latimes.com/sports/bal-modell121795,0,7920346.story
By Jon Morgan
Sun Staff
December 17, 1995
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Scattered among the plane's leather-upholstered seats were four men who
knew the stadium better than the masons who built it: Browns owner Art Modell,
his son and two close advisers.
The mood was unusually subdued for this tight-knit group. Even Modell,
ever ready with a quip, was reflective as the plane pierced the overcast,
autumn sky. No one mentioned the stadium below. Modell saw it out of the
window and thought -- correctly -- that he had spent the last of more than 300
Sundays there.
It was shortly before dawn on Friday, Oct. 27, and the 70-year-old team
owner had not had a full night's sleep for days. A high school dropout who had
made enough money in television and advertising to buy the Browns at the age
of 36, Modell helped build the team and the NFL into powerhouses. Now he was
headed to Baltimore to sign papers transferring his franchise to the city.
The deal would add perhaps $60 million to the value of the franchise he
bought for $4 million in 1961. In Cleveland, it would render him Public Enemy
No. 1.
His son, David Modell, got some bagels and rolls from the plane's galley
and brought them out. James Bailey, the Browns' executive vice president and
Modell's right-hand man, busily shuffled papers on a fold-out table. Across
from the elder Modell was the plane's owner, Alfred Lerner.
The cigar-smoking billionaire had known Modell since the 1970s, bought 5
percent of the team in 1982 and begun flying him to away games at a doctor's
request after his partner suffered a heart attack. Lerner's close relationship
with Modell had prompted Baltimore to ask for his help two years earlier in
getting an NFL expansion franchise. He failed to deliver a single vote,
including Modell's.
Now he was flying a team to Baltimore, nonstop.
A few hundred miles away and under sunny skies, John Moag closed the door
of his home in the exclusive Baltimore suburb of Ruxton and headed for his
green Lexus. Chairman of the Maryland Stadium Authority for just 10 months, he
was about to score a victory that had eluded the state's richest and most
powerful people for 11 years.
News of the deal would make it appear breathtakingly sudden. But, in
reality, it was the culmination of stealth negotiations stretching back
several months, built upon a financial and political foundation laid years
earlier. Vital assistance also had come from Cleveland's corporate and
government elite, who failed to heed ominous warnings.
Bragging rights, however, would have to wait. The deal was top-secret, and
Maryland had agreed to compensate the team if word leaked out before the
Browns' last home game, Dec. 17, and depressed ticket sales. Only a handful of
trusted associates, and Maryland Gov. Parris N. Glendening, knew. And Moag's
wife.
As he neared his car, he saw that she had filled it with orange and brown
balloons.
Right man for the job
Before his appointment last January, Moag had followed Baltimore's
football quest the way most fans did -- through news reports. But Maryland's
new governor had different plans for the Washington lobbyist, whom he knew
from their days together in Prince George's County politics.
Glendening recognized Moag as a hustler of abundant skill and ambition,
just what he needed for a job often at the center of political firefights. The
Stadium Authority chairman, besides overseeing some of the state's biggest
public works projects, was in charge of Baltimore's painful effort to return
to the NFL.
A month after Moag's appointment, the two met at the State House to assess
what had gone wrong during the city's odyssey to return to the NFL, and to
decide whether the fight could be won.
Moag had spent many of his formative years in Baltimore, living in
Pinehurst and, on weekends, traveling to Waverly to park cars on lawns for
Colts games. Now, at 41, he had the unpaid job of trying to return the legacy
of Johnny Unitas to Memorial Stadium.
The Colts had spent 31 seasons there. The team's gutsy play and riotous
fans brought national respect to the city of longshoremen and steel workers
before it all ended one slushy night in March 1984, when the shoulder pads and
championship trophies were secretly loaded into Mayflower vans and hauled to
Indianapolis.
The man charged with trying to erase that memory was viewed with suspicion
by some Baltimore football fans already uneasy about the election of a
Redskins supporter and non-Baltimorean as governor. Despite his Baltimore
roots, Moag was in many senses also an outsider, with a career built in
Washington and its Maryland suburbs. He was the youngest partner in the
history of Patton Boggs & Blow, one of Washington's most powerful lobbying
firms.
But he was a quick study, and by the time he met with the governor in
February, Moag had reached some conclusions about the NFL: More teams would
come courting Baltimore, but only to scare a better deal out of the
politicians at home. The chance of getting a team to move here was not good.
The governor knew the agony Baltimore felt over the loss of its team, and
the elation a new team would elicit. He and Moag agreed on a basic strategy.
Talks would be kept secret. An end-of-the-year deadline would be imposed, both
to spur prospects and to avoid enmeshing Glendening in a humiliating, possibly
losing effort.
At the end of the meeting, Glendening patted Moag on the back and wished
him luck.
Moag left little to chance. First he suggested publicly that he might sue
the league, charging it with keeping teams out of Baltimore to protect the
Washington Redskins, a violation of antitrust laws. Then he turned his sights
on specific team owners. He reasoned that anyone needing money would have to
consider Baltimore's offer, a package of public funding assembled in 1987 by
Gov. William Donald Schaefer and Moag's predecessor, Herbert J. Belgrad, to
build two stadiums -- one to keep the Orioles and one to lure an NFL expansion
team. The deal was so lucrative it would render a franchise one of the most
valuable in sports.
Finding a target
Like any good lobbyist, Moag worked the phones, contacting team owners and
those connected with them. Among those he visited early was First National
Bank president Frank Bramble, a friend and former associate of Lerner's.
Lerner had gotten his start in business in Baltimore, selling furniture
for $75 a week. Later, he amassed much of his wealth here, first in real
estate, then in banking, jetting between offices in Cleveland and Baltimore.
Bramble knew Lerner from his days as head of Maryland National Bank. In
February, Moag asked the bank president to contact his old colleague to gauge
his and Modell's interest.
It seemed improbable. The Browns were one of the most respected teams in
the league, a 49-year-old franchise rich in history and fan support. But, as
Moag was about to learn, the situation in Cleveland was critical.
The fans were still enthusiastic; crowds often topped 70,000 a game. But
Modell, the dean of NFL owners, was looking at yet another season in a stadium
built during the Hoover administration. Meanwhile, newer owners were getting
rich in new facilities in Jacksonville, Fla., Charlotte, N.C. and St. Louis.
Engineers said 64-year-old Cleveland Stadium was basically sound, but
cement chunks were falling off and workers occasionally had to climb ladders
to hammer out dangling sections. Its wooden pilings had petrified.
The drab, horseshoe-shaped facility was built for Olympic track and field
and featured some of the worst spectator views in the NFL. The oval shape
meant the 50-yard-line seats, usually football's most coveted, were the
farthest from the field. And its retrofitted sky boxes commanded
bargain-basement rents.
Meanwhile, Cleveland was already committed to $650 million worth of
community projects: Jacobs Field, the Indians' new baseball park; Gund Arena,
home of the NBA's Cavaliers; and the Rock and Roll Hall of Fame had opened to
rave reviews. The Great Lakes Science Center was going up next to the Browns'
stadium.
Modell had supported the competing attractions, but they were now sapping
corporate support from his team, as droves of sky-box customers dropped their
leases and rented more modern suites at the new arena and ballpark. A quarter
of his sky boxes were vacant. And the move of the Indians from Cleveland
Stadium cost his stadium-operating company $700,000 a year in rent.
Modell says he repeatedly was promised, over six years, that his stadium
would be next. But by the time attention turned to the Browns late last year,
the political and economic climate for sports stadiums had grown bleak.
Construction of the Gateway baseball and basketball complex had run way over
budget and some unpaid contractors had filed for bankruptcy. Cuyahoga County
had to cover interest payments when revenues fell way short of projections.
Politicians began linking Browns stadium funding with measures to pay off the
other projects, a tar pit the football team didn't dare enter.
A mess for Modell. And a bonanza for Moag.
No deal in Cleveland
Bickering among Cleveland's political leaders had Modell thinking the
federal budget would be balanced before he got the money for Cleveland
Stadium. Months had passed since Mayor Michael R. White promised, at a
breakfast meeting at the Cleveland Ritz-Carlton, that he would assemble a deal
in 120 days.
Instead, the mayor found the cupboards bare.
Ohio, home to five major-league and several minor-league and college
sports teams, said it would invest only 15 percent in facilities for any team.
The county, in addition to the problems at Gateway, was reeling from its
own Orange County-like bond crisis stemming from a $115 million loss by a
pooled investment fund. County commissioners were publicly saying the Browns
couldn't count on them for any money.
City Council members, seeing broken-down police cruisers and a school
system in state receivership, said the same. Suggested new taxes on parking,
retail sales, cigarettes and alcohol all drew fiery responses in a city that
was taxing those things as heavily as any city in the country.
By June, the job officially slipped behind schedule. Modell had asked for
the work to be done by the fall of 1999, the season immediately after his
lease expired. Ribbon-cutting now looked to be set for the year 2000 at the
earliest, at which time Modell would be 75. Having undergone bypass surgery
twice, he was considering shifting the team, his only significant asset, to a
trust for estate planning.
At the same time, NFL economics were inflicting as much damage to the
stadium as winter storms blowing in off Lake Erie. The emergence of player
free agency and nuances of the league's revenue-sharing policy strongly
favored clubs that made money from their stadiums. Modell said he was losing
millions and needed bank loans to sign players.
Against this backdrop, Modell wrote a letter to White on June 5.
" . . . the Browns organization cannot condone, support or participate in
a continuation of the divisive and disruptive dialogue concerning stadium
renovation. Nor are we willing to endure a campaign associated with either an
initiative or recall referendum on the November ballot," the letter said.
Modell said the team had to turn its attention to the 1995 season and
asked for a moratorium on the debate. He stopped talking about it. White
responded the next day, writing: " . . . this administration cannot, in good
conscience, let our efforts to assure that there is a viable home for the
Browns in Cleveland wane."
Shopping for a city
On this point the two bitterly disagree: The mayor says Modell
sucker-punched Cleveland by asking for a moratorium but then talking to
Maryland. White says he was working in good faith to meet the team's needs,
despite never getting a clear enunciation of just what the team needed.
Clearly the team was not playing by the tried-and-true rules of sports:
Make public threats to win public concessions. Quite the opposite, for years
Modell had said he would not move the team while he owned it. And he said he
would not talk to other cities during the moratorium. This lulled community
leaders into a false sense of complacency.
Modell says he had resisted issuing over-reaching demands or threats,
knowing the community's limited resources and fearing a public trashing. Now
he was discovering that the support White claimed he had for funding from city
and county leaders was illusionary. And the mayor, by going public with the
debate, broke the moratorium, he says.
As his advisers continued to urge him to leave, Modell agreed to consider
the options.
He looked at several: Toronto, San Antonio, Memphis, Tenn., and Los
Angeles. It was quickly determined that only Baltimore had funding in place
for a first-class stadium that could transform the franchise's fortunes
overnight. But they would have to move fast: Maryland's deadline was only a
few months away and a line was forming.
The Tampa Bay Buccaneers and Arizona Cardinals were keenly interested.
They were the latest in a series of teams that had flirted with the city since
the Cincinnati Bengals and Los Angeles Raiders approached Moag's predecessor
within hours of the league's 1993 expansion votes. A few months later,
investors led by local attorney Robert Schulman bid on the New England
Patriots. During the next year, Orioles owner Peter Angelos made some
expensive, but ultimately failed, runs for the Buccaneers and the then-Los
Angeles Rams and Raiders.
Modell dispatched Lerner to Baltimore for the first of two clandestine
meetings on his plane July 28.
July: Browns get serious
As Lerner jetted into Baltimore-Washington International Airport in his
corporate plane, Moag drove up in his Land Rover, crammed with beach supplies
for a family vacation. The two talked aboard the plane for about an hour and a
half. Lerner said there was a problem in the stadium talks in Cleveland, but
he didn't know what Modell was going to do. Moag explained that the governor
needed to get the state budget together by December for the annual General
Assembly session that begins in mid-January. There was pressure building from
legislators to deauthorize the bonds, possibly to help the Redskins build in
the state.
Lerner didn't need any tutoring on the Baltimore offer. Maryland
strategists, in a last-minute panic during the 1993 expansion competition, had
recruited him as a prospective owner. They had hoped his connection with
Modell, a member of the NFL's expansion committee, would help. It didn't.
Modell, along with most of the other owners, went along with NFL commissioner
Paul Tagliabue's Sun Belt strategy and approved franchises for Charlotte and
Jacksonville. Lerner wasn't surprised; he doubted Baltimore's chances all
along, but joined out of deference to Governor Schaefer.
Now Moag told Lerner that the deal was essentially unchanged from 1993,
including two sweeteners the businessman had negotiated then: the right to
pick the concessionaire and 50 percent of the proceeds of non-NFL events held
at the stadium.
At the end of their airport meeting, Moag and Lerner exchanged a long list
of fax and phone numbers in New York, Cleveland, Baltimore and Delaware, where
Moag was headed.
Moag was so encouraged that he stopped by the State House unannounced on
his way to the beach to brief the governor. Both men were surprised at the
news. Just two weeks before, Moag and the governor had met secretly in
Washington with Tagliabue, a session that left them with serious doubts about
getting a team.
Now Moag was telling the governor he thought the Browns were serious. Moag
believed that Lerner, a no-nonsense ex-Marine, was not given to frivolous
conversations on airport tarmacs. Glendening joked: "Don't worry about this
over your vacation. It's only your career."
Two days later, on July 30, Moag and Glendening sent -- with the Browns'
knowledge -- a letter to Tagliabue, requesting the league pass a legally
binding resolution promising Baltimore an expansion or relocated franchise.
Moag thought this could buy time, keeping funding in place, in case talks with
the Browns or another team went into overtime.
Meanwhile, Moag stayed in contact with other teams. The Buccaneers had
been purchased the year before by Malcolm Glazer, one of two prospective
expansion-team owners that Maryland strategists had snubbed in favor of
Lerner. Now Tampa was having a hard time raising the cash for a new stadium
and Glazer's sons came to see Moag and seemed eager to make a deal. Also
visiting was Cardinals owner Bill Bidwill, who narrowly passed over Baltimore
in 1987 when he moved his franchise from St. Louis to Arizona. He believed
Arizona had not made good on its promises.
Faced with an unexpected bounty, Moag and Glendening picked a team with a
strong tradition and respected owner. While visiting Tampa and Phoenix, Moag
placed calls to Browns intermediaries, subtly giving notice that the team
wasn't alone in its affection for Baltimore.
Moag and Lerner met again Sept. 6, at a reception in the rustic warehouse
adjacent to Camden Yards. While the attention of the sports world was riveted
on Cal Ripken's breaking Lou Gehrig's consecutive-games record that night,
Moag was consumed with another sport and another achievement. He pulled Lerner
aside and reminded him of the approaching deadline. Moag suggested there was
no reason a deal could not be signed and hidden in a vault until the season
ended.
The next day, Lerner called to say Modell was ready to talk. They
scheduled a meeting for Sept. 18, in Lerner's New York office.
The team owner was in a quandary. He had lost hope for a deal in Cleveland
but didn't want to announce he was leaving because it would kill ticket sales
for the remaining home games. But he also saw the best deal in sports slipping
away. The Buccaneers and Cardinals were close, and Modell, as he later put it,
wanted to "head them off at the pass."
He had many questions. Had Baltimore's enthusiasm for football waned since
expansion? Was there a place to play while the stadium was being built? What
about practice facilities? And could a team in Baltimore co-exist with the
Redskins just 40 miles away?
Moag was wary but hopeful. A few days before the meeting, he stopped into
a Georgetown tobacco shop to get a gift for Lerner, whose affection for fine
cigars was undiminished despite a bout with throat cancer. Moag paid $870 for
the best they had: two boxes of Davidoff "Double R," a mild Dominican cigar.
If a $200 million stadium wasn't enough to lure a team, maybe a good
smoke would.
September: down to details
Moag arrived at Lerner's Manhattan office, a posh complex that takes up
the entire top floor of a building, at 11 a.m. With him was Bruce Hoffman, an
engineer and the Stadium Authority executive director, and Alison Asti, the
authority's general counsel. The office, with its dark wood paneling and rich
art, could pass for a country estate except for the breathtaking view of
Central Park, bathed in late-summer sunshine.
Modell was there with his son, David, the 34-year-old vice president and
heir apparent of the team, Bailey and Lerner. At first, the two groups
congregated in a lounge area off to one side of Lerner's desk, making small
talk.
Moag presented a box of Davidoffs to Lerner. The billionaire -- who
prefers the stronger-tasting Hoyo de Monterrey Excaliburs from Spanish
Honduras -- was appreciative but handed them off to David Modell, also a cigar
aficionado. Moag said that wasn't necessary, he had a box for him, too.
Modell told the Marylanders that he knew they had been used by other teams
that feigned interest in Baltimore just to get tax dollars out of their local
officials. Modell assured them that he was "at the end of his rope" in
Cleveland. They agreed to hold the meeting in the strictest of confidence.
Moag related again how perishable the stadium money was: He was under
pressure from other teams, and the governor wanted a deal by the end of the
year.
The group retired to a round table on the other side of the office, where
they ate from a catered buffet of salmon, roast beef and chicken. The
conversation included issues as specific as stadium cleaning -- something
Modell, as the operator of Cleveland Stadium, knew intimately. Moag regaled
the group with his insights as a Washington insider, predicting that Colin
Powell would not run for president and joking that Powell's interest in the
job was dreamed up by his book publicist.
In this genteel setting, the outline of a deal emerged with surprising
swiftness. Modell prided himself on treating others fairly in negotiations.
And Lerner didn't like to get hung up on trivial details. He sometimes told
the story of a real estate deal his father had lost in a dispute over who
would keep a case of toilet paper.
Moag said that Maryland's 1993 expansion offer was already rich, and that
he wasn't planning any enhancements. He opposed, for example, selling the
right to name the stadium to a corporate sponsor, a practice growing common
elsewhere. He also expressed reluctance about charging season-ticket buyers an
upfront fee called permanent seat licenses that were in vogue in the NFL.
Modell knew that he could raise tens of millions of dollars through PSLs
to help pay for the move. But he agreed he wouldn't make the deal contingent
on selling a minimum number of seat licenses, tickets or luxury suites,
inducements that drew the Rams to St. Louis and the Oilers to Nashville, Tenn.
Modell said he was confident Baltimore would embrace the NFL and his team.
As they flew back to Maryland, Moag and his entourage thought they were
close to scoring the Browns. The faxes were soon humming. Team and Stadium
Authority officials held clandestine meetings in Washington, negotiating the
details. Hand-drawn maps of the Inner Harbor and stadium site were exchanged.
Issues as intricate as the ratio of men's to women's toilets were settled.
At one point Moag, remembering Lerner's toilet paper story, faxed him a
proposed lease clause promising the team a bonus: a case of toilet paper.
The two sides agreed to a 30-year lease, with the team playing the first
two years at Memorial Stadium. The team could sell $75 million in permanent
seat licenses, but could use the proceeds only to build a new training
complex, cover moving expenses, and pay off the team's leases in Cleveland and
in the suburb where it trained. (Modell later would use the fee arrangement as
collateral for a $50 million line of credit from Bramble's bank, First
National, to cover legal and relocation costs.)
The state would pay $200 million to build an open-air stadium and maintain
a $600,000 fund for continuing improvements. Rent would consist of the
operating costs of the stadium, about $4 million a year, and a 10 percent
ticket tax, which would raise another $3 million. The team would keep all
money made on concessions, tickets and advertising during games, as well as
half the money from non-NFL events held there.
Meanwhile, officials in Cleveland were growing anxious by Modell's refusal
to negotiate. A few weeks after the New York meeting, Modell received a letter
from Ohio Gov. George V. Voinovich, a friend since his days in Cleveland's
City Hall. The governor begged for at least some advance notice.
"Many of us suspect you have decided there is no way we can possibly meet
the opportunity you have in some other part of the country. . . . It would be
terrible, Art, if at the end of the season you were to sneak out of town like
the Baltimore Colts did," Voinovich wrote.
A5 In fact, the Browns were sneaking into Baltimore.
October: closing the deal
The final details were agreed to in early October and Moag called the
governor, who, in a reaction that mirrored his state's initial disbelief,
said, "Are you sure?" Moag said yes. A contract signing was scheduled for
Friday, Oct. 27, at BWI.
A few items of business remained.
The Browns' board of directors took the matter up secretly on Friday, Oct.
20. Because he owns 51 percent of the team, Modell controls the board. The
only member who is not a friend or relative is Bob Gries, a venture capitalist
and adventurer whose grandfather was a founding investor in the Browns. Gries,
who was estranged from Modell, controlled a block of family-owned stock
constituting 43 percent of the team.
Gries said it was the first he had heard of a move, and he didn't like it.
But he knew he couldn't do anything besides slow it down. The meeting was
adjourned and papers were drawn up that transferred all of Gries' stock to
Modell, who will pay Gries over a period of 10 years beginning in 1997 out of
team revenues. The deal, which is canceled if the team doesn't move, also
raises Lerner's share in the team to 9 percent.
The board met again the following Tuesday, without Gries, and the
relocation was approved unanimously. The next day, Modell dropped Voinovich a
response to his letter. He neither confirmed nor denied the governor's
suspicions. But he made clear his view of Cleveland: " . . . no resolution
that even remotely approximates the benefits afforded the local teams at
Gateway and our NFL competitors is in sight."
In Baltimore, Moag was getting worried that the league might pass the
resolution he requested guaranteeing the city a team. That could give the NFL
greater authority in deciding what team would -- or wouldn't -- move to
Baltimore. A committee had agreed to put it to a vote of all the NFL owners at
a Nov. 7 meeting. Now that he had a team, Moag made plans to get the vote
delayed.
At BWI: flying in, signing off
Moag arrived first at BWI for the Oct. 27 rendezvous. The private plane
terminal was a secluded building around the back of the airport that 11 years
ago had been the setting of another famous moment in NFL history: a combative
Colts owner Bob Irsay, with Mayor Schaefer at his side, insisting to reporters
that he was not leaving Baltimore.
In two months, the Colts were gone. Now, 11 years later, the void was
about to be filled. In Moag's briefcase were two stapled copies of the
contract, one for him and one for Modell.
Glendening arrived next, just after 8 a.m., followed almost immediately by
the plane from Cleveland. The governor was the first to board, greeting Lerner
with a handshake. Lerner escorted the group to the back of the plane, to a
pair of leather-upholstered couches facing each other.
The atmosphere was sober, and Modell spoke first. He talked about how the
decision had weighed on him. He had lived in Cleveland since 1961, raised two
sons there and did his duty on the boards of some of its most prestigious
colleges and corporations. He was president of the Cleveland Clinic, a famous
medical center that saved his life twice.
It was his first meeting with Glendening and the two talked for about 45
minutes. Both men's wives are active in hospices, and it was agreed that they
should get together. Modell talked about how he wanted the team and its
players to become active in the community.
David Modell, who didn't want to interrupt the men by walking between
them, stood in the plane's galley and kept everyone's coffee cups full. At one
point he spilled milk on the governor's shoes. Glendening, about to score a
major political coup, took it in good humor.
For Moag, it was a remarkable scene. The roster of teams that had sniffed
at Baltimore over the years was long and not very distinguished: the Saints,
Cardinals, Patriots, Rams, Raiders, Buccaneers, Oilers, Bengals. Most were
poorly run teams without much support at home. Here was one of the league's
historic franchises actually moving here.
Finally, Modell turned to Moag, sitting next to him, and said, "You have
some papers for me to sign?"
Postscript
Despite efforts to keep the deal secret, it leaked out almost immediately
and, by mutual agreement, was formally announced Nov. 6. The date was
important: The next day, the league was going to consider the Baltimore
resolution (it was tabled) and Cleveland Mayor White's extension of a sin tax
for stadium work was up for referendum (it was approved).
Modell and Lerner anticipated disappointment in Cleveland but have been
surprised by the ferocity of the reaction: bomb threats at the stadium,
pickets outside Modell's winter home in Florida, and death threats. Bills have
been introduced in Congress to thwart franchise relocations. Cleveland went to
court to enforce the final three years of the team's lease at Cleveland
Stadium, and the NFL is scheduled to vote Jan. 17 on the Browns' relocation.
The outcome of both could be challenged in court.
In Baltimore, there has been hand-wringing, but also a deluge of ticket
requests.
Modell, who now travels with a bodyguard, insists he is not turning back.
He won't even be there today when the Browns play what is likely to be their
last game in Cleveland.
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