Selig Reminds Disney on Financial Discussions

Although the Walt Disney Co. has invited Orange County technology billionaire Henry T. Nicholas III to invest in the Angels and Mighty Ducks, Commissioner Bud Selig reiterated Friday that baseball rules prohibit prospective buyers and sellers from exchanging financial information without approval from his office.

“They need to talk to me long before they get to that position,” Selig said. “All I know is that they’re talking about it internally and have had preliminary discussions with some people. . . . I’ve reminded Disney and every club that there are guidelines that need to be followed. I don’t want to read about it in the paper.”

The NHL does not require such disclosure and does not evaluate potential buyers until a sale agreement is submitted to the league.

In either sport, league officials conduct rigorous--and lengthy--background checks of potential owners. Disney agreed to buy the Angels in May 1995, but baseball owners did not vote to approve the purchase until January 1996.

Nicholas owns about $2.3 billion in Broadcom stock. Owners in either sport would want Nicholas and any partners to demonstrate significant cash reserves available for operating expenses. Stock worth alone, no matter how lucrative, could fall in value at any time and would not satisfy league owners.