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  1. #1
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    Surprise! Kroenke decides to exercise his matching rights

    Surprise! Kroenke decides to exercise his matching rights
    By Jim Thomas
    St. Louis Post-Dispatch
    04.12.2010 6:46 pm

    Stan Kroenke, the Missouri native and collector of pro sports franchises, is trying to collect another. Kroenke has decided to exercise his matching rights and attempt to purchase the 60 percent share of the team currently owned by Chip Rosenbloom and Lucia Rodriguez

    Yes, the same 60 percent that Urbana, Ill., businessman Shahid Khan had entered into a sales agreement with Rosenbloom and Rodriquez.

    As part of Khan’s sales agreement with Rosenbloom and Rodriguez, Kroenke was given 60 days to declare his intentions with respect to his share of the team.

    Kroenke took it to the wire, taking the full 60 days before making his declaration Monday.

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    AvengerRam's Avatar
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    Re: Surprise! Kroenke decides to exercise his matching rights

    WOW!

    So... what does that mean for his ownership of the Nuggets and Avalanche? Is he selling or has the league decided to make an exception to the rule?

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Quote Originally Posted by AvengerRam View Post
    WOW!

    So... what does that mean for his ownership of the Nuggets and Avalanche? Is he selling or has the league decided to make an exception to the rule?
    Not sure. What are the Denver papers saying? Also, would unloading an NBA, NHL, and MLS team give him more cash to buy Arsenal than unloading his Rams stake?

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    NJ Ramsfan1 is offline Registered User
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    Re: Surprise! Kroenke decides to exercise his matching rights

    Quote Originally Posted by AvengerRam View Post
    WOW!

    So... what does that mean for his ownership of the Nuggets and Avalanche? Is he selling or has the league decided to make an exception to the rule?

    As I read it, Goodell was quite clear in saying the league would not make an exception for Kroenke concerning the cross ownership rule. Therefore, I believe he'd have no other choice but to sell majority interests if he were to win outright ownership of the Rams. What other option does he have?

    This is certainly an interesting twist that I did not expect, to be quite honest. Could this mean that Adam Schefter REALLY knew what he was saying when he suggested Khan's approval was "far from a slam dunk"? Or am I giving him way too much credit??!!

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Seems like everyone is in the dark at this point.

    I see four possible explanations:

    1. Kroenke intends to sell the Nuggets and Avalanche;

    2. Kroenke has been privately told by the NFL that they will, in act, waive the cross-ownership rule for him;

    3. Kroenke is preparing to file a lawsuit to challenge the cross-ownership rule (likely under some unlawful restraint of trade theory); or

    4. Kroenke's true endgame is to sell his 40% to Khan, and this is an elaborate ploy to force Khan to purchase 100% of the team or to wait it out while Kroenke fights the cross-ownership rule.

    I really have no idea if one of these is the correct answer or not.

    I will say for the record, though, that I would much rather see Kroenke end up with the team than Khan. Deeper pocket, strong ties to St. Louis area, sports franchise ownership experience... what more could you want?

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    AvengerRam's Avatar
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    Re: Surprise! Kroenke decides to exercise his matching rights

    Quote Originally Posted by NJ Ramsfan1 View Post
    Could this mean that Adam Schefter REALLY knew what he was saying when he suggested Khan's approval was "far from a slam dunk"? Or am I giving him way too much credit??!!
    You're giving him WAY too much credit. Schefter stated that Khan wouldn't be approved. He never even implied that he anticipated Kroenke blocking the sale by exercising his right of first refusal.

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Bernie just posted the press releases from both camps:

    Khan:

    "On February 10, 2010, Chip Rosenbloom and Lucia Rodriguez granted me a great honor-- the opportunity to purchase the controlling interest in the St. Louis Rams that has been held by their family for 57 years. I entered into that agreement knowing that Mr. Kroenke could attempt to purchase that interest on the same terms. Earlier this evening, Stan advised me that he was going to pursue that opportunity.

    "I have had the chance to get to know Stan over the past 60 days. As I told Stan during our conversation earlier this evening, I enjoy his company, admire his success in sports and certainly respect his right to try to purchase the Rosenbloom family's interest in the Rams.

    "While the decision about ownership now rests in the hands of the NFL and its owners, my dedication to the league, the Rams, their fans and the St. Louis community is as strong as ever. Accordingly, I have advised Chip and Lucia that I intend to remain bound by our agreement and to conclude the purchase if the opportunity presents itself. In the meantime, I look forward to learning of Billy Devaney's pick on the evening of April 22."


    Kroenke:


    “We are pleased to announce that we have exercised our right to purchase the remaining interest in the St. Louis Rams football team under the terms of our Partnership Agreement.

    "We have enjoyed our involvement in the National Football League since our original expansion efforts beginning in 1993 and our subsequent 15-year partnership with the Rams.

    "We look forward to working with the Rosenbloom family and the NFL. We will respect the league and its processes in our efforts to complete this transaction."

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Oh boy, didn't see this one coming!

    I'd assume he is going to sell his Colorado based franchises now, but you never know, maybe he is ready to duke it out with the NFL.

    After all, Rams owners have never been ones to balk at conventional NFL wisdom; see Dan Reeves moving all the way out to LA, Carrol Rosenbloom trading franchises with Bob Irsay and signing the first African American player, and Georgia moving the team to St Louis against the NFL's wishes.

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    Wink Re: Surprise! Kroenke decides to exercise his matching rights

    i guess this was always a possibility..still find it suprising though,was convinced he would at the most stay pat with his 40%..

    kinda feel sorry for Khan but may the best man for the Rams win...guess the Kroenke & Khan lovefest is over..

    if Kroenke gets the team outright i suppose this would mean Billy D & Spags are more likely to have the time they need to complete the job they already started..with Khan theres always the uncertainty of which direction he could go in,but Stan no doubt had his say in their hirings in the first place and would know that despite the early results they are doing a a lot better jobs than an outsider might realise.

    fair play Stan is a sly ol` fox for keeping quiet the last couple of years,biding his time to strike.

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    Re: Surprise! Kroenke decides to exercise his matching rights

    wow, did not think this was going to happen,I do agree Stan will make a great owner and this is good for St. Louis,but the part about him selling the Denver teams,will he have to have them sold before taking ownership of the Rams or will they give him time to do so and if not will this hold up the sale.

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Yeah I am surprised about this one. Although I'd like to see Khan get a chance, Kroenke owning the Rams is a good thing.


    Always and Forever a fan of the St. Louis Rams

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Personally, while i would LOVE to see kroenke buy the rams, i think Av's scenario number 4 is most likely. He loses nothing by exercising the right and the uncertainty that he puts into the process may give him negotiating leverage to raise the price he gets.

    Keep the following in mind. Right of first refusal provisions in mergers and acquisitions or stockholders agreements often have "use it or lose it" clauses. Of course, i have not seen the rams shareholders agreement, but if there is a use it or lose it clause, kroenke could have made this decision to prevent from forfeiting the ability to have matching rights in future transactions (in addition to the aforementioned leverage point in negotiations).

    Local money and participation was important to get the team to st louis in the first place. Its less critical now. Will the league fight this out in court with Kroenke? Is Kroenke prepared to go to war with the nfl? Those are obviously the two key questions at stake here.

    I would have been surprised if kroenke simply let the deadline pass and do nothing. Time will tell what his real agenda is. Meanwhile, the Rams have more uncertainty and that is not a good thing for the team, as i remain quite sure that chip (who knows he is selling) is unlikely to lay out big money whenever he has much of a choice (ie he has to sign the number one overall pick, but he doesnt have to spend money on the free agent market in any meaningful way, or commit any up front money for a long term contract, ie a signing bonus for OJ)

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Wow! It's amazing what you can buy with Wal-Mart type money.
    "Before the gates of excellence the high gods have placed sweat; long is the road thereto and rough and steep at first; but when the heights are reached, then there is ease, though grievously hard in the winning." --- Hesiod

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    Re: Surprise! Kroenke decides to exercise his matching rights

    IMO Stan took this long to drum up support with other owners to help him bypass the cross ownership rule. Thats just my thought process. He is well liked and he has been sitting in on ownership meeting for quite some time, but Goodell rules with an iron fist so I think he would overwhelming support by the owners to get Goodell to budge. I just cant see Goodell allowing this to go through. If he lets one owner do it all others will want to to do it or would be able to do it and thats just not sensible.

    Or he could be just going the easy route and he has found suitors for the avalanche and nuggets so he can focus on the Rams.

    IMO 2 most realistic scenarios both are probably equally as hard to get through.

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    Re: Surprise! Kroenke decides to exercise his matching rights

    Its hard to imagine Kroenke selling two franchises just to buy the Rams. He must really believe that the Rams will start pulling down some revenue or he must really love this team. I can't see the guy playing it false to drive up the price, not his style. This is epic news and this week leading up to the draft just keeps getting more and more interesting...

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