49ers Discuss DeBartolo Situation
04:45 a.m. Dec 04, 1997 Eastern
SAN FRANCISCO (Reuters) -- San Francisco 49ers president Carmen Policy said
Wednesday owner Edward DeBartolo Jr. voluntarily relinquished control of team
operations because he did not want his possible indictment on gambling fraud
charges to become a ''distraction'' to the NFL franchise.
Policy also stated that the reported indictment of DeBartolo will in no way affect
the building of a new stadium for the team that the DeBartolo family intends to own
well into the next century.
''Mr. DeBartolo recognized the possibility that this was a distraction and voluntarily
stepped aside from managing the 49ers,'' said Policy at a news conference at San
Francisco's Santa Clara training facility. ''He wants to focus on what's ahead in
Louisiana and stepped down in respect and reverence for the best interests of the
franchise.''
DeBartolo officially removed himself from any role in club operations Tuesday amid
reports that he is among six individuals that will be indicted on gambling fraud
charges.
''We don't consider this an embarrassment to the organization, we consider this a
problem for a member of the 49ers,'' said Policy. ''You have to understand he has
not been indicted yet, and even if he is, there should be a presumption of innocence
in this country.''
The 49ers will be operated and managed by Policy. DeBartolo's sister, Denise
DeBartolo York, the chief executive officer of the Ohio-based DeBartolo
Corporation, was named 49ers chairman and CEO on Tuesday.
Policy, who also replaces DeBartolo as a team representative to the NFL, stated
adamantly that the reported indictment will not affect a politically controversial plan
by DeBartolo to build a $535 million stadium and a mall near Candlestick Point.
''Anything that has gone in Louisiana in no way is connected to the football stadium
project,'' said Policy. ''We continue to be in the process of finalizing financing plans
for the stadium project.
''There is nothing outside the normal pitfalls that would prevent bringing this venture
to completion. We have not run into any resistance from any of the financial
institutions (investing in the project).''
The Shreveport Times reported Tuesday that DeBartolo, former Governor of
Louisiana Edwin W. Edwards and at least four other individuals have received
so-called ''target letters'' from the U.S. Justice Department, notifying the recipient
of imminent indictment. The letter invites the person to testify before a grand jury
investigating the case in order to present evidence that could absolve them of any
wrongdoing.
The story also was reported in the Monroe News-Star (La.).
Policy was not pleased that the ''target letters'' were released at this time.
''The federal government does business by their schedules and I'm not criticizing
that,'' said Policy. ''But we wish the letters had not come out until much later, if at
all.''
The inclusion of DeBartolo on the list indicates the indictment could center on the
awarding of a gaming license by the state of Louisiana to a partnership that
included DeBartolo and Hollywood Casino Corporation.
DeBartolo withdrew from the project after the Louisiana State Gaming Control
Board demanded that he turn over documents he gave to a grand jury. According to
the Shreveport Times, those documents included an ''unexecuted agreement''
between DeBartolo and Stephen Edwards, the son of the governor and Louisiana
lawyer who has worked on various casino projects.
''The details are not subject to disclosure,'' said Policy of the reports.
DeBartolo and his family corporation are owners of Louisiana Downs Racetrack in
Bossier City, Louisiana. The newspapers reported that target letters also were sent
to Stephen Edwards, Roberty Guidry, Andrew Martin and Ricky Shelter.
NFL commissioner Paul Tagliabue confirmed in a statement Tuesday that the
league was aware of the grand jury investigation in Louisiana prior to Tuesday.
''Mr. DeBartolo and officials of the San Francisco 49ers made my office aware of
the steps announced (Tuesday) with respect to the restructuring of the club's
management and Mr. DeBartolo's decision to remove himself from any role in NFL
and club operations pending the resolution of the legal proceedings,'' stated
Tagliabue.
Policy said that the NFL was aware of the situation in Louisiana for at least a year.
''We formulated a plan to anticipate what the league and commissioner might want
to see done,'' said Policy. ''We thoroughly worked out the scenario and the business
plan.''
DeBartolo is not expected to be forced to sell the team, although the league does
have bylaws that allows it to force out owners who are deemed to have committed
conduct considered ''detrimental'' to the league.
Despite relinquishing control, Policy said DeBartolo will still watch 49ers home
games from his suite at 3Com Park.
''This morning he talked to the players and was very well received, somewhat
emotional, but controlled,'' said Policy. ''The family plans on owning the team well
into the next decade or century. The 49ers truly are his identity.''
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