Thread: Stan Kroenke announces he wants to buy 100 percent of Rams

http://www.globe-democrat.com/news/2...00-percent-ra/

Minority owner Stan Kroenke said Monday he wants to buy 100 percent of the St. Louis Rams.

Monday was the deadline by which Kroenke, who currently owns 40 percent of the team, had to announce whether he was going to exercise his right of first refusal to block the proposed sale of the remaining 60 percent of the team by Chip Rosenbloom and Lucia Rodriguez to Shahid Khan.

He had been expected to either simply retain his 40 percent stake in the team or sell his 40 percent share to Khan, because of the NFL’s rules against cross-ownership of pro sports franchises in competing cities.

Kroenke also owns the NBA’s Denver Nuggets and NHL’s Colorado Avalanche, and thus is prohibited by NFL rules from having a majority ownership in an NFL team other than the Denver Broncos.

Kroenke’s actions on Monday apparently means that he has decided to challenge the NFL rules or has decided to sell his franchises in Denver. An NFL spokesman has said in the past that even though the league has a good relationship with Kroenke, it did not expect to change its rules for any potential owner.

Kroenke was not available for comment, but released a statement through a personal spokesman indicating his intentions.

The statement read, “"We are pleased to announce that we have exercised our right to purchase

the remaining interest in the St. Louis Rams football team under the terms of our Partnership Agreement.

“We have enjoyed our involvement in the National Football League since our original expansion efforts beginning in 1993 and our subsequent 15-year partnership with the Rams.

“We look forward to working with the Rosenbloom family and the NFL. We will respect the league and its processes in our efforts to complete this transaction.”

In a statement released Monday night by the Rams, Rosenbloom said, "Today we received notice that Stan Kroenke has exercised his right of first refusal under the St. Louis Rams Partnership Agreement to purchase the Rosenbloom family's controlling interest in the team. We and our advisers will work with the National Football League as we move forward with the objective of completing a transaction for the sale of our interest in the Rams."

In a statement releasd through his spokesman, Khan said, "On Feb. 10, 2010, Chip Rosenbloom and Lucia Rodriguez granted me a great honor -- the opportunity to purchase the controlling interest in the St. Louis Rams that has been held by their family for 57 years. I entered into that agreement knowing that Mr. Kroenke could attempt to purchase that interest on the same terms. Earlier this evening, Stan advised me that he was going to pursue that opportunity.

"I have had the chance to get to know Stan over the past 60 days. As I told Stan during our conversation earlier this evening, I enjoy his company, admire his success in sports and certainly respect his right to try to purchase the Rosenbloom family's interest in the Rams.

"While the decision about ownership now rests in the hands of the NFL and its owners, my dedication to the league, the Rams, their fans and the St. Louis community is as strong as ever. Accordingly, I have advised Chip and Lucia that I intend to remain bound by our agreement and to conclude the purchase if the opportunity presents itself. In the meantime, I look forward to learning of Billy Devaney's pick on the evening of April 22."

I hope that means he is challenging the rule, because it would not be good for Denver to lose him.

Originally Posted by GEM

I hope that means he is challenging the rule, because it would not be good for Denver to lose him.

I agree. Here is what Adam Schefter thinks could happen:

http://twitter.com/adam_schefter

Stan Kroenke could avoid cross ownership rules with relatives who have independent financial resources. Not proposed yet, but could happen.

what a stupid rule that in order to become a majority owner of an NFL team you cant own any other sports franchise, Hopefully its changed otherwise I dont see Kroenke doing it.

Not only would he have to give up the rights to the Nugs, and Av's but also his share in a very popular soccer club with Arsenel.

Originally Posted by EMB6903

what a stupid rule that in order to become a majority owner of an NFL team you cant own any other sports franchise, Hopefully its changed otherwise I dont see Kroenke doing it.

Not only would he have to give up the rights to the Nugs, and Av's but also his share in a very popular soccer club with Arsenel.

He could own the Broncos only, according to the rules. Not sure why he could own 3 major sports teams in one city, but not 2 in one city, and 1 in another city???? Also, the Arsenal is out of the country, so don't know if that matters. I don't think he is the majority owner of the Arsenal. He also owns the rapids and mammoth, but I don't think they are considered major sports teams.

Goodness...that is one rich mofo!

Yes....yes.

This will solve ALL their problems.

Should've let Rush take it.

Originally Posted by GEM

Goodness...that is one rich mofo!

Everytime we shop Walmart, we are helping his cause

they can own more than one sports franchise in the same city...the reason behind teh rule, originally, is so that the NFL feels confident that the owners are around, active, and a part of their NFL team.

They feel if they are away, out of town because of their OTHER professional franchises then it takes away from the NFL owner's involvement. The NFL WANTS the owners to be involved. To be at the home games. If their time is split up between cities, it interferes.

Originally Posted by Ravage!!!

they can own more than one sports franchise in the same city...the reason behind teh rule, originally, is so that the NFL feels confident that the owners are around, active, and a part of their NFL team.

They feel if they are away, out of town because of their OTHER professional franchises then it takes away from the NFL owner's involvement. The NFL WANTS the owners to be involved. To be at the home games. If their time is split up between cities, it interferes.

Thanks for the explanation. I am sure he would be around the Rams, as he is from Missouri, and you very seldom EVER see him at either the Nuggets or Avs games.

Originally Posted by Denver Native (Carol)

Thanks for the explanation. I am sure he would be around the Rams, as he is from Missouri, and you very seldom EVER see him at either the Nuggets or Avs games.

RIght.... I'm sure thats probably true in THIS situation.

But, if they do change the rules for him, that would open the door for another person that may not be around for their NFL franchise.

But.... that was their original thinking. It probably had something to do to the owners wanting to keep a particular person OUT of the NFL, at some time. Who knows.

Originally Posted by GEM

I hope that means he is challenging the rule, because it would not be good for Denver to lose him.

i wouldn't sweat it. . . i've always read that kroenke claims basketball as his favorite sport, and even if it wasn't, i can't see him giving up two playoff teams to pick up arguably the worst team in the NFL-- football's overwhelming popularity notwithstanding. . .

and i certainly can't see him giving up the nugs after he's spent all the years and money on them, and they're finally at a level where they're capable of contending for a championship. . .

http://www.denverpost.com/ci_14875903?source=rss

If Stan Kroenke wants to become 100 percent owner of the NFL St. Louis Rams, no problem. If Kroenke decides to hold onto his majority ownership of the NBA's Nuggets and NHL's Avalanche, so be it.

But in no way, says the NFL, can Kroenke own all three major sports teams — with the Denver market in the crosshairs — at the same time.

"The rule is clear and he recognizes that," said NFL spokesman Greg Aiello.

Kroenke, a successful real-estate developer, has been majority owner of the Nuggets and Avs since 2000 and has held a 40 percent minority stake in the Rams since 1995. This type of cross-ownership in the NFL is allowed.

It was when Kroenke decided Monday to exercise his right to purchase the remaining 60 percent of the Rams from the Carroll Rosenbloom-Georgia Frontiere heirs that cross-ownership became an issue for the NFL and, more specifically, the Broncos and owner Pat Bowlen.

NFL rules prohibit team owners from majority ownership of another sports team outside its home market if they play in the same city as another NFL team.

Kroenke declined to discuss how he is going to get around the rule, choosing to release a statement through Kroenke Sports Enterprises.

"There will be much speculation in the coming days and weeks about this transaction," said KSE executive vice president Paul Andrews in the statement. "We will not speculate or comment further.

"Mr. Kroenke and his family remain fully committed to Denver and each KSE-owned property."

The league plans to enforce its cross-ownership policy to protect the ability of the Broncos to do business in its Denver market. Bowlen, through a team spokesman, deferred comment to the NFL.

"I don't think 'protect' would be the word, but it would avoid the conflict of having two NFL business partners being competitors in a city," Aiello said. "NFL cross-ownership rules do allow for an NFL owner to own another team in one of the other leagues in a non-NFL city. Paul Allen is not competing with an NFL owner in Portland."

Allen, who has owned the NBA Portland Trail Blazers since 1988, was approved by NFL owners to buy the majority stake in the NFL Seattle Seahawks in 1997.

Then there's Wayne Huizenga. In the six-year period from 1993-98, Huizenga owned three major sports franchises in the city of Miami — the NFL Dolphins, baseball's Marlins and hockey's Panthers.

This gave the impression that an owner with deep-enough pockets can circumvent any cross-ownership policy. Not true, said Aiello. Huizenga was not competing with another NFL owner — only himself — by owning three sports franchises in the same market.

Kroenke's paperwork to purchase the remaining 60 percent of the Rams had not yet reached the NFL office as of mid-afternoon Tuesday. When it does, Aiello said it would be reviewed by league officials and finance committee.

Even if Kroenke should skirt the NFL cross-ownership policy by transferring control of the Nuggets and Avs to other family members or a trust, he would still need approval from 75 percent of the league's current ownership group.

Bowlen and Kroenke have a strong business relationship. They co-own the Colorado Mammoth lacrosse team and were partners, along with former Broncos quarterback John Elway, in the now-defunct Colorado Crush Arena League team.

But in the business of sports, lacrosse and indoor football are tiny stars compared to the galaxy that is the NFL. If Kroenke is going to become majority owner of the Rams, it appears he will have to surrender his principal stake in the Nuggets and Avs.

"He will have to address that," Aiello said. "It's a matter of the details. We'll have to see."

Report: Kroenke will transfer NHL, NBA teams to a family member
Posted by Mike Florio on April 13, 2010 9:47 PM ET

In a Tuesday morning appearance on KFNS in St. Louis, I prefaced all comments regarding the ability of Stan Kroenke to purchase the 60 percent of the Rams that he doesn't currently own by pointing out the reality that really, really rich guys didn't acquire that financial condition via accident or stupidity. Kroenke wouldn't be making the move to match the offer made by Shahid Khan unless Kroenke had a plan for dealing with the league's cross-ownership rules, as applied to the NBA and NHL teams Kroenke owns in Denver.

According to FOX 2 in St. Louis, Kroenke is prepared to transfer ownership of the Colorado Avalanche and the Denver Nuggets to another member of his family.

It's unclear whether the league would permit the rule to be circumvented so easily. So we've asked the question, and if/when we get an answer we'll pass it along.