Rooney and Steeler may not go hand in hand
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Any knowledgeable fan will know that the Rooney family has owned the Steelers for a very long time.
Art Rooney Sr. bought the team years ago in a very unique manner.
His affiliation with the NFL began in 1933 after he traveled to Saratoga Race Course in New York and won at least $2,500 in a parlay of longshot winners. He soon used that $2500 to pay the required National Football League franchise entrance fee for a club based in the city of Pittsburgh, which he had named the Pirates (also the name of the city’s long-established Major League Baseball club, which Rooney was a fan of as a child).
Art has passed away and the 4 Rooney sons own the team along with the McGinleys. Each brother owns 16 percent for a total of 80 percent ownership. Chairman Dan Rooney is trying to buy out his brothers to keep the team in the Rooney family.
To prevent an outside investor—most likely, billionaire Stanley Druckenmiller, a longtime Steelers fan—from obtaining a majority stake, Dan Rooney needs to persuade at least one brother to sell to him.
That would give him 32 percent of the team, enough to satisfy the NFL’s requirement that the primary owner have at least a 30 percent share. If the McGinleys don’t sell, no other investor could own more than 48 percent.
Druckenmiller, the chairman of Duquesne Capital Management, acknowledged Thursday for the first time he is involved in trying to buy into the team.
The best part of the story is that the other brothers have hired Goldman Sachs to sell their shares. This could be a problem for Dan Rooney.
A troubling sign for Dan Rooney is that his brothers—Art Jr., Tim, Pat and John, all of whom will be at least 70 by next year—retained Goldman, Sachs & Co. to weigh offers. Their shares are likely worth more than Dan Rooney and son Art II, the team president, could raise and still remain under the NFL’s ceiling of $150 million in ownership debt.
The brothers likely would not have retained Goldman, Sachs if they felt they could soon work out a deal with Dan Rooney. The move also reflects their fears that selling to Dan Rooney, coupled with the ensuing taxes, could leave their children and grandchildren with far less money than their shares are worth.
Each brother stands to collect 150 million bucks, which is less than Dan is offering.
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POSTED IN: Pittsburgh Steelers
3 opinions for Rooney and Steeler may not go hand in hand
Matthew Kimel
Jul 12, 2008 at 9:57 pm
I’m going to go to the racetrack now and win big so I can buy a team!
James
Jul 12, 2008 at 11:09 pm
Matt,
Please buy my Lions. They need a new owner!
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Sep 7, 2008 at 2:15 pm
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