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Media & Entertainment Law

: Sports Biz

Agreement Reached to Sell Rams to Local Businessman

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Looks like the Rams won't be heading back to Los Angeles any time soon. The Rosenbloom children have reached an agreement to sell their 60% of the team to a St. Louis area businessman, Shahid Khan. He is a self-made multi-millionaire who emigrated to the US as a teenager to attend the University of Illinois to study engineering. He went on to develop an new auto bumper and buy an auto parts company that became a global business. And, yes, he is a football fan - an ardent supporter of Illini football and a regular attendee of Rams games, which means above all, the man is a masochist. The sales price, and the depth of his masochism, has not been disclosed.

So, what's next. There are two scenarios. Stan Kroenke, owner of the Colorado Avalanche, the Denver Nuggets and a minority interest in Arsenal of the English Premier League, and the remaining 40% of the Rams, has an option to match the sales price of the deal with Khan and purchase that 60% interest. Were he to do so, he would have to divest himself of his other teams to comply with NFL cross-ownership rules.

The sale must be approved by the NFL, which will conduct an extensive investigation of Mr. Khan and his finances. Assuming his finances are in order, I would expect the NFL would be fairly quick to approve this sale as it accomplishes several objectives: it keeps the Rams in St. Louis, leaving Los Angeles open for the Jaguars and Vikings, who need the threat for their stadium negotiations, and it adds diversity to the ownership ranks, something to which Roger Goodell is very committed.

Full post as published by Sports Biz on February 15, 2010 (boomark / email).