Co-Owner of Royals May Rebuy Team : Baseball: Developer’s financial difficulties spark a proposal to sell off his 50% interest in the club.

Kansas City Royals co-owner Ewing Kauffman said today he has received a proposal from the other co-owner that could result in Kauffman’s reacquiring 100% of the team this year.

Avron Fogelman, a Memphis real estate developer, bought into the team in 1983 when Kauffman, the team founder, was thought to have serious health problems. In the last two years, Fogelman’s financial situation has markedly deteriorated and Kauffman admitted today that their personal relationship has also soured.

“Obviously I feel different about him than I did,” Kauffman said at a news conference at Royals Stadium. “But he is drowning and trying to stay alive.”

Kauffman said under the proposal, which he is considering, the club would loan Fogelman $34 million and the loan would be secured by Fogelman’s 50% interest.

Fogelman would then give Kauffman an option to buy out Fogelman’s interest for the outstanding balance of the loan.

It is anticipated, the Royals said in a statement, that Kauffman’s option would be exercised immediately after the closing of the loan, but the actual purchase would occur later.

Kauffman said he doubted very much if there was any danger of the team leaving town. The Royals and Kansas City Chiefs recently signed long-term leases, and voters in April approved a new financing measure with Jackson County guaranteeing the teams certain financial help.

By law, the Royals will be offered for sale to the highest bidder who is acceptable to Major League Baseball. An investment banking firm will be retained to conduct the sale.

An acceptable bidder would have to repay the $34-million loan, as well as all amounts owed by the Royals to Kauffman, and assume all other liabilities, including the new stadium lease.

If a bid is received by a third party, Kauffman would have the right to meet it but would not be obligated to. The closing of the sale would occur on Jan. 2, 1991. If no third-party bid is received, Kauffman would purchase Fogelman’s interest on Jan. 3, 1991.

“I am anxious to provide assistance to Mr. Fogelman in a way that will ensure the continued successful presence of the Royals in Kansas City,” said Kauffman, who sold the half-interest to Fogelman for $11 million.

“Mr. Fogelman’s proposal necessitated by his current financial difficulties, is very onerous to me personally. But I am giving full consideration to his wishes. I am working closely with Mr. Fogelman and expect a final resolution within the next few weeks.”