To: altair19 who wrote (72265 ) 7/18/2008 2:35:02 AM From: stockman_scott Respond to of 104155 Druckenmiller Would Run Steelers' Finances, Rooney the Team By Curtis Eichelberger July 17 (Bloomberg) -- Stanley Druckenmiller would insist on controlling the finances of the Pittsburgh Steelers with a purchase of a majority stake in the five-time Super Bowl champion, people familiar with the hedge-fund manager's plan said. He would let current Chairman Dan Rooney make day-to-day decisions. Druckenmiller, 55, chairman of Duquesne Capital Management LLC, is negotiating to buy 100 percent of the team, though would accept a deal with Rooney keeping 16 percent and the McGinley family, keeping its 20 percent, the people said. They requested anonymity because negotiations are private. Goldman Sachs valued the Steelers at $800 million to $1.2 billion last year, the Wall Street Journal reported. Druckenmiller, who founded his firm in Pittsburgh and is a Steelers fan, would allow Rooney to attend National Football League owners meetings, vote on league issues such as rule changes and manage the club while retaining veto power, the people said. ``No one who makes an investment of this size wants to forgo decision making,'' said David Carter, executive director of the Sports Business Institute at the University of Southern California. ``This is such an important franchise to the league, if it was perceived as a hostile takeover, it would undermine why he was getting involved in the first place. He could acquire a controlling stake a little at a time.'' Since 1933 The Rooneys founded the franchise in 1933 and have retained control throughout its history. The team won five championships -- including four from 1975-1980 -- and built a more loyal local following than any U.S. sports team, according to a study by the marketing company Turnkey Sports & Entertainment. The Rooney family declined to comment through spokesman Dave Lockett. Druckenmiller declined comment on how he would run the team. Dan Rooney and each of his four brothers own 16 percent of the franchise, and the McGinley family owns 20 percent. The four brothers have hired Goldman Sachs to sell their interests in the franchise. Rooney, 75, has said he wants his son, team President Art Rooney II, to take over when he retires. As controlling owner, Druckenmiller would have the right to fire the son and hire someone else or take it over himself. Rooney's Plan Rooney, the team's chairman, has offered a plan in which he would buy out part of the stakes held by his five co-owners: his brothers Art Jr., Timothy, Patrick and John and the McGinleys. The deal values the Steelers at $700 million, the Journal reported. Marc Ganis, president of SportsCorp Ltd., a Chicago-based sports consulting firm, said the NFL is working with Rooney to keep the team in his family. It's unlikely that Druckenmiller would assume control, he added. ``He might want to become controlling owner at some point in the future. It's possible, but I don't think it's very likely,'' Ganis said in an interview. ``The NFL has a lot of latitude in the rules it sets regarding the ownership debt ceiling and has shown flexibility particularly in estate matters.'' Ganis said Druckenmiller might be willing to buy an interest in the team, without becoming the controlling owner, regardless of how big a stake he takes in the team. Legacy, asset appreciation and family involvement provide tangible benefits, Ganis said. ``No one cheers the interest you make on your T-bills,'' Ganis said. ``You didn't get many pats on the back for earning big dividends on a stock acquisition. But holding the Super Bowl trophy over your head; now that's really something.'' That type of sharing agreement was reached in February 1991, when the late Loews Corp. Chairman Preston Robert Tisch purchased a 50 percent stake in the New York Giants for $75 million and assumed the position of chairman and co-chief executive officer of the team. Under the agreement, the Mara family retained the voting rights. Though the investor who has the voting right is deemed ``the owner'' by both the league and the public, most people thought of Tisch as a co-owner because of his unique and close relationship with Giants' patriarch Wellington Mara. To contact the reporter on this story: Curtis Eichelberger in Washington at ceichelberge@bloomberg.net Last Updated: July 17, 2008 13:01 EDT