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Limbaugh Buzz Aside, Rams May Not Even Be For Sale

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  • #1

    Limbaugh Buzz Aside, Rams May Not Even Be For Sale

    Limbaugh Buzz Aside, Rams May Not Even Be For Sale
    SportingNews
    Oct 13, 5:16 pm EDT

    Buzz up! 1 PrintThe following story was written by Daniel Kaplan of SportsBusiness Journal. It first appeared in SportsBusiness Daily's Closing Bell on Tuesday afternoon.


    Despite the uproar over Rush Limbaugh potentially buying the Rams, the team may not even be for sale.


    NFL Commissioner Roger Goodell said this afternoon that a Rams representative told the owners meeting in Boston that the investment banking process was at an early stage and that the Rosenbloom family had not even committed to sell. Chip Rosenbloom and his sister, Lucia Rodriguez, inherited the team from their mother last year when she died.




    Earlier this year the club hired Goldman Sachs to conduct a sales process. Six parties have expressed interest, including the one featuring Limbaugh and Blues owner David Checketts, the only public one to date. Limbaugh's controversial background has sparked heated debate and led some players to say they would not play for the Rams. But Rams President John Shaw said it was premature to discuss potential owners, Goodell said.


    Goodell for his part refused to comment on Limbaugh, other than to say he disagreed with the radio lightning rod’s comments as an ESPN analyst in '03 that Eagles QB Donovan McNabb(notes) was treated leniently by the press because he was black.


    More: Colts owner Irsay says he would not approve Limbaugh


    More from Sporting News: NFL Owners Approve Fergie as Dolphins Investor
    :ramlogo:
    Tags: None
  • #2
    Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

    Not for sale? So Chip and Lucia are going to pick $250 Mil off the money tree out back or what?
    The more things change, the more they stay the same.

    Comment

    • #3
      Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

      John Shaw President ??? I thought he stepped down and is merely an advisor.

      Comment

      • #4
        Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

        Originally posted by HUbison View Post
        Not for sale? So Chip and Lucia are going to pick $250 Mil off the money tree out back or what?
        They can always get a loan or an investor to pay that bill if they decide they want to keep a team. A smart strategy if they buy into the belief that this franchise can turn around and make some $$ in the end.
        The Rams... Where dreams go to die.

        Comment

        • #5
          Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

          If and when the Rams are for sale, it won't be to any group that includes Limbaugh, no way.

          Comment

          • #6
            Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

            The owners have the ability to stop the sale process if the bids aren't adequate. It's possible they could take on debt to achieve this but in this world, that's not as likely as it would have been 2 years ago.

            Just my guess but saying that is a way to counter people for making horribly low bids. Rumors are the bids are valuing the team $100 million less than Forbes valued them. Whatever that means in the real world.

            Comment

            • #7
              Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

              Originally posted by RebelYell View Post
              The owners have the ability to stop the sale process if the bids aren't adequate. It's possible they could take on debt to achieve this but in this world, that's not as likely as it would have been 2 years ago.
              On the contrary. I believe getting a $250 million loan wouldn't be that difficult if the franchise itself was the collateral. Sure, it wouldn't be as easy as 2-4 years ago. But, I think that would be a no brainer to a bank. They could easily get their money back on a default. Well, unless the Rams continue to lose for the next 10 years.

              My point is, I really feel that the issue is whether Chip and Sis want to take on the burden of the team or just wash their hands. If they want to keep the team, they could find a way to pay those taxes.
              Last edited by supachump; -10-14-2009, 09:38 AM.
              The Rams... Where dreams go to die.

              Comment

              • #8
                Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

                Originally posted by supachump View Post
                On the contrary. I believe getting a $250 million loan wouldn't be that difficult if the franchise itself was the collateral. Sure, it wouldn't be as easy as 2-4 years ago. But, I think that would be a no brainer to a bank. They could easily get their money back on a default. Well, unless the Rams continue to lose for the next 10 years.
                Except for the fact that there isn't a contract in place with their union. A stoppage is a real possibility in 2 years. Plus if they don't have a salary cap after the contract is agreed upon (as the players union says they will refuse to), that has to have an impact on valuations.

                Plus as collateral, how good is it if a third party has final say in who is allowed to buy the asset? That means a bank may be stuck with a money losing asset for 18 months to 2 years. Nobody wants that in this environment.

                Comment

                • #9
                  Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

                  On the contrary. I believe getting a $250 million loan wouldn't be that difficult if the franchise itself was the collateral.
                  And you think the NFL would allow one of their member franchises to be put up as collateral?
                  The more things change, the more they stay the same.

                  Comment

                  • #10
                    Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

                    Originally posted by HUbison View Post
                    And you think the NFL would allow one of their member franchises to be put up as collateral?
                    Well that, I admit, know nothing about. If they can't do that, then they'd have to rely on an investor. Chip works in Hollywood. There are a lot of rich people around. If he really wanted to keep the team (a big if), he could probably find a way to get the money to pay the taxes.

                    However, I know nothing about the NFL ownership rules and what they can and cannot do without permission.
                    Last edited by supachump; -10-14-2009, 10:14 AM.
                    The Rams... Where dreams go to die.

                    Comment

                    • #11
                      Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

                      Originally posted by HUbison View Post
                      And you think the NFL would allow one of their member franchises to be put up as collateral?
                      Good question. I think they allow it but they only allow something like 30% debt to value. Art Modell had a much higher debt figure and it was a factor in moving the team to Baltimore so the league changed the rules (if I remember correctly). Even though he owned an NFL franchise, the guy was basically broke by NFL standards. It would be interesting to know all the actual facts.

                      Comment

                      • #12
                        Re: Limbaugh Buzz Aside, Rams May Not Even Be For Sale

                        Originally posted by supachump View Post
                        They can always get a loan or an investor to pay that bill if they decide they want to keep a team. A smart strategy if they buy into the belief that this franchise can turn around and make some $$ in the end.
                        For what it's worth the Forbes appraisal actually has this team being worth more than the Cubs and Wrigley combined.

                        They can pull in a lot of coin by selling now, and I really wish they do sell. The Rams will not recover as a franchise until the Rosenblooms leave.

                        Note...a $100 million less than the total value of the franchise is only $20 odd million less than the Cubs and Wrigley. $800 plus million.

                        Comment

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                        • MauiRam
                          Limbaugh, Checketts join in bid for Rams ..
                          by MauiRam
                          By Jim Thomas and Jeremy Rutherford
                          ST. LOUIS POST-DISPATCH
                          10/06/2009

                          Radio personality Rush Limbaugh has joined forces with St. Louis Blues owner Dave Checketts in a bid to buy the St. Louis Rams football team, NFL sources confirmed Monday.

                          The Checketts group has made its bid on the team and plans to keep the team in St. Louis.

                          According to league sources, there are multiple bidders for the Rams as the potential sale of the team has advanced to a second stage — from looking for potential buyers to evaluating the merits of bidders. It is not known who the other bidders are.

                          "I certainly think individual bidders have the right to discuss their interest in the club," said Kevin Demoff, the Rams' executive vice president of football operations. "There's really nothing for us to say. It's really not fair to anybody involved in the process.

                          "There is no inevitability for the team to wind up being for sale anyway. There may be bidders, but that doesn't mean there will be a sale. Ownership has said all along it would go through this process and evaluate its options. They are under no pressure to sell the team."

                          Checketts, the founder and chief executive officer of SCP Worldwide, a New York-based firm that owns and operates the Blues, would be the frontman for a group of investors that would purchase at minimum the 60 percent share of the Rams owned by Chip Rosenbloom and Lucia Rodriguez, the son and daughter of the Rams' late owner, Georgia Frontiere.

                          Sources with the Checketts group say there is no timetable for the Rams to respond to bids.

                          Limbaugh, a conservative political commentator, first mentioned his interest in the Rams last May. He was unavailable to the Post-Dispatch for comment but in a statement sent to KMOX radio, Limbaugh said: "Dave and I are part of a bid to buy the Rams, and we are continuing the process. But I can say no more because of a confidentiality clause in our agreement with Goldman Sachs. We cannot and will not talk about our partners. But if we prevail we will be the operators of the team."

                          Limbaugh, originally from Cape Girardeau, Mo., worked briefly as a commentator for ESPN's NFL pregame show in 2003 but resigned amid controversy over his remarks about media coverage of Philadelphia quarterback Donovan McNabb.

                          Forbes magazine recently valued the Rams franchise at more than $900 million, but it's believed the Rams' sale might fetch $800 million or less given the state of the economy and the state of the team, which in recent years has been in the bottom third of NFL franchises in terms of revenue.

                          By NFL rule, the Checketts group would have no other choice but to keep the team in St. Louis because of its ties to the Blues. NFL cross-ownership rules prohibit owners from also owning Major League Baseball, National...
                          -10-06-2009, 08:58 AM
                        • RamWraith
                          Rams not for sale
                          by RamWraith
                          By Bill Coats
                          ST. LOUIS POST-DISPATCH
                          Tuesday, Jul. 15 2008

                          Rams owner Chip Rosenbloom confirmed Monday evening that the team has hired a
                          Baltimore firm that specializes in sports investments. But not, Rosenbloom
                          insisted, for the reason that was reported earlier in the day.

                          Rosenbloom said Moag & Co. is not seeking prospective buyers of the team, as
                          the weekly SportsBusiness Journal reported, citing unidentified sources.
                          Rosenbloom explained that Moag was employed to field the many inquiries that
                          had been swamping him and Rams president John Shaw.

                          "We finally said, 'You know what, this is not how we want to spend eight hours
                          a day. We need somebody to handle them,'" Rosenbloom said. "It would be totally
                          inaccurate to say (Moag) is searching for buyers. ...

                          "We did not authorize (Moag) to go out and say, 'Hey, the team's up for sale.'
                          It's

                          simply returning these people's phone calls."

                          Since taking over the Rams after the death of his mother in January, Rosenbloom
                          has been steadfast in declaring his desire to keep the Rams in St. Louis. But
                          he never has dismissed the possibility of a sale, and he reiterated that stance
                          Monday.

                          "It's the same as it's been," Rosenbloom said. "If the right person at the time
                          right time with the right price came, I suppose that you might sell your house,
                          right? So, I don't say never. ... If we get a phone call today from somebody
                          who says the right things, we would listen. And that's why Moag is there."

                          Said Shaw: "If (Rosenbloom) received an offer he couldn't refuse, he'd have to
                          consider it."

                          Moag & Co. did not respond to a phone message or an e-mail Monday.

                          The Rams have at least one past tie to the firm: Marketing executive Max
                          Muhleman is a member of Moag's board of advisers. Muhleman introduced the
                          concept of personal seat licenses, or PSLs, to pay for stadium construction
                          when he was with the Charlotte Panthers. Later, he assisted the Rams in
                          developing a plan to use PSLs revenue to pay off their stadium lease in
                          Anaheim, Calif., and help with their relocation costs when the team moved here
                          in 1995.

                          Rosenbloom and his sister, Lucia Rodriguez, split the 60 percent ownership they
                          inherited when Rams owner Georia Frontiere died Jan. 18 at age 80 after a
                          lengthy battle with breast cancer. Stan Kroenke retained his 40 percent share
                          of the team. The NFL requires all teams to designate a managing partner, and
                          Rosenbloom is filling the role.

                          In an earlier statement, Rosenbloom noted that "when a team is passed from one
                          generation to another, it becomes a calling card that the team must...
                          -07-15-2008, 03:53 AM
                        • r8rh8rmike
                          Sources: Checketts To Drop Limbaugh
                          by r8rh8rmike
                          Updated: October 14, 2009, 3:36 PM ET
                          Sources: Checketts to drop Limbaugh
                          By Adam Schefter ESPN Archive


                          Rush Limbaugh is expected to be dropped from a group bidding to buy the St. Louis Rams, according to three NFL sources.

                          Dave Checketts, chairman of the NHL's St. Louis Blues and the point man in the Limbaugh group attempting to buy the Rams, realizes he must remove the controversial conservative radio host from his potential role as a minority member in the group in order to get approval from other NFL owners, the sources said.

                          Three-quarters of the league's 32 owners would have to approve any sale to Limbaugh and his group. Earlier this week, Indianapolis Colts owner Jim Irsay predicted that Limbaugh's potential bid would be met by significant opposition. Several players have also voiced their displeasure with Limbaugh's potential ownership position, and NFL Players Association head DeMaurice Smith, who is black, urged players to speak out against Limbaugh's bid.

                          Ultimately, the sources said, Checketts must reconfigure his group and find another investor to make his bid more viable.

                          Exactly when Limbaugh will be dropped is uncertain, though some familiar with the situation said it could be within the next week. It is unclear if the two sides even have spoken.

                          Earlier Wednesday, on his syndicated radio show, Limbaugh was defiant, holding on to hope that he still could be part of the ownership group that buys the Rams.

                          "I'm not even thinking of exiting," Limbaugh said on his program, according to a transcript provided to ESPN. "I'm not even thinking of caving. I am not a caver. None of us are. We have been betrayed by too many who have caved. Pioneers take the arrows. We are pioneers. It's a sad thing but our country over 200 years old now needs pioneers all over again, but we do."

                          Without Limbaugh, Checketts and his group would have to find a financial substitute to replace the sizable investment that Limbaugh intended to make. At the NFL owners meetings this week in Boston, NFL commissioner Roger Goodell addressed Limbaugh's potential involvement in the league and said "divisive comments are not what the NFL is all about."

                          Goodell added: "I've said many times before, we're all held to a high standard here. I would not want to see those comments coming from people who are in a responsible position in the NFL -- absolutely not."

                          In 2003, Limbaugh was forced to resign from ESPN's Sunday Night Football broadcast after saying of Philadelphia's Donovan McNabb: "I think what we've had here is a little social concern in the NFL. The media has been very desirous that a black quarterback do well."
                          -10-14-2009, 12:40 PM
                        • RamWraith
                          Rams (still) For Sale
                          by RamWraith
                          RAMS (STILL) FOR SALE
                          Posted by Mike Florio on July 14, 2008

                          In addition to the Steelers and (though denied by the team) the Jaguars, the Rams are also for sale, according to SportsBusiness Journal.

                          Per SBJ, the Rams have hired an investment bank to locate possible buyers. The primary owners, Chip Rosenbloom and Lucia Rodriguez has turned down an offer. Team president John Shaw said that a sale is not actively being pursued.

                          But Shaw wouldn’t comment on whether an outside company has been hired to oversee any passive efforts to sell.

                          Meanwhile, SBJ echoes a report last week from the Philadelphia Daily News that Jags owner Wayne Weaver is looking to sell. According to SBJ, Weaver is looking to sell a “significant minority position” in the club.

                          In May, Michael Silver of Yahoo! Sports reported that the Rams are on the market, and that former ***** owner Eddie DeBartolo had some interest in buying them. Chip Rosenbloom responded to the report by saying that he has “every intention of keeping the Rams in St. Louis,” but said nothing about whether he has any intention of keeping the Rams.

                          So, basically, all or a significant part of three of the NFL’s 32 franchises — the Steelers, Rams, and Jaguars, — are currently available to anyone with a few extra hundred million laying around.
                          -07-14-2008, 09:56 AM
                        • MauiRam
                          Rams owner Chip Rosenbloom checks in ..
                          by MauiRam
                          Team's new owners make the rounds at NFL meetings
                          By Jim Thomas
                          ST. LOUIS POST-DISPATCH
                          04/02/2008

                          Rams owner Chip Rosenbloom

                          PALM BEACH, Fla. — As a neophyte NFL owner, Chip Rosenbloom experienced at least one "rookie" moment at the league meetings this week in Florida.

                          Standing in a meeting room with sister Lucia Rodriguez and Rams executive vice president Bob Wallace, Rosenbloom's mind was elsewhere during the perfunctory team-by-team roll call.

                          "I didn't even hear 'St. Louis' called," Rosenbloom said, smiling. "And I hear Bob Wallace say, 'Yes.'"

                          That is "yes," as in present and accounted for, which also sums up Rosenbloom's first NFL meeting as a Rams owner. Advertisement

                          Over the years, Rosenbloom has attended about 15 of these meetings, but many were as a child tagging along with his late mother (Georgia Frontiere), or late father (Carroll Rosenbloom).

                          He also has attended several of these meetings later as an adult, including last year's gathering in Phoenix.

                          Those times, he was in the meeting rooms rubbing elbows with owners and executives as league matters were discussed.

                          But this week is different, serving as his official introduction as a Rams owner.

                          "Last year, when I went to the meetings, people knew me as Georgia's son," Rosenbloom said. "And this year, Lucia and I are here as the owners of the team. It was a different experience definitely."

                          Rosenbloom and Rodriguez inherited the family's 60 percent share of the team when Frontiere died of breast cancer Jan. 18. Rosenbloom has the franchise's controlling vote.

                          On behalf of the NFL, Commissioner Roger Goodell paid his respects to Frontiere during his opening address Monday.

                          According to Rosenbloom, Goodell told the group that the NFL had lost part of the family and that Frontiere was a wonderful, optimistic and inspiring person.

                          "It was very nice. And sad," Rosenbloom said Tuesday. "They applauded her, and then he introduced Lucia and me."

                          Throughout the week, team owners and members of ownership families have paused in meeting rooms or the hallways of the posh Breakers hotel to individually pay their respects and offer condolences.

                          "Dan Rooney (Steelers), Bob Kraft (Patriots), Steve Tisch (Giants), John Mara (Giants), Dean Spanos (Chargers) — a lot of people," Rosenbloom said. "I can list practically everybody. People have been so nice with their fond memories of my mom. It's been a very touching trip here. ... It's just too bad she wasn't here to hear the warmth and respect that other people have for her."

                          And for Rosenbloom, some habits are hard to break.

                          "After (Monday's) meetings, I went...
                          -04-02-2008, 12:53 AM
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