St. Louis Lease Is Settled : Pro football: Officials trying to attract Rams have secured use of new facility, clearing the way for resumption of negotiations to bring team to their city.
The sticky stadium lease issue that has hindered St. Louis’ efforts to land an NFL team was finally resolved Thursday, clearing the way for the city to resume negotiations with the Rams.
Ram President John Shaw had broken off talks with St. Louis on Aug. 10, when it became apparent the city might not be able to secure use of the $258-million, 70,000-seat domed stadium, currently under construction in St. Louis, for the 1995 season.
But Thursday’s announcement that St. Louis beer distributor Jerry Clinton had sold his 30% share of the lease to FANS Inc. (Football At the New Stadium), the nonprofit group trying to secure a team, pushed St. Louis back into the hunt for the Rams.
“We’re prepared to talk to the Rams, and I think we can put together a very competitive offer,” St. Louis County Executive George (Buzz) Westfall said at a St. Louis press conference. “I think we’re going to get the Rams here. I’m more confident than ever. The lease was the big obstacle, and now that’s behind us.”
Shaw could not be reached Thursday night, but Heidi Sinclair of the Los Angeles office of Burson-Marsteller public relations firm, which has been hired to handle questions regarding a possible move, indicated that the news bodes well for St. Louis, one of three cities--Baltimore and Hartford, Conn., are the others--aggressively pursuing the Rams.
“We’re not going to say anything until we have a chance to take a look and see what has really gone on,” Sinclair said. “Then we’ll issue a statement (today) about starting up negotiations again.”
St. Louis may have to take a number outside Shaw’s office, though. Shaw is scheduled to meet today with members of the Orange County-based Save the Rams Task Force. Maryland Governor William Donald Schaefer and Baltimore Oriole owner Peter Angelos, who is heading Baltimore’s efforts, are scheduled to meet with Shaw in Los Angeles early next week.
Newport Beach-based sports agent Leigh Steinberg, Save the Rams co-chairman, said he will unveil an enhanced package to the Rams that includes guarantees for the purchase of season tickets and luxury suites in a refurbished Anaheim Stadium and an offer, backed by several investors, to buy the Rams for between $150 million and 200 million.
Ram owner Georgia Frontiere said she would consider selling a minority interest in the team but has said repeatedly that a controlling share is not for sale.
“It’s their team and they may not have an interest in selling it, but we wanted to make that proposal available,” Steinberg said. “The economics of our (new) deal are much better than what was proposed three weeks ago.”
That Save the Rams offer included a $50 million to $70 million renovation of Anaheim Stadium, construction of a new office and practice facility near the stadium, and a $50 million infusion of cash through the purchase of a minority interest in the team.
“I would make the point again that the Rams have been in Southern California for 49 years and have been loyally supported for most of them,” Steinberg said. “I believe our offer will guarantee the Rams a level of profitability.”
St. Louis has guaranteed huge profits for the Rams--the new stadium lease calls for an NFL team to receive all concession, in-house advertising, luxury suite and club seat revenue--but until Clinton relented Thursday, all the city could offer was 54,000-seat Busch Stadium, which has no luxury suites or club seats.
But that won’t be necessary thanks to Thursday’s deal, in which FANS agreed to pay Clinton $4 million within 48 hours and another $4 million if an NFL team relocates to St. Louis and Clinton does not become part owner. Clinton will also receive use of a luxury suite for 20 years.
Civic Progress, a coalition of the 28 largest businesses in St. Louis, has guaranteed loans for both payments.
St. Louis attorney Thomas Eagleton, a former U.S. Senator who was recently named chairman of FANS, said the city will soon begin selling luxury boxes and season tickets.
“This is a happy day,” Eagleton said. “I talked to the Rams and they’re very pleased. They’ve been encouraging us from the very start to get a clean lease.”
Former New England Patriot owner James Orthwein had given up his 65% share of the lease to FANS in June but Clinton, whose bid for an NFL expansion team last year failed, refused until Thursday because he said he wanted to use his 30% share of the lease as leverage to bring a team to the city.
The remaining 5% of the lease was owned by two smaller investors who conveyed their shares to FANS Thursday, as well. But Clinton, who said he spent $8.5 million in the expansion effort, was always considered the stumbling block to the city’s NFL hopes.
“I told Clinton the Rams’ clock was ticking,” Eagleton said. “It was time to remove oneself from the pot.”
The Associated Press contributed to this story.
