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View Full Version : Sources: Dan Rooney To Make 3rd Offer To Brothers



costanza2k1
09-11-2008, 10:20 PM
PITTSBURGH (KDKA) ? A new offer may be on the table in the Steelers ownership struggle and there are indications Dan Rooney may have the money he needs to keep his family in control of the team.

Sources say that Rooney has assembled a team of investors and is now in the process of making a third offer to his brothers to buy out their shares of the team.

The same sources say this higher offer and other recent events make Dan the favorite to keep control of the team.

Sources close to the Rooneys say Dan has assembled a complete team of investors and is prepared to match or come close to an offer made by billionaire Stanley Druckenmiller.

The same sources believe that what may tip the scales in Dan Rooney's favor is that meeting two weeks ago in New York with NFL Commissioner Roger Goodell.

Goodell made it clear the league likes Dan in control. At the meeting ere were also three other NFL owners in attendance. The message some say is that the NFL is a club and the other owners decide who gets in.

Rather than risk rejection of a new ownership group, sources say that Rooney is hoping that two of his brothers, Art Rooney, Jr., and John Rooney, stay owners of the Steelers.

That way, Dan Rooney and his new investors would buy out brothers Tim and Pat Rooney who operate racetracks in New York and Florida and must divest themselves of the team, according to league rules.

Under that plan, Dan and Art II would stay in command.

And it's clear that Dan Rooney will need to pay top dollar. According to its rankings released this week, Forbes estimates the team's worth at $929 million the 16th most valuable in the NFL.

Considering that Art Rooney, Sr., bought the team in 1933 for $2,500, the Steelers have been a pretty good investment for the Rooney family.

Looks like Dan may now retain the team...

Djfan
09-11-2008, 10:43 PM
Very cool.

frankthetank1
09-12-2008, 09:11 AM
man i hope that happens. that would be a dream come true.

BigBen2112
09-12-2008, 09:22 AM
I hope it happens BUT I hope that we dont go too much in debt to do it.

RuthlessBurgher
09-12-2008, 09:33 AM
If he only had to buy out 2 of his brothers, that would only be about $320 million, giving him 48% ownership overall, instead of spending in the neighborhood of $640 million to get 80% ownership overall. Hopefully Art Jr. and John decide to divest themselves of any gambling interests to make this possible. Dan may have to offer his brother Art a regular job with the team to appease him, after unceremoniously firing him in the late 80's, because his drafts throughout the 1980's were living up to his great drafts of the 1970's. Obviously, it wouldn't be in a player personnel role like it was in the past, but if Art Jr. was more involved in the team in some other front office position, he might be willing to stay on.

SteelerNation1
09-12-2008, 09:38 AM
I hope it happens BUT I hope that we dont go too much in debt to do it.
This is what scares the F out of me!

rpmpit
09-12-2008, 09:41 AM
It may be a bit premature to celebrate, but this is definitely good news.

Oviedo
09-12-2008, 10:22 AM
I hope it happens BUT I hope that we dont go too much in debt to do it.
This is what scares the F out of me!

Putting $320M in debt on the backs of the franchise is not a good thing just to have the Rooney nameplate on the door.

Money will be diverting from operations to pay the debt when there was none before. The Rooney's have no new markets or methods to increase revenue intake aside from raising ticket prices. They get the same amount of money from the league as everyone else so how is there any positive to going $320M into debt. How could this possibly be good?

ANPSTEEL
09-12-2008, 12:20 PM
I hope it happens BUT I hope that we dont go too much in debt to do it.
This is what scares the F out of me!

Putting $320M in debt on the backs of the franchise is not a good thing just to have the Rooney nameplate on the door.

Money will be diverting from operations to pay the debt when there was none before. The Rooney's have no new markets or methods to increase revenue intake aside from raising ticket prices. They get the same amount of money from the league as everyone else so how is there any positive to going $320M into debt. How could this possibly be good?

I agree with you completely-

how thinking that, adding between $320mil - $640mil in debt is a good thing- amazes me.

the cost of just servicing this debt would likely run between $2.5mil - $2.75mil p/month - on just $320mil.

So- if i have my understanding of 'operating income' correct- the servicing of this debt, alone, would eat almost all profits.

How could a small market team, with ownership that relies almost solely on the team for income- survive, when strapped with so much debt???

RuthlessBurgher
09-12-2008, 12:28 PM
There are still other investors involved in Dan's group to buy out his brothers, so he is not just going to the bank and taking out a $320 million loan. He only needs a 30% share himself to maintain ownership, and he has 16% already.

Oviedo
09-12-2008, 12:33 PM
I hope it happens BUT I hope that we dont go too much in debt to do it.
This is what scares the F out of me!

Putting $320M in debt on the backs of the franchise is not a good thing just to have the Rooney nameplate on the door.

Money will be diverting from operations to pay the debt when there was none before. The Rooney's have no new markets or methods to increase revenue intake aside from raising ticket prices. They get the same amount of money from the league as everyone else so how is there any positive to going $320M into debt. How could this possibly be good?

I agree with you completely-

how thinking that, adding between $320mil - $640mil in debt is a good thing- amazes me.

the cost of just servicing this debt would likely run between $2.5mil - $2.75mil p/month - on just $320mil.

So- if i have my understanding of 'operating income' correct- the servicing of this debt, alone, would eat almost all profits.

How could a small market team, with ownership that relies almost solely on the team for income- survive, when strapped with so much debt???

Good to see someone else understands basic economics. The Steelers are a business not a public trust or government agency. Monetary in takes and outputs matter. It is unfortunate that this is all being brought about by the stupid NFL rule on gambling on things that have nothing to do with football.

We will see a negative impact on this team in the future if this happens so enjoy them now. I would prefer Druckenmiller's billions anyday.

NC Steeler Fan
09-12-2008, 01:01 PM
Agreed on the concern about taking on a significant level of debt;
however, I have to think that the Rooney's have already put in place
plans for enhancing revenue to service it.

They aren't going to fight so hard to keep the team just to lose it
to a group of debt-holders or poor overall team performance.

Oviedo
09-12-2008, 01:12 PM
Agreed on the concern about taking on a significant level of debt;
however, I have to think that the Rooney's have already put in place
plans for enhancing revenue to service it.

They aren't going to fight so hard to keep the team just to lose it
to a group of debt-holders or poor overall team performance.

I think that the only thing that the Steelers have control over of is tickets and maybe concessions at Heinz Field.

If I'm not mistaken merchandising and TV which are the other big revennue generators are controlled by the NFL.

I really doubt there are sources of new revenue that the Rooney's have just been ignoring.

Eddie Spaghetti
09-12-2008, 05:25 PM
a couple of observations.

first, i am surprised this topic doesn't generate more heat. i feel like this is one of the biggest moves in franchise history and i am 40 years old. i am in the SD camp because i believe strapping this much debt onto the back of the pittsburgh rooneys hurts the pittsburgh steelers. oviedo says it much better than i do.

second, i don't like the way roger goodell has handled this. his heavy handed move in NY was an outrage. he basically sent a message to the brothers that the NFL could block a sale to an outsider. talk about screwing up a deal. has that ever been done before? do you think robert krafts lapdog is looking out for the best interests of the steelers? every day this SOB stays in office the angrier i get. he is in over his head and has shown a bias towards certain franchises. now he is forcing the rooney brothers hand, and some of you people appaud it. screw him and the limo he rode in on.

rant off.

RuthlessBurgher
09-12-2008, 08:54 PM
a couple of observations.

first, i am surprised this topic doesn't generate more heat. i feel like this is one of the biggest moves in franchise history and i am 40 years old. i am in the SD camp because i believe strapping this much debt onto the back of the pittsburgh rooneys hurts the pittsburgh steelers. oviedo says it much better than i do.

second, i don't like the way roger goodell has handled this. his heavy handed move in NY was an outrage. he basically sent a message to the brothers that the NFL could block a sale to an outsider. talk about screwing up a deal. has that ever been done before? do you think robert krafts lapdog is looking out for the best interests of the steelers? every day this SOB stays in office the angrier i get. he is in over his head and has shown a bias towards certain franchises. now he is forcing the rooney brothers hand, and some of you people appaud it. screw him and the limo he rode in on.

rant off.

For years, Rooney has put the best interest of the league ahead of lining his own pockets (that is why he has garnered the respect of the other owners while guys like Jerry Jones, Daniel Snyder, and Al Davis have not). He's helped the NFL in numerous ways over the years, so now the NFL is helping him out.

Druckenmiller might be a quality owner, or his might be another Jones or Snyder, a billionaire outsider who comes in thinking they are smarter than their football people just because they are outrageously successful businessmen. Although Stan would have deeper pockets, that is not necessarily what it takes to win consistently in this day and age.

Rooney has shown he knows how to run a consistent winner in the past decade-and-a-half of the salary cap era after building what many consider to be the best NFL dynasty in a previous generation. I know what we have now, and I like what we have now. I have no idea what Druckenmiller would bring...might be great, but he also might screw things up royally.

I guess what it boils down to for me is..."You don't know what you got 'til it's gone."

Ozey74
09-12-2008, 09:03 PM
Anything other than Dan Rooney calling the shots is a spooky thought to me. Even if the the Rooney's retain ownership, I hope whatever Rooney heir ends up in charge (in the long term future) can run things the way that Dan and Art Sr did.

If this person is Art Jr., who can say for sure things can be ran the "Steeler Way" if he is calling the shots. Hasn't Dan always had the "last word".

With all due respect to Dan, he is in his mid-70's and he wont be at the helm forever.

:tt2

RuthlessBurgher
09-12-2008, 09:26 PM
Anything other than Dan Rooney calling the shots is a spooky thought to me. Even if the the Rooney's retain ownership, I hope whatever Rooney heir ends up in charge (in the long term future) can run things the way that Dan and Art Sr did.

If this person is Art Jr., who can say for sure things can be ran the "Steeler Way" if he is calling the shots. Hasn't Dan always had the "last word".

With all due respect to Dan, he is in his mid-70's and he wont be at the helm forever.

:tt2

If this goes through, Dan's son Art II (not his brother Art Jr.) will be in charge. Actually, Art II already has the title of Team President now. Dan remains a Chairman, though, and does represent the team at many league functions, but Art II has the one steering the ship for this team since 2003 (similar to how Dan was President throughout the 70's and 80's, while the Chief was the Chairman during that time).

Ozey74
09-12-2008, 09:58 PM
Anything other than Dan Rooney calling the shots is a spooky thought to me. Even if the the Rooney's retain ownership, I hope whatever Rooney heir ends up in charge (in the long term future) can run things the way that Dan and Art Sr did.

If this person is Art Jr., who can say for sure things can be ran the "Steeler Way" if he is calling the shots. Hasn't Dan always had the "last word".

With all due respect to Dan, he is in his mid-70's and he wont be at the helm forever.

:tt2

If this goes through, Dan's son Art II (not his brother Art Jr.) will be in charge. Actually, Art II already has the title of Team President now. Dan remains a Chairman, though, and does represent the team at many league functions, but Art II has the one steering the ship for this team since 2003 (similar to how Dan was President throughout the 70's and 80's, while the Chief was the Chairman during that time).

Thanks for the correction!

:tt2