View Full Version : Steelers suitor to get his answer by tomorrow

09-18-2008, 01:30 AM
Steelers suitor to get his answer by tomorrow
4 Rooney brothers may want new bids
Thursday, September 18, 2008
By Gerry Dulac and Ed Bouchette, Pittsburgh Post-Gazette

Even if four of the Rooney brothers decide not to sell each of their 16 percent shares in the Steelers franchise to New York billionaire Stanley Druckenmiller, it does not necessarily mean they are prepared or even willing to accept an offer made by their brother, Steelers chairman Dan Rooney, the Pittsburgh Post-Gazette has learned.

Sources who are intimately familiar with both sides of the ownership situation have indicated that the four Rooney brothers -- Tim, Patrick, John and Art Jr. -- might seek another outside bid in an attempt to gain even more money for their shares, a move that would cause Mr. Druckenmiller to withdraw his offer and further prolong a process that has been going on for two years.

Yesterday, a representative of the four Rooney brothers informed Mr. Druckenmiller, chairman of Pittsburgh-based Duquesne Capital Management, that the brothers are undecided if they want to accept his offer. However, the representative told him the brothers would likely give him an answer by tomorrow, keeping with an unofficial deadline issued by Mr. Druckenmiller six weeks ago.

The brothers are scheduled to vote today if they want to accept Mr. Druckenmiller's offer. Even if they decline his offer, the Rooney brothers might decide to seek another investor once a calamitous economy settles rather than accept the offer made by Dan Rooney and his son, Art II, the team president, according to the sources.

Such a move could also create a bigger problem for NFL commissioner Roger Goodell, whose strict guidelines prohibiting association with racetracks were the impetus for the restructuring of the Steelers ownership.

Mr. Goodell told the Steelers that anyone who has interest in racetracks and legalized gambling casinos cannot be involved in the ownership group.

That would involve at least three of the brothers: Tim, who operates Empire City at Yonkers (N.Y.) Raceway; and Patrick and John, who run the Palm Beach Kennel Club in West Palm Beach, Fla. Dan Rooney has divested his interest in the racetracks.

Mr. Goodell also wants at least one owner of a franchise to have at least 30 percent of their team's stock.

No timetable has been set by the league to resolve those issues. However, those guidelines are among the reasons Dan Rooney, who also owns a 16 percent share in the franchise, is seeking to gain at least 30 percent of the stock. The remaining 20 percent of the stock is owned by the family of the late Jack McGinley Sr.

Mr. Druckenmiller has offered an immediate cash payment to purchase the 64 percent shares owned by the four brothers and gain controlling stock interest in the franchise.

The offer was made nine months ago. He is not interested in being a minority partner, and sources have told the Post-Gazette he would immediately withdraw his offer if the Rooney brothers sought a bid other than the one being made by Dan Rooney.

While Mr. Druckenmiller's offer is not known, the Steelers franchise was recently valued at slightly more than $1 billion by Forbes Magazine -- a figure comparable to the $800 million to $1.2 billion estimated value placed on the franchise by Goldman Sachs, the Wall Street investment bank that is brokering the deal for the four Rooney brothers. Using a median price of $1 billion, that would place Mr. Druckenmiller's offer in the neighborhood of $640 million.

Dan Rooney has made two offers to his brothers, and his plan would require payments being spread over a number of years.
First published on Septemb

09-18-2008, 01:56 AM
Love the sig, FF!

09-18-2008, 02:09 AM
Love the sig, FF!

All thank's to AS