Tuesday, December 1, 1998

BY GEOFF HOBSON
The Cincinnati Enquirer

Marge Schott is reportedly unhappy with estimates of the Cincinnati Reds' value, ranging from a Major League Baseball appraisal of $130 million to $136 million in the Dec. 14 issue of Forbes magazine. That puts her cut between $50-58 million, far below the $78 million she is said to be seeking for all but one of her 6.5 shares.

With no formal sale negotiations underway, MLB is prepared to ask Schott to extend her agreement to entertain offers beyond Dec. 31, 1998.

Indications are if a stalemate continues, Schott will be requested in the next two weeks to extend the Oct. 23, 1998 document in which she agreed to take offers while Managing Executive John Allen continues to run the team.

Those close to the situation say if she doesn't agree to extend, Schott is to be summoned to a meeting with Baseball Commissioner Bud Selig to discuss allegations by General Motors 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

But insiders insist MLB believes Schott is serious about selling even though her asking price is higher than figures of national experts. She reportedly doesn't have a bid higher than $45 million. Some potential buyers say they won't be surprised if she holds her shares beyond the Dec. 31, 2000 finish of the club's limited partnership agreement, when her two controlling interests expire. "What's her incentive to sell?" one asked.

"This is going to be difficult for her," said another. "The team is her life."

Schott had no comment Monday.

While MLB figures her incentive is the controlling shares devalue each day the clock ticks to 2000, some experts say the Reds' value could rise nearer a 2003 new ballpark opening.

Marc Ganis of Sportscorp., a Chicago consultant for sports franchises who worked on the Forbes survey, put the Reds' value between $150-$160 million. But he doesn't see the price jumping in the next two years unless there's a major revenue sharing agreement that boosts small-market teams, or a new TV deal.

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