By SCOTT CARTER and CARTER GADDIS The Tampa Tribune Published: Aug 14, 2001
ST. PETERSBURG - The Devil Rays on Monday followed through on their April announcement of exploring a possible sale of the franchise by hiring investment banking firm JP Morgan. However, that does not mean a sale is imminent.
"All of the emotional and legal ties that bind us to our community and our market are still strongly in place," said Rays Chief Operating Officer John McHale, who was not involved in the negotiations to hire JP Morgan. "This is simply something the partnership announced before I got here. This is what they said they were going to do."
In April, Managing General Partner Vince Naimoli announced he was taking a lesser role with the team, that a COO - McHale was hired in May - would be hired and that the team's ownership group was seeking to hire an investment banking firm to explore selling the team.
In a statement released Monday, Naimoli said the Rays "do not anticipate reaching any conclusions regarding this process until well after the end of the regular season."
JP Morgan is a heavy hitter in selling major-league franchises, handling the sales of the Kansas City Royals, St. Louis Cardinals and Baltimore Orioles in the past.
McHale, who told season ticket holders that he thinks Tampa Bay remains a good baseball market during a question-and-answer session Saturday, said the latest development should not come as a big surprise.
"I don't think the significance is any more or less than the partnership doing what they said they were going to do," McHale said. "They have engaged a very, very good [investment firm] with a lot of major-league experience."
The Rays general partners, who collectively own controlling interest, would have to agree to any sale. If they do, two-thirds of baseball's 30 owners would have to approve before the sale would be complete. Naimoli's partners include Chris Sullivan, Bob Basham, Mark Bostick, Daniel M. Doyle Sr. and the Griffin Family Trust.
The Tampa Bay Devil Rays hired J.P. Morgan Chase and Co. to explore the possible sale of the troubled Major League Baseball franchise, the team said in a press release. The Devil Rays, who have the worst record in the major leagues at 42-77, said they have been talking with investment bankers about the future of the franchise since April. That and this report from Bloomberg News' Dan Bollerman
Vince Naimoli, the Devil Rays chairman, said he didn't expect to make a decision on selling the team until after the end of the regular season. He said he hoped the team would stay in the Tampa/St. Petersburg area.
Naimoli stepped down as the team's managing general partner in April. Naimoli brought the expansion franchise to Florida in 1995 and it began play in 1998.
The team hired John McHale as chief operating officer in late May to replace Naimoli in charge of its day-to-day operations.
The New York Times reported in late April that Naimoli lost a power struggle with his five partners. The newspaper, citing a person involved in the Tampa Bay partnership, said the group reached agreement with MLB on a plan to depose Naimoli and pursue the sale of the club.
The team's other general partners are Chris Sullivan and Robert Basham, co-founders of Outback Steakhouse Inc., Florida businessmen Mark Bostick and Daniel Doyle Sr., and the Griffin Family Trust.
Tampa Bay's attendance fell from 2.5 million in their inaugural season of 1998 to 1.5 million in 2000. The Devil Rays have failed to win more than 69 games in each of their first three seasons.
Manager Larry Rothschild was fired and replaced with bench coach Hal McRae on April 18 after the team began the season 4-10.
J.P. Morgan has conducted the sales of major-league teams in Kansas City, St. Louis and Baltimore. (source Bloomberg News' Dan Bollerman)
-New Yorker Did you really think that Hoboken was the birthplace of Base Ball?
Posts: 1025 | Location: New York City | Registered: February 05, 2001
But what would you expect the city to say, really?
quote:
St. Pete Not Sweating Rays' Action
By GARY HABER ghaber@tampatrib.com Published: Aug 15, 2001
ST PETERSBURG - On Monday, the Devil Rays announced the team had hired New York investment banking firm JP Morgan to explore "strategic alternatives," including the team's possible sale.
On Tuesday, St. Petersburg officials said they don't see the move as the first step in the team's departure.
"Frankly, we're not too worried about it," said Ron Barton, director of the city's Economic Development Department.
"It's a concern, but it's not a pressing, front-burner concern right now," said Jay Lasita, vice chairman of the St. Petersburg City Council. "To dismiss it, however, would be naive."
Both cite the team's long-term lease at Tropicana Field, which runs through 2027, as something that ties the Rays to the city for a long time.
Barton added that Monday's announcement was expected. Rays' managing general partner Vince Naimoli had announced at an April 27 news conference that the team would hire an investment banker. No firm was identified at the time.
On Tuesday, Rays officials would not elaborate on JP Morgan's role, which could range from assessing the team's worth to securing buyers for all or part of the team.
Chris Sullivan - a Rays partner and chairman and chief executive of Outback Steakhouse Inc. - referred calls to John McHale Jr., the team's chief operating officer.
McHale said he "could not go beyond the language of the announcement."
William deJonge, a managing director at JP Morgan, did not return phone calls. His name and telephone number were included in the team's press release as the Morgan contact person.
JP Morgan is no stranger to the sports finance business. It is among a handful of firms that advise professional sports franchises in financial matters. Its clients have included the Kansas City Royals, Baltimore Orioles and St. Louis Cardinals baseball teams.
Anheuser-Busch retained JP Morgan to appraise the team when it sold the Cardinals in 1996 to a group that includes Frederick Hanser, the team's chairman.
It is "a reputable, well-respected firm," Hanser said. The team's owners also have engaged JP Morgan in connection with a possible new ballpark for the Cardinals.
If the Devil Rays are put up for sale, the team could fetch $130 million to $250 million, sports business experts said.
Of 30 Major League Baseball teams, only the Boston Red Sox are officially up for sale.
"I think this is an extremely attractive franchise in terms of the demographics," said Sal Galatioto, a managing director and head of the sports advisory practice at Lehman Brothers in New York. "There should be a lot of interested buyers."
Reporter Gary Haber can be reached at (813) 259-7919.
Sure, but I bet the "interested buyers" all live in DC....
-New Yorker Did you really think that Hoboken was the birthplace of Base Ball?
Posts: 1025 | Location: New York City | Registered: February 05, 2001
Lets hope all the buyers do live in DC, I think getting the D-Rays in DC helps PDX by locking up the DC/NOVA market for teams like the Expos etc., that can only help PDX because the D-Rays were a real long shot to move here.
Posts: 2235 | Location: vancouver, wa | Registered: January 03, 2001
A great scenerio for PDX would be DC guys buy the team but decide that they will not pay 100% of the new parks cost in DC and the city will not make up the difference so they are forced to go make a deal with the NOVA group to use Virginia money to help build a park in NOVA thus taking the Virginia money that otherwise may get used for an effort in Norfolk. That scenerio eliminates TWO competitors for PDX
Posts: 2235 | Location: vancouver, wa | Registered: January 03, 2001
I just can't see MLB allowing two teams to relocate to Virginia. Two new clubs competing for the corporate dollars and fanbase in the same region? No way in heck.
A team in DC means no team in Norfolk. End of story.
-New Yorker Did you really think that Hoboken was the birthplace of Base Ball?
Posts: 1025 | Location: New York City | Registered: February 05, 2001
NYer, I think you misunderstand. Dean is hoping the DC guys buy the team but build the stadium in NoVa--using Virginia state money--so that the Norfolk folks won't have any state money for a ballpark.
But I don't believe we'll have to worry about Norfolk either way. Spark may argue otherwise, but I think Hampton Roads is a distant sixth or seventh in the MLB sweepstakes.
Now if Norfolk can get state money to build aan NBA arena, that helps us even more.
Portland in the National League.
Posts: 2387 | Location: Newberg, once again | Registered: December 29, 2000
Yes Matt you are correct, Matt that is what I meant, NY misunderstood me. I hope DC gets the rays but the city will not help build a new park for them and the DC group has to agree to locate the team in NOVA to get the Virginia state money for a park thus taking away that money that could potentially be used for a park in Norfolk, one less competitor for us and DC is also then out of the mix for teams like the Expos that I find more likely to move here than the D-Rays
Posts: 2235 | Location: vancouver, wa | Registered: January 03, 2001
Sorry, I understood you prefectlty. I just misspoke (mistyped?). I meant to say "I just can't see MLB allowing two teams to relocate to the Virginia area."
A team in DC means no team in Norfolk, regardless of where the money for the team's park comes from.
You needn't root for Northern Virginia in order to secure the way for PDX. Barracking for DC will do nicely. If the District gets a franchise, then there is no way at all that Norfolk will or could be considered.
-New Yorker Did you really think that Hoboken was the birthplace of Base Ball?
Posts: 1025 | Location: New York City | Registered: February 05, 2001
If Washington DC gets a team, why does that automatically eliminate Hampton Roads? According to my trusty Rand McNally atlas, DC and Norfolk are 196 miles apart -- further than Seattle to Portland. They are two entirely separate markets. If a team is based in downtown DC, I doubt Virginia is going to give them any money. There may be other reasons why Hampton Roads is down the line for MLB, but being a part of Washington's market ain't one of 'em!
Posts: 3729 | Location: Newberg, OR, USA | Registered: January 10, 2001
Thats why BC i would prefer that the DC group be forced to take the Virginia state money for a park and build in NOVA,that would use up the Virginia funds so no state help for Norfolk, anything that aids our cause I am for!
Posts: 2235 | Location: vancouver, wa | Registered: January 03, 2001
Did you really think that Hoboken was the birthplace of Base Ball?
