Marge Schott To Sell Reds
Marge Schott signed a $67 million deal today to sell controlling interest in the Cincinnati Reds to a group headed by Carl Lindner, currently one of the team's limited partners.
Schott, 70, owns 6 ½ of the 15 shares in the team's partnership, including the shares that make her the general partner. She agreed to sell 5 ½ of her shares, including the general partner shares, to Lindner and two other limited partners.
The deal, in which 36.6 percent of the Reds' shares would change hands, values the franchise at about $182 million. The sale is subject to the approval of major league owners, a process that usually takes 6-15 months but might move faster in the case because the purchasers already are in the partnership.
General manager Jim Bowden called it "a great day for Cincinnati baseball." He also said he and managing executive John Allen will remain in place.
Bowden said that Lindner, who owns the Great American Insurance Co., played a pivotal role in getting him an extension as general manager last year.
Schott, who will remain on as a limited partner, was ordered by baseball officials last year to sell her controlling interest or face an extension of what amounts to a suspension from most of the team's operations.
Although details of the sale weren't disclosed, a source familiar with the talks, speaking on the condition he not be identified, said Schott would get to keep a luxury suite, an office at the stadium and a group of seats.
However, major league baseball has the right to delete those provisions and is expected to prevent her from keeping an office at the stadium.
The agreement completes four months of meandering attempts by Schott to sell her controlling interest in the team. She reached an agreement with Larry Dolan, the brother of Cablevision Systems Corp.'s chairman, to sell for $65 million in February, then tried to back out and sell to a group led by her cousin, Steve, for $67 million.
Lindner and the two other limited partners, George Strike and William Reik, sued Schott last week in Hamilton County Common Pleas Court. The limited partners said she was denying them their contractual right to match the Dolan offer and buy her out.
A judge granted the limited partners a temporary restraining order last Friday, putting more pressure on Schott to reach a deal.
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