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Thread: Druckenmiller Drops Out

  1. #11
    Pro Bowler Flasteel's Avatar
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    Re: Druckenmiller Drops Out

    Quote Originally Posted by NKySteeler
    Quote Originally Posted by RuthlessBurgher
    If he truly is the Steeler fan that he claims to be, he would agree to become a hands-off minority investor (like the McGinleys) that would help Dan finance the sale without absorbing a massive amount of debt.
    Yes, but he would be doing it out of pure "fandom"... The McGinleys were in it due to marriage, and family. While Barney NcGinley was a boxing promoter involved with Art Sr. (and future part-owner), his son, Jack, married Art Sr.s' sister Marie... SD has no other ties other than pure "fandom". Would it be enough?
    What fan, provided they have the cash flow, wouldn't jump at the chance to be any part owner of their team, especially this team. Besides the potential return on his investment and legacy to his children, I'm sure there are other perks even Stanley would appreciate.



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  2. #12
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    Re: Druckenmiller Drops Out

    Quote Originally Posted by Flasteel
    What fan, provided they have the cash flow, wouldn't jump at the chance to be any part owner of their team, especially this team. Besides the potential return on his investment and legacy to his children, I'm sure there are other perks even Stanley would appreciate.
    It is definitely an interesting concept. Guess we'll just have to wait and see how it pans out... If he could be the type to remain "hands-off" while the Rooneys retain majority, I'd be all for it.

  3. #13
    Hall of Famer costanza2k1's Avatar
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    Re: Druckenmiller Drops Out

    Wuss...

    If the man couldn't pursue what he wanted with all that he had then he didn't deserve to be the owner.
    ours is not to wonder why just invert and multiply...

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    Re: Druckenmiller Drops Out

    Quote Originally Posted by NKySteeler
    Quote Originally Posted by RuthlessBurgher
    If he truly is the Steeler fan that he claims to be, he would agree to become a hands-off minority investor (like the McGinleys) that would help Dan finance the sale without absorbing a massive amount of debt.
    Yes, but he would be doing it out of pure "fandom"... The McGinleys were in it due to marriage, and family. While Barney NcGinley was a boxing promoter involved with Art Sr. (and future part-owner), his son, Jack, married Art Sr.s' sister Marie... SD has no other ties other than pure "fandom". Would it be enough?
    In this era of a housing crisis in which major insurance companies are going belly up, you want to put your money in a solid investment. Who ever heard of an NFL franchise losing value? Even the most poorly run organizations like the Lions, Bengals, and Cardinals are worth increasingly more money year after year when the Forbes estimates come out, and he would be investing in perhaps the most stable franchise of them all.

    We all know that the Steelers were started with $2500 in 1933 and are worth about a cool billion 75 years later. That an increase of 400,000 times the original investment! Kind of an extreme example, I know. To give a more applicable modern example, Jerry Jones bought the Cowboys in 1989 for $150 million. The estimated worth of that franchise now is $1.5 billion. How can you even comprehend an investment that increases 10 times in value in less than 20 years with no real risk of collapse? The NFL is as stable an investment as you are going to find these days. He can plunk down several hundred million now for a minority ownership stake and just watch the overall value of that investment just grow and grow as the years roll on. His own personal fandom is the icing on the cake.

  5. #15
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    Re: Druckenmiller Drops Out

    Druckenmiller would have been the ideal "angel investor." I hope the Rooney don't cut off their noses (and the organizations) to spite their faces just to keep the Rooney name at the top of the organization chart.
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    Re: Druckenmiller Drops Out

    Quote Originally Posted by Oviedo
    Druckenmiller would have been the ideal "angel investor." I hope the Rooney don't cut off their noses (and the organizations) to spite their faces just to keep the Rooney name at the top of the organization chart.
    Ov,
    We're on the same page. This is very concerning IMO
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    Re: Druckenmiller Drops Out

    Am I the only one who's concerned about this? Druckenmiller would have (hopefully) kept the team in Pittsburgh. Rooney is not getting any younger, his time with the team is short. And what other brother would be interested in running them, let alone competent enough to do it?

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    Re: Druckenmiller Drops Out

    Quote Originally Posted by SteelTorch
    Am I the only one who's concerned about this? Druckenmiller would have (hopefully) kept the team in Pittsburgh. Rooney is not getting any younger, his time with the team is short. And what other brother would be interested in running them, let alone competent enough to do it?
    I repeated have stated the same concerns. Druckenmiller doesn't have to worry about money because he is insane rich. His sources of income are none NFL related. The Rooney's only source of income is the Steelers. They have to tap the Steeler revenue streams to pay all the bills including their own incomes. Adding debt into that equation is very bad. Here is one possible result: We can never spend to the salary cap because about $10M per year will have to be diverted to service the debt and interest on that debt. That will probably come out of the operating budget. If you think we haven't been a player in free agency in the past, just wait.

    Bad move on the part of the Rooneys.
    Playing Fantasy Football does not qualify you to be the in the front office or on the coaching staff of the Pittsburgh Steelers. They are professionals and you are not!

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    Legend RuthlessBurgher's Avatar
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    Re: Druckenmiller Drops Out

    Quote Originally Posted by SteelTorch
    Am I the only one who's concerned about this? Druckenmiller would have (hopefully) kept the team in Pittsburgh. Rooney is not getting any younger, his time with the team is short. And what other brother would be interested in running them, let alone competent enough to do it?
    Dan's son Art II has been President of the Steelers since 2003. He's in his mid-50's. Dan, now in his mid-70's, has been the Chairman of the Steelers since then, representing the team at league functions, but his son Art II has been steering the ship regarding the day-to-day operations for the past 5 years.

    It is similar to how Dan ran the team as President throughout the 70's and 80's while his father the Chief was Chairman during that time. The torch has been passed already. Dan's son is running the show. None of Dan's brothers will be involved.

  10. #20
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    Re: Druckenmiller Drops Out

    According to this ESPN article, Druckenmiller's offer to the 4 Rooney brothers was believed to be in the neighborhood of $550 million. Since those 4 brothers own 64% of the shares of a team whose value was estimated at roughly a billion dollars, you would think that they would be looking for $640 million. Perhaps it wasn't Dan who was low-balling his brothers...perhaps it was Druckenmiller who was giving a less than market value offer (albeit an everything up front in cash offer as opposed to Dan's payouts stretched out over several years).

    http://sports.espn.go.com/nfl/news/story?id=3596666

    Billionaire Druckenmiller withdraws offer to buy majority share of Steelers
    ESPN.com news services

    Updated: September 19, 2008, 9:38 AM ET

    PITTSBURGH -- A billionaire suitor withdrew his offer to buy a majority stake of the Pittsburgh Steelers on Thursday, saying the Rooney family needs more time to consider its options about the future ownership of the team.

    Stanley Druckenmiller issued a statement Thursday night saying he "removed himself from the process."

    The Pittsburgh Post-Gazette reported that Druckenmiller withdrew after he was informed by four of the five Rooney brothers that his offer for their shares, believed to be in the neighborhood of $550 million, would not be accepted.

    "Of course I'm disappointed," Druckenmiller told the Post-Gazette. "But those are their shares and they have every right to seek a higher price for them."

    Members of the Rooney family approached Druckenmiller seven months ago about buying their shares of the team to help resolve estate planning and NFL ownership matters, Druckenmiller said. Druckenmiller is the chairman of Pittsburgh-based Duquesne Capital Management and a Steelers season-ticket holder.

    At least three of the five Rooney brothers -- sons of team founder Art Rooney Sr. -- want to sell their equal shares. Managing partner Dan Rooney, who has run the team since the early 1970s, also owns only 16 percent himself.

    Druckenmiller said he made it clear throughout the discussions that if the family could resolve its problems internally, he would step away. He also said that if his bid succeeded, he would ask Dan Rooney and his son, Art Rooney II, to stay on as managing owner and team president, respectively, according to the Post-Gazette.

    "Based on recent developments, it has become clear that the Rooneys need substantial additional time to assess their options," Druckenmiller said in a statement. "I do not wish to complicate these efforts, and I also do not want the lingering uncertainty about my possible involvement to become a distraction to my business and my family."

    Earlier Thursday, Art Rooney Jr. -- one of the four brothers seeking a sale -- said he expected a deal to sell the shares will be done soon.

    "My feeling on that is, if you want to do something right, you don't want to do it on a timeline," he said. "Although these things do stretch on, I thought we'd have some kind of understanding by the preseason, and now we're coming up on the third game of the season and you don't want it to drag out."

    Rooney did not return messages seeking comment on Druckenmiller's withdrawal.

    At least three of the five Rooney brothers want to sell their equal shares in the team partly to avoid costly future inheritance taxes for their children and grandchildren. The McGinley family, cousins to the Rooneys, owns the other 20 percent and is reportedly not interested in selling shares.

    Dan Rooney and Art Rooney II are attempting to buy enough shares to be the primary owners. But their two previous offers are believed to be for less money than the other four Rooney brothers could sell for on the open market.

    But in a meeting with the Rooney family last month, NFL commissioner Roger Goodell reportedly indicated that the league strongly favors the family retaining control of the franchise. A sale would require the support of 24 of the NFL's 32 owners.

    The NFL has rules that restrict owners' involvement in gambling enterprises, and requires that one person own at least 30 percent of a team. Some of the brothers own shares of racetracks that now offer casino gaming.

    Dan Rooney and the Steelers have repeatedly refused comment on the negotiations.

    The four brothers have hired the investment firm Goldman Sachs Group Inc. to calculate the value of their shares, while Dan Rooney has turned to Morgan Stanley for guidance in the matter. Goldman Sachs estimates that one of the NFL's most successful franchises could be worth as much as $1.2 billion. Forbes earlier this month estimated the team's value at just over $1 billion.

    Art Rooney Jr. said his brothers are consulting their financial advisers on Thursday and again Friday.

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