What the radio host’s potential ownership might mean. Robert Boland
Controversial conservative radio host Rush Limbaugh announced this week that he and Dave Checketts, an owner and chief operating officer of the NHL’s St. Louis Blues, have submitted a bid to purchase the St. Louis Rams. The Rams are the only NFL team publicly for sale. The current owners are the heirs of the late Georgia Rosenbloom Frontiere, who moved the team from Los Angeles. Frontiere passed away in January 2008, and her two children, Chip Rosenbloom and Lucia Rodriguez, have been exploring options regarding their 60 percent stake in the team. Stan Kroenke, the owner of the Colorado Avalanche holds a 40-percent share in the team.
Rams have been on the market
APRush Limbaugh announced this week that he and Dave Checketts have submitted a bid to purchase the St. Louis Rams.
After Frontiere’s death, her heirs were presented a sizable inheritance tax bill based on the appreciation of the Rams from the time she took them over and the date of her death. The size of that bill on a date-of-death assessment of $800 million would conservatively be $150-$200 million on the Frontiere heirs’ 60-percent share. This inheritance tax bill is the reason Rosenbloom and Rodriguez are selling their interest in the team, and they have retained Goldman Sachs to facilitate a sale.
Despite a Forbes valuation of $928 million, it’s expected the Rams would only sell in the $800 million neighborhood, and it isn’t unlikely that a buyer in this economy could expect a significant discount for a faster or more cash-friendly transaction. If Kroenke’s share is not included -- and currently he can’t become the majority owner under league rules since he owns a major sports franchise in another city -- majority ownership in the Rams could be had for under $500 million. This represents a real bargain in NFL terms. Add in the fact the team has a very favorable stadium lease that would allow it to terminate if certain conditions aren’t met and that the team used to be the Los Angeles Rams, and it’s one of a handful of NFL teams considered “relocate-able.” If an owner could buy the Rams for under $500 million, that owner would also still have the resources left over to privately finance a stadium in Los Angeles. So the Rams are a very intriguing buy, and even I was approached last year to advise a group interested in them.
Nothing moving
But the Rams haven’t sold despite having some great curb appeal. Sports teams’ sales are glacially slow even in normal times, but in this economy, barring some sort of clear turning point for the better, every day a team doesn’t sell is good for the buyers and bad for the sellers. So no one really knows how much any team is worth, and with a number of teams (Bills, Lions, Titans, Raiders, Panthers, Saints, Jaguars, Bears and Cardinals) facing the possibility of potentially crushing inheritance tax bills in the not too distant future, it’s speculated that the Rams aren’t the only team potentially on the market, even if such speculation is quickly denied. This was what the Steelers’ situation was about last year.
Checketts may face questions
APDave Checketts is an owner and chief operating officer of the NHL’s St. Louis Blues
If I were an NFL owner, I’d have a number of issues with selling the Rams -- not to Limbaugh but to Checketts. He’s one of the smartest, most exceptional sports executives in the country and is pure as the driven snow, but he doesn’t have a lot of his own money to put in and needs partners like Limbaugh. And both by rule (which could be finessed) and practicality, he locks the Rams in St. Louis by virtue of his ownership of the Blues. As an owner, I wouldn’t care if the Rams ultimately stay in St. Louis, but having a number of franchises freely able to move to Los Angeles helps all franchise and marketing values. So Checketts would add talent and experience to the pool of NFL owners, but his presence might come at some cost.
Back to Rush
All of which brings us back to Limbaugh. In normal economic times, Limbaugh, love him or hate him, wouldn’t stand a chance of getting the two-thirds approval of existing ownership to be a managing partner of an NFL ownership group. He is simply too controversial and polarizing. Every day, he has a chance to cause embarrassment to other owners in front of millions of people on the radio. He also has too great a record of involvement with two issues that scare league people to death: race and drugs. So while I may think he would be a good owner, he comes with a lot of baggage.
Being an NFL owner is not like buying a piece of property. It’s more like joining a very exclusive club, and while any number of owners might share Limbaugh’s political leanings, very few want to talk openly about those feelings, especially while trying to market their product to the widest possible audience. This is undoubtedly why Limbaugh is paired with Checketts in this purchase. The fact that the two are really inseparable also could damage their chances. Limbaugh makes money like few others, and his reported $100-million annual earnings would seem to be more than enough to get him in the club -- and Checketts needs that infusion of capital.
While Checketts moderates the image of Limbaugh, he does so with some limitation. So this is still far from a done deal. The reasons Limbaugh publicly announced what had been a fairly open secret raises questions of its own: Is he campaigning openly after getting a chilly reception from the league, or is he close to a deal and needs to do some last-minute shoring up?
If Limbaugh were to get approved, it might be a signal that NFL owners and league sources are concerned about franchise values dropping even more and are willing to welcome into their staid group a controversial figure who makes Al Davis and Jerry Jones look like shrinking violets. This one is worth watching as it may tell us more about the real interest and demand for the league’s franchises than just about who owns the Rams.
Time to start spending some money on Rams gear. It's not that I like Rush, quite the opposite. But if I don't I'll hardly be able to boycott them if he does get in the door right?
In all seriousness, the idea of this guy owning an NFL team is mindboggling. You mention race and drugs Robert, but what about women's issues? Limbaugh is renowned for the 'feminazi' term and a bunch of other, similar talk. I can't imagine the NFL is oblivious to the idea that pink Tom Brady jerseys and a weekend of Breast Cancer Awareness support is going to save them from the hit they'll take if Limbaugh comes on board.
Polling shows that somewhere around half of America dislikes Limbaugh, 25% like, 25% don't know/no opinion. About 45% have a strongly negative opinion -- not 45% of those who dislike, but 45% of *everyone*. In politics this would be such an extraordinary level of unpopular sentiment that a candidate wouldn't even bother to run, but obviously it's different for a radio host. Still, having almost half the country in a place where their opinion of the (owner) candidate is sufficiently negative to drag down their opinion of the organization as whole (usually it's a political party) from day 1 is not a good position to be in.
Oh, I just wanted to add that from what I've been reading it looks like Washington is starting to take up immigration issues. If past is prelude I have a sneaking suspicion that Limbaugh may end up going over the top to the point that he removes himself from the NFL ownership conversation, and to a certain extent the maintenance of his $100m/year income requires him to do so. Of course that's only my own (very biased) opinion, but it'll be interesting to watch play out. I hope you'll keep us updated Robert, I haven't seen this mentioned elsewhere.
People may get ticked off about Rush -- and plenty will -- but is bringing him on board any worse than continuing to market the racist team name 'Redskins'? Or having its owners shake down municipalities for stadium funding that would - especially now -- be better used funding public education and infrastructure? The potential hypocrisy here would be interesting to debate.
But what interests me is why Rush would come out with this announcement now? Is it a trial balloon? Or is he looking to pick a very public fight with the likes of Al Sharpton, Jesse Jackson etc.
If I owned an NFL team, I'd say no way to Rush because of the public backlash he's going to bring -- especially right now with this country split down the middle politically. Polarizing characters are bad for business and Rush is about as polarizing as you can get.
Great article Robert about a very interesting story.
They'll have to rename the team the St. Louis Druggie Pigs. Finally I will have an NFL team that I can really hate.
That many non-white athletes would not play for him would be the obvious problem. His whole career includes trashing every non-white culture. He is little more than a proponent of racism and divisiveness and that is no small thing. Could you imagine Michael Crabtree negotiating with Limbaugh's team?
I guess tolerance is just a term that is used to excuse misconduct by liberals and minorities. You have a league that has had owners who had ties to mobsters, bootleggers, gamblers, crooked politicians, etc and players who are routinely arrested for everything from murder to domestic violence, but Limbaugh is just way too controversial. What a load of crap. This is just another form of bigotry, dressed up as sensitivity.
Indeed, if you do not tolerate and accept racists you are a bigot. Everyone knows that except liberals and minorities.
Mathius Kiwanuka of the Giants is now on record as saying he'd NEVER sign with the Rams, if he were a free agent, regardless of his affection for his former D coordinator and now Rams head coach Steve Spagnola, if Rush is an owner. That says it all for me. Rush buying the Rams is dead in the water.
thersitz,
If I call you a moron does that make you one? Does it mean you are unqualified to own a team? Why can't liberals leave their politics at the door? Why do you have to inject them into every area of life, even sports? Who appointed you moral arbiter for the NFL? If we took a poll of fans, I dare say Limbaugh would rank higher than most current owners.
bob,
I'll notify Roger Godell we no longer require his services as league commissioner. Mathius Kiwanuka or some other player who is not in prison that week can make the tough decions.
Great read. But to be honest you don't need a long article to analyze the potential selling of the Rams.
It's Rush Limbaugh. He proves he's a jackass 5 days a week on the radio.
There's a comedian who I saw quoted in an article about the sale that said Rush Limbaugh wants to buy the Rams because it is as close as he could ever get to owning black people.
The comment by the comedian is a sad, true and hilarious analysis of Limbaugh as a potential NFL owner.
Mathius Kiwanuka of the Giants is now on record as saying he'd NEVER sign with the Rams, if he were a free agent, regardless of his affection for his former D coordinator and now Rams head coach Steve Spagnola, if Rush is an owner. That says it all for me. Rush buying the Rams is dead in the water.
why, kiwi isn't some special talent. there are plenty of LB with that amount of talent to play for him.
Here in Dallas I was listening to Michael Irvin and Nate Newton and they both like Limbaugh. Newton says that players will sign with the Rams because they want to get paid. Irvin stated that he knows Rush and firmly believes that he is not a racist and is a great guy. This all seems to contradict the opinions of those commenting on here.
Here in Dallas I was listening to Michael Irvin and Nate Newton and they both like Limbaugh. Newton says that players will sign with the Rams because they want to get paid. Irvin stated that he knows Rush and firmly believes that he is not a racist and is a great guy. This all seems to contradict the opinions of those commenting on here.
If Rush buys the team, you can count on several things:
1. His racism will keep talent away.
2. His incredible arrogance will have him trying to run the show (and failing miserably)
3. He will involve the NFL in more headaches than you can imagine when he gets popped for Oxy-Contin, child prostitution trips to South America, and his usual garbage, which the NFL does NOT need.
4. His huge mouth will bring politics into the NFL, which it does not need. You know this jackass will open his mouth about the Niners being in a city full of godless liberals run by FemiNazis and such which will cause a mess like no other owner ever could.
5. The NFL will have kick him out, because you know he will use his show to complain about bad calls, especially if a black ref makes one, and how he's being "persecuted" (yeah, happens to rich white people a lot) for his beliefs.
Actually, let him in, the sheer amusement value will be worth it alone. The St. Louis Circus and Rams has a nice ring to it.
Seph - Where did you get that statistic on Limbaugh? A democratic blog?
Those that don't like him do polls to prop up their opinion. He isn't running for office
or playing football so his "popularity" is not relevant to the discussion. Steven A. Smith
(an African American sports commentator) said that players saying that they would not play
against the Rams or in St Louis if Limbaugh is an owner, is nonsense as these guys are
lying and will play regardless (go watch it on YouTube)
As the NFL is an exclusive club (as most league's are) they can decide who to admit and that is all that matters. For Irsay to pipe up and say that he wouldn't vote for him is pretty ironic. Irsay was investigated for prescription pain killer abuse just like Limbaugh. The NFL can admit who they please but Irsay pointing a finger at Limbaugh over some poorly chosen words, and not for something he did - is hypocritical. Maybe they could retro-actively go back and consider Irsay's fitness for ownership as well.
They way to handle an issue like this is to keep quit, let the commisioner be the spokesman and then vote on it. Up or down - they don't have to give a public reason why if it fails.
Irsay opened up a can of worms for himself and will open up scrutiny of his past as well as many other owners. I am going to figure that the law of averages will dictate that there are current NFL owners with "transgressions" as troubling or more troubling than Limbaugh's words.
I would love to see an inflated bid from the Cheketts group that dwarfs all others. Then lets see how public minded the NFL owners are.
Seph - Where did you get that statistic on Limbaugh? A democratic blog?
Those that don't like him do polls to prop up their opinion. He isn't running for office
or playing football so his "popularity" is not relevant to the discussion. Steven A. Smith
(an African American sports commentator) said that players saying that they would not play
against the Rams or in St Louis if Limbaugh is an owner, is nonsense as these guys are
lying and will play regardless (go watch it on YouTube)
As the NFL is an exclusive club (as most league's are) they can decide who to admit and that is all that matters. For Irsay to pipe up and say that he wouldn't vote for him is pretty ironic. Irsay was investigated for prescription pain killer abuse just like Limbaugh. The NFL can admit who they please but Irsay pointing a finger at Limbaugh over some poorly chosen words, and not for something he did - is hypocritical. Maybe they could retro-actively go back and consider Irsay's fitness for ownership as well.
They way to handle an issue like this is to keep quit, let the commisioner be the spokesman and then vote on it. Up or down - they don't have to give a public reason why if it fails.
Irsay opened up a can of worms for himself and will open up scrutiny of his past as well as many other owners. I am going to figure that the law of averages will dictate that there are current NFL owners with "transgressions" as troubling or more troubling than Limbaugh's words.
I would love to see an inflated bid from the Cheketts group that dwarfs all others. Then lets see how public minded the NFL owners are.
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Oct 08, 2009
05:13 PM
Robert, THis is an absolutely fascinating article. Thanks for your insight. It will be most interesting to see if NFL owners are ultimately willing to get in bed with El Rushbo, with or without Mr. Checketts. I can't imagine the Mara/ Tisch contingency signing on board for that.