Merchandising Rights Key to Deal?

Disney’s willingness to sell licensing and merchandising rights for the Angels and Mighty Ducks should allow the company to justify its sports investment to anxious shareholders, analysts said Thursday.

Orange County technology billionaire Henry T. Nicholas III has offered more than $400 million for Disney’s two Anaheim teams, a source said Wednesday. Disney spent about $330 million in 1996 to purchase and operate the teams and renovate Edison Field.

If Nicholas agrees to buy for close to $450 million--a purchase price driven higher than expected by inclusion of those licensing rights--Disney Chairman Michael Eisner can remind shareholders that the company made more than $100 million on its pro sports venture while preserving the teams in Anaheim, down the street from the new theme park the company plans to open in 2001.

“Disney gets back its investment in the teams and the facility with a return, and they’re also a good corporate citizen,” said Bill Miller, executive vice president of the Leib Group, a Milwaukee sports consulting company.

Nicholas’ offer does not indicate a sale agreement is imminent. Nicholas and any partners first must receive preliminary approval from baseball officials to review the Angels’ financial documents. If Disney and Nicholas agree, Major League Baseball and NHL officials could take months to approve the deal.