Saturday, August 8, 1998

BY TIM SULLIVAN
The Cincinnati Enquirer

Jon Ledecky would like to run the Cincinnati Reds someday, but for now he is content to buy in and bide time.

J. Ledecky

The prospective buyer of Frisch's Restaurants' share in the Reds limited partnership said Friday, "I am absolutely standing there with open arms" should other shareholders be willing to sell.

But he is not ready to declare the Frisch's deal done, even after committing $7 million to acquire a 1 - 15th interest in the team. "What this will do is shake the tree to see if there is any other limited partner who's interested" in buying the share, Mr. Ledecky said. "I don't think we're even halfway through the process. My proposed purchase of the share will be a catalyst for a meeting of the partnership. At that meeting, someone can raise their hand and say, "I match Mr. Ledecky's offer.' If that happens, I'm out of luck."

Because the Frisch's share has been on the market for nearly a year, sources inside Reds ownership and management doubt Mr. Ledecky's bid is likely to be blunted by a partner exercising the right of first refusal. But New York investor William Reik, who already owns one share of the Reds, has previously discussed buying the Frisch's interest and is considering raising his bid to match Mr. Ledecky's.

Owning Reds would be a dream for Ledecky -Tim Sullivan column

"This guy (Ledecky) seems like a capital fellow -- no pun intended," Mr. Reik said late Friday. "It would be fun to have him in the partnership. (But) I have to think about it. It's possible I could go to $7 million. It's appealing to me because I love baseball and I love the Reds." Mr. Ledecky said Reds General Partner Marge Schott was "supportive" of his interest in acquiring the Frisch's stake, and that he had also been encouraged by his contacts with representatives of limited partners Louise Nippert and George Strike. He said his impression was that Carl Lindner, the wealthiest member of the Reds partnership, was not inclined to increase his holdings.

"The sense I got was very good support," he said. "While I was negotiating with Frisch's, I wanted to make sure the limited partners were aware of it and make sure Mrs. Schott was on board. When you're an outsider, you don't want to blow in like a cold wind."

Other Reds partners could not be reached for comment Friday. The Washington, D.C.-based businessman sought to reassure prospective partners and customers that his interest in the Reds was as a Cincinnati institution and not as a franchise that might be moved to a larger market without major-league baseball.

"It would be heresy to take the Cincinnati Reds anywhere," Mr. Ledecky said. "That's the citadel of Major League Baseball. People in Washington are aching for a team, but don't misconstrue that. You would never take the oldest baseball team and move it to Washington. If I got a chance to move into ownership in a major way, I'd move to Cincinnati."

The 40-year-old bachelor, the Harvard-educated son of a Czechoslovakian immigrant, described his life as relatively rootless. He was unemployed four years ago when he developed the concept that became U.S. Office Products, a company designed to enable local office supply stores to compete against national chains. His empire has since expanded to include interests in nine public companies.

"I've literally spent the last four years of my life 85-90 percent on an airplane," he said. "Last year, I flew 500,000 miles. I was sort of the poster child for Dow 9000, and I feel blessed beyond belief. But I don't think you're totally blessed unless you have a family. . . . I'm looking to put down roots somewhere. What I like about Cincinnati is you get a sense of community."

What Mr. Ledecky likes about the Reds is the prospect of a new stadium, certain tax advantages of owning a piece of a professional sports franchise and the chance for substantial capital gains. Frisch's spent $1.6 million to acquire its share of the Reds 15 years ago, which is less than 23 percent of the price Mr. Ledecky is prepared to pay. Adjusting for inflation, that's still a pretty handsome profit.

"What I'm hoping is if the Reds do it properly, their new stadium would be like Camden Yards," Mr. Ledecky said. "The value of the Baltimore franchise before the stadium was constructed was $70 million. When the stadium got built, it was $170 (million).

"If you do it right, the fan base will come roaring back. But it's got to be a world-class facility. You have to engage the business community and the region . . . What's intriguing to me is the opportunity, even in a minor way, to have input on what that stadium looks like." Mr. Ledecky is less eager to involve himself in the continuing controversy over site selection.

"It would be outrageous for me to even weigh in on that," he said.

". . . At the end of the day, it's the taxpayers -- who equal the fans -- who are the ones footing the bill. We should make it as user-friendly to that fan base as possible."

Mr. Ledecky said he had not inquired about any other shares that might be available in the Reds partnership -- that it wouldn't be appropriate.

"My style of investment is to look at the very long term," he said. "One day, it would be wonderful if I learn enough from this situation to step into a more major ownership role, whether that's in Cincinnati or somewhere else. This just seemed to be an excellent time to step in."