Wednesday, June 17, 1998

BY GEOFF HOBSON
The Cincinnati Enquirer

Marge Schott's latest appearance in the stadium debate has accelerated Major League Baseball's scrutiny and it could lead to an extension of her suspension in the next few weeks, preventing her from ever running the Reds again.

A source close to MLB said Tuesday that Baseball is concerned because it doesn't want to put a deal for a new Reds' ballpark in jeopardy. With the Reds' limited partnership agreement set to expire Dec. 31, 2000 and MLB having final approval of a new ownership structure, another two-year suspension virtually takes Schott out for good. MLB wants to resolve her status before Sept. 1.

Schott continues to give baseball leverage to discipline her. Also under review are allegations by General Motors she used the names of Reds' employees to help defraud the automaker. The source also said MLB could try to base the extension solely on violations of her original June 12, 1996, agreement for insensitive remarks. That suspension ends after this season's World Series.

Schott drew the ire of MLB last week when she reportedly allowed Broadway Commons supporter Jim Tarbell to divulge their conversation to the public. Her suspension agreement prohibits her from speaking to the media, which reported Tarbell's remarks.

"From what I know, she didn't violate the agreement," Tarbell said. "She didn't initiate the call; she didn't start the discussion; and they can't stop her from having a conversation with a private citizen."

Tarbell said Schott told him she didn't favor the Wedge site between Cinergy Field and The Crown and would consider Broadway if financial terms were similar to a Wedge deal.

"It's a technical violation of the agreement, and it gives Baseball a little more leverage in the discussions of extending her suspension," said Jim Crowley, a Cincinnati sports lawyer. Schott was fined $10,000 last November for breaking the agreement when she spoke out on the stadium without getting permission from the National League.

She also was banned from Reds offices in 1996 after sending a staff memo saying she would still be involved with the team.

While many of her fellow owners hope MLB negotiates a sale by Schott, Baseball is concerned right now with saving a memorandum of understanding for a new park at the Wedge.

A source close to the stadium talks said Tuesday documents have been produced for a final MOU and the only differences are in langauge, indicating a deal could come as soon as next week for the $235 million park.

The county remains confident Schott will sign the MOU. But it is unsure it can move forward with the project if she doesn't sign the document. Reds Managing Executive John Allen, her replacement. negotiated the deal.

Despite Baseball's insistence Allen has legal authority to execute a stadium deal in the suspension document, Cincinnati lawyers say Hamilton County Commissioners are correct to be cautious about a MOU that doesn't have Schott's signature.

"Unless it spells out directly in that document that John Allen has the right to site the stadium and negotiate the terms of such a deal, I'd be uncomfortable," said Mark Jahnke, a lawyer at Katz, Teller, Brant & Hild familiar with Ohio partnership law.

"You've got a (suspension) agreement with a third party that's subject to some argument," Jahnke said. "This decision is going to impact the partnership for the next 50 years, and it's being executed by a third party. And you've got to have firm commitments when you go out and get bonds. It's a huge, open question."

Other lawyers also point to the differences in Baseball's agreement and the Reds' limited partnership agreement.

"John Allen has authority in one, but not the other," one lawyer said. "With all the money that's at stake, wouldn't the county have to be absolutely sure?"

Other attorneys argue Schott has to live within her agreement with Baseball because she has agreed to be a member of its partnership.