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NKySteeler
07-07-2008, 05:10 PM
Monday, July 7, 2008
Steelers Ownership Transition

For the past two years the Rooney family has had discussions about a restructuring of the family’s ownership of the Steelers in order to ensure compliance with NFL ownership policies and the continuation of Rooney family ownership and operation of the team.

Pittsburgh Steelers Chairman Dan Rooney, the oldest son of late team founder Art Rooney, wants to stay in the football business while some of his four brothers plan to get out of the NFL and focus their business efforts on their racetracks and other interests. Dan Rooney, and his son, Steelers President Art Rooney II, are arranging a financing plan to buy Dan’s brothers' shares in the team in order to continue substantial ownership of the franchise by the Rooneys.

The other Rooney brothers – Art Jr., Timothy, Patrick and John – each currently has an ownership interest in the Steelers. Another related family, the McGinleys, also owns a minority interest in the team. The Rooney family owns racetracks in New York and Florida, and like many in recent years, these facilities have added forms of gaming that are inconsistent with NFL gambling policy.

NFL Commissioner Roger Goodell asked former NFL Commissioner Paul Tagliabue to serve as a league representative in discussions with the family in order to reach an agreement on the separation of the gambling interests and on a restructuring of ownership going forward if part of the team is sold.

Steelers Chairman Dan Rooney stated, “I have spent my entire life devoted to the Pittsburgh Steelers and the National Football League. I will do everything possible to work out a solution to ensure my father’s legacy of keeping the Steelers in the Rooney family and in Pittsburgh for at least another 75 years.”

Steelers President Art Rooney II stated, “There is no reason to believe that the current internal discussions will have any impact on our fans or on our team this season or in the seasons to come.”

costanza2k1
07-07-2008, 05:24 PM
Hopefully this goes over well and they don't end up getting into a nasty battle.

Jom112
07-07-2008, 05:34 PM
I think it's time to send some racetrack and casino investor guides to the Brown family... :wink:

JAR
07-07-2008, 06:10 PM
The WSJ say the Steelers were being secretly shopped. But what it looks like is Rooney is looking for replacement for his brothers, not entirely new owners for the whole team.

When I heard the news say "The Steelers are being secretly shopped" I think I had a mild stroke.

JAR
07-07-2008, 06:13 PM
Here's what I initially heard, see why I had a stroke? :D

Report: Steelers Franchise 'Shopped Around'
PITTSBURGH (KDKA) ? 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.

The Steelers organization released a statement saying that Dan Rooney, team chairman, wants to remain in the football business while his four brothers plan to leave the NFL to "focus their business efforts on their racetracks and other businesses."

Dan Rooney and his son, Art Rooney II, are working on a financing plan to buy the shares from the four brothers, who each have ownership interest in the team, so the Rooney family can "continue substantial ownership of the franchise."

"There is no reason to believe that the current internal discussions will have any impact on our fans or on our team this season or in the seasons to come," Steelers President Art Rooney II said in the statement.

Stay with KDKA for the latest developments.

NKySteeler
07-07-2008, 06:30 PM
"There is no reason to believe that the current internal discussions will have any impact on our fans or on our team this season or in the seasons to come," Steelers President Art Rooney II said in the statement.

I hope this is the case.... With any shift in faccet of ownership, some things inevitably change...

It sort of rubbed me the wrong way when Goodell started looking into this. You would think he would concentrate on the issues that weren't cleared-up with the Pats*.

calmkiller
07-07-2008, 07:38 PM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

Jom112
07-07-2008, 07:42 PM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

You mean if they ever were to sell the Steelers again? :stirpot :stirpot :stirpot

NKySteeler
07-07-2008, 07:48 PM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

You mean if they ever were to sell the Steelers again? :stirpot :stirpot :stirpot

...All I can say is that thankfully there are no daughters within the organization ( i.e. Katie Blackburn). .... I haven't met Mr. Rooney personally, but I HAVE met Mike Brown and his daughter, Katie, on three different occasions. ... Mr. Brown is a very likable guy. I have talked to him on all three occasions, and he's really quite pleasant. But an idiot with the way he runs his team....

Jom112
07-07-2008, 07:49 PM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

You mean if they ever were to sell the Steelers again? :stirpot :stirpot :stirpot

...All I can say is that thankfully there are no daughters within the organization ( i.e. Katie Blackburn). .... I haven't met Mr. Rooney personally, but I HAVE met Mike Brown and his daughter, Katie, on three different occasions. ... Mr. Brown is a very likable guy. I have talked to him on all three occasions, and he's really quite pleasant. But an idiot with the way he runs his team....

You'll get no argument from me there...

NKySteeler
07-07-2008, 07:50 PM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

You mean if they ever were to sell the Steelers again? :stirpot :stirpot :stirpot

...All I can say is that thankfully there are no daughters within the organization ( i.e. Katie Blackburn). .... I haven't met Mr. Rooney personally, but I HAVE met Mike Brown and his daughter, Katie, on three different occasions. ... Mr. Brown is a very likable guy. I have talked to him on all three occasions, and he's really quite pleasant. But an idiot with the way he runs his team....

You'll get no argument from me there...

Damn!...... :lol:

NKySteeler
07-07-2008, 07:52 PM
You'll get no argument from me there...

Would it help if I told you Katie reminded me of that bitchy owner from the baseball movie "Major League"...????

Jom112
07-07-2008, 08:07 PM
You'll get no argument from me there...

Would it help if I told you Katie reminded me of that bitchy owner from the baseball movie "Major League"...????

As long as she can run a team better than Mike Brown she can have Marge Schott's Personality for all I care...

MeetJoeGreene
07-07-2008, 09:25 PM
I want a fan owned team -- I will pitch in a thousand!!

frankthetank1
07-08-2008, 08:55 AM
what a bunch of losers they must be. if your from pittsburgh and your last name is rooney why the hell would you want to sell your share of the steelers

NC Steeler Fan
07-08-2008, 09:44 AM
If the Roonies were to ever sell the Steelers I think I would roll over dead.....Or take out a loan.....hum.....

You mean if they ever were to sell the Steelers again? :stirpot :stirpot :stirpot

Aiiight now, watch yer mouth... :lol:

Be a good kitty, I advocated for keepin' yer butt as a pet.

Stir too many pots and somehow I think you'll be tossed out
with the cat litter... :nono

Jom112
07-08-2008, 09:50 AM
Aiiight now, watch yer mouth... :lol:

Be a good kitty, I advocated for keepin' yer butt as a pet.

Stir too many pots and somehow I think you'll be tossed out
with the cat litter... :nono

I'll try and place "nice" from now on in the Steelers Talk section. I'll save my pot stirring for the Trash Talk section...

calmkiller
07-08-2008, 11:09 AM
http://sports.espn.go.com/nfl/news/stor ... LHeadlines (http://sports.espn.go.com/nfl/news/story?id=3477065&campaign=rss&source=NFLHeadlines)


Reports: Rooney family members considering outside investors

ESPN.com news services

Updated: July 8, 2008, 9:47 AM ET

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PITTSBURGH -- Pittsburgh Steelers chairman Dan Rooney and his son, team president Art Rooney II, want to buy other family members' shares to assure that one of the NFL's most storied franchises does not leave family control.

But some members of the family are considering other options outside the Rooney family circle, including Pittsburgh-area billionaire Stanley Drunkenmiller, according to The Wall Street Journal.

The newspaper reported that Druckenmiller, the chairman of Pittsburgh-based Duquesne Capital Management, has expressed interest in acquiring the Steelers, citing unnamed sources who had been briefed on the negotiations.

In a statement Monday, the team said some of Dan Rooney's four brothers want to focus their business efforts on racetracks and other non-football interests. The brothers -- Art Jr., Timothy, Patrick and John -- all own an interest in the team, as does another related family, the McGinleys, although it has only a small stake in the 75-year-old franchise.

But the Journal reported that some of the Rooney brothers and third-generation members of the family, concerned that Dan Rooney's buyout proposal undervalued the team and takes on too much debt, secretly obtained an independent analysis of the franchise's value from Wall Street investment bank Goldman Sachs & Co.

That analysis estimates the value of the Steelers at between $800 million and $1.2 billion, the newspaper reported, citing documents it reviewed.

In September, Forbes Magazine valued the Steelers at $929 million.

The Pittsburgh Post-Gazette reported that according to a source, the brothers in question are Timothy, Patrick and John Rooney, who are involved with the operation of Empire City at Yonkers Raceway, a harness racing track in Yonkers, N.Y., and the Palm Beach Kennel Club in West Palm Beach, Fla.

While the situation suggests some family disagreement, another source close to the team said that the Rooney family remains close, but that future issues such as inheritance taxes have raised concerns, the Post-Gazette reported.

According to the Journal, Druckenmiller has told Rooney family members he would want Dan Rooney to continue running the team if he were to make a successful ownership bid. Druckenmiller declined comment for the story, the newspaper reported.

Under Dan Rooney's offer to his brothers, according to the report, his family would take on substantial debt and pay $35 million to each brother and the McGinley family for a 5 percent stake in the team. Dan Rooney's family then would buy more equity in the team over the next 10 years.

NFL commissioner Roger Goodell has asked former commissioner Paul Tagliabue to represent the league in talks to reach an agreement on a separation of the gambling interests and the restructured ownership if part of the team is sold, according to the statement.

"For the past two years, the Rooney family has had discussions about a restructuring of the ownership of the Steelers in order to ensure compliance with the NFL ownership policies and the continuation of the Rooney family ownership and operation of the team," the team said in the statement.

The Steelers are one of the NFL's most successful franchises despite not winning any form of championship until their 40th season, a division title in 1972. The five-time Super Bowl champions have sold out all home game for the last 36 years and have one of the league's largest fan bases outside their own region, a national following rivaled by only a handful of NFL teams.

Dan Rooney is the eldest of team founder Art Rooney Sr.'s five sons and a Pro Football Hall of Fame owner who first worked for the team as a ballboy while in grade school.

"I have spent my entire life devoted to the Pittsburgh Steelers and the National Football League," said Dan Rooney, one of the most influential owners in NFL history. "I will do everything possible to work out a solution to ensure my father's legacy of keeping the Steelers in the Rooney family and in Pittsburgh for at least another 75 years."

Art Rooney Jr., Dan's brother, was the Steelers' scouting director when the team had some of the best draft classes in NFL history in the 1970s, leading to a run of four Super Bowl championships in six seasons.

Dan and Art Jr. had a falling out in the late 1980s, with Art Jr. leaving the football side of the business. Art Jr. has since been involved in the Rooneys' real estate holdings, though he recently wrote a book focusing on his work for the Steelers.

Their father, Art Rooney Sr., was heavily involved in gambling and, according to legend, bought the Steelers in 1933 with $2,500 in racetrack winnings. But the NFL now frowns on any ownership association with gambling.

The Rooney family owns racetracks in New York and Florida and has added forms of gaming that are inconsistent with NFL gambling policy.

An NFL spokesman said the league has not set a deadline for resolution of the Steelers' ownership situation, according to the Pittsburgh Tribune-Review.

Art Rooney II says the discussions should have no affect on the team or its fans. The Steelers, who won the AFC North with a 10-6 record last season, open training camp July 27.

"There is no reason to believe that the current internal discussions will have any impact on our fans or on our team this season or in the seasons to come," Art Rooney II said.

The Rooney family has owned the team since its inception, except for a brief period in 1941 when Art Rooney Sr. sold the team to Alexis Thompson and bought into the Philadelphia Eagles. Rooney regained control of his hometown Steelers in less than a year.

The Associated Press contributed to this story.


http://www.post-gazette.com/pg/08190/895537-66.stm

Investor would leave Steelers in Rooney's control, source says
Tuesday, July 08, 2008
By Gerry Dulac, Pittsburgh Post-Gazette

Stanley Druckenmiller, the billionaire chairman of Pittsburgh's Duquesne Capital Management and a member of Oakmont Country Club, was contacted by a member or representative of the Rooney family about buying shares in the team, the Pittsburgh Post-Gazette has confirmed.

It is unclear just how much interest Druckenmiller would own in the franchise, but, according to a source who is a friend of Druckenmiller, he has been approached about possibly purchasing the shares of at least two or three of the Rooney brothers.

The source said Druckenmiller is only interested in providing investment capital to the Rooney family and would let Dan Rooney run the team "as long as he wants." He also said it has been Druckenmiller's "lifelong dream" to be one of the Steelers' owners.

Several years ago, Druckenmiller came to Oakmont's rescue when the club was involved in a power struggle with the United States Golf Association over the construction of a new pedestrian bridge.

When the USGA told Oakmont it would not bring a U.S. Open back to the club until a new bridge was built over the Pennsylvania Turnpike, Druckenmiller agreed to pay for the bridge as long as his donation remained anonymous. Druckenmiller paid between $500,000 and $800,000 for the bridge.

First published on July 8, 2008 at 10:37 am

RuthlessBurgher
07-08-2008, 12:03 PM
Several years ago, Druckenmiller came to Oakmont's rescue when the club was involved in a power struggle with the United States Golf Association over the construction of a new pedestrian bridge.

When the USGA told Oakmont it would not bring a U.S. Open back to the club until a new bridge was built over the Pennsylvania Turnpike, Druckenmiller agreed to pay for the bridge as long as his donation remained anonymous. Druckenmiller paid between $500,000 and $800,000 for the bridge.[/quote]

Does Druckenmiller get his money back for that bridge now that the Post-Gazette has published his name as the "anonymous" donor?

Oviedo
07-08-2008, 02:25 PM
Tough family problem to have. Where do I get my most tens of millions of dollars from? :?

papillon
07-08-2008, 09:56 PM
what a bunch of losers they must be. if your from pittsburgh and your last name is rooney why the hell would you want to sell your share of the steelers

Because there's more money in horses and casinos by far than there is in football.

Pappy

RuthlessBurgher
07-08-2008, 11:54 PM
I don't understand how this suddenly became an issue when slot machines were introduced into the racetracks.

Oh no! Slot parlors are gambling! The four brothers with vested interests in the tracks must sell their minority shares!

What, nobody laid any bets on the dogs and ponies at the Rooney's tracks in the 35 years before the slot machines showed up?

How is NFL ownership and slots gambling in the past couple of years prohibited, when NFL ownership and racetrack gambling since the early 70's was apparently a-ok?

Just curious...

frankthetank1
07-09-2008, 08:29 AM
what a bunch of losers they must be. if your from pittsburgh and your last name is rooney why the hell would you want to sell your share of the steelers

Because there's more money in horses and casinos by far than there is in football.

Pappy

yea but there is more to life than money and besides they already have tons of it. can anyone justify that? imagine if you owned a part of the steelers would you ever sell that? i wouldnt sell it for all the money in the world. why dosent art jr and dan just buy them out? are they too cheap to do that?

papillon
07-09-2008, 08:49 AM
what a bunch of losers they must be. if your from pittsburgh and your last name is rooney why the hell would you want to sell your share of the steelers

Because there's more money in horses and casinos by far than there is in football.

Pappy

yea but there is more to life than money and besides they already have tons of it. can anyone justify that? imagine if you owned a part of the steelers would you ever sell that? i wouldn't sell it for all the money in the world. why dosen't art jr and dan just buy them out? are they too cheap to do that?

No, I would never my shares of the Steelers, but, clearly the 4 Rooney siblings don't want anything to do with the Steelers (shame on them). Druckenmiller is living my dream right now, and, personally, at this point, I hope he becomes the owner; he sounds like he's passionate about everything that he does, from the helping kids in Harlem, to building the pedestrian bridge at Oakmont and to cheering for the Steelers. He'll be good for the team, we may see more change than you know with a new owner.

Dan and Art don't have enough capital to buy the shares of the siblings. It would run them about 600 million dollars and that isn't walking around money. They wuold have to go into much mopre debt than if they had built the stadium with their own money and we all know how that worked out.

Pappy

frankthetank1
07-09-2008, 09:13 AM
what a bunch of losers they must be. if your from pittsburgh and your last name is rooney why the hell would you want to sell your share of the steelers

Because there's more money in horses and casinos by far than there is in football.

Pappy

yea but there is more to life than money and besides they already have tons of it. can anyone justify that? imagine if you owned a part of the steelers would you ever sell that? i wouldn't sell it for all the money in the world. why dosen't art jr and dan just buy them out? are they too cheap to do that?

No, I would never my shares of the Steelers, but, clearly the 4 Rooney siblings don't want anything to do with the Steelers (shame on them). Druckenmiller is living my dream right now, and, personally, at this point, I hope he becomes the owner; he sounds like he's passionate about everything that he does, from the helping kids in Harlem, to building the pedestrian bridge at Oakmont and to cheering for the Steelers. He'll be good for the team, we may see more change than you know with a new owner.

Dan and Art don't have enough capital to buy the shares of the siblings. It would run them about 600 million dollars and that isn't walking around money. They wuold have to go into much mopre debt than if they had built the stadium with their own money and we all know how that worked out.

Pappy

i agree about drunkenmiller. he sounds like a great guy and would be a great owner.what kind of changes do you think could happen with the new owner? maybe new turf? that would be very nice. oh wow i didnt realize it would cost them 600 mill. that is a little steep

Ozey74
07-09-2008, 09:29 AM
The name and spirit of the Rooney's has as much to do with Steeler football as Santa Claus has to do with Christmas. Telling a member of Steeler Nation that the Rooneys will no longer be apart of the Steelers is like telling a kid Santa will no longer be apart of Christmas.

I hope they don't sell!!

RuthlessBurgher
07-09-2008, 09:37 AM
Each of the 5 brothers owns 16%, and the McGinley family owns the remaining 20%. I think the best case scenario would be if Dan could manage to buy 2 of his brothers out entirely, and maybe buying, say, 5% from the McGinleys, giving them 53% so they could not possibly lose controlling interest of the team no matter what. Then the other two brothers could sell their shares to billionaire Druckmiller, giving him a 32% minority stake. That would ease some of the financial burden, since Dan would not have to take on such a large debt if he were to try to buy out all of his brothers.

Oviedo
07-09-2008, 10:30 AM
Each of the 5 brothers owns 16%, and the McGinley family owns the remaining 20%. I think the best case scenario would be if Dan could manage to buy 2 of his brothers out entirely, and maybe buying, say, 5% from the McGinleys, giving them 53% so they could not possibly lose controlling interest of the team no matter what. Then the other two brothers could sell their shares to billionaire Druckmiller, giving him a 32% minority stake. That would ease some of the financial burden, since Dan would not have to take on such a large debt if he were to try to buy out all of his brothers.

I was pretty much thinking the same thing. If Dan Rooney's goal is not total ownership, all he needs to do is to add to his 16% enough to get it to 51%. However, that still would not be an insignificant amount of money for Dan to come up with. I think that we all forget that the Rooneys are not like the Snyders and Jones in that their net worth is primarily the Steelers not an external source of revenue. For Dan to buy out anyone he would have to take loans out with his portion of the Steelers as collateral. In the long term financial picture of his family it may just be better to let Druckenmiller buy the team and he keeps his 16%. His 16% was all he was going to pass to his direct descendants anyway.

buckeyehoppy
07-09-2008, 12:04 PM
Each of the 5 brothers owns 16%, and the McGinley family owns the remaining 20%. I think the best case scenario would be if Dan could manage to buy 2 of his brothers out entirely, and maybe buying, say, 5% from the McGinleys, giving them 53% so they could not possibly lose controlling interest of the team no matter what. Then the other two brothers could sell their shares to billionaire Druckmiller, giving him a 32% minority stake. That would ease some of the financial burden, since Dan would not have to take on such a large debt if he were to try to buy out all of his brothers.

I was pretty much thinking the same thing. If Dan Rooney's goal is not total ownership, all he needs to do is to add to his 16% enough to get it to 51%. However, that still would not be an insignificant amount of money for Dan to come up with. I think that we all forget that the Rooneys are not like the Snyders and Jones in that their net worth is primarily the Steelers not an external source of revenue. For Dan to buy out anyone he would have to take loans out with his portion of the Steelers as collateral. In the long term financial picture of his family it may just be better to let Druckenmiller buy the team and he keeps his 16%. His 16% was all he was going to pass to his direct descendants anyway.

RB, I'd agree that Dan and Art II buying out two of the brothers would be a best case solution. But Oviedo makes a great point in that Dan and Art II derive most of their livelihood out of the Steelers exclusively.

There was another NFL owner of recent vintage who had the same type of financial interest and portfolio. His name was Art Modell. Now, I'm not suggesting that the Rooneys would ever consider moving the team. That isn't even a factor here. But the kind of money that it would take to assume a controlling interest in the team is precisely the scenario that drove Modell out of the NFL.

Granted, Modell was a greedy $OB and thought (incorrectly) that Cleveland was trying to screw him over, so he took all his marbles and bought all the marbles from the other minority owners of the Clowns and spirited off to Baltimore. It cost Modell a hefty sum of $$$ to buy out the entire minority interest of the Clowns to move the team and it ended up costing him the team and most of his fortune.

Now, assuming that the McGinley family is completely out of the loop on this deal, their 20% doesn't factor into the equation at all.

That leaves the 80% interest of the Rooney family at stake. Each of the brothers own 16% or, in real $, roughly a $150M stake/brother. If Dan and Art II buy out two of the three brothers straight up, it will cost them nearly $300M to do so.

To buy enough of an interest to have a majority 51% share of the team, it will cost Dan and Art II $325M to accomplish that.

In either case, neither one of those figures is anywhere near the ballpark of chump change and, I believe, each figure exceeds the total amount that it took Modell to buy out the minority shares of the Clowns. Knowing that the financial holdings of Dan and Art II weigh heavily in their involvement in the Steelers like Modell's did in the Clowns, I doubt that Dan and Art II could pull off either of the above scenarios without bankrupting the team or themselves personally.

The only scenario that would guarantee a controlling interest for Dan and Art II would be a stake where they would buy a 41% interest in the team. That would cost them a combined $233M and while it's still not chump change, at least it's somewhat realistic and would keep financial controlling interest in the Rooney family for the foreseeable future.

No matter what, Druckenmiller is going to be a factor in this deal. He almost has to be. Considering that Art II is more than likely the heir apparent to the Rooney family's future with the Steelers, he is probably going to have the added burden of assuming the complete financial interest of the team upon his father's death. In realistic terms, Art II will need to front $116.5M for his half of the 41% majority and find the money to buy out his father's $116.5M share.

I see no coincidence in Druckenmiller's appearance here. The only question at present is what his final stake will be and how much of a factor will he be in the ownership of the team. I figure that he will have at least a 39% stake in the team when all is said and done and perhaps more if Dan and Art II are insufficiently funded to buy their claim to majorty ownership.

When all is said and done, however, it appears that the Rooney family's controlling interest in the Steelers is hanging in the balance and that Dan and Art II's relationship with Druckenmiller is the factor we all need to be looking at in the near term.

Oviedo
07-09-2008, 12:40 PM
Each of the 5 brothers owns 16%, and the McGinley family owns the remaining 20%. I think the best case scenario would be if Dan could manage to buy 2 of his brothers out entirely, and maybe buying, say, 5% from the McGinleys, giving them 53% so they could not possibly lose controlling interest of the team no matter what. Then the other two brothers could sell their shares to billionaire Druckmiller, giving him a 32% minority stake. That would ease some of the financial burden, since Dan would not have to take on such a large debt if he were to try to buy out all of his brothers.

I was pretty much thinking the same thing. If Dan Rooney's goal is not total ownership, all he needs to do is to add to his 16% enough to get it to 51%. However, that still would not be an insignificant amount of money for Dan to come up with. I think that we all forget that the Rooneys are not like the Snyders and Jones in that their net worth is primarily the Steelers not an external source of revenue. For Dan to buy out anyone he would have to take loans out with his portion of the Steelers as collateral. In the long term financial picture of his family it may just be better to let Druckenmiller buy the team and he keeps his 16%. His 16% was all he was going to pass to his direct descendants anyway.

RB, I'd agree that Dan and Art II buying out two of the brothers would be a best case solution. But Oviedo makes a great point in that Dan and Art II derive most of their livelihood out of the Steelers exclusively.

There was another NFL owner of recent vintage who had the same type of financial interest and portfolio. His name was Art Modell. Now, I'm not suggesting that the Rooneys would ever consider moving the team. That isn't even a factor here. But the kind of money that it would take to assume a controlling interest in the team is precisely the scenario that drove Modell out of the NFL.

Granted, Modell was a greedy $OB and thought (incorrectly) that Cleveland was trying to screw him over, so he took all his marbles and bought all the marbles from the other minority owners of the Clowns and spirited off to Baltimore. It cost Modell a hefty sum of $$$ to buy out the entire minority interest of the Clowns to move the team and it ended up costing him the team and most of his fortune.

Now, assuming that the McGinley family is completely out of the loop on this deal, their 20% doesn't factor into the equation at all.

That leaves the 80% interest of the Rooney family at stake. Each of the brothers own 16% or, in real $, roughly a $150M stake/brother. If Dan and Art II buy out two of the three brothers straight up, it will cost them nearly $300M to do so.

To buy enough of an interest to have a majority 51% share of the team, it will cost Dan and Art II $325M to accomplish that.

In either case, neither one of those figures is anywhere near the ballpark of chump change and, I believe, each figure exceeds the total amount that it took Modell to buy out the minority shares of the Clowns. Knowing that the financial holdings of Dan and Art II weigh heavily in their involvement in the Steelers like Modell's did in the Clowns, I doubt that Dan and Art II could pull off either of the above scenarios without bankrupting the team or themselves personally.

The only scenario that would guarantee a controlling interest for Dan and Art II would be a stake where they would buy a 41% interest in the team. That would cost them a combined $233M and while it's still not chump change, at least it's somewhat realistic and would keep financial controlling interest in the Rooney family for the foreseeable future.

No matter what, Druckenmiller is going to be a factor in this deal. He almost has to be. Considering that Art II is more than likely the heir apparent to the Rooney family's future with the Steelers, he is probably going to have the added burden of assuming the complete financial interest of the team upon his father's death. In realistic terms, Art II will need to front $116.5M for his half of the 41% majority and find the money to buy out his father's $116.5M share.

I see no coincidence in Druckenmiller's appearance here. The only question at present is what his final stake will be and how much of a factor will he be in the ownership of the team. I figure that he will have at least a 39% stake in the team when all is said and done and perhaps more if Dan and Art II are insufficiently funded to buy their claim to majorty ownership.

When all is said and done, however, it appears that the Rooney family's controlling interest in the Steelers is hanging in the balance and that Dan and Art II's relationship with Druckenmiller is the factor we all need to be looking at in the near term.

Great thoughts. You and I see it alike. Druckenmiller shpould not be seen as a threat, but as a key part of a positive outcome.

buckeyehoppy
07-09-2008, 01:11 PM
Great thoughts. You and I see it alike. Druckenmiller should not be seen as a threat, but as a key part of a positive outcome.

Thanks for the love, OV! Always nice to see others view an opinion for what it is...an opinion.

While it is sad that this appears to be an imminent new chapter in the team history of the Steelers, you have to give the Rooney's credit for forward thinking and doing this now instead of when Dan assumes the grave.

Good business people do what Dan Rooney is doing. Even though he might have more financial leverage had he possessed a more diverse financial portfolio, he has the intellectual capital over league matters that can never be directly inherited by anyone else. Stanley Druckenmiller has to value that highly as a decent businessman himself and that is a big reason that I believe Dan Rooney and Art II will be in the picture for the Steelers for a while after this deal goes down. As the Rooney's need the Druckenmiller $$$, Druckenmiller needs Dan Rooney's savvy in the NFL.

And I have already stated that I believe Stan Druckenmiller's $ will be a breath of fresh air to the Steelers. Granted, he can't be like the Steinbrenner's in New York and buy his way to a championship. The salary cap prohibits that. But I think his influence and financial savvy will encourage more corporate partnership with the NFL in general and with the Steelers in particular. And, in this day and age, there is no shortage of good sense in that. Corporate money, despite the veneer of "family ownership" that the NFL likes to march around so much, is going to have a much greater influence over the league and it will be happening sooner than everybody thinks.