Thursday, June 03, 1999
Reds deal may be done by break
Owners likely to approve sale by All-Star Game
BY GEOFF HOBSON
The Cincinnati Enquirer
Although Major League Baseball owners postponed their meeting next week, one top official said Wednesday he expects no delays in approving Marge Schott's sale of the Reds to a group headed by Carl Lindner.
“At this point, there are merely procedural matters,” National League President Leonard Coleman said. “I don't know of any hang-ups and don't expect any. It's expected to go smoothly.”
Coleman wouldn't speculate on a time frame, but MLB sources have indicated the owners should approve the sale via phone or fax by the July 13 All-Star Game in Boston.
MLB's two major questions about the sale appear on the verge of being answered.
Officials are concerned about how the Lindner group plans to resolve the status of the limited partnership beyond its Dec.31, 2000 expiration and how it would resolve an estate situation.
An estate question is standard for any prospective owner, and baseball doesn't expect a problem because Lindner has dealt with it before.
As for the 2000 question, sources say the leading option for the Lindner group is converting the Reds from a limited partnership to a limited liabili ty corporation with Lindner at the top of the ladder.
The major differences between a limited liability corporation and a limited partnership, business experts say, is the corporation survives into perpetuity.
An LLC also provides more flexibility and more democracy for the limited partners than does a limited partnership, in which the general partner has all the power.
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