Rams Soon Will BE Put Up for Sale - No Preconditions

[dhaab]

Not looking good.



St. Louis Rams soon will be put up for sale
By Bernie Miklasz
ST. LOUIS POST-DISPATCH
Sunday, May. 31 2009
Here's an early heads-up for any wealthy individuals, families or potential
investor groups in the St. Louis area who dream of owning an NFL franchise:

You're in luck.

But you might want to act fast, because the Rams are likely to hit the open
market in the near future, officially offered for sale by majority owners Chip
Rosenbloom and Lucia Rodriguez.

After inheriting control of the Rams in early 2008 from their late mother,
Georgia Frontiere, Rosenbloom and Rodriguez have concentrated on reorganizing
the football operation. And they've had to deal with complex estate-tax issues
in the aftermath of their mother's death.

With substantial progress made in those areas, the timetable for a sale has
moved up.

Two sources with direct knowledge of the situation told the Post-Dispatch on
Saturday that Rosenbloom and Rodriguez have retained the services of Goldman
Sachs, the prominent investment banking firm.

The owners will ask Goldman Sachs to help facilitate the sale of the Rams by
evaluating bids and soliciting potential buyers.

The sale price is unknown, but Forbes magazine's most recent estimate listed
the Rams' value at $929 million.

And if you are a St. Louis Rams fan, here's the reason to be concerned: I'm
told there will be no preconditions attached to the sale of the Rams. This
means the Rams could be scooped up by out-of-town buyers.

And that's a dramatic — and potentially ominous — development, given the Rams'
shaky lease at the Edward Jones Dome.

Until now, Rosenbloom, the franchise's managing partner, has said he was open
to the idea of selling the Rams as long as the new owner agreed to keep the
team in St. Louis, long-term. Rosenbloom hoped that his pledge would entice a
buyer from the St. Louis community.

According to a source familiar with Rosenbloom's thinking, Rosenbloom is
discouraged by the apparent lack of local ownership interest. Rosenbloom, the
source said, has been waiting for more than a year for a St. Louis-area bidder
to step forward, to no avail.

The source said Rosenbloom's strong preference is to sell to St. Louis
representatives. But with nothing happening on the St. Louis front, Rosenbloom
has reluctantly concluded that the only way to expedite a sale is to make the
Rams available to any party, near or far. And that includes Los Angeles, the
Rams' home until moving to St. Louis in 1995.

When reached Saturday, Rosenbloom declined to comment on sale and stadium
issues. "The most important thing for me right now is putting a winning team on
the field," he said. "And we don't want that goal to be disrupted in any way."

Rodriguez could not be reached for comment.

Rosenbloom and Rodriguez own a combined 60 percent of the Rams, with Stan
Kroenke still in place with a 40 percent ownership share.

I'm told that Kroenke wants to retain his 40 percent piece of the Rams. That's
a positive development. Local bidders would have to fund a 60 percent purchase
instead of all 100 percent.

According to strict NFL rules on cross-ownership, Kroenke is prohibited from
being the majority owner of the Rams unless he first sells two other teams that
he owns, the NBA's Denver Nuggets and NHL's Colorado Avalanche.

If the Rams are to be secured for St. Louis on a long-term basis, finding a
local owner is the first and most important step.

Unless local ownership emerges, the Rams' future in St. Louis is increasingly
uncertain.

The Rams' lease agreement with the St. Louis Convention and Visitors Commission
stipulates that the Edward Jones Dome must be a "top-tier" facility that ranks
among the top eight stadiums in terms of quality in the 32-team NFL by 2015.

If that top-level status is not met, the Rams would be able to opt out of the
stadium lease following the 2014 season.

It's virtually impossible for the CVC to meet that top-eight standard. By 2010,
23 NFL stadiums will have been built or thoroughly renovated since the Edward
Jones Dome opened in 1995.

Even with a $30 million upgrade that's being done now, the Edward Jones Dome
will be one of the oldest stadiums in the NFL by 2015.

In 2012 the CVC and the Rams will each submit a plan to suitably improve the
Dome. And if they can't agree, the dispute will go to arbitration.

The source with knowledge of Rosenbloom's thinking describes the owner as
reluctant to get into an extended and nasty battle with the CVC — which
probably explains the timing of Rosenbloom's decision to sell sooner.

This is what concerns me:

Coming up with public financing to build a new football stadium in St. Louis is
virtually impossible. What about public dollars for a massive renovation of the
Dome? A long shot — though voters in Jackson County, Mo., passed a sales-tax
increase to refurbish Arrowhead Stadium, home of the Kansas City Chiefs.

And what about a compromise solution that could make the Dome workable for the
Rams and the CVC for the intermediate future until both sides agree on a
long-range plan?

If an out-of-towner gets control of the franchise and is determined to move to,
say, Los Angeles, it would be easy to play hardball and rebuff the CVC's
efforts to reach that compromise.

But if new local ownership emerges to take charge of the Rams, I believe the
chances of conciliation will increase dramatically.

Make no mistake, the Rams will be in play — and soon.

Will a local buyer preserve the franchise for St. Louis? And how will
city-regional leadership respond to the challenge?

It's time for St. Louis to come up with an effective prevent defense.

[GreatestShow99]

Goodbye, River City.

[39thebeast]

I really don't think LA is good for the NFL and I don't see that happening because they have never been able to hold an NFL team. I bet Steven Jackson is rooting for Las Vegas, that's a possibility, but my money is on San Antonio or Portland.

[TheTalkOfTheArch]

SMH never should have agreed to that top 8 deal. What a load of garbage. Soldier Field is 85 years old. The Rams might be done in St. Louis, if it isn't the Cardinals they're not getting a new stadium. The Rams might get more money from illinois putting it on the east riverfront. A new stadium looking back at the stl skyline would be awesome.

Chip Rosenbloom is a jerk for this. The good thing is Stan Kroeneke wants to keep his 40% and he's St. Louis through and through. Maybe he can convince Bill Laurie to pony up the other 60%.

[Guam rammer]

Die hard Raaams faaan for life whether they stay or go. Just don't put them in the Canadian or Europe leagues. I don't get that coverage on Guam.

[lamcph6]

OMG. Rams might really come back to L.A.

They can always work out a deal to leave before 2014 right? I mean if Chip sells the team to a out of town buyer, everyone in the world will know the team will move in 2014 so attendance will drop and there would be no point in forcing them to stay until 2014.

Rams always belonged in L.A. They were in Los Angeles even before the Dodgers and the Lakers moved to L.A.
Cardinals belong in St. Louis but it's too bad they just got the brand new stadium.
STL might get the Jaguars though...

I mean I HATE teams moving because fans of that team literally gets CRUSHED.
But since I feel like the Rams belong in L.A. and someone has to move to L.A. it's best the Rams move to L.A.
maybe St. Louis will get the Cardinals back in some time...

[jkramsfan]

I don't believe it's a done deal the Rams will leave,I think the last 2 seasons have kept potential St. Louis investors away,you look at the terrible play and then all those empty seats who would buy into that.now if the Rams start to make a move up and the fans start to rock the dome again,maybe big Stan can get somebody to go that extra 60% and stay in St. Louis. I have been to St. Louis many times for games and I love it there,I enjoy the people,the food and all the different things there are to do,it would suck for them to lose the Rams. it may not be Green Bay,Pittsburgh or even KC where fans show up no matter what but look around and you will see that St. Louis fans aren't that much different than other NFL teams.I also don't think the should go back to L.A. they had there chance and blew it so you don't get another one with the Rams that is,another team fine,and I say the same thing to the St Louis fans don't blow this because you won't get another chance.

[BarronWade]

This is from ESPN


The St. Louis Rams may soon be up for sale, the St. Louis Post Dispatch reported on Saturday.

Sando: Rams to L.A.?

The St. Louis Rams owners have retained Goldman Sachs to help find a buyer for the team and selling to an out-of-town buyer could be an option. Blog

Majority owners Chip Rosenbloom and Lucia Rodriguez inherited control of the Rams in early 2008 from their late mother, Georgia Frontiere.

Rosenbloom and Rodriguez have retained the services of Goldman Sachs, an investment banking firm, to put the team up for sale, the Post Dispatch reported. Forbes magazine estimated the Rams' value at $929 million in its most recent listing.

Rosenbloom, the franchise's managing partner, would like to sell to St. Louis representatives, according to the Post Dispatch. But with a lack of interest from buyers in the area, Rosenbloom may have no choice but to sell to a buyer who will move the team out of St. Louis.

The Rams came to St. Louis from Los Angeles in 1995. Los Angeles, which is the second-largest television market int he country, has been without an NFL team since.


Does Spags still have that opt out clause?

[general counsel]

No surprise here. THis has been the plan all along despite the public statements. There are serious tax issues involved with georgia's estate. The cash has to come from somewhere. Its speculation as to whether the team will stay in st louis. We all know the issues with LA and the need for a stadium. With the current bdget debacle in california, does anyone seriously believe that there is going to be any public money available to build a billion dollar stadium? The debt markets are a disaster. Financing for this type of transaction is very very challenging right now. I think the marketing process will take time, and it will be very interesting to see what impact the uncertainty has on the rams organization. Goldman is a top tier investment bank, if not THE investment bank for a sales process of this type.


ramming speed to all

general counsel

[AvengerRam]

Thank you, Bernie "Chicken Little" Miklasz.

Tax issues may force the sale of the Rams...

Yeah, we've known that for a while.

The Rams' current owners have retained Goldman Sachs...

Um... so? When you sell a 1986 Honda Civic for $1,200, you don't need a financial advisor. When you have an asset worth close to a billion dollars, you hire an expert to guide you through the process. No big issue here.

There are no preconditions on a sale...

Well, that's not entirely true. Though the EJD lease is finite, it hasn't expired yet. Also, there's this little organization you might have heard of, Bernie... its called the NFL. I'm pretty sure the NFL has a say in where the Rams play. So, its not as simple as... rich guy from Puerto Rico buys the team and "poof!" its the San Juan Rams.

The problem with an article like this is that it will stir up those who are predisposed to look for problems, as well as those who continue to hold out hope for a return to L.A. Bernie knows this and he INTENDED it to stir things up. That's what he does.

Never mind that his sources are unnamed.

Never mind that he has no idea what kind of timetable we're looking at.

Never mind that there are plenty of hurdles before the team could possibly be moved.

R.I.P. serious sports jounalism.

[unorthodox1999]

No surprise here.

general counsel

Exactly..& with that being said, for everybody that thought the Rams would never be sold or would never return to LA, anythings possible.

[39thebeast]

LA can't hold an NFL Franchise, I am almost positive if the Rams do move, which is very likely it wont be to LA. Think San Antonio Texas (yes a third team in Texas, because they are probably more suited to do that than Florida or California), Portland Oregon, Columbus Ohio, Salt lake city Utah, and a long shot Vegas if they can get over that gambling thing. I wouldn't be surprised to see the San Antonio (insert cool spanish name here) around 2015.

[VenturaFwy]

LA can't hold an NFL Franchise, I am almost positive if the Rams do move, which is very likely it wont be to LA. Think San Antonio Texas (yes a third team in Texas, because they are probably more suited to do that than Florida or California), Portland Oregon, Columbus Ohio, Salt lake city Utah, and a long shot Vegas if they can get over that gambling thing. I wouldn't be surprised to see the San Antonio (insert cool spanish name here) around 2015.

They Rams moved because they got a new stadium and a sweet deal. It's all about luxury boxes. The Rams never had a new stadium in Los Angeles. The LA Coliseum was/is a dump and The Big A was a baseball stadium converted into a multi-puurpose venue. Stop blaming LA.

[Mooselini]

This must be bad for the St. Louis fans. I, as a fan of the Phoenix Coyotes, knows what its like to possibly lose your home team.

The fans will root for them, regardless of where they move. However, it is just heart breaking when fans lose their home team.

[Varg6]

I don't care where the Rams go.

I'm a fan of the RAMS, not St. Louis, Not LA, not Cleveland, just the Rams.

I personally think LA just sounds really cool, so I wouldn't mind us going back to LA. But honestly, I'm not too worried about this, and it's actually really interesting and exciting. Perhaps new uniforms, new stadium, bigger fan base (depending on the area, I guess), just excitement. I wouldn't mind staying in St. Louis, but I'm game for anything. Like I said, I'm a RAMS fan.