a new stadium. That’s their No. 1 priority. It’s not going out and trying to find the quarterback of the future right now, although that’s of paramount importance. They have to get that revenue stream, and the only way you’re going to get that is to build a modern, first-class stadium that can go on a Super Bowl rotation. They just can’t compete with the other teams in the league until they get that revenue stream.
Q: Is that the biggest reason for the disparity in revenue?
DeBartolo: Oh, I think so. I don’t think they’re going to choose the No. 1 pick. If it were my druthers, there are so many needs, I think that I’d probably draft down.
 |
| DeBartolo Feels 49ers Should Trade
Down In Draft And Stick With Rattay |
Q: You would trade the pick?
DeBartolo: Yes. At this stage in the game, I’d trade it and maybe pick up three or four starters. I think [the 49ers] can get by with [QB TIM] RATTAY and what they have for a while. They’ve got some good players. I think that this young coach -- who I never met -- [MIKE] NOLAN, he seems like he’s got all the necessary credentials and tools to be a good coach. I don’t know any of the new front-office people or scouts or coaches. I think Nolan is going to be a great addition, but Rome wasn’t built in a day. I think it’s going to take a series of things to happen. You have to get lucky with the draft and you definitely have to get that stadium built.
Q: IRA MILLER in the S.F. Chronicle in December wrote, “[The 49ers] will get better only if Denise DeBartolo York sells the franchise to someone who cares about it, has a clue and is willing to spend the money it would take.” Is that unfair?
DeBartolo: Yes. You know, she’s a good person. I’m not so sure she really wants to be in this sport, because there are so many ups and downs. She’s got her husband [JOHN YORK] who’s running the operation, and her son is going to be getting involved. He’s a good kid, but he’s a young boy. He’s got great education. He’s a fast learner, but this isn’t something that you get from books. This is like getting street sense as you grow up. You know, you have to go out on the street and get in a few fights and see your own blood. It’s tough. It took me a while, and I think that’s why I was so successful with the players, because I was lucky enough to have some street sense. My father instilled it in me.
It’s not going to be easy. Denise is a great girl. I think she’s just trying to let her son now and her husband run the show. Since obviously the team does belong to her, Ira Miller, I think, just used her instead of saying, “John York should get the hell out of there, or whoever should do this or do that.” Yeah, I think that was a little unfair.
Q: You have been through this, rebuilding the 49ers. Have they asked you for your take, for your critical evaluation?
DeBartolo: God, no! John York wouldn’t ask me for advice. I think he’s too bent on just trying to do possibly better than some of the organizations we had. No, he would never ask me for advice. I was actually willing. When the media and the press were getting really bad about six months ago, I called Denise. I was going to start doing some interviews, you know, kind of boosting them up a little, but I guess they didn’t think that was such a good idea.
Q: Wouldn’t your input have been valuable?
DeBartolo: I think they thought it would be better left alone. We had an incident at the Ronnie Lott jersey retirement ceremony where I got quite a bit more attention than the present ownership, and I don’t think it went over too well. But I would do anything I could to help [Denise] and do anything to help that team. I left my heart and my soul there, and spent a lot of great times and a lot of sad times there. I would do anything within my power to help the franchise.
Q: Does a team take on the personality of its owner? If so, was that the case with the 49ers and you?
DeBartolo: One million percent true. Bill Walsh was down here for our fundraiser with a lot of ex-players and players from other teams, and he agreed, too. He said it made things a lot easier after that ’79 and ’80 run when we were 2-14 because of my relationship with the players on the team. At that time, I wasn’t that much older than these guys. We kind of were able to ... I don’t know ... we were just able to relate to each other. I think that is a very important piece of that puzzle.
Q: Joe Montana chose you to be his presenter at his Hall of Fame induction and Ronnie Lott embraced you on the field during his jersey retirement ceremony. And you were on the most recent ballot for the Hall of Fame. What has all that meant to you?
DeBartolo: I presented Bill [Walsh], too, and that was a great thrill. And when Joe and Ronnie went in together, I was just thrilled to death. I’ve been so close to those guys. They’ve been like little brothers to me. Just inducting Joe and going through that weekend was the thrill of my life. And Ronnie made sure that I was out there. His true feelings and the heartfelt love that we have among the group of players just comes out. It’s something that you can’t ever put value on.
Q: Among the four major sports leagues, the NFL has enjoyed the longest period of labor peace. NFLPA Exec Dir GENE UPSHAW and Eagles Owner JEFFREY LURIE attribute it to an understanding by the owners that the players are their partners. Do you agree?
DeBartolo: Yeah. In fact, this is a funny story. I remember going back, maybe 15-19 years ago. My general counsel was PAUL MARTHA, who ran the Pittsburgh Penguins for us. He was involved somewhat with Upshaw and the collective bargaining agreement back there in ’83 or whenever it was. At that time, the players union was looking for 55[%] of the gross, and they would have been happy as a pig in a poke. Now, what is it -- 68[%], 69[%]? I don’t even know what it is. But you know something? The NFL, every time you turn around, they have something else -- Sirius or the television rights and the Sunday Ticket and everything -- coming up. Their dollars and revenues keep going up. You’re going to keep having Gene Upshaw and the players union looking for a bigger piece of that pie. As long as the owners are making enough to be able to carry the team and pay the players and make some money, they’ll continue, and I think there will be labor peace. I don’t think seriously that Gene Upshaw or one player wants to kill this goose that’s laying these golden eggs.
Q: How do you sustain your excellence, compensate your players and build for the future? Does the salary cap work against long-term success?
DeBartolo: Nah, I think it’s the quality of your front office and your coaching staff, and I think it’s continuity. You can’t have people jumping all over the place. The Patriots lost [ROMEO] CRENNEL and [CHARLIE] WEIS. I think it’s going to have an effect. But you know what? The teams that are perennially up there and will always have a shot at that gold ring are the teams that don’t change their M.O. In 2005, they’ll be drafting for 2006. And you know who the teams are. Other than things you don’t have control over, like injuries, those are the teams that are going to be in contention every year.
Q: Do you see any parallels between the 49ers when you were running them and the Patriots today?
DeBartolo: Yeah, I do. They’re making comparisons between Joe and TOM BRADY. We had a little bit more to work with. We weren’t under the restraints early on. Bill [Walsh] and I, two weeks ago at this dinner, were reminiscing. Our ’84 team that beat the Dolphins in the Super Bowl, ... that team was so good that I personally think that our second team could have won that game. We had All-Pro backups in eight or nine or ten positions. That’s sort of like trying to compare apples and oranges. I don’t know. It was an awful good team, and our ’89 team was an awfully good team, and we were stuck with the salary cap then.
 |
| Blank’s Direction Of
Falcons Impresses DeBartolo |
Q: It’s been eight years since you were a part of the league. Have you observed any major changes or differences in the NFL since you’ve been gone?
DeBartolo: No, just some of the changes in ownership. I’m very impressed with Arthur Blank. He’s a businessman. He and his partner were absolutely responsible for a phenomenal organization: Home Depot. And I think he’s carried that onto his venture with the Falcons. BOB KRAFT and JONATHAN are very good friends of mine. JERRY JONES and I stay in touch. In fact, we’re going to be doing some real estate development together in Texas. Jeff Lurie -- same thing: We stay in touch. I just think, you know, some of the owners want to win. Some of the owners demand to win. And some of the owners, I think, just play to make money. But that’s their prerogative.
Q: SportsBusiness Journal named NFL Commissioner PAUL TAGLIABUE the most influential person in sports business. What’s your impression of the job he’s done?
DeBartolo: He’s head and shoulders above anybody who’s in a comparable position in sports. There are some great minds and movers and shakers in the media who have done some really great things. And there have also been some people who have done innovative things with financing that are with financial institutions that have an effect on sports. But Paul Tagliabue is the constant that has made the NFL grow like it has in the last ten years since he’s been commissioner. PETE ROZELLE: magnificent. He was a wonderful leader. And I’m just happy that I was one of the ten or 11 back in Cleveland that wanted Tagliabue as the commissioner. He is the diamond that makes the NFL work.
Q: What has been the biggest challenge in your professional career?
DeBartolo: Trying to separate church and state with business now and football, which was my life for 20 years. The biggest challenge was just getting out of the sport itself and trying to regain some semblance of sanity after being involved for 23-plus years. I never thought I’d be able to do it, but I had a lot of help from player, and family and friends.
Q: What is your favorite movie?
DeBartolo: “My Blue Heaven.”
Q: Who is your favorite actress?
DeBartolo: CATHERINE DENEUVE.
Q: What is your favorite piece of music?
DeBartolo: Anything by GARY PUCKETT & The Union Gap.
Q: What is your favorite sporting event?
DeBartolo: NFL by far, golf second.
Q: Where is your favorite vacation spot?
DeBartolo: The Caribbean islands.
Q: What book are you reading?
DeBartolo: “The Da Vinci Code.”
