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Debt concerns emerge regarding Khan's bid for the Rams

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  • #1

    Debt concerns emerge regarding Khan's bid for the Rams

    As the NFL commences the process of inspecting the details of the bid compiled by would-be Rams owner Shahid Khan, issues have emerged regarding the structure of the deal.

    Daniel Kaplan of SportsBusiness Journal reports that the league is scrutinizing the debt that Khan will be incurring as he raises the necessary cash. Per Kaplan, Khan would be borrowing against Flex-N-Gate, the automotive parts company he owns.

    "Mr. Khan has not completed his financial arrangements, and until then, any discussion about it would be pure speculation," NFL spokesman Brian McCarthy told Kaplan. McCarthy also explained that the league treats debt differently based on whether the collateral is the team or some other asset, like a separate business.

    The wild card continues to be minority owner Stan Kroenke, who has the power to match Khan's offer and purchase the 60-percent stake Khan hopes to buy from Chip Rosenbloom and Lucia Rodriguez. Kroenke also has the power to tell Khan to buy out Kroenke's 40 percent.

    Meanwhile, St. Louis Blues owner Dave Checketts remains on standby, with a bid that reportedly includes Eric Dickerson and Marshall Faulk, who recently made it clear that he would have done more than fire the trainer after a 1-15 season
    Tags: None
    • #2
      Re: Debt concerns emerge regarding Khan's bid for the Rams

      Where were these articles written? It's rather difficult to judge the importance or validity of something with no idea as to where it came from.
      "I've been saving the Universe for over a thousand years. I figure it owes me just this once."

        Comment

        • #3
          Re: Debt concerns emerge regarding Khan's bid for the Rams

          Profootballtalk...

          I find this kind of humorous:


          "Mr. Khan has not completed his financial arrangements, and until then, any discussion about it would be pure speculation,"
          So the article says any talk would be pure speculation, then the article goes on to speculate

            Comment

            • #4
              Re: Debt concerns emerge regarding Khan's bid for the Rams

              I'm not sure I would consider this real news then, given the place it comes from and the obvious speculative nature.

              The fact that it currently isn't on NFL.com suggests to me that it's nothing major. In fact what they are calling debt (backing his bid with his company) is a rather normal business practice when dealing with this much money. Banks want to know that if you can't (for whatever reason) pay for it that there is something solid backing you from which they can recieve payment.

              I'm not seeing the problem...
              "I've been saving the Universe for over a thousand years. I figure it owes me just this once."

                Comment

                • #5
                  Re: Debt concerns emerge regarding Khan's bid for the Rams

                  Originally posted by BrokenWing
                  I'm not sure I would consider this real news then, given the place it comes from and the obvious speculative nature.

                  The fact that it currently isn't on NFL.com suggests to me that it's nothing major. In fact what they are calling debt (backing his bid with his company) is a rather normal business practice when dealing with this much money. Banks want to know that if you can't (for whatever reason) pay for it that there is something solid backing you from which they can recieve payment.

                  I'm not seeing the problem...
                  Going to ProFootballTalk for information about the Rams. That's the problem.

                    Comment

                    • #6
                      Re: Debt concerns emerge regarding Khan's bid for the Rams

                      Originally posted by PeoriaRam
                      Going to ProFootballTalk for information about the Rams. That's the problem.
                      Fair point
                      "I've been saving the Universe for over a thousand years. I figure it owes me just this once."

                        Comment

                        • #7
                          Re: Debt concerns emerge regarding Khan's bid for the Rams

                          PFT makes sensationalist headlines to generate clicks

                          Many times if you check their sources, they are writers who are speculating. For instance, they had a rumor that St Louis was interested in Vick and they cited Jim Thomas, but if you went and saw their source it was one of Jim Thomas' chats and he was only giving his opinion on what the Rams should do, not that they WERE doing it

                          Or other times they'll take a small kernel of information from a rumor and wildly speculate about it, trying to pass it off as a fact.

                          To be fair, I have no idea what the article in this case says, because if you check their source it goes to a site that wants to you to pay for a subscription to it before you can read beyond the first sentence of an article

                            Comment

                            • #8
                              Re: Debt concerns emerge regarding Khan's bid for the Rams

                              Originally posted by helorm341
                              PFT makes sensationalist headlines to generate clicks

                              Many times if you check their sources, they are writers who are speculating. For instance, they had a rumor that St Louis was interested in Vick and they cited Jim Thomas, but if you went and saw their source it was one of Jim Thomas' chats and he was only giving his opinion on what the Rams should do, not that they WERE doing it

                              Or other times they'll take a small kernel of information from a rumor and wildly speculate about it, trying to pass it off as a fact.

                              To be fair, I have no idea what the article in this case says, because if you check their source it goes to a site that wants to you to pay for a subscription to it before you can read beyond the first sentence of an article

                              The subscription thing is a good way for PFT to hide their source. Most people won't care enough to subscribe to some random website for information on a half-baked story...so no one will check their facts.
                              "I've been saving the Universe for over a thousand years. I figure it owes me just this once."

                                Comment

                                • #9
                                  Re: Debt concerns emerge regarding Khan's bid for the Rams

                                  This is clearly a big story, as $750 Million deals typically close within a day or two with little or no issues.

                                  *ERROR MESSAGE: SARCASM OVERLOAD IMMINENT. PLEASE EVACUATE WEBSITE. DANGER! DANGER!*

                                    Comment

                                    • #10
                                      Re: Debt concerns emerge regarding Khan's bid for the Rams

                                      Originally posted by larams1980
                                      Meanwhile, St. Louis Blues owner Dave Checketts remains on standby, with a bid that reportedly includes Eric Dickerson and Marshall Faulk, who recently made it clear that he would have done more than fire the trainer after a 1-15 season
                                      Wait, Checketts, Faulk, and Dickerson? I'm not crazy about the idea of group ownership, but that would make things interesting.

                                        Comment

                                        • #11
                                          Re: Debt concerns emerge regarding Khan's bid for the Rams

                                          Pft=tmz!;)
                                          sigpic

                                            Comment

                                            • #12
                                              Re: Debt concerns emerge regarding Khan's bid for the Rams

                                              "...and Marshall Faulk, who recently made it clear that he would have done more than fire the trainer after a 1-15 season.."

                                              I'm beginning to think Faulk doesn't like Despags. I'm also starting to not like Faulk with his repeated shots at Spags and company for trying to fix this crap football organization. Clearing out the guys who were openly wishing they were back in LA and weren't even part of the team was a good move by Devaney. The more i think about it, the mroe I think getting a new, younger, trainer with new, more modern methods of training and injury prevention and treatment just make sense.

                                              There were a few questionable coaching calls this season but what coach doesn't have those? Not everyone is going to agree on how things should be done in situations.

                                              Overall, I don't see how you can make a strong case against Despags.

                                                Comment

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                                                • r8rh8rmike
                                                  St. Louis Rams' Hands Are Tied Pending Sale
                                                  by r8rh8rmike
                                                  St. Louis Rams' hands are tied pending sale

                                                  By Bryan Burwell
                                                  ST. LOUIS POST-DISPATCH
                                                  05/12/2010


                                                  Watching billionaire minority owner Stan Kroenke go through the latest machinations in his effort to acquire 100 percent control of your St. Louis Rams makes me understand that apparently filthy rich men are no different from the rest of us when it comes to the American male's obsession with acquiring "stuff," even if that "stuff" just happens to be an $800 million NFL franchise.

                                                  Yet Kroenke seems to be turning the relatively simple task of buying the Rams into a convoluted adventure that reminds me of a gluttonous kid who rolls into the candy store with a fistful of dollars but can't quite figure out how he will be able to haul out all the jellybeans, maltballs and Twizzlers he just bought, even though all he has to do is just hand his half-eaten sandwich and half-empty soda pop to his salivating baby brother.

                                                  Enough already. Just buy the darned team, will ya?

                                                  Kroenke has enough money to own just about anything he wants twice over, but for some reason he seems to have a hard time getting this deal done. This could have been done two years ago when Chip Rosenbloom and Lucia Rodriguez first inherited the Rams from their mother, Georgia Frontiere. But Stan sat back and waited until someone else expressed interest in the team, came in at the 11th hour, blocked Shahid Khan's ownership bid, then spent the last few weeks bobbing and weaving his way around the NFL's prohibition on cross-ownership of pro franchises.

                                                  So now we learn that Kroenke's latest plan to circumvent the rules involves trying to pass the check over to his filthier rich wife, Ann, even though the chance of that flying through the NFL's scrutiny without dispute seems to be unlikely. The NFL has already balked at granting Kroenke any favors on the cross-ownership front and now indicates it won't rule on his ownership efforts later this month, which means the process could drag on all summer or even longer.

                                                  And you know what that means, don't you?

                                                  Kroenke's plans are botching up the already daunting task of rebuilding this moribund franchise.

                                                  No matter how much general manager Billy Devaney and team president Kevin Demoff swear that they have not been hamstrung by the ownership being in limbo, we have to know better. Our own Jim Thomas has said that he's had several conversations with agents who have been told by Rams officials that they can't get business done on the free agent marketplace because they don't have the cash to make deals.

                                                  No matter how much Rosenbloom says that he hasn't put the clamps down on spending, think about it. If you were selling a house, how much would you be willing to spend beyond the most superficial improvements?

                                                  So now might be a good time for NFL Commissioner...
                                                  -05-12-2010, 11:01 AM
                                                • MauiRam
                                                  Intrigue behind Rams sale
                                                  by MauiRam
                                                  Sports Columnist Bernie Miklasz
                                                  ST. LOUIS POST-DISPATCH
                                                  11/15/2009

                                                  Let's get down to business. It's time to update the attempted sale of the St. Louis Rams. The process has been secretive for the most part. Obviously, there's a lot that I don't know.

                                                  But after making several rounds of phone calls this week and talking to multiple sources with direct knowledge of the situation, I'll share what I know.

                                                  And I'll also discuss the ongoing effort of Blues chairman Dave Checketts, who is attempting to put together a consortium to purchase the 60 percent of the Rams owned by Chip Rosenbloom and his sister, Lucia Rodriguez.

                                                  Checketts is carrying the football on behalf of St. Louis. That's a positive, but there is a downside, and later in the column I'll explain why.

                                                  Let's get started:

                                                  — No sale is imminent.

                                                  — Several out-of-town interests are pursuing the franchise. And indications are that the potential buyers have communicated a desire to keep the Rams in St. Louis. For example, one potential buyer lives out of state but has business interests here and is thought to be pro-St. Louis.

                                                  That said, no one in St. Louis should take anything for granted. Buyers know that Rosenbloom and Rodriguez want the Rams to remain here. And if a buyer has other motives, it makes no sense to telegraph those intentions to Rosenbloom. Or to the Goldman Sachs investment firm, which is handling sale inquiries.

                                                  — Last Sunday on the CBS pregame show, Charley Casserly identified a new potential buyer: Texas-based banking billionaire Gerald J. Ford. It's true. It's also early. Ford, 65, is a promising candidate. But he hasn't been vetted yet.

                                                  — Casserly also suggested that Rosenbloom and Rodriguez are under pressure to sell before the end of the year, because of estate-tax issues related to the death of their mother, Georgia Frontiere. A source with intimate knowledge of the Rosenbloom-Rodriguez tax issues disputes that.
                                                  Between now and October 2013, Rosenbloom and Rodriguez are obligated to pay interest on the estate-tax bill. They are not required to begin making payments on the principal until Oct. 2013. At that point, the pressure to sell the team would increase, but the source stressed it would still be possible for Rosenbloom and Rodriguez to keep the Rams. An expected increase in the capital-gains tax (in 2010 or 2011) doesn't help Rosenbloom and Rodriguez, but the source insists that isn't an important factor in the sale timetable.

                                                  — Stan Kroenke, who owns 40 percent of the Rams, has remained silent. To buy the available 60 percent, Kroenke would have to convince the NFL to change the rules prohibiting cross ownership. (He owns the NBA Denver Nuggets and NHL Colorado Avalanche.) Kroenke is a key to this. Because if he agrees to stay on as the 40 percent partner, the new owner would...
                                                  -11-15-2009, 09:06 AM
                                                • MauiRam
                                                  Rosenbloom confident on Rams sale ..
                                                  by MauiRam
                                                  BY JIM THOMAS Posted: Tuesday, August 3, 2010 12:08 am

                                                  With a scheduled vote three weeks away on Stan Kroenke's bid to purchase the St. Louis Rams, team owner Chip Rosenbloom remains confident the deal will get done.

                                                  "We're optimistic that the transaction will be supported by the owners and the league," Rosenbloom told the Post-Dispatch on Monday. "Our relationship with Stan has been and continues to be excellent. We're finalizing documents and expect it to be voted on Aug. 25."

                                                  Rosenbloom's comments come on the heels of a SportsBusiness Journal report that some members of the NFL finance committee were upset at Kroenke's two-tiered approach to purchasing the Rams.

                                                  Kroenke exercised a right of first refusal in April, in essence deciding to match the bid by Illinois businessman Shahid Khan to purchase the 60 percent of the Rams currently up for sale by Rosenbloom and sister Lucia Rodriguez.

                                                  It's believed that Khan's offer was not a single-payment offer. In other words, Khan would pay part of the franchise purchase price initially, and then buy the rest of Rosenbloom's and Rodriguez's 60 percent share at a later date.

                                                  Kroenke "inherited" those terms when matching Khan's offer. But realistically, the terms probably have been tweaked over the course of discussions and meetings involving Kroenke, Rosenbloom and the NFL.

                                                  It's not that Kroenke couldn't pay cash in one installment if he had to. In fact, he paid cash for his current 40 percent share of the Rams when the franchise moved to St. Louis in 1995.

                                                  But on one level, it seems puzzling if members of the finance committee indeed are against a two-tiered payment method by Kroenke because there is precedence for such purchases. Most recently, Arthur Blank bought the Atlanta Falcons in two installments, as did Steve Bisciotti with the Baltimore Ravens.

                                                  The NFL is scheduled to vote on Kroenke's bid Aug. 25 in Atlanta.

                                                  Through a spokesman, Kroenke declined to comment.
                                                  -08-03-2010, 09:51 AM
                                                • Ramblin` Ram
                                                  Khan seeks to join exclusive club
                                                  by Ramblin` Ram
                                                  Shahid Khan seeks to join exclusive club as owner of the St. Louis Rams

                                                  BY JIM THOMAS
                                                  ST. LOUIS POST-DISPATCH
                                                  03/21/2010

                                                  By the end of May at the latest, Shahid Khan will learn whether he has gained admission into one of the wealthiest, most exclusive and, at the same time, most eclectic clubs in America as one of the 32 controlling owners of a National Football League team.

                                                  "It is kind of a strange group," said a league insider. "Very strange. You know the group."

                                                  It's a group that will convene Monday in Orlando, Fla., for the NFL's annual owners meetings, where Khan's bid to buy the Rams will be one of the items discussed.

                                                  Among the exclusive club of owners, there's the old guard, such as the Halas/McCaskey family, which has been involved with what is now the Chicago Bears since the inception of the NFL in 1920.

                                                  The Mara family founded the New York Giants in 1925, when Tim Mara (who was a bookmaker, among other things) and partner Billy Gibson bought the team for $500. The Maras have owned all or part of the franchise ever since.

                                                  The Cardinals franchise, now based in Arizona and led by the shy Bill Bidwill, has been in the Bidwill family since 1932. In Pittsburgh, the Rooney family founded the Steelers with a $2,500 purchase on July 8, 1933.

                                                  In Oakland, age is catching up with one of the league's all-time mavericks, Al Davis. He shows up for league meetings wearing either an all-white or all-black workout suit, now needing the use of a walker to get around. Then there's the frugal Mike Brown of Cincinnati, son of the late Paul Brown, a legendary coach and owner.

                                                  There's also a new group of owners who entered the league beginning with the last wave of expansion in 1995. Wayne Weaver of the Jacksonville Jaguars made his money in shoes, rising through the ranks of the St. Louis-based Brown Group Inc. Paul Allen of the Seattle Seahawks co-founded Microsoft with Bill Gates in 1976.

                                                  The Philadelphia Eagles' Jeffrey Lurie once was an assistant professor at Boston University. Steve Tisch, who owns half the New York Giants (the Mara family still owns the other half), may be the only person on the planet with a Super Bowl ring and an Academy Award (as co-producer of "Forrest Gump").

                                                  Many of the owners inherited their fortunes. Some made theirs from humble beginnings. After Arthur Blank and friend Bernie Marcus were fired by the Handy Dan home-improvement chain in California in 1978, they opened a couple of similar stores in 1979. Thirteen-hundred Home Depot stores later, Blank bought the Atlanta Falcons in 2002.

                                                  Maryland businessman Steve Bisciotti was only 39 when he bought 49 percent of the Baltimore Ravens in 2000. (He purchased an additional 50 percent of the team four years later.) When he opened his first business, the staffing...
                                                  -03-21-2010, 07:14 AM
                                                • HUbison
                                                  Checketts solidifies Rams bid
                                                  by HUbison
                                                  Checketts solidifies Rams bid

                                                  By Bernie Miklasz
                                                  ST. LOUIS POST-DISPATCH
                                                  01/31/2010

                                                  As Jim Thomas of the Post-Dispatch reported recently, the sale of the Rams has been narrowed down to a list of three potential buyers.

                                                  And that hasn't changed, according to multiple sources close to Rams managing ownership partner Chip Rosenbloom.

                                                  Rosenbloom would like to make a decision within a month or two. Rosenbloom and his sister, Lucia Rodriguez, prefer to sell their combined 60 percent share but could opt to hang on to the franchise rather than settle for an unsatisfactory offer.

                                                  One of the three potential buyers is a group of investors organized by St. Louis Blues Chairman Dave Checketts.

                                                  Multiple sources tell me that another group has strong ties to Toronto, which should concern those who want to see the Rams remain in St. Louis.

                                                  As for the third potential buyer ... candidly, I've been unable to nail down that part. But I know it isn't anyone from St. Louis. And I wouldn't be surprised to learn that the bidder is based in Chicago.

                                                  I hope that Checketts prevails in this auction, or the Rams could be in play for a move after the 2014 season.

                                                  Checketts is our best hope to secure a long-term future for the Rams in St. Louis.

                                                  Or to put it another way: Checketts IS the St. Louis offer.

                                                  I trust Checketts to work with area politicians and business and community leaders to solve the looming stadium problem.

                                                  Checketts has made good progress in his Rams efforts. According to multiple sources with direct knowledge of the situation, Checketts has partnered with a formidable money man in Texas billionaire Gerald J. Ford, who was ranked No. 289 on the Forbes list of the 400 wealthiest Americans last fall. Forbes estimated Ford's worth at $1.35 billion.

                                                  Ford, 65, made his fortune by buying and selling banks. He's friends with Dallas Cowboys owner Jerry Jones. A graduate of Southern Methodist University, Ford donated $20 million to SMU in 1997 to help the school build a new football stadium on campus. Indeed, Gerald J. Ford Stadium opened in 2000.

                                                  This is a significant development. For the Checketts bid to comply with NFL ownership rules, one member of his group must control a 30 percent share of the franchise. And multiple sources tell me that Ford is locked in as the 30 percent owner. Ford doesn't want to run the franchise on a daily basis and would leave that to Checketts.

                                                  Ford's addition (at 30 percent) is only part of the equation.

                                                  To cover another 30 percent (including his own percentage) Checketts has been busy lining up additional investors from the St. Louis community.

                                                  The list includes prominent and recognizable names. The investors aren't yet willing to come forward to publicly confirm...
                                                  -02-01-2010, 06:23 AM
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