|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
OCTOBER 18, 2004
Washington: Who'll Win the Expos? The jockeying to win Washington's new team gets fierce. It'll take more than cash The biggest guessing game in Washington -- after who will be the next President -- is: Who will win the capital's new baseball team? For now the answer is as tough to predict as the date of Roger Clemens' real retirement party. Far from winnowing the field of wealthy lawyers, bankers, and real estate speculators, MLB's yet-to-be-ratified decision on Sept. 29 to move the Montreal Expos to D.C. has brought out new bidders and fresh money. Washington Baseball Club, a heavy-hitting team of D.C. insiders, has been pursuing the Expos the longest. The group, which began chasing a franchise in 1999, includes Presidential pal Frederic V. Malek; Fannie Mae (FNM ) Chairman Franklin D. Raines; and Washington power broker Vernon Jordan. Other investors swinging for the team, which could be in the new owners' hands before Opening Day, 2005, include groups led by Long Island real estate investor Mark Broxmeyer and Memphis investment banker Brian L. Saulsberry. Stan Kasten, a longtime sports exec, also is known to be speaking with ownership groups as well as exploring his own bid. Whoever lands the team -- which industry observers predict could command $300 million -- will have to have more than buckets of money. The winners also must have the political muscle to push through plans for a $440 million ballpark paid for by D.C. tax dollars, which will need approval from a skeptical City Council. Most important, the new owners will need to have the confidence -- and perhaps friendship -- of Baseball Commissioner Bud Selig. "Who's on your team matters a lot," says John Moag, whose Baltimore firm brokers sports-team sales. Even if the massive stadium-funding plan passes, the new owners will still have to beg for patience. The first pitch in their park won't be tossed until 2008. For three years, at least, fans will be rooting for the Washington Whatevers at tired RFK Stadium, which hasn't seen a regular-season game since the Senators skipped town in 1971. Randy Vataha of Boston-based Game Plan LLC, which handles franchise sales, says that "the first years will be very trying" and Washington insiders who understand the business and political communities will have a big advantage. THE BUD FACTOR If community ties will be helpful to winning the club, a tight link to Selig could be key. "I don't think anything is more important," says former Baseball Commissioner Fay Vincent, sometimes a sharp critic of Selig. Selig has rewarded friends before. In 2002 the commish looked past a $750 million offer for the Boston Red Sox from Cablevision Systems Chairman Charles F. Dolan. Instead, MLB accepted a $660 million bid for the Red Sox from a group led by three league alums, including former Florida Marlins owner John Henry and former Baltimore Orioles and San Diego Padres President Larry Lucchino. The new owners have since turned the team into an American League power and one of the sport's top revenue-generating franchises, justifying the commish's decision. In a Washington owner, Selig would be looking for an ally who can keep the stadium project on schedule and help mend fences with Baltimore owner Peter G. Angelos, a bitter foe of relocating the Expos to the Orioles' backyard. As part of a settlement with the Birds, the new owners could wind up as Angelos' partners in a regional sports network. As with all else in Washington, clout will count. A former investor in the Rangers -- with George W. Bush -- Malek has baseball connections; Selig, too, is friends with Bush. Broxmeyer is a Bush "pioneer" who raised over $100,000 for the Prez. Kasten, who ran the Ted Turner/Time Warner (TWX ) sports empire in Atlanta and oversaw construction of its ballpark, is an intriguing FOB (Friend of Bud). He's mum about his plans but until July was leading a bid to move the Expos to the New Jersey Meadowlands, say industry sources. "Kasten would be formidable," predicts Vincent. But the game is just beginning. And there are nine long innings ahead.  By Mark Hyman Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, Bloomberg L.P.Terms of Use | Privacy Notice |
Printer-Friendly Version
