Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, June 12, 1993 TAG: 9306120081
SECTION: SPORTS PAGE: B1 EDITION: STATE
SOURCE: Associated Press
DATELINE: BALTIMORE LENGTH: Medium
The agreement, filed by attorneys for Orioles owner Eli Jacobs, would be the largest sum ever paid for a baseball team, topping the $125 8million paid last year for the Seattle Mariners.
The bid must be approved by the bankruptcy judge, who can reject the terms or turn to other bidders in an effort to satisfy the needs of Jacobs' creditors.
Four other groups have expressed an interest in buying the team. They have until July 15 to file a bid with Judge Cornelius Blackshear.
The figure of nearly $141.3 million in cash comes before calculating interest and other costs, which should have the effect of increasing the final sale price to as much as $150 million.
For instance, the DeWitt investors have agreed to pay for certain signing bonuses for the 1993 season. The buyers also must assume deferred player salaries and bonus payments.
According to terms of the 58-page contract, DeWitt's group would receive between $750,000 and $3.25 million if his deal fails to go through. Therefore, it was expected the court would only consider higher offers by third parties that exceed the adjusted sale price by at least $2 million.
"Not only are we prepared to match it, but prepared to beat it," said Peter Angelos, a Baltimore attorney who heads a group of investors that includes author Tom Clancy and movie director Barry Levinson.
Angelos, however, was miffed at the fee promised to DeWitt if the deal failed to materialize.
"I'm not surprised at the $141.3 million price tag. But I am very surprised at the size of the termination fee," he said. "What they've done is built in a $3 million obstacle."
Angelos said his group still has some work to do before it can make its bid for purchase of the team.
"We have not completed our effort to review all the financial information of the ballclub. That should take another seven days," he said.
"We are prepared to bid a higher number than Mr. DeWitt - even if that number is around $150 million," Angelos said.
The value of the team rose last year when the Orioles moved into their new ballpark at Camden Yards. Sellouts became a nightly occurrence - the team sold out its last 59 games of the 1992 season - and profits were estimated to be between $15 million and $22 million.
Jacobs, who bought the team in 1989, said, "I am proud of the Orioles and believe the club and the community have benefited enormously by the new ball park which we helped build for the team.
"I am also pleased that the DeWitt ... group will be committed as I have been to rebuilding this great sports franchise and retaining its home in Baltimore at Oriole Park at Camden Yards."
DeWitt said his group would keep things pretty much keep things as they are.
"I don't look for wholesale changes or anything like that," he told WBAL radio. "We have spoken to Larry Lucchino about staying on as CEO and president of the club . . . and making a substantial equity investment in the franchise."
Keywords:
BASEBALL
by CNB