***OT***
>With Kobi & Co. looking more and more like the '98 Yankees, it appears the only thing we have to fear is fear itself.<
fear this, NotSteinbrenner? Yankees to go public.
can't wait to read the S-1 disclosures. a highlight: "Several times per day, Mr. Steinbrenner routinely gorges himself on the HeartStopper, a pepperoni, sausage and extra cheese calzone. Such occurrences are subject to seasonality, arise frequently during October, and could result in a material adverse effect on our business, results of operations and financial condition, particularly in concessions."
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September 22, 1999
Yankees and Nets Closing in on Merger
By CHARLES V. BAGLI
New York Times
George Steinbrenner is expected to complete the merger of his Yankees with the Nets over the coming week, the first step in creating a regional sports and entertainment company and a financial windfall for the team owner.
The new holding company, which would be called the YankeeNets, would enable the teams to package the sale of local cable television rights, sponsorships, luxury suites and advertising and generate as much as $600 million a year in revenues, according to executives involved in the deal.
To achieve the 50-50 partnership in the YankeeNets, the owners of the Nets will pay Steinbrenner, the principal owner of the Yankees, and his partners $225 million, the difference in the value between the two teams, according to several people involved in the team.
The owners of the two teams are also considering selling stock in the YankeeNets to the public, a transaction that could yield another $500 million for Steinbrenner and his partners, even as they retain control and a majority stake in the Yankees and the Nets, according to sports analysts.
"I don't know if he planned this or stumbled into it," said Mark Ganis, president of Sportscorp Ltd., a sports consulting firm based in Chicago, "but George Steinbrenner is implementing a strategy that is nothing short of brilliant."
One partner in the deal said the YankeeNets were intent on creating a larger company through joint ventures and the possible acquisition of other teams, say the Jets football team and the New Jersey Devils hockey team.
"One objective is to expand beyond the Yankees and Nets into other sports, and possibly, entertainment companies," the partner said yesterday.
Howard Rubenstein, a spokesman for the teams, who will serve as one of 13 directors of the YankeeNets, confirmed that the long awaited merger was imminent, but he declined to provide any details.
"The deal is on track and pulling into the station," Rubenstein said.
The team owners will combine their ticket sales, promotions and marketing operations, while retaining autonomous control of each team. They are reportedly hiring Harvey Schiller, the president of Turner Sports who is close to Steinbrenner, to be the chief executive of YankeeNets, while Finn Wentworth, a co-owner of the Nets and a real estate developer, would serve as chief operating officer.
Lawyers for both teams are preparing final documents for the merger. One final hurdle is obtaining approval from Major League Baseball. Commissioner Bud Selig approved the first phase of the deal because there was no question in change of control of the Yankees. Now, apparently, that question has arisen and will require additional study by the commissioner's office.
"It's not done until it's approved by Major League Baseball," Rich Levin, a spokesman, said.
The National Basketball Association approved the deal earlier this month.
The YankeeNets will have two orders of business. Both teams are negotiating for new homes, the Nets in Newark and the Yankees, a new or refurbished stadium, probably in the Bronx.
The Yankees are also coming to the end of a 12-year, $486 million cable contract with Cablevision. Charles F. Dolan, the company's chief executive, tried to acquire the Yankees last year, but the negotiations collapsed before a deal could be struck.
More recently the YankeeNets have talked to Walt Disney Company's ESPN about creating a regional cable sports network. But they have not ruled out a deal with Cablevision, although Dolan already owns the Knicks and the Rangers and has reportedly offered $400 million for the Mets.
The Nets' cable contract with Fox Sports New York ends after the 2001-2 season.
"Either Dolan will pay a king's ransom to keep the Yankees and Nets on Cablevision, or the YankeeNets will do a deal with Disney or Time Warner creating a competing regional sports network," Ganis said. |
