Indians On The Auction Block

The Cleveland Indians, one of baseball's most successful franchises in the last five years, are for sale.

The team's board of directors hired two investment firms, Goldman Sachs Group Inc. and McDonald Investments Inc., to identify potential buyers for the franchise, owner Richard Jacobs said today.

Any deal would have to be approved by big league club owners.

Jacobs, team chairman, president, CEO and controlling stockholder for more than 12 years, said the board of directors had agreed it might be an appropriate time to consider a sale.

"Let's put it this way: I want to have a say in passing the torch. I don't want an executor of mine to say, 'Well, Jacobs, he has no hand from the grave, he can't do anything on this. Let's make up our decision, who should be the owner of this team,"' Jacobs said.

The 73-year-old Jacobs said he wants to make sure his club "is in good hands going forward."

The announcement comes at a time when the team could hardly be hotter. Cleveland leads the American League Central Division and has the best record in baseball at 24-9, the club's best start in 99 years.

At a news conference called at the ballpark named for him, Jacobs noted that the NFL's Washington Redskins recently sold for $800 million. That price includes Jack Kent Cooke Stadium and the Redskins' training facility. If approved by the NFL, that would be a record for any sports franchise.

"If the Redskins can command $800 million, the Indians should bask in that also," Jacobs said.

The Los Angeles Dodgers, the most recent baseball franchise to be sold, went last year to Rupert Murdoch's Fox Group for $350 million. That deal included real estate in Los Angeles, Vero Beach, Fla., and the Dominican Republic.

Jacobs said he doesn't expect a sale to close until after the season and didn't think it would affect the club's performance on the field.

Indians general manager John Hart agreed. The players "don't deal with Dick on a regular basis," he said.

Jacobs and his late brother, David, bought the struggling Indians franchise for $35 million on Dec. 9, 1986. The team endured five straight losing seasons through 1993 while the organization placed greater emphasis on player development and scouting.

In 1994, the Indians moved into Jacobs Field, a state-of-the-art ballpark, and have sold out 308 consecutive home games since early 1995. The team is obligated to play at Jacobs Field for the next 15 years, according to the terms of the lease.

The Indians won American League pennants in 1995 and 1997, and finished first in their division for the last four seasons. Cleveland's last World Series title was in 1948, when the Indians beat the Boston Braves in six games.

Net revenues for the Indians partnership in 1998 totaled $144.6 million. The company completed its initial public offering and began trading on the Nasdaq stock market on June 41998. The stock was sold initially at $15 a share but had a 52-week low of $5.38. The stock opened today at $14.75 and was selling at $15.75.

Jacobs, who has missed only five home games during his tenure as owner, said he wants to find a buyer who is committed to Cleveland.

"The intentions of any potential new owner are very important to me, because one of America's greatest baseball cities and its fans deserve committed ownership," he said.

Several local candidates emerged last year when the NFL's expansion Cleveland Browns were sold to billionaire banker Al Lerner for $530 million.

Among them were Cleveland area lawyer Larry Dolan and his brother Charles Dolan, chairman of Cablevision Systems, and Cleveland-area businessman Thomas Murdough, who briefly allied with Jacobs in a bid for the Browns.

"This team belongs to the community, and it has merely been entrusted to us to care for it for the past 12½ years," Jacobs said. "This is a very important decision that I believe will help to assure the continuing success of the team here in Cleveland."

On Wednesday, Abe Pollin announced he was selling his Washington Capitals of the NHL and a minority interest in the NBA's Washington Wizards.

The NFL's New York Jets are likely to go on the market following the death of owner Leon Hess. Estimates have put the team's value at $500 million.

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