Nederlanders Reject Watkins’ Overtures

Donald Watkins, the Alabama businessman who has been the longest-running Disney suitor among those interested in buying the Angels and who has insisted that he didn’t need partners to close the deal, was recently rejected when he asked the Nederlander family if they would be interested in merging their pursuits, a person connected to the sale process said Saturday.

Interested parties are expected to submit bids to Lehman Bros., the New York investment firm handling the process, this week, but it is unclear if Monday is a rigid deadline, as had been believed.

Lehman Bros. has distributed some of the club’s financial records, but a more thorough due diligence will accompany more serious negotiations, the person connected to the process said.

Because James and Robert Nederlander, internationally known theater impresarios, are already limited partners in the New York Yankees, their approval by baseball would come far faster than that of anyone except, perhaps, former commissioner Peter Ueberroth, and it is not a surprise that they would reject a merger with Watkins, whose liquidity and overall financial footing have been viewed skeptically by some baseball officials.

In addition, the source said, the Nederlanders are already well-positioned financially, with some top entertainment and sports figures among their partners, including Reggie Jackson, who would have a small stake and front-office role if they are successful in buying the club.

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-- Ross Newhan