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  • #1

    Rams Un-sellable?

    First of all, it is interesting how little coverage this Ram sale is getting. But what I wanted to talk about is this: If Kroenke continues to evoke his right of first refusal, and the NFL does not waive the cross ownership rule, THEN what happens? It would seem to me that the sale could not occur. In fact, I don't see how ANY sale could occur if Kroenke insists on owning 100%. It's in his contract, and that is independent of the NFL rules.

    Am I right?
    Tags: None
  • #2
    Re: Rams Un-sellable?

    I may be wrong but I would imagine there is a time limit on "right of first refusal."

    Comment

    • #3
      Re: Rams Un-sellable?

      Kroenke isn't asking the NFL to waive the cross-ownership rule.

      Comment

      • #4
        Re: Rams Un-sellable?

        Well, if he is evoking his right of first refusal, meaning he wants 100% ownership, then the sale to Kroenke cannot stand, as is, unless the NFL waives the rule.

        What I am asking is, if the NFL refuses to waive the rule, WHAT HAPPENS? I contend the team would be un-sellable. The NFL cannot force Kroenke to drop his right to first refusal.

        Court case in the making.

        Comment

        • #5
          Re: Rams Un-sellable?

          I believe Kroenke is passing on his ownership of the other sports teams to his wifes name
          @EssexRam_

          Comment

          • #6
            Re: Rams Un-sellable?

            No, he could sell the Denver franchises. There is speculation that he will do so, either to his wife (who has more money than he does) or his son.

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            • MauiRam
              Will Kroenke make a sweetheart deal?
              by MauiRam
              By Jim Thomas
              ST. LOUIS POST-DISPATCH
              04/18/2010

              Stan Kroenke's attempt to finesse the NFL cross-ownership rules may not involve a transfer of hockey and basketball teams in Denver to his family. But rather a sale — to his wife, Ann.

              According to a couple of league sources that tactic could be Kroenke's best hope of getting the NFL to approve his attempt to purchase the 60 percent of the Rams currently up for sale by siblings Chip Rosenbloom and Lucia Rodriguez.

              As wealthy as Kroenke is, he comes in second place at home. At $2.9 billion, he was ranked No. 342 on Forbes' most recent annual list of world billionaires. His wife, Ann, heiress to much of the Wal-Mart fortune, was ranked No. 297 at $3.2 billion.

              So what happens if Ann Walton Kroenke "simply" writes a check for the Denver Nuggets NBA team and the Colorado Avalanche NHL team? How does the NFL react to that?

              "Independent wealth means a lot," one league source said.

              And that's what Ann Walton Kroenke has.

              So at face value, that option might be more palatable to league owners than having Kroenke simply transfer ownership of the Nuggets or Avalanche to some combination of his wife, his son, Josh, or daughter, Whitney.

              When asked if that would be an acceptable path, NFL senior vice president Greg Aiello replied: "I can't answer that question. It's not my question to answer. That's something that has to be decided by NFL ownership. And right now, they can't answer that because they don't know what he's proposing."

              Even those close to Kroenke believe Kroenke has yet to decide on a precise path to finesse the cross-ownership rules.

              But one avenue seems definitely closed: selling the Denver teams to an outsider. Whether it's sports properties or other business properties, Kroenke's history has been as a buyer and a keeper — not a seller of assets. And because he also owns the building the Nuggets and Avalanche play in — the Pepsi Center — it has proved to be a profitable setup.

              If Kroenke sold the Nuggets and Avalanche to his wife, it appears he could maintain ownership of the Pepsi Center. There's nothing in the NFL's cross-ownership rules that would prevent him from keeping the venue. So that would make the purchase cheaper for his wife.

              In 2000, just a few months after the St. Louis Rams defeated Tennessee in Super Bowl XXXIV, Kroenke purchased 93.5 percent of the Avalanche, Nuggets and Pepsi Center. The overall value of those assets at the time was $450 million.

              It is a violation of the NFL's cross-ownership rules for Kroenke to own the Nuggets and Avalanche once he has controlling interest in the Rams. Kroenke already owns 40 percent of the Rams; he will own the full 100 percent of the team if he's successful in his bid to buy Rosenbloom's and Rodriguez's 60...
              -04-18-2010, 12:20 PM
            • AvengerRam_old
              Kroenke Gaining Ground in Bid to Buy Rams
              by AvengerRam_old
              This is good news:...
              -05-25-2010, 07:33 AM
            • MauiRam
              Kroenke waiting for move on Rams
              by MauiRam
              Bernie Miklasz bjmiklasz @post-dispatch.com 314-340-8192
              ST. LOUIS POST-DISPATCH
              06/14/2009

              One of the more compelling aspects of the Rams' sale is the role of Stan Kroenke in the proceedings. Rams owners Chip Rosenbloom and Lucia Rodriguez, team insiders and other NFL executives and owners are wondering: what is Kroenke going to do? Is he going to make a play for control of the team? And if so, when?

              Don't expect Kroenke to lay his plan out for us. He's staying underground on the Rams' front and not returning media calls. He's not about to give away any clues on his Rams' strategy.

              Kroenke, worth an estimated $3 billion, is a busy sports mogul. He owns 40 percent of the Rams. He owns the NBA Denver Nuggets, the NHL Colorado Avalanche and the Pepsi Center in Denver. He owns the Major League Soccer franchise in Colorado and the stadium that houses the team. He is the majority shareholder (28.3 percent) of the prestigious Arsenal soccer club in the English Premier League. Kroenke owns a pro lacrosse team, an arena football team, and a Colorado-based cable-sports network.

              And Kroenke's real-estate development company continues to prosper, making him one of the nation's wealthiest individuals according to Forbes magazine.
              So does Kroenke want to buy the available 60 percent ownership block and challenge NFL rules that prohibit cross ownership? Or is he content to hang onto his 40 percent, oversee his other sports properties, concentrate on accumulating more Arsenal stock and avoid a skirmish with the NFL?

              After speaking to a couple of Kroenke associates — sorry, no names — I think I have a general handle on his approach. But I can't be sure. Remember, this is the same Kroenke who made no noise about being interested in the Nuggets and the Avalanche, only to swoop in and buy them at the end of the process. Kroenke waited until the collapse of Bill Laurie's tentative deal for the teams, then made his move. And Laurie is Kroenke's brother-in-law, but Laurie knew nothing of Kroenke's intentions.

              I believe Kroenke will sit and wait for others to make the first move.

              It makes sense, because Kroenke has the right of first refusal on the Rams' sale. He can match any offer for the available 60 percent. By hanging back, Kroenke won't set the market and take the risk of bidding against himself to meet Rosenbloom's price. Instead, it's smarter for Kroenke to wait for another interested party to set the market, then react accordingly.

              If another bidder makes an offer on the lower side, and the price is acceptable to Rosenbloom, then Kroenke can match the offer and get a relative bargain. He can save millions of dollars on the purchase. If Kroenke gets a great deal, then he may be more inclined to fight the league over that 60 percent.

              And what if another bidder rushes in and pays whatever Rosenbloom-Rodriguez...
              -06-14-2009, 11:26 AM
            • r8rh8rmike
              Burwell: NFL Can Bend Cross-Ownership Rules For Stan Kroenke
              by r8rh8rmike
              NFL can bend cross-ownership rules for Stan Kroenke

              By Bryan Burwell
              ST. LOUIS POST-DISPATCH
              04/14/2010


              Because 15 years worth of history has conditioned us to expect an endless supply of soap opera silliness, unpredictable cloak-and-dagger intrigue and mind-numbing misfortune with just about everything at Rams Park, I'm still not quite sure why none of us anticipated this wild throw from left field.

              It is the Rams we're talking about, so how else could a so-called streamlined, by-the-numbers sale of the franchise go but whirling into a shocking Barbarians at the Gate tailspin?

              OK, this is not quite as contentious as that notorious business deal, but oh, boy, it sure is starting to have that sort of provocative feel. Minority owner Stan Kroenke's bold attempt to take over 100 percent control of the Rams is being played out on the sports pages, but it could end up on the pages of The Wall Street Journal — or maybe even a tantalizing made-for-TV screenplay — as time goes on.

              This 11th hour move by Kroenke was a quintessential, big-time high-finance power play, but we'll just have to wait a little longer to see what else the multibillionaire has up his sleeves. Was this a stroke of pure strategic genius, a ruthless act of conspicuous consumption, or does Kroenke's business mind really work so many steps ahead of the rest of us that we're automatically conditioned to come up with Machiavellian motivations and miss the simplest one of all: Does Stan just want to be a full-fledged member of America's most exclusive billionaire sports lovers' club, NFL ownership?

              Looking at his business history, Kroenke has carefully built his $2.9 billion empire in real estate and by collecting professional sports franchises like we get fancy watches. He has at various times owned one of each in the NBA and NHL (Denver Nuggets and Colorado Avalanche respectively), professional soccer (Colorado Rapids and Arsenal), major league lacrosse (Colorado Mammoth) and a 40 percent stake in the Rams for the last 15 years.

              And now he's decided that he wants more. And now he's asking the NFL, which supposedly has plenty of rules standing in his way, to do what it has done quite a few times in the past.

              Bend its rules to accommodate a good friend.

              NFL Commissioner Roger Goodell has already told everyone that the rules on cross-ownership won't be bent for Kroenke or anyone else. Rules are rules, the commish says, and since we have rules, well, we have to actually abide by them.

              And for the most part, that's true, except when it isn't.

              The NFL used to have a rule that prohibited its owners from owning any other franchise in another professional league.

              And then they changed that.

              And then it had a rule that said you could only do cross-ownership as long as it was in the...
              -04-13-2010, 08:27 PM
            • r8rh8rmike
              Bernie: A Look At Kroenke's Strategy
              by r8rh8rmike
              05.10.2010 11:00 am
              Bernie Bytes: A Look at Kroenke’s Strategy
              By Bernie Miklasz


              The latest twist in Stan Kroenke’s pursuit of the Rams comes from Daniel Kaplan of The SportsBusiness Journal. Kaplan reports that Kroenke is attempting to get around the NFL’s cross-ownership rules by turning the team over to his wife, Ann Walton Kroenke. According to Kaplan, Kroenke pitched that proposal last week during a meeting with the NFL Finance Committee, which is overseeing the sales process. The SBJ reported that Kroenke’s proposal included other options, but no specifics were cited.

              Kroenke owns 40 percent of the Rams and opted to match Shahid Khan’s bid to purchase the controlling 60 percent interest from Chip Rosenbloom and Lucia Rodriguez. But because Kroenke owns the NBA Denver Nuggets and NHL Colorado Avalanche, teams that compete for Denver sports dollars with the NFL Broncos, he is prohibited from owning an NFL franchise in another market.

              Jim Thomas of the St. Louis Post-Dispatch reported that Kroenke would likely try to circumvent the rules by selling or transferring the Nuggets and Avs to his wife. And that option is still on the table for consideration, NFL sources say. But Kroenke seems to be exploring every possible angle in an attempt to satisfy the NFL. Kroenke’s apparent willingness to transfer or sell the Rams to his wife is just the latest scenario to be floated.

              Let’s take a look. Here are some of my initial thoughts:

              * Ann Kroenke certainly has the money to buy the Rams; she’s listed on the Forbes annual survey of the wealthiest Americans with an estimated worth of $3.2 billion. (Kroenke’s estimated worth is $2.7 billion.) But it isn’t so simple.

              * The Rams’ ownership agreement stipulates that Stan Kroenke has the right of first refusal on the Rams’ sale. Not Ann Kroenke. Stan Kroenke had the right to match Khan’s bid. Not his wife. So on the surface, how could the NFL allow this?

              * Or is the NFL willing to compromise by agreeing to let Kroenke match and take over as the 100 percent owner of the Rams as long as he agrees to quickly sell the team to his wife?

              * Why didn’t Ann Kroenke simply bid for the Rams at the time the Rosenblooms had their 60 percent share on the market? This would have been easier than (A) having Stan Kroenke match Khan and (B) Kroenke having to work around the cross-ownership guidelines. (Likely answer: the Kroenkes didn’t want to get in a bidding battle with Khan that would drive the price up; they probably preferred to wait, let Khan make a reasonable bid, then match. I’m only guessing here.)

              * Do any of these possible scenarios really satisfy the spirit of the NFL rule on cross ownership? Let’s say Kroenke sells the NHL and NBA teams to his wife, or transfers them to his son, Josh. Fine. But the Nuggets-Avalanche and Pepsi Center revenues would still...
              -05-11-2010, 12:01 PM
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