Originally Posted by
Kinsm
Castellini & the Williams brothers took out 100M$ in debt when they purchased the club, the Reds are paying that down now. It's not unlike the Marlins & Astros sales, the only difference is when they decided to pay it down - right away or wait.
Reds money from Bamtech was supposedly given to the minority shareholders as they'd never received a dividend from owning shares in the club.
Below is how the team's ownership is split.
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This team's primary owner is Bob Castellini. Castellini has one of the smaller ownership positions among MLB teams’ primary owners though.
The shares Castellini and the Williams brothers initially purchased for 270 M$ (or roughly 70% of the franchise) came from Carl Lindner, Louise Nippert, William Reik, George Strike, Great American Insurance Company, and the Gannett Co - who combined owned nearly 100% of the club at that time. The Lindner family - 9%, the Nippert family - 6%, Reik - 6%, and Strike - 9% retained the other outstanding 30% of shares after Castellini's purchase (but the Nippert's eventually sold their share to Frank Cohen and Strike's shares were also sold upon his death).
Big Bob's group (he and the Williams brothers) then immediately turned around and sold a large chunk of their shares to 10 minority owner groups as non-voting shares. Each of them received approximately 3% of the club for a 6.5 M$ investment fee. Leaving Castellini and the Williams' controlling roughly 40% of the team. The sales were part of the original financing plan Castellini laid out to MLB in his bid for the club. It helped him reduce his debt load down to approximately 35 M$, which was initially 100 M$ of the 270 M$ purchase price.
In all there are 19 different shareholders with at least a 3% stake. Big Bob is the majority shareholder at 15% and he is also listed as the primary owner with MLB, the other 18 shareholders have a smaller stake.
Reds Ownership Shares as of 12/15/16:
Bob Castellini (15%), W. Joseph Williams (12%), Tom Williams (12%), Lindner Reds Baseball LLC (9%), Frank Cohen (6%), William Reik Jr. (6%), Buy Buy Baseball LLC (3%), EMK Investment Company LLC (3%), Larry Sheakley (3%), Jeff Wyler (3%), Harry Fath (3%), Jeff Gendell (3%), AACE LLC (3%), HKR Baseball LLC (3%), Ron Sargent (3%), John Wyant (3%), Queen City Diamond LLC (3%), Heading for Home LLC (3%), and Art Hauser (3%).
LLC's Above Broken Down -->
Lindner Reds Baseball LLC - Carl Lindner III and Craig Lindner.
Buy Buy Baseball LLC - Rick Steiner Trust, Jim Miller, Rocco Landesman, Gary Rabiner and Dale Rabiner.
EMK Investment Company LLC - Steve Cobb and others.
African American Capital Enterprises LLC - Edwin Riguad and others.
HKR Baseball LLC - Joseph Rouse and others.
Queen City Diamond LLC - George Vincent, Tom Neyer Jr., A.G. Lafley, Jim Johnson, Mike Ryan, Dinsmore & Shole, and Frank Woodside.
Heading for Home LLC - David Drees and Ralph Drees.
FYI: Since the initial purchase Castellini has reportedly expressed interest in buying ownership stakes if any investors decided to sell all or part of their interest in the team, but none of the owners of smaller stakes have seemed interested in doing so with the exception of the Nippert Trust in 2014.