Private investors?

[Captain Hook]

I know if I had hundreds of millions of dollars I would have to do something to try to help the Reds.As a long time fan of the team, it would be worth a good deal of money to simply sit on my couch and enjoy watching the team do well for a summer.I'm not talking about trowing everything I have away.I'm just saying that if there was a FA SS out there looking for 7-8 million for a year and I had 400 million to my name I'd call Bob and tell him to get it done.

Maybe I'm a fool but I'm willing to bet that there are people out there with that kind of money that spend it on much more foolish pleasures then seeing their favorite sports team win some games.

While this is all meant to be hypothetical I was seriously wondering if anything like this has ever happened?

[westofyou]

I know if I had hundreds of millions of dollars I would have to do something to try to help the Reds.As a long time fan of the team, it would be worth a good deal of money to simply sit on my couch and enjoy watching the team do well for a summer.I'm not talking about trowing everything I have away.I'm just saying that if there was a FA SS out there looking for 7-8 million for a year and I had 400 million to my name I'd call Bob and tell him to get it done.

Maybe I'm a fool but I'm willing to bet that there are people out there with that kind of money that spend it on much more foolish pleasures then seeing their favorite sports team win some games.

While this is all meant to be hypothetical I was seriously wondering if anything like this has ever happened?

In the late 20's the Reds were run by Garry Herrman who lorded over the team though they (as now) were owned by a group of shareholders.

Local baseball fan and businessman Sidney Weil had your dream and through some proxy's he purchased the controlling shares of the club. In the spring he donned his own Reds uniform and moved amongst the team, talking to the manager and players. In 1929 the stock market crash ruined Sidney's portfolio, 2 years later he had to relinquish control of the team to the bank (whom he owned much money too) eventually the team was sold to Crosley, but not after it wa soperated in a trust for a couple of seasons.

So yes a local guy has thought that hey, I'll buy my favorite team and help them out.

It's just led to the worst decade in team history, of course the local guy who got the team ten years ago didn't lose his money but he lost the teams legacy.

[BCubb2003]

What the Reds need is an infusion plan, where they pump money into the team for the next few years in a controlled way, and the next few years are the best time to do it, because of the economy. You don't want spending and debt to spin out of control, but you can't prosper if you always have to get worse in one area to get better in another. You take the quality core of the team as it is now, and add quality to that over the next few years. and you should end up with a winning team, without having to spend huge sums to buy a pennant that can be foiled by injuries.

[JaxRed]

First.... that person wouldn't be an investor, they'd simply be giving their money away. So if that person gives the Reds 8 million to sign Player "X", and they sign "X" and they finish 77-79.

You ready to give away another 8 million the next year?

[Strikes Out Looking]

I believe the Tigers currently have that owner. He may have lost a bit of money last year, but his teams fans, while going through the worst downturn in the city's history, enjoyed a pennant race.

[redsmetz]

Here's an old article from the Cincinnati business paper regarding the ownership structure for the Reds at that time. I think some additional units have been sold since this article. I'll look around and see if I can find that.

http://cincinnati.bizjournals.com/ci.../tidbits1.html

Investors rounding out Reds ownership lineup
Business Courier of Cincinnati - by Dan Monk

Cincinnati Reds owner Bob Castellini has raised at least $84.5 million from the sale of non-voting shares in the team, but don't look for that money to be spent on free agent pitchers.

The sales were part of the original financing plan Castellini laid out for Major League Baseball in his bid to acquire the Reds last year. Those details are only now coming into focus as more information is released on the team's new ownership structure. According to people familiar with the deal, the financing plan was crafted by Castellini Co. CFO Chris Fister and attorney George Vincent. It was aimed at broadening the base of Reds ownership and reducing the amount of debt and equity that Castellini's controlling ownership group had to contribute toward the purchase.

The new Reds media guide identifies 10 individual investors or investment partnerships that bought shares in the club recently. We're told they paid $6.5 million each for what amounts to a roughly 4 percent stake in the team.

Each purchase comes with two tickets to every Reds home game and other perks, which one owner described as "periodic bobbleheads." As is typical in partnerships, the new Reds owners will be required to cover the team's future operating losses on a pro-rata basis, but since the shares carry no voting rights, the new owners have no ability to force a distribution of profits.

"You write a check and you go to the games, and that's the extent of your influence," said Tom Neyer Jr., an investor in Queen City Diamond LLC, which bought one of the $6.5 million units. Neyer is a former Hamilton County Commissioner and now a private investor.

The Queen City group was assembled by Vincent, chairman of the Hamilton County Republican Party and partner at Dinsmore & Shohl.

Procter & Gamble CEO A.G. Lafley is a partner in Vincent's Queen City Diamond group. So is P&G General Counsel Jim Johnson and marketing executive Mike Ryan. Vincent's law firm, Dinsmore and Shohl, and Dinsmore partner Frank Woodside each own a piece. So does eye doctor David Schneider.

Vincent said most of the new Reds owners aren't in it for the profits.

"Most of these folks have strong Cincinnati ties or they have great love for the Reds," Vincent said.

Several investors bought an entire $6.5 million ownership unit. Those big spenders include local car dealer Jeff Wyler, venture capitalist Jack Wyant, apartment manager Harry Fath, Staples Inc. CEO Ronald Sargent, technology investor Jeffrey Gendell and Steve Cobb, a Dayton-area entrepreneur.

At least five groups bought ownership units; one of the buyers might have been Castellini's controlling group, which was said to be pondering a larger equity stake.

The Reds' new ownership structure is similar to those employed by other Major League owners, according to Mark Rosentraub, who studies the economics of sports and is dean of Cleveland State University's College of Urban Affairs.

"Many majority owners in recent deals have tried to reduce their equity position and cash calls through minority position," Rosentraub said in an e-mail response to Courier questions. "There is a risk that in the sense that if things go poorly the minority owners can leverage or force out the majority owner."

Rosentraub added that Castellini's success in the new arrangement will depend on "the internal dynamics within the ownership group, their decision-making, and how they handle and manage situations, success and failure."

[redsmetz]

Here's the list of current investors:

Robert H. Castellini
W. Joseph Williams Jr.
Thomas L. Williams
Carl H. Lindner
Carl H. Lindner III
Mrs. Louis Nippert
William J. Reik
George L. Strike

Rick Steiner, Buy Buy Baseball, LLC
EMK Investment Company, LLC
Larry Sheakley
Jeffrey L. Wyler
Harry J. Fath
Jeffrey L. Gendell
Edwin J. Riguad, AACE, LLC
HKR Baseball, LLC
Ronald L. Sargent
John H. Wyant
George H. Vincent, Queen City Diamond, LLC
Heading for Home, LLC
Art Hauser

I'm not sure who everyone is, although a couple are mentioned in the article I posted. The only two I know off hand are Rigaud (a former P&G exec who later headed up the Freedom Center) and Steiner who is a Cincy native and Broadway producer, who was a rival of Castellini's group to buy the team.

I don't know if the corporation still has the managing partnership set up where one owner like Schott, who had more power in the corporate structure than the others.

[chicoruiz]

You know how corporations or individuals sometimes endow a university professorship, or a first violinist at the symphony, or whatever? I've often wondered whether anyone might try a similar thing with sports. In other words, let's say P & G gives the Reds X million dollars a year to spend on a closer, over and above their budget. The pitcher who gets that money is then known as the "P and G closer" or some such, and is referred to by that title in the media. Just as the first-chair oboist at the symphony is known as the "Louise Nippert First Oboist" or whatever, WOY could kick in a million dollars a year and have Ryan Hannigan or whoever occupy the "Westofyou Chair of Backup Catching".

It's just crazy enough to work, I tell you...

[Tony Cloninger]

I heard that you have to live in Cincy in order to be allowed...to invest or even dare own that team. What does it matter where you live...IF you love the Reds and want to invest and want to give money to help the team win...you should be allowed to live in Mongolia.

[Chip R]

I heard that you have to live in Cincy in order to be allowed...to invest or even dare own that team. What does it matter where you live...IF you love the Reds and want to invest and want to give money to help the team win...you should be allowed to live in Mongolia.

Agreed but it's the owner's decision on who should be allowed to invest.

[mace]

You know how corporations or individuals sometimes endow a university professorship, or a first violinist at the symphony, or whatever? I've often wondered whether anyone might try a similar thing with sports. In other words, let's say P & G gives the Reds X million dollars a year to spend on a closer, over and above their budget. The pitcher who gets that money is then known as the "P and G closer" or some such, and is referred to by that title in the media. Just as the first-chair oboist at the symphony is known as the "Louise Nippert First Oboist" or whatever, WOY could kick in a million dollars a year and have Ryan Hannigan or whoever occupy the "Westofyou Chair of Backup Catching".

It's just crazy enough to work, I tell you...

That's just an outstanding post.

It also leads to the prospect of matching funds. Say, you'll sponsor the left fielder and donate $10,000 for every OPS point over .750, up to the amount of the guy's salary. The more the club spends, the more it stands to get back . . .

[redsmetz]

I heard that you have to live in Cincy in order to be allowed...to invest or even dare own that team. What does it matter where you live...IF you love the Reds and want to invest and want to give money to help the team win...you should be allowed to live in Mongolia.

This isn't true. Most, if not all, of the owners have connections to Cincinnati, but William Reik has been based out of New York the whole time he's owned his piece of the club (1986) and Steiner, while a Cincinnati area native, is based out of NY as well. Ronald Sargent is Chairman of Staples Inc. and in all likelihood works out of Massachusetts.

http://cincinnati.bizjournals.com/ci.../tidbits1.html

[corkedbat]

You know how corporations or individuals sometimes endow a university professorship, or a first violinist at the symphony, or whatever? I've often wondered whether anyone might try a similar thing with sports. In other words, let's say P & G gives the Reds X million dollars a year to spend on a closer, over and above their budget. The pitcher who gets that money is then known as the "P and G closer" or some such, and is referred to by that title in the media. Just as the first-chair oboist at the symphony is known as the "Louise Nippert First Oboist" or whatever, WOY could kick in a million dollars a year and have Ryan Hannigan or whoever occupy the "Westofyou Chair of Backup Catching".

It's just crazy enough to work, I tell you...

I can hear it now, "Now playing LF for your Cincinnati Reds, Trojan Man!"

[Captain Hook]

First.... that person wouldn't be an investor, they'd simply be giving their money away. So if that person gives the Reds 8 million to sign Player "X", and they sign "X" and they finish 77-79.

You ready to give away another 8 million the next year?

Isn't anyone that buys a ticket a jersey or even just spends their time watching the game on TV investing in the team in some way.People that invest their money and time into a team receive a service in return.I know when I buy a Jay Bruce jersey or go to a game I have no intention of getting any kind of financial return for my money.That's what I can afford to do to support the Reds.Even though it's on a much larger scale I don't see the difference from investing in a player if I could afford to do that just as easily as I can buy a ticket to a game with my current financial situation?

[Joseph]

You know how corporations or individuals sometimes endow a university professorship, or a first violinist at the symphony, or whatever? I've often wondered whether anyone might try a similar thing with sports. In other words, let's say P & G gives the Reds X million dollars a year to spend on a closer, over and above their budget. The pitcher who gets that money is then known as the "P and G closer" or some such, and is referred to by that title in the media. Just as the first-chair oboist at the symphony is known as the "Louise Nippert First Oboist" or whatever, WOY could kick in a million dollars a year and have Ryan Hannigan or whoever occupy the "Westofyou Chair of Backup Catching".

It's just crazy enough to work, I tell you...

I think ultimately seeing something like that done would not really change things aside from the overall money spent in baseball. Everything would increase across the board tenfold.

If we as the Reds get P&G, Kroger, Graeters and other local companies to sponsor players, think of what the Yankees would get.

We'd get 5mm for a LFer, the Yankees would sign a deal to sponsor their LFer for 25mm.

Ultimately all the teams would end up right back where they are now, and honestly the chasm would likely get wider, not smaller.