Lerner-Policy Group Wins Browns

Had they been buying the Rams or Raiders, a 72-hour grace period providing for buyer’s remorse might have been appropriate, but the team of Alfred Lerner and Carmen Policy has been given permission by the NFL to write a $530-million check to buy the new Cleveland Browns franchise.

Former Browns’ owner Art Modell, who moved his team to Baltimore three years ago, paid $4 million for the original Cleveland franchise in 1961.

NFL Commissioner Paul Tagliabue, walking away from the podium after his historic announcement, revealed that Houston and Los Angeles will now get their chances, and will be invited to make presentations to all 31 NFL owners for the first time, Oct. 27-28 in Kansas City, Mo.

The winner of the match race between Houston and Los Angeles undoubtedly will have to start at Cleveland’s $530-million expansion tariff, although $54 million of that sales price will be redirected to pay off a loan for the construction of Cleveland’s new $280-million publicly financed stadium.

Lerner and Policy, who must also still account for more than $20 million in stadium construction overruns, were willing to pay almost three times what Carolina and Jacksonville paid only three years ago, because they are expected to collect $30 million a year in stadium revenues and an average of $73.3 million in TV money for the next eight years.

When the NFL owners gather in Kansas City in October, they will want detailed financing plans from Los Angeles and Houston and some kind of assurances that publicly funded stadiums can be built in short order. Tagliabue said it’s too early to set a timetable, but the league’s owners figure to be more specific after the October session.

The New Coliseum Partners, who have made four presentations to various NFL committees without making much of an impression, will now be competing with Michael Ovitz and his stadium site in Carson for NFL favor.

And Los Angeles will be competing with one unified effort in Houston, led by Bob McNair, known to have a close relationship with Tagliabue--the same thing that had been said about Lerner and Policy.

Houston has been working on plans for a publicly financed stadium, and although McNair has expressed frustration recently with city politics, when asked who had the edge, Houston or L.A., Tagliabue spoke only about Houston.

“I know [Carolina owner] Jerry Richardson said before Houston was about 95% of the way there and in terms of what he said . . . ,” Tagliabue said. “But Los Angeles will still have its opportunity.”

Los Angeles will be given every opportunity, and then maybe some more to edge ahead of Houston, but will have to do so without Policy, the former 49er executive who could very well have focused and improved Los Angeles’ bid, as he did Lerner’s in Cleveland.

The NFL, wanting to include Lerner, whose net worth is $2.5 billion and who had been a 5% minority owner of the Browns, and then a 9% owner of the Ravens and a 50% owner of the Ravens’ new stadium, had to rehabilitate Lerner’s reputation.

Lerner had made initial contact with Baltimore, setting up Modell’s move from Cleveland, and had even lent his private plane as a secret location for final negotiations.

Policy’s track record with the 49ers eventually prompted the mayor of Cleveland and the Cleveland Plain Dealer, the area’s largest newspaper, to endorse Lerner.

The NFL’s seven-man expansion committee narrowed a group of seven bidders to two Tuesday morning. Howard Milstein, a New York banker who had bid $450 million, is now expected to bid for the Washington Redskins, who will have to be sold for estate considerations following the death of owner Jack Kent Cooke.

The expansion committee evaluated Lerner and Policy’s bid, which had gone up more than $20 million in the last week, against that of Larry and Charles Dolan, who bid $500 million and had strong Cleveland connections and former NFL coach Don Shula’s support, and agreed to unanimously recommend Lerner and Policy.

However, a group of NFL owners supported the Dolans, primarily because of Shula’s involvement, keeping Lerner and Policy from gaining the required 23 votes on the first three ballots taken.

But then in an odd twist, Modell, who has had a falling out with Lerner, his former partner, stood and asked his fellow owners to vote unanimously in favor of Lerner and Policy.

Twenty-nine owners voted for Lerner and Policy, one owner abstaining--the owner who almost always abstains, the Raiders’ Al Davis.

Maybe he’s just saving himself for when it comes time to vote on Los Angeles or Houston.

(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)

Cleveland Brown Chronology

Significant dates surrounding the move of the Cleveland Browns to Baltimore and the return of a Browns expansion franchise to Cleveland:

* 1984: Browns majority owner Art Modell endorses a Cuyahoga County commissioners’ plan for a domed stadium. But a related property tax issue fails.

* 1994: Modell says he plans to keep the Browns in Cleveland but would like a better stadium. He says renovation would be acceptable.

* June 5, 1995: Modell declares a unilateral “moratorium” on all stadium discussions, saying he wants to let emotions settle and concentrate on the football season.

* July 28, 1995: Then-Brown minority owner Alfred Lerner secretly meets with Maryland Stadium Authority Chairman John Moag about moving team to Baltimore. Talks continue between Modell, Moag and Lerner for next several months.

* Aug. 29, 1995: County commissioners ask Modell to guarantee the Browns will stay. Modell refuses, citing his “moratorium.”

* Oct. 27, 1995: Modell, Moag, Lerner and Maryland Gov. Parris Glendening meet on Lerner’s jet at Baltimore-Washington International Airport to sign contract.

* Nov. 5, 1995: The Browns play Houston Oilers at Cleveland Stadium, losing 37-10. Angry fans carry signs and banners denouncing Modell, who does not attend the game for first time in his 35 years as Browns owner. Attendance is 57,881, well below capacity of 78,000.

* Nov. 6, 1995: Modell and Glendening announce the Browns will move to Baltimore.

* Dec. 17, 1995: The Browns beat Cincinnati Bengals, 26-10, in last game at Cleveland Stadium.

* Feb. 9, 1996: NFL owners approve a deal whereby Modell can move his team to Baltimore but the nickname “Browns” and the team colors stay in Cleveland. The NFL also agrees to put another team in Cleveland by 1999 and contribute to building of new stadium for new Browns.

* Feb 21, 1996: City abandons idea of a domed stadium, settling on an open-air stadium.

* Sept. 1, 1996: Browns fans throw tailgate parties outside Cleveland Stadium on opening day of NFL season, despite the fact there is no team to cheer for.

* May 15, 1997: Groundbreaking ceremony is held for new Browns stadium.

* March 23, 1998: Owners agree new Cleveland Browns will be an expansion franchise. In following months, seven ownership candidates emerge, including former minority owner Lerner.

* Sept. 8, 1998: NFL owners select Lerner and his partner Carmen Policy as the owners.