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  1. #1
    Bosna-Ram's Avatar
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    Is Stan Kroenke "spread too thin?"

    by:3k

    As the combine nears and visions of draft successes begin dancing in our heads, there's plenty of talk about free agency here at TST. Whether it's at outside linebacker, wide receiver, guard, along the defensive line, or even now at free safety should O.J. Atogwe not return, there's plenty of momentum behind a bevy of options to bring onto next years roster and plenty of support for various names at those spots as well. Of course, that means money, and Rams' money means Stan Kroenke.

    Having purchased the Rams last year, Kroenke is now the rare-found sporting quadraproprietor, as owner (whether full-out or in loophole sense only) of the St. Louis Rams, Arsenal FC, the Colorado Avalanche and the Denver Nuggets. That's a pretty solid CV. With so much organizational clout in his pockets, it doesn't take much to push a fan base toward discontent. That seems to be happening in Denver, the epicenter of two of his major fan bases.


    In a chat with readers over at the Denver Post, Mark Kiszla opened his mailbag with a question that ended:
    We have to differentiate between making stupid decisions (Broncos) and simply appearing to be cheap (Stan Kroenke's Avalanche and Nuggets). Isn't it fair to question whether Kroenke is simply spread too thin in terms of interest with all the teams he has ownership of?
    You've got to throw some sympathy their way. Kroenke owns teams in the two behemoth leagues (the NFL and the EPL), and two in declining leagues with limited support (the NBA and the NHL). On top of that, his Denver-based teams are struggling.


    The Nuggets are trying to trade Carmelo Anthony who currently holds about 10% of his fair value because everyone knows he wants off the 7th-place team. The Avs are next to last in the Western Conference, coming off of some trades that are being perceived in most circles as sacrificing some strong long-term talents for more immediately productive players (Blues fans, feel free to chime in on that point).


    Meanwhile, Arsenal are coming off one of the biggest wins in recent history, a 2-1 comeback over Barcelona, the consensus best club in the world. The Gunners are in second place in the league, and are still in the running in all three tournaments: the Champions League, the FA Cup and the Carling Cup (sorry for the Arsenal talk. Y'all know...). The Rams, as we all know, rose from the ashes last season on the wings of a phoenix-like Sam Bradford and have enough young talent, both on the field and in coaching polos on the sidelines, to suggest an impending run of forthcoming success.


    You can't really believe Kroenke is spending his cash on the wrong teams. Which brings me my ultimate question: is Kroenke really being spread to thin or is he just thinning out his expenses at the expense (pun, mothasucka) of his two less competitive teams? Should the Rams go after an attractive free agent or two when CBApocalypse does end, should we be glad that our team has the confidence of its owner to the point that he's willing to spend money on this team where others don't enjoy such confidence? Or should we be worried that when our time comes to slip back into inadequacy, we'll suffer from the same tight pursestrings that the Avs and Nuggets are dealing with?


  2. #2
    AlphaRam is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    He is conserving funds to buy a better toupe'.
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  3. #3
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    Re: Is Stan Kroenke "spread too thin?"

    It's all relative. We can't expect Kroenke to spend like Dan Snyder (or Chelsea's Abramovich); he is a businessman after all and will be looking for return on investment. That said, he's not an over-leveraged owner struggling to pay back the money borrowed to buy the team either. Kroenke held a sizable minority holding in the team for more than a decade before he became the majority owner, so I would expect that he has a reasonable handle on what kind of spending is typical for a standard NFL off-season.

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    Infinite0 is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    I don't think we can even question whether he is spread too thin or not. He knew what he was getting when he became the majority holder and he undoubtedly spent countless hours figuring out his expenses. He is a multi-billion dollar entrepreneur. There is no way he would buy something as expensive as another sports team if he was 100% certain that his finances would be able to cover it.

    Even if he is spread thin...he can always get swipe some of that walmart inheritance money from his wife...

  5. #5
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    Re: Is Stan Kroenke "spread too thin?"

    Quote Originally Posted by Infinite0 View Post
    I don't think we can even question whether he is spread too thin or not. He knew what he was getting when he became the majority holder and he undoubtedly spent countless hours figuring out his expenses. He is a multi-billion dollar entrepreneur. There is no way he would buy something as expensive as another sports team if he was 100% certain that his finances would be able to cover it.

    Even if he is spread thin...he can always get swipe some of that walmart inheritance money from his wife...
    I'm not so sold on this theory. As a business man there are many reasons why he would buy a sports franchise, some of which we may never know. Here's what I see looking at what he has done since 94. He paid 80 million for 40% of the then estimated 200 million dollar value of the Rams. 16 years later the team is estimated to be worth 750 million making his 40% share worth an estimated 300 million. That's 220 million dollars made for sitting in as a minority owner with very little responsibility and pretty damn good seats to the games.

    However, since he bought the rest of the percentage that profit is not really realized and he only bought 30% more of the team to get majority interest, leaving I think 30% to Chip and Lucia. By my estimate, and this is where I could be totally wrong, he paid 225 million (30% of the estimated value of 750 million) to get the majority. So his payment for the majority to date is 305 million for 70%. Based on the 750 his 70% is worth 525 million, this time gaining 200 million. So percentage wise of his total estimated net worth he put out very little money in comparison.

    One thing I found interesting in researching some of the numbers is the common thread between Georgia, her kids and Stan and that is the perception of some that there is an unwillingness to part with money in support of the teams they own...but again I could be wrong.
    "The disappointment of losing is huge!"

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    Infinite0 is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    Quote Originally Posted by MoonJoe View Post
    I'm not so sold on this theory. As a business man there are many reasons why he would buy a sports franchise, some of which we may never know. Here's what I see looking at what he has done since 94. He paid 80 million for 40% of the then estimated 200 million dollar value of the Rams. 16 years later the team is estimated to be worth 750 million making his 40% share worth an estimated 300 million. That's 220 million dollars made for sitting in as a minority owner with very little responsibility and pretty damn good seats to the games.

    However, since he bought the rest of the percentage that profit is not really realized and he only bought 30% more of the team to get majority interest, leaving I think 30% to Chip and Lucia. By my estimate, and this is where I could be totally wrong, he paid 225 million (30% of the estimated value of 750 million) to get the majority. So his payment for the majority to date is 305 million for 70%. Based on the 750 his 70% is worth 525 million, this time gaining 200 million. So percentage wise of his total estimated net worth he put out very little money in comparison.

    One thing I found interesting in researching some of the numbers is the common thread between Georgia, her kids and Stan and that is the perception of some that there is an unwillingness to part with money in support of the teams they own...but again I could be wrong.
    Well if your numbers are correct then he would in fact be putting out very little. We will never truly know, but one important thing to point out is that he has turned over the operational and financial management of the Nuggets and Avalanche to his son and he also must give up his majority stakes of those teams by 2014. Whether this means that Stan will dedicate a greater amount of capital (human & physical) to the Rams has yet to be seen, but this could potentially be great news for St. Louis regarding the coming offseason.

  7. #7
    sntlouisrams is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    Just a point Stan I think is the second largest shareholder in arsenal and does not own it outright. Also financially arsenal don't overspend ever and finances balance themselves out so the owners do not have to pump money in. Arsenal have been listed as how a football club should run and an example of how things should be. Ps Stan doesn't own all these franchises by not being a shrewd operator, simple fact is he wouldn't of brought the rams if he didn't have the resources to make them a force. Also given the future sales of some franchise's , his wires wealth Id really think this non issue.

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    AlphaRam is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    The question remains - why does he not buy a better toupe'? When I met him in 2002, it looked lik an elderly beaver was mating with his cranium. Of course, I was partially distracted by that fine suit that all of the trendy billionaires are wearing. Mike Martz could not even stand to look...

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    Infinite0 is offline Registered User
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    Re: Is Stan Kroenke "spread too thin?"

    Quote Originally Posted by AlphaRam View Post
    The question remains - why does he not buy a better toupe'? When I met him in 2002, it looked lik an elderly beaver was mating with his cranium. Of course, I was partially distracted by that fine suit that all of the trendy billionaires are wearing. Mike Martz could not even stand to look...
    It's funny how i can perfectly picture his toupe with the metaphor you just gave.. as for the suit it looks like Men's Wearhouse. Perfectly tailored

  10. #10
    AvengerRam's Avatar
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    Re: Is Stan Kroenke "spread too thin?"

    Is he spreading himself to thin?

    No.

    Next question.

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