Kroenke waiting for move on Rams

Bernie Miklasz

ST. LOUIS POST-DISPATCH

Sunday, Jun. 14 2009

One of the more compelling aspects of the Rams' sale is the role of Stan
Kroenke in the proceedings. Rams owners Chip Rosenbloom and Lucia Rodriguez,
team insiders and other NFL executives and owners are wondering: what is
Kroenke going to do? Is he going to make a play for control of the team? And if
so, when?

Don't expect Kroenke to lay his plan out for us. He's staying underground on
the Rams' front and not returning media calls. He's not about to give away any
clues on his Rams' strategy.

Kroenke, worth an estimated $3 billion, is a busy sports mogul. He owns 40
percent of the Rams. He owns the NBA Denver Nuggets, the NHL Colorado Avalanche
and the Pepsi Center in Denver. He owns the Major League Soccer franchise in
Colorado and the stadium that houses the team. He is the majority shareholder
(28.3 percent) of the prestigious Arsenal soccer club in the English Premier
League. Kroenke owns a pro lacrosse team, an arena football team, and a
Colorado-based cable-sports network.

And Kroenke's real-estate development company continues to prosper, making him
one of the nation's wealthiest individuals according to Forbes magazine.

So does Kroenke want to buy the available 60 percent ownership block and
challenge NFL rules that prohibit cross ownership? Or is he content to hang
onto his 40 percent, oversee his other sports properties, concentrate on
accumulating more Arsenal stock and avoid a skirmish with the NFL?

After speaking to a couple of Kroenke associates — sorry, no names — I think I
have a general handle on his approach. But I can't be sure. Remember, this is
the same Kroenke who made no noise about being interested in the Nuggets and
the Avalanche, only to swoop in and buy them at the end of the process. Kroenke
waited until the collapse of Bill Laurie's tentative deal for the teams, then
made his move. And Laurie is Kroenke's brother-in-law, but Laurie knew nothing
of Kroenke's intentions.

I believe Kroenke will sit and wait for others to make the first move.

It makes sense, because Kroenke has the right of first refusal on the Rams'
sale. He can match any offer for the available 60 percent. By hanging back,
Kroenke won't set the market and take the risk of bidding against himself to
meet Rosenbloom's price. Instead, it's smarter for Kroenke to wait for another
interested party to set the market, then react accordingly.

If another bidder makes an offer on the lower side, and the price is acceptable
to Rosenbloom, then Kroenke can match the offer and get a relative bargain. He
can save millions of dollars on the purchase. If Kroenke gets a great deal,
then he may be more inclined to fight the league over that 60 percent.

And what if another bidder rushes in and pays whatever Rosenbloom-Rodriguez are
asking for? Well, Kroenke can ask to be bought out (his 40 percent) at the same
rate. Or he can keep his 40 percent, satisfied in knowing that the value of his
ownership share just went up. A win-win for him.

And there could be other advantages for Kroenke to remain patient:

— If this process drags out — which it might, considering the struggling
economy and concerns over the league's serious labor issues with the players —
Rosenbloom may have to settle for a buyer that the NFL doesn't like or want.
And the NFL could turn to Kroenke to ask for his help — buy the 60 percent and
pull the league out of a bad situation. In exchange, the NFL would accommodate
Kroenke by waiving the cross-ownership rules.

— If no local buyer comes forward, and the Rams are in danger of being sold to
anti-St. Louis interests, Kroenke could ride in at the end and save the day.
The city's political and business community would be grateful. And that would
serve to help Kroenke in the looming strife concerning the team's lease at the
Edward Jones Dome.

If Kroenke wants the Rams, would he be willing to sell his Denver teams to
comply with NFL rules? I'm told that's doubtful. But I'm told Kroenke will try
to lobby NFL owners to get the rule changed. So he might be willing to
challenge the league over this issue.

In Kroenke's case, the NFL rule is stupid, because he already owns 40 percent
of the Rams. The NFL insists that a lead ownership partner have a minimum share
of 30 percent, and Kroenke already has that, plus another 10 percent. So isn't
this pretty silly?

And why would it matter if Kroenke kept his 40 percent but lined up multiple
investors to purchase smaller shares that add up to the other 60 percent?

Besides, it's not as if Kroenke needs Rams profits to be able to compete in the
Denver sports marketplace against Pat Bowlen, who owns the NFL Denver Broncos.
Kroenke and his wife, Anne, are worth a combined $7 billion. They don't need
Rams' dollars. This is lunacy.

Kroenke is just what the league wants in an owner. He's a successful
billionaire. And he's already in the club.

It will be fascinating to see how Kroenke plays poker. But if history tells us
anything, it's that the cool-headed Kroenke is highly capable of waiting and
watching the other players blow themselves up. That's when Kroenke scoops up
the enormous pile of chips in the middle of the table.

As sale looms, Rams fans can do their part

By Bernie Miklasz

ST. LOUIS POST-DISPATCH

If the Rams eventually move from St. Louis, it won't be because of the fans.
The customers have stayed loyal during hard times, buying up about 95 percent
of the seats at the Edward Jones Dome over the last two seasons. That's
outstanding support for a team that has won only five of the last 32 games.

With the franchise for sale, which opens up all sorts of possibilities, the
best thing Rams fans can do is stick by the team and continue to attend games
until help arrives.

That way, no Rams owner will have an excuse to pull the team out of here
because of a lack of support. And with sellout crowds filing into home games,
perhaps this will rally the business community and motivate potential buyers
from the St. Louis area.

There's no reason for fans to get mad or to boycott, just because owners Chip
Rosenbloom and Lucia Rodriguez have decided to sell. Yes, this happened faster
than I had anticipated, but I'm in no position to understand the financial
pressures (taxes) that confront brother and sister as they settle the estate of
their late mother, Georgia Frontiere.

Rosenbloom was always straightforward about his vision. He never denied that he
would sell the team at some point. But rather than sell immediately after
Frontiere's death, Rosenbloom and Rodriguez took time to reorganize the Rams'
front office and football operations. They've installed new leadership in both
areas, and it was the necessary first step of a massive rebuilding project.

Rosenbloom has said often that he wanted to keep the Rams for as long as he
could, but he never put a timetable on it. He didn't actively shop the Rams in
his first year as the managing partner but volunteered that he'd sell if the
right buyer emerged. And that buyer profile included a willingness to keep the
Rams here.

To that end, Rosenbloom gave an individual or group in St. Louis the first shot
at buying the team. Rosenbloom held off interested parties from outside St.
Louis; he hoped that a St. Louis bidder would make an offer.

But it's not happening. And after waiting in vain for more than a year,
Rosenbloom has enlisted the Goldman Sachs investment banking firm to find a
buyer.

I've received some e-mails ripping Rosenbloom for not sticking with the Rams
for as long as it takes to find a St. Louis-based owner.

What do you expect him to do, take hostages at the next Civic Progress meeting
and force St. Louis corporate titans to buy the Rams?

If no local interest materializes, then the decision has been made for
Rosenbloom. If no financial players from our area think it's worthwhile to buy
60 percent of the Rams to preserve the team for St. Louis — well, there's not
much more to say, is there?

St. Louis leadership still has time to prepare a pitch, but no ZIP codes will
be barred from bidding on the Rams now. It's possible for a Los Angeles
billionaire to swoop in and make an offer that Rosenbloom can't refuse. The
other reality is that a new owner will probably be able to take the team out of
St. Louis after the 2014 season.

But this hasn't changed: Rosenbloom wants to sell to owners who want to keep
the franchise here and work on a long-range stadium plan.

OK, here's what I don't understand:

St. Louis fans love their sports. We're passionate about the Cardinals, Rams
and Blues, who receive tremendous support. You can make the case — sadly, in a
way — that this is the thing we do best. There are problems all over the
metropolitan area, and all sorts of people out of work or suffering in a bad
economy, but we keep showing up en masse to Busch Stadium, the Edward Jones
Dome and the Scottrade Center. You can count on STL fans to give you their
money, their loyalty.

So why is it that the owners of St. Louis professional sports teams are based
in other cities and regions? Bill DeWitt (Cardinals) lives in Cincinnati; Dave
Checketts (Blues) splits his time between Utah and Connecticut; and Rosenbloom
and Rodriguez live in LA.

With St. Louis thriving as a sports town, and with our sports teams serving as
a big source of pride and positive identification for our city, why can't we
get a St. Louisan to actually own one of the teams?

It just seems bizarre to me. For more than a year, Rosenbloom has all but
begged for a St. Louis investor or group to make him an offer for the 60
percent share of the Rams, and this is what he hears in response:

(Crickets chirping) ...

That's why I hope that the great fans of St. Louis continue to pack The Ed for
the Rams in 2009. That's how you can do your part until a new local owner rides
to the rescue.

And a new local owner will ride to the rescue, right?

(Crickets chirping) ...

Hello?

Rescue time!

(Crickets chirping) ...

Do you know that the Rams could move to LA?

Anybody there?

(Crickets chirping) ...

The Rams Revolution

By Bernie Miklasz

The Rams’ release of starting linebacker Pisa Tinoisamoa underscored the dramatic nature of the Rams’ roster shakeup that’s occured this offseason.

Of the players who were listed on the roster or on injured reserve for the 16th and final game of the Rams’ 2008 season, 21 are gone.

And the Rams have gotten a lot younger during this weeding process.

Counting those who finished last season on IR, the Rams have subsequently released, traded or declined to re-sign 15 players who were age 30 or older.

That’s right, 15 thirtysomethings are gone from 2008.

That list includes Torry Holt, Orlando Pace, Drew Bennett, Trent Green, La Roi Glover, Fakhir Brown, Corey Chavous and Jonathan Craft. Several full-time starters were part of that group.

As the 2009 roster sits right now, the Rams have only six players age 30 or over: QB Marc Bulger; DEs James Hall and Leonard Little; LB Chris Draft; S Todd Johnson; and K Josh Brown. Two others — snapper Chris Massey and TE Randy McMichael – will turn 30 during the 2009 season.

That’s why Tinoisamoa was let go. He was decent enough, but wasn’t going to get any better. He was limited by size. GM Billy Devaney and coach Steve Spagnuolo would rather see what some of the young LBs could do, whether it be Larry Grant, Chris Chamberlain or David Vobora.

I think the Rams could get even younger before the 2009 regular-season opener. The Rams lack depth at DE, so Little and Hall appear to be safe. The same with Draft at LB. But obviously Devaney and Spagnuolo are on the lookout for younger plug-ins and upgrades at the position. All positions, actually. They want to freshen up this roster, and make it faster and stronger and more energetic.

Some younger veterans aren’t locks to be playing for the Rams in ‘09. TE Joe Klopfenstein is a longshot to make it to the opener, and at some point CB Tye Hill, the former No. 1 draft pick, will have to show that he can stay healthy and make plays.

If he has another poor season, Bulger could be a salary-cap casualty after ‘09.

If you are a Ram age 30 or older or in your late 20s, watch out … the bosses are probably looking to replace you unless you’re playing very well and on a consistent basis.

And this needed to be done. When a team has lost 27 of its last 32 games, a good scrubbing and aggressive housecleaning is in order. I don’t believe I’m not overstating the Devaney-Spags desire to go with the youngbloods. A perfect example is the wide receiver position. The Rams are going with the kids. They’ve had no interest, so far, in signing one of the elder-statesmen WR who could tutor their young receivers. The Rams’ three top wideouts on the depth chart right now — Donnie Avery, Laurent Robinson and Keenan Burton — have combined for 19 NFL starts and 103 NFL receptions in their careers.

That’s why I think it’s wise and fair to be realistic about the Rams’ 2009 season. This will be a young bunch, led by a rookie HC. This roster overhaul was a necessity. Sometimes you have to take take a step back before you can move forward and begin to ascend. It will be exciting to watch them grow up, but there are still a lot of roster holes, and a lot to learn.