Wednesday, August 26, 1998

BY JOHN ERARDI
The Cincinnati Enquirer

Jon Ledecky

The Reds ownership group decided Tuesday it wants until mid-September to see whether one or more -- or all -- of the limited partners are interested in buying Frisch's Restaurants' share of the team for $7 million.

That means Jon Ledecky, the 40-year-old entrepreneur from Washington, D.C., who had made an offer for the share earlier this month, is still in the on-deck circle.

By mid-September, the ownership group will notify Frisch's Chairman Jack Maier whether anybody is going to match Mr. Ledecky's $7 million offer.

If nobody matches it, Mr. Ledecky gets the share Sept. 30, Mr. Maier said.

The importance of the decision comes down to more than just one share of a limited partnership, sources said. All of the limiteds hold at least one share (Carl Lindner has 1 1/2 and Louise Nippert 2), so with one share more, any of the limited partners could be running the ball club if they could persuade Reds President Marge Schott to sell them her 6 1/2 shares, thereby giving them a majority interest. A limited partner could buy the share alone or combine with others to split the share.

"Three or more people could wind up buying it," Mr. Maier said Tuesday.

Those three are thought to be Mrs. Nippert, William Reik and Mr. Lindner. Limited partner George Strike also attended Tuesday's meeting at the Queen City Club. Carl Kroch and Gannett Co., each of whom own a share, were not at the meeting.

There was no discussion in Tuesday's meeting about whether Mrs. Schott is willing to sell her shares or at what price, sources said.

Mr. Ledecky said the delay does not come as a surprise.

"I'm not disappointed -- I'm still upbeat and optimistic," said Mr. Ledecky, who wasn't at the meeting.

"It's almost like Groucho Marx once said about not wanting to join a club that would have him as a member. I think it's good they're thinking twice about having me as a member," he said.

"It was well-known to me under the agreement with Frisch's that the (limiteds) had 30 days to review (the $7 million) offer," Mr. Ledecky said. "It's right there in the partnership agreement that the partners can match the offer. The Frisch's people were clear about that."

There was no lengthy discussion about Mr. Ledecky at Tuesday's meeting. Sources said Mrs. Schott, who is under suspension by Major League Baseball, said she had met with Mr. Ledecky and liked him. Much of the meeting had to do with the Reds' financial picture. John Allen, the Reds' managing executive, gave a report stating the Reds are profitable.

Mr. Ledecky said the limited partners' decision to review buying the share "tells me my notion about it being a good investment has been confirmed.

"Those are savvy business people in that room. If they didn't feel it was a good investment, they'd have said, "Go ahead and sell it.' They want to take the full time (and) look at the financial situation of the Reds. It's a situation that may be improving, and the partners may want to think twice about whether they want it (the share) to leave the partnership."

Coinciding with the mid-September decision on the Frisch's share is the Sept. 15-17 baseball owners meeting in Milwaukee. That is when Baseball Commissioner Bud Selig has said he wants to resolve Mrs. Schott's suspension situation.

If Mrs. Schott doesn't show Major League Baseball that she has made a firm commitment to try to sell the team, Mr. Selig could extend her suspension beyond the World Series. He could punish her until her term as president and CEO expires with the limited partnership Dec. 31, 2000, citing her use of the names of Reds employees in an alleged scheme to defraud General Motors.

After Tuesday's meeting, Mr. Maier read a statement from the partnership reaffirming its support for a new ballpark at the "Baseball on Main" site between Cinergy Field and the Crown.

The riverfront location has the best ingress and egress of any stadium in the country, Mr. Maier said.

Cincinnati City Councilman Jim Tarbell, who is leading the charge for a new Broadway Commons ballpark, was unimpressed with the club's reaffirmation of its desire for a riverfront site.

"Thank you very much. What's new?" he said. "They're restating the obvious."

Lucy May contributed to this report.