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06-19-2006, 02:09 PM
Jerry Green bids for Royals
Kansas City Business Journal - September 19, 1997by Brian KaberlineStaff Writer
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An investment group led by area banker Jerry Green says it wants to purchase the Kansas City Royals. Thus far, team officials have refused to deal with Green's group. Green, chairman of Union Bank, said this week he represents a group that has the financial ability to buy the team and a firm desire that it remain in Kansas City. Green declined to identify members of the investor group, but said the principal investor already has been deemed qualified to purchase a team by Major League Baseball owners and the money to pull off the deal.
"It's for real. I know from the bank he has the funds. In fact, my major principal investor could pay for it without asking anybody for money."
But while Green's group is interested in the Royals, he said the team has shown little interest in talking. He said the Royals board of directors has refused to either meet with him or allow his group access to the team's books as part of due diligence. Green said he went public with the investor group's intentions in an attempt to force the team to respond.
Royals General Mananger Herk Robinson said he was unaware of Green's group. He said the team has a "process" for handling the sale of the Royals, but the board of directors has made no decision on when that process will begin.
Robinson referred specific questions on the board's process for selling the team to Royals President Mike Herman, who could not be reached for comment. Likewise, the team's general counsel, Jay Newcom of Shook Hardy & Bacon, could not be reached for comment.
Lawyers for the team worked many months to win Internal Revenue Service approval of a play by former Royals owner Ewing Kauffman to keep the team in Kansas City after his death. Upon his death in 1993, Kauffman left the team to charity in the form of the Greater Kansas City Community Foundation and Affiliated Trusts.
The plan calls for the team to be sold, with purchase proceeds to be distributed to charitable organizations. Bidders promising to keep the club in Kansas City would have an advantage through the first six years of the plan -- now in its third year. If no such bidder buys the team, it would be thrown open to those who would move the team to another market.
IRS lawyers haven't been the only ones with questions about how the sale is to be handled. Former Royals All-Star George Brett, now a vice president with the team, expressed interest in putting together a bid for the team in 1995. Brett's interest was rebuffed by the five-member board overseeing the Royals. No firm reason was given for the move other than comments that the team's value might later increase due to a lower team payroll and hoped-for increases in attendance.
David Glass, Royals CEO and CEO of Wal-Mart Stores Inc., has been seen as a likely bidder for the team once its financial condition improved. In the past, Glass has said he will step down from his post with the Royals once bidding for the team begins.
Green, a longtime Royals season ticketholder, said he began to fear the prospect that no suitable bidder could be found that would promise to keep the team in Kansas City. So about three months ago, he said he began to explore the idea of putting together his own investor group.
He said he contacted a "major money center bank," which identified his group's main investor. After talking with the investor, Green said he approached Newcom about setting up a meeting with the Royals board of directors.
Kansas City Business Journal - September 19, 1997by Brian KaberlineStaff Writer
Print this Article Email this Article Reprints RSS Feeds Most Viewed Most Emailed
An investment group led by area banker Jerry Green says it wants to purchase the Kansas City Royals. Thus far, team officials have refused to deal with Green's group. Green, chairman of Union Bank, said this week he represents a group that has the financial ability to buy the team and a firm desire that it remain in Kansas City. Green declined to identify members of the investor group, but said the principal investor already has been deemed qualified to purchase a team by Major League Baseball owners and the money to pull off the deal.
"It's for real. I know from the bank he has the funds. In fact, my major principal investor could pay for it without asking anybody for money."
But while Green's group is interested in the Royals, he said the team has shown little interest in talking. He said the Royals board of directors has refused to either meet with him or allow his group access to the team's books as part of due diligence. Green said he went public with the investor group's intentions in an attempt to force the team to respond.
Royals General Mananger Herk Robinson said he was unaware of Green's group. He said the team has a "process" for handling the sale of the Royals, but the board of directors has made no decision on when that process will begin.
Robinson referred specific questions on the board's process for selling the team to Royals President Mike Herman, who could not be reached for comment. Likewise, the team's general counsel, Jay Newcom of Shook Hardy & Bacon, could not be reached for comment.
Lawyers for the team worked many months to win Internal Revenue Service approval of a play by former Royals owner Ewing Kauffman to keep the team in Kansas City after his death. Upon his death in 1993, Kauffman left the team to charity in the form of the Greater Kansas City Community Foundation and Affiliated Trusts.
The plan calls for the team to be sold, with purchase proceeds to be distributed to charitable organizations. Bidders promising to keep the club in Kansas City would have an advantage through the first six years of the plan -- now in its third year. If no such bidder buys the team, it would be thrown open to those who would move the team to another market.
IRS lawyers haven't been the only ones with questions about how the sale is to be handled. Former Royals All-Star George Brett, now a vice president with the team, expressed interest in putting together a bid for the team in 1995. Brett's interest was rebuffed by the five-member board overseeing the Royals. No firm reason was given for the move other than comments that the team's value might later increase due to a lower team payroll and hoped-for increases in attendance.
David Glass, Royals CEO and CEO of Wal-Mart Stores Inc., has been seen as a likely bidder for the team once its financial condition improved. In the past, Glass has said he will step down from his post with the Royals once bidding for the team begins.
Green, a longtime Royals season ticketholder, said he began to fear the prospect that no suitable bidder could be found that would promise to keep the team in Kansas City. So about three months ago, he said he began to explore the idea of putting together his own investor group.
He said he contacted a "major money center bank," which identified his group's main investor. After talking with the investor, Green said he approached Newcom about setting up a meeting with the Royals board of directors.