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I-Want-Troy's-Hair
08-08-2008, 01:33 AM
That is just ignorant that Drunkenmiller can pay cash for this team.

http://postgazette.com/pg/08220/902475-66.stm

Druckenmiller's bid remains on table

Offer to buy is debt-free

Thursday, August 07, 2008
By Gerry Dulac, Pittsburgh Post-Gazette
Stanley Druckenmiller 'Not the first option' for the Rooney brothers.

Billionaire hedge fund manager Stanley Druckenmiller still has an offer on the table to buy the shares of four of the Rooney brothers and remains optimistic a deal will be worked out where he will gain majority stock control of the Steelers' franchise, a source with intimate knowledge of Druckenmiller's situation told the Post-Gazette.

While the four brothers who each hold 16 percent ownership stake in the team have considered at least two offers, and possibly three, to sell their shares to Steelers chairman Dan Rooney, Druckenmiller is eager and ready to proceed with a purchase plan that is "simple and uncomplicated" and would greatly benefit the long-term financial health of the franchise, the source said.

The plan is uncomplicated, the source said, because Druckenmiller, chairman of Pittsburgh-based Duquesne Capital Management who has an estimated worth of $3.5 billion, would buy out the four Rooney brothers in a straight cash deal that would be paid immediately and not over any period of time.

The deal would allow the Steelers -- if Druckenmiller became majority stock owner -- to operate without any debt or interest payments and enable the team to spend the necessary money to remain competitive in the NFL, the source said.

The source said the same situation would not exist if Dan Rooney and his son, Art II, the team's vice president, buy the shares. Dan and Art II are trying to attract investors to obtain financing to buy the shares of the other four Rooney brothers -- Tim, Art Jr., Patrick and John.

They would have to assume enough debt on the financing that it could jeopardize their ability to spend money freely on other matters such as free-agent players and contract extensions, especially in a small-market city where ancillary revenue streams are not always available.

The NFL has a debt ceiling of $150 million that is not allowed to be exceeded by a controlling owner.

Nonetheless, Druckenmiller understands he is "not the first option" for the Rooney brothers and "clearly, if everything is in order, they will sell [their shares] to Dan," the source said.

If Druckenmiller gains controlling interest of the franchise, he maintains he wants Dan Rooney and his son to continue to run the team as they do now. Even though he has the same 16 percent interest in the franchise as his brothers, Dan Rooney was appointed by the family to run the team -- an arrangement similar to what Druckenmiller would seek.

"The Steelers have become what they are now because of one person -- Dan Rooney," the source quoted Druckenmiller as saying, and he believes "he is the finest owner in professional sports."

It is not known what amount Druckenmiller has offered to purchase the shares of the four Rooney brothers.

But, despite what appears to be a lengthy delay in the sales process, Druckenmiller thinks everything will go "very, very quickly" when, or if, the Rooney brothers reject their brother's proposal and come back to him, the source said.

Druckenmiller has not commented publicly about his involvement, except for an e-mail he sent to the Post-Gazette July 10 in which he confirmed his interest in purchasing the Steelers' franchise.

tony hipchest
08-08-2008, 01:37 AM
Druckenmiller is eager and ready to proceed with a purchase plan that is "simple and uncomplicated" and would greatly benefit the long-term financial health of the franchise, the source said.

The plan is uncomplicated, the source said, because Druckenmiller, chairman of Pittsburgh-based Duquesne Capital Management who has an estimated worth of $3.5 billion, would buy out the four Rooney brothers in a straight cash deal that would be paid immediately and not over any period of time

...

But, despite what appears to be a lengthy delay in the sales process, Druckenmiller thinks everything will go "very, very quickly" when, or if, the Rooney brothers reject their brother's proposal and come back to him, the source said.


whoa...

after reading how $12 mil of profits (in the lean years) has to be divided between the mccarthys(?) and 5 rooney brothers, it is understandable why the steelers were not able to extend bill cowher to market value of $8-$10 mil/year.

and what would stop kevin colbert leaving to join cowher if he ever returned? getting paid.

what if tomlin wins 2 of the next 3 superbowls? im pretty sure drukenmiller would pay whatever it takes to keep him.

it would be no sweat off his balls to give a great player like farrior a nice signing bonus and extension, and to eat it if he doesnt pan out and needs to be cut.

like a previous article stated, if the rooneys are tired of earning those small dividend checks, they could earn as much or more with cash sitting in the bank. :wave:

if this were a publicly traded company, we would be saying "hostile takeover" right about now (more like 5 wks - 2 yrs ago).

Steeldude
08-08-2008, 01:52 AM
tony, i fear that down the road drunkenmiller may change his attitude and want to be involved with player/draft decisions and so forth. i don't want it to turn into a redskins' organization where they think high salaries equates to winning, or worse, change into the raiders.

i know he said dan rooney would still oversee the operations. what happens when dan rooney retires or when he passes away? what happens when drunkenmiller passes on? does he hand it to one of his son's? is this new owner going to keep the team, move the team or ignore the team?

with the rooneys you knew where the steelers stood.

can they place stipulations in the sale stating the steelers have to stay in pittsburgh etc...?

FourThreeMafia
08-08-2008, 02:16 AM
That is just ignorant that Drunkenmiller can pay cash for this team.

http://postgazette.com/pg/08220/902475-66.stm

Druckenmiller's bid remains on table

Offer to buy is debt-free

Thursday, August 07, 2008
By Gerry Dulac, Pittsburgh Post-Gazette
Stanley Druckenmiller 'Not the first option' for the Rooney brothers.

Billionaire hedge fund manager Stanley Druckenmiller still has an offer on the table to buy the shares of four of the Rooney brothers and remains optimistic a deal will be worked out where he will gain majority stock control of the Steelers' franchise, a source with intimate knowledge of Druckenmiller's situation told the Post-Gazette.

While the four brothers who each hold 16 percent ownership stake in the team have considered at least two offers, and possibly three, to sell their shares to Steelers chairman Dan Rooney, Druckenmiller is eager and ready to proceed with a purchase plan that is "simple and uncomplicated" and would greatly benefit the long-term financial health of the franchise, the source said.

The plan is uncomplicated, the source said, because Druckenmiller, chairman of Pittsburgh-based Duquesne Capital Management who has an estimated worth of $3.5 billion, would buy out the four Rooney brothers in a straight cash deal that would be paid immediately and not over any period of time.

The deal would allow the Steelers -- if Druckenmiller became majority stock owner -- to operate without any debt or interest payments and enable the team to spend the necessary money to remain competitive in the NFL, the source said.

The source said the same situation would not exist if Dan Rooney and his son, Art II, the team's vice president, buy the shares. Dan and Art II are trying to attract investors to obtain financing to buy the shares of the other four Rooney brothers -- Tim, Art Jr., Patrick and John.

They would have to assume enough debt on the financing that it could jeopardize their ability to spend money freely on other matters such as free-agent players and contract extensions, especially in a small-market city where ancillary revenue streams are not always available.

The NFL has a debt ceiling of $150 million that is not allowed to be exceeded by a controlling owner.

Nonetheless, Druckenmiller understands he is "not the first option" for the Rooney brothers and "clearly, if everything is in order, they will sell [their shares] to Dan," the source said.

If Druckenmiller gains controlling interest of the franchise, he maintains he wants Dan Rooney and his son to continue to run the team as they do now. Even though he has the same 16 percent interest in the franchise as his brothers, Dan Rooney was appointed by the family to run the team -- an arrangement similar to what Druckenmiller would seek.

"The Steelers have become what they are now because of one person -- Dan Rooney," the source quoted Druckenmiller as saying, and he believes "he is the finest owner in professional sports."

It is not known what amount Druckenmiller has offered to purchase the shares of the four Rooney brothers.

But, despite what appears to be a lengthy delay in the sales process, Druckenmiller thinks everything will go "very, very quickly" when, or if, the Rooney brothers reject their brother's proposal and come back to him, the source said.

Druckenmiller has not commented publicly about his involvement, except for an e-mail he sent to the Post-Gazette July 10 in which he confirmed his interest in purchasing the Steelers' franchise.


How is that ignorant?

Steel Pit
08-08-2008, 04:32 AM
tony, i fear that down the road drunkenmiller may change his attitude and want to be involved with player/draft decisions and so forth. i don't want it to turn into a redskins' organization where they think high salaries equates to winning, or worse, change into the raiders.

i know he said dan rooney would still oversee the operations. what happens when dan rooney retires or when he passes away? what happens when drunkenmiller passes on? does he hand it to one of his son's? is this new owner going to keep the team, move the team or ignore the team?

with the rooneys you knew where the steelers stood.

can they place stipulations in the sale stating the steelers have to stay in pittsburgh etc...?

I pose a scarier question: If the 4 Rooney brothers "do not " sell their shares to Druckenmiller then what will happen when Dan Rooney retires or passes away?

It's sad to say but I believe that in the absence of Dan Rooney, the Steelers would be better off with Druckenmiller in command rather than the 4 Rooney brothers. They're simply looking for profit and it's beginning to look as if they are a greedy group of men who couldn't care any less about the history and tradition of the franchise.

I'm no expert but the Druckenmiller offer is beginning to look mighty good to me. He could be the saving grace of the franchise as we know it today. So long as they are the Steelers and they remain in Pittsburgh, I don't really care who owns them. Druckenmiller said that he has no intentions on moving the team so I have to take him for his word. I don't believe that he's made billions by sticking it to people.

In closing I'll offer this, I'm sure that Druckenmiller will eventually be involved in the everyday football operations. Yes Dan Snyder sucks but Art Rooney, as an owner, was involved in the everyday operation of the Steelers and that turned out pretty well. Druckenmiller may have a great mind for the game, who knows? I don't believe that there's any type of testing or education to determine who will and who will not make a great NFL franchise owner.

iBleedBlack&Gold
08-08-2008, 05:46 AM
Druckenmiller is a very rich man.
We would not have any problems in the future resigning players or signing bigtime free agents...

stillers4me
08-08-2008, 06:09 AM
I vote for Stan the Man. I know we all worshp the Dan Rooney image. But if he is so smart, why is he willing to go deep into debt to keep control? He of all people should be able to see the folly in this.

fansince'76
08-08-2008, 06:19 AM
I know we all worshp the Dan Rooney image. But if he is so smart, why is he willing to go deep into debt to keep control? He of all people should be able to see the folly in this.

Because he loves the team THAT much, probably. The Steelers mean more to him than being just another asset in a portfolio. That being said, in the interest of the Steelers' ability to field a competitive team in the long term, I think debt-free ownership by Druckenmiller is the best route, especially if the league goes uncapped, which is a very real possibility.

stillers4me
08-08-2008, 06:43 AM
Because he loves the team THAT much, probably. The Steelers mean more to him than being just another asset in a portfolio. That being said, in the interest of the Steelers' ability to field a competitive team in the long term, I think debt-free ownership by Druckenmiller is the best route, especially if the league goes uncapped, which is a very real possibility.

I know he loves that team. It's been his whole life. But sometimes , when you love something, you have to let it go. (cue the violins........) :sofunny:

Atlanta Dan
08-08-2008, 08:07 AM
Because he loves the team THAT much, probably. The Steelers mean more to him than being just another asset in a portfolio. That being said, in the interest of the Steelers' ability to field a competitive team in the long term, I think debt-free ownership by Druckenmiller is the best route, especially if the league goes uncapped, which is a very real possibility.

Agreed - Dan Rooney loves the idea of AJR II inheriting the team that much and apparently is willing to burden the team with debt to achieve that goal - it is no different than any other coroprate CEO looking out for his own interests when a takeover looms - what is in the interest of Dan & AJR II increasingly appears not to be in the long term financial interest of the franchise

Stlrs4Life
08-08-2008, 08:14 AM
I vote for Stan the Man. I know we all worshp the Dan Rooney image. But if he is so smart, why is he willing to go deep into debt to keep control? He of all people should be able to see the folly in this.


True, also, the NFL will only allow a team $150 million debt.


I agree with tony.

SteelMember
08-08-2008, 09:07 AM
Death, taxes and the Rooney family ownership...

3 things we thought would never change.

If you consider the current percentage of inheritence from every brother to their branch on the Rooney family tree, eventually the pieces will so small it won't matter anymore. Even in the event of Dan passing 100% of his ownership to a single person, you can't guarentee that will happen down the line. As we all know, there has never been such a thing as sibbling rivalry.:rolleyes: Everyone wants their piece. Not necessarily peace.

rbryan
08-08-2008, 09:31 AM
I'll go with the billionaire on this one, I never felt good about the franchise being turned over to AJRII before the revelation that he has to borrow even more to maintain control. We all love Dan Rooney, but nothing lasts forever. Its too bad Art Sr didn't structure the ownership in a way that was so diluted that it was destined to fail. Whats done is done....time to move on.

stlrtruck
08-08-2008, 10:12 AM
I appreciate what Dan is doing but this whole situation reminds me of the takeover Danny "Boy" Snyder had with the Redskins. You ask any "true" redskins fan, they wanted the team to stay in the Cooke Family. However, the biggest factor in the buyout was the VA laws on inheritances and that's what they were trying to do with it - but because of the laws such an inheritance would have left the team in serious financial trouble. So Danny Boy got his wish, now look what he's done with it. Even to this day, there are fans who can't stand him.

As for Druckenmiller, I don't know his past but I know he's stated that the team would stay in Pittsburgh. That he's a fan of the team and that his only desire is to see them improve. My question is to what extent? Is he going to be Jerry Jones or Daniel Snyder?

It's a catch 22 for us - the fans. I mean on one hand we've got the tradition of the Rooney's who aren't afraid to let players go because they're only desire is more money and on the other hand Druckenmiller who has the deep pockets to maintain talent and bring fresh talent in. But will he know how to play the Rooney way and let people like Porter and Faneca go while scouting younger and fresher talent to replace them? Will he know what FAs are valuable to the team's chemistry and progression towards multiple Super Bowls down the road??

Stay tuned people - this roller coaster has just started the dramatic climb to the top!

missedgehead
08-08-2008, 10:35 AM
In my opinion, maybe it is better if Druckenmiller does buy in. We do have to think of the future. Dan is , let's face it, not going to be around forever and maybe it will be good that this guy who is also a fan will have the best interests of the team at heart.

fansince'76
08-08-2008, 10:39 AM
As for Druckenmiller, I don't know his past but I know he's stated that the team would stay in Pittsburgh. That he's a fan of the team and that his only desire is to see them improve. My question is to what extent? Is he going to be Jerry Jones or Daniel Snyder?

Hopefully neither. :hope:

Rotorhead
08-08-2008, 12:25 PM
Why cant Dan buy 2 of the 4 shares and let drunken miller buy the other 2, Dan keep majority ownership and still has Drunkenmiller's deep pockets while staying out of or low debt?

RunWillieRun
08-08-2008, 12:35 PM
Why cant Dan buy 2 of the 4 shares and let drunken miller buy the other 2, Dan keep majority ownership and still has Drunkenmiller's deep pockets while staying out of or low debt?



Drunkenmiller doesn't want partial ownership.

OneForTheToe
08-08-2008, 12:43 PM
Why cant Dan buy 2 of the 4 shares and let drunken miller buy the other 2, Dan keep majority ownership and still has Drunkenmiller's deep pockets while staying out of or low debt?


Because billionaires don't generally buy things they can't ultimately control. Plus, even if he was willing to take a minority role, he wisely doesn't want buy into a team that is carrying that much debt. Finally, Druckenmiller is paying cash, while Dan would be buying his shares out over time. So, which brothers have to wait for their money?

It is possible that Art Jr might be willing to sell to Dan giving Dan 32% , which would leave him in practical control of the team if he continues to have the acquiescence of the other ownership family which still controls 20%. Of course, I am not sure how likely this is considering that Druckenmiller seems intent on majority ownership.

Steely McSmash
08-08-2008, 12:52 PM
You ever wonder if the inheritance issue was such a big deal for the other Rooney's why don't they just sell their shares to their kids for $1. Give race-track shares to some kids, Steeler shares to other kids. That would solve the tax issue and the gambling issue. Maybe sell a few to Dan at market value to get him towards the 30% number. Down the road, Dan can sell his shares of the team to Art 2 for $1.

What do we really know about Art 2 though? I don't know much about him but seem to recall that he didn't get along with Cowher towards the end there.

I think if they sell to Drickenmiller there should be a clause that states that the team must remain in Allegheny county for 100 years.

Atlanta Dan
08-08-2008, 03:22 PM
I think if they sell to Drickenmiller there should be a clause that states that the team must remain in Allegheny county for 100 years.

There is a pretty severe penalty if the Steelers try to break the Heinz Field lease but you cannot simply enjoin someone from moving; the NFL is a privately owned business enterprise

Steelers aren't going anywhere for now - outside of the mythical Los Angeles franchise (often promised but never delivered) there are damn few markets that do not have a NFL franchise that could support one (maybe San Antonio) and several that have a franchise but cannot support it now (Jax and New Orleans) - if the Steelers ever leave it will be because the changing economics of the NFL prevent small market teams from being competitive and Pittsburgh decides to spend its money somewhere else (it happens - the Pirates were the main sports event in Pittsburgh until 1972)

Preacher
08-08-2008, 03:55 PM
You ever wonder if the inheritance issue was such a big deal for the other Rooney's why don't they just sell their shares to their kids for $1. Give race-track shares to some kids, Steeler shares to other kids. That would solve the tax issue and the gambling issue. Maybe sell a few to Dan at market value to get him towards the 30% number. Down the road, Dan can sell his shares of the team to Art 2 for $1.

What do we really know about Art 2 though? I don't know much about him but seem to recall that he didn't get along with Cowher towards the end there.

I think if they sell to Drickenmiller there should be a clause that states that the team must remain in Allegheny county for 100 years.

Can't.

They would be ran up on Tax-evasion charges. You have to charge fair-market value.

Kinda sad though. A man makes a fortune... then the govt. decides to get their greedy hands on it when it passes to his kids... and then again when it passes to his grandkids.

I sure wish The Chief would have put the team in a "Rooney Family Trust." That way, the team shares are held by the trust, the proceeds dispersed by the successor trustee, and the successor trustee gets to control the team (which would have been Dan Rooney).

Hindsight is 20-20 I guess.

Haiku_Dirtt
08-08-2008, 05:15 PM
I vote for Stan the Man. I know we all worshp the Dan Rooney image. But if he is so smart, why is he willing to go deep into debt to keep control? He of all people should be able to see the folly in this.

Forward merchandising revenue. Who would want to share that?

Black@Gold Forever32
08-08-2008, 07:19 PM
Funny I mentioned weeks ago when it was reported the Steelers were for sale that Drunkenmiller buying the team would serve best for the Steelers in the long run......But of course most were freaked out since the Rooney's might not own the Steelers anymore so most didn't want the Rooney's to lose the Steelers.....I see by some of these posts that has changed which is good....

If the salary cap goes away which is a strong possibility then the Steelers will need a owner with a ton of cash like Stanley Drunkenmiller......I hope he does buy the team...It will suck no doubt that the Rooney's won't own the team anymore....But I just don't see how the Rooney's can continue to operate and field a competitive team especially if the cap goes away in todays NFL.....

OneForTheToe
08-08-2008, 10:19 PM
Funny I mentioned weeks ago when it was reported the Steelers were for sale that Drunkenmiller buying the team would serve best for the Steelers in the long run......But of course most were freaked out since the Rooney's might not own the Steelers anymore so most didn't want the Rooney's to lose the Steelers.....I see by some of these posts that has changed which is good....

If the salary cap goes away which is a strong possibility then the Steelers will need a owner with a ton of cash like Stanley Drunkenmiller......I hope he does buy the team...It will suck no doubt that the Rooney's won't own the team anymore....But I just don't see how the Rooney's can continue to operate and field a competitive team especially if the cap goes away in todays NFL.....

I agree with much of this. I do not think though that the cap will go away forever. There would be one maybe two years without the cap and then the owners would surely lock the players out.

RoethlisBURGHer
08-09-2008, 12:08 AM
I am leaning towards wanting Druckenmiller to buy the team. His deep pockets would keep us competitive in an uncapped league. He could pay Tomlin the big bucks when he starts his string of Super Bowl victories. He wouldn't be worried about paying off team debt if signing/resigning a player because it would be a debt-free purchase.

Also, I would assume he would sit back and let Dan And Art II run things, but would get involved when it came to signing or resigning a high-profile player such as Ben, Ward, Parker, or Holmes. He would listen to Dan and Art on when to let a player leave, such as the release of Porter and how well that worked out.

The team would still be partially owned by the Rooneys, and their advice as sound football people being taken into consideration by Druckenmiller makes me more than comfortable with the Rooney family not being in full financial control of the team.