Steelers franchise "secretly shopped around"
by syrsteelerfan on Jul 7, 2008 6:15 PM EDT
Email
Print...to potential buyers. At least, that's what a text message and this article tell me:
The Wall Street Journal is reporting that the Pittsburgh Steelers franchise has been "secretly shopped around" to potential buyers.
This comes as there are reported divisions among the five sons of Art Rooney, Sr., the team's founder.
More information on Steelers.com.
While the headline was startling, it doesn't appear that there is reason for panic. For years, our motto as been "In the Rooney's we trust." I think that will apply here, and that even amidst a restructuring of the ownership the best interest of the franchise and fans will be in the forefront of their mind. In fact, transferring controlling ownership to those most fully invested in the organization could have a positive impact - or at the least a negligible one.
What does everyone else think?
(P.S. Whoever sends the mass texts at KDKA has been busy this afternoon. My second message in 5 minutes tells me we signed Denis Dixon.)
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read on ESPN.com
that actually is what is happening is that Dan and Art II are working to buy Art Jr’s shares out, and it’s somewhat related to Art Jr owning race tracks in Florida, as per NFL gambling rules. also makes sense considering Art Jr was basically pushed out of the football decision making process years ago.
by TheMostViolentTeam on Jul 7, 2008 6:32 PM EDT reply actions
Yeah, the Post-Gazette reports that we singed Dixon as well…
by BluegrassSteeler on Jul 7, 2008 7:55 PM EDT reply actions
“(P.S. Whoever sends the mass texts at KDKA has been busy this afternoon. My second message in 5 minutes tells me we signed Denis Dixon.)”
Thats no understatement… I got my 4th text message from them (in one day), yesterday around 10:30 or so. Here they are:
1. Steelers reportedly sign 4th Round Pick OT Tony Hills….
2. The Wall Street Journal is reporting that the Steelers franchise has been “secretly shopped around” to potential buyers…
3. Steelers sign 5th Round QB Dennis Dixon…
4. Steelers sign 3rd Round Pick Bruce Davis…
Here is an article in the New York Times regarding a ‘partial sale.’
http://www.nytimes.com/2008/07/08/sports/football/08steelers.html?ref=football
FrankD from Pensburgh.com
this team will never move.
Its funny, if you read the comments at the end of the espn article, its divided between steeler fans panicky about losing their team and trolls from other teams trying to get the first group riled up. No way the NFL would allow a move, the Steelers are highly profitable and one of the legendary teams, with the biggest fan base in the NFL.
Druckenmiller, the angel investor
I read that Stanley Druckenmiller, the billionaire hedge fund investor, has been approached to buy out the minority shareholders that want to take their money out of the franchise. His would remain a minority stake, and it sounds as though he is a long-time fan with a strong interest in letting the remaining Rooney’s work their magic autonomously. Not a bad passive investment for him, and a good solution for the rest of us fans…
non-news?
Honestly? I have been around the clock on this one folks, and in my opinion, this development has significance for the long term future of the franchise. Think about it. This is not your fathers NFL. The Steelers are reportedly worth in the nieghborhood of $1,000,000,000. WOW! What’s more, is that it appears they are for sale. It is no secret that the Rooneys have run one of the most successful pro franchises around. The prospects of the organization being controlled by anyone not named Rooney makes this fan a bit uneasy. The economics have no doubt changed dramatically, and in some respect this development is inevitable. I just hope the re-organization keeps the Rooney family at the helm for the foreseeable future.
agreed
when i said non-news it was before Druckenmiller’s name had been mentioned and what appears to be some animosity between the brothers had come to light in the press
by TheMostViolentTeam on Jul 9, 2008 10:13 AM EDT up reply actions
Part of the Steelers will be sold.
Each of the five Rooney brothers own 16 percent of the team, worth roughly $150 million. The other 20 percent is owned by the McGinley family, a long-time Rooney friend. Even if the four Rooneys not named Dan were not involved in racetracks and gambling interests, it would not be fair for Dan to run the team with his son while the other four aren’t able to get to their $150 million. Of greater concern is that once the five brothers pass on, then what? Does Art Rooney II get to play with his expensive toy while the other decendents still can never get to their $150 million? They would be rich and poor at the same time.
It is better now to get all that resolved. Dan Rooney doesn’t have $780 million laying around to buy out his brothers and McGinley. Dan is not cash-rich compared to guys like Jerry Jones and Dan Snyder. His wealth is basically his share of the team. Therefore, he needs to find outside money to do the trick. It’s the only way to make the other brothers whole so they can go on their merry way. Hopefully that outside money will come from a local Pittsbugh guy like Drunkenmiller. From everything I’ve heard, Drunkenmiller has alot of cash and will structure the deal so that Dan Rooney has control of the team. If not Drunkenmiller, Pittsburgh has enough rich folks that Rooney will find one. Dan will do everything possible to keep the team in his family’s control and keep the team in Pittsburgh.
Of course, that’s easier said than done. If some billionaire from the outside somes charging in that could make things very unsettling. My gut instinct tells me, knowing Dan and the way we thinks and operates, that things will work out fine, but it will not be without some outside money and new ownership partner of some sort.
most likely scenario
Dan & Art II buy out Art Jr. (or Art Jr. stays on as a part owner), Druckenmiller buys out the other 3 brothers, giving him 48%, Dan & Art II (and Art Jr. if he stays on) buy out the McGinley’s, giving them 52%. Rooney’s maintain controlling share. Even IF Druckenmiller buy out all four other brother he has said he would still want Dan Rooney in charge. Druckenmiller wants to be an owner to say he owns the team he loves, not to change the franchise, I don’t think he’d be active in management, I don’t think the Steelers would change much even, they might have a little more cash for signing bonuses and stuff but the Steelers have never been cheap about salary when it comes to players they actually want to keep.
by TheMostViolentTeam on Jul 9, 2008 10:11 AM EDT up reply actions
Uneasy
It still sounds like the majority of the team will be owned by outside forces… And while most sane people don’t fix things that ain’t broke, I just wiggle a bit in my chair thinking that the final decisions will come down to someone other than a Rooney. But then again, that’s naive to think that all future Rooney’s will have the savvy of Dan and Art before him. So as Rose said, it’s best this gets done before one of them tragically passes away and a much more bitter fight ensues.
by Chicago Steeler on Jul 9, 2008 10:22 AM EDT reply actions
Options
Drunkenmiller would be a great option if he can part with half a billion dollars without wanting to have a say in how that investment is used. It would add some of pressure on the remaining Rooney’s to make it profitable if it’s someone else’s money. We could get into a situation in a few years where Drunkenmiller is losing his shirt and uses his majority share (if he has one) to take things into his own hands, even if he says now that he’ll let Dan run the team. I’d be more comfortable if the Rooney’s had the 52% or some similar number as TMVT suggested, so there’d never be a question of who’s in change. They may not have the cash on hand for even that, though.
Still, it’s nice that it’s a local guy with oodles of money to spend on his favorite sports team. I’d be more nervous with someone else.
Prediction
I think the Rooney’s will sell the majority, if not all, of the team. This is because they see capital gain taxes going up as a Democratic and (likely) Democratic President allows rates to rise from 15% to the old 20% rate. If the Steelers are worth $1B (conservatively) and the Rooney’s cost basis is $2,500, then that rate change is worth $50M. If the Rooney’s are looking to change the ownership structure already (for NFL rules compliance and family disagreement reasons), and they are able to retain management control (per Druckenmiller’s wishes) while monetizing the franchise ahead of the tax change, then I believe that they will likely find the economics compelling and sell a big chunk or all of the team.
that's precisely
why the three brothers who mostly want out (tim, pat, john) are pushing to get it done now. Dan & Art II will definitely be involved, no matter what. Art Jr. possibly as well.
by TheMostViolentTeam on Jul 9, 2008 6:13 PM EDT up reply actions
reading about
Druckenmiller on Tribune-Review and other news sources recently; he sounds like a GREAT guy. a true renaissance man, and a man smart enough to know when someone else can do a better job (i.e. Rooney’s keep management of Steelers). I think what you’ll see happen is that instead of Druckenmiller flat out buying the shares of the other four brothers, he will be one of the investors who backs Dan & Art II’s partnership to gain a majority (as defined by NFL rules, more than 30%) stake in the Steelers.
by TheMostViolentTeam on Jul 10, 2008 12:02 PM EDT up reply actions
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