Tuesday, November 11, 1998

BY GEOFF HOBSON
The Cincinnati Enquirer

Marge Schott

Marge Schott's asking price for all but one of her shares in the Reds is about $30 million more than Major League Baseball estimated, and the disparity has MLB still looking for some kind of serious intent on Schott's part to sell by the end of the year.

Indications are if Schott isn't close to securing a deal in about a month or so - per her Oct. 23 agreement with MLB - Baseball can still play the General Motors card.

She could be called before Commissioner Bud Selig to discuss GM's allegations she used the names of Reds employees to help defraud the automaker.

SCHOTT-GM STORIES

Seven Reds employees on Schott buyers list Jan. 4, 1997 GM'S list of 57 allegedly faked sale Jan. 4, 1997 GM says Schott faked sales Dec. 24, 1996

MLB could extend Schott's suspension agreement beyond Dec. 31, 1998 and keep John Allen in charge of day-to-day affairs.

It's believed Schott is looking for about $78 million for the 5.5 shares that include two controlling interests (Schott holds 6.5 shares, but wants to keep one limited share). MLB reportedly thinks the club is worth about $130 million. That puts each of the 15 shares in the $8.66 million range.

Add an estimated 17 percent increase for the two general partner shares and the total price is $50.5 million, well short of the $78 million asking price. And experts say the value of the shares will diminish as the expiration date for the Reds' partnership agreement - Dec. 31, 2000 - draws closer.

''If she's going to hold the line at $78 million, she's going to be hard-pressed to find a buyer,'' said Dean Bonham of the Bonham Group, a Denver-based market research company that values sports franchises. ''If she had control in perpetuity she might have a shot at something like that, but the $50 million figure is more like it.''

MLB is reportedly content to let Schott sit on the sidelines until the last day of 2000, as long as Allen is in control. Officials are banking on Schott selling earlier rather than later because there are no controlling shares beyond 2000.

Complicating matters is the Reds' unsigned stadium lease with Hamilton County. MLB believes the club's memorandum of understanding is as good as a lease because the major economic terms won't change.

''I don't know about that,'' Bonham said. ''I would advise my client not to spend $50 million until there's a lease.''

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