Reds' price not impeding interest
But team control issue is likely to complicate sale negotiations

By Cliff Peale
Enquirer staff write

Owners selling a 51.5-percent stake in the Cincinnati Reds are asking a price that values the entire club at between $250 million and $275 million. Now they're waiting to see whether potential buyers agree.

The stake from owners Louise Nippert, George Strike and Gannett Co., owner of The Enquirer, went on the block in March. It has attracted five potential buyers to get permission from Major League Baseball to look at the team's financial records. Three of those have traveled to Cincinnati for a more detailed look and are in price negotiations with the sellers.

Steve Greenberg, the investment banker negotiating for the sellers, said buyers haven't balked at the price tag, which is at the upper end of previous valuations of the Reds.

Other quirks in the Reds' deal, including whether a buyer would be able to gain operating control of the team, are also on buyers' minds.

"I think in a funny way price will not be the most difficult component of this transaction," Greenberg said.

The latest on the sale front:

One interested party, New Yorker Andrew Murstein, looked into the team's finances but said he is no longer pursuing the Reds. Murstein, president of Medallion Financial Corp., said the increasing price of professional sports teams is a factor.

Another interested party, Chicago investor Marty Kaplan, has received MLB approval to examine the Reds' records, according to two sources who asked not to be identified. Kaplan would not comment.

Three other potential buyers approved by MLB have been publicly identified: A local group that includes Broadway producer Rick Steiner, investor Dan Staton and entrepreneur John Osher; New York attorney Miles Prentice; and a group that includes Lexington money manager Ron Switzer.

The number of potential buyers could increase if MLB officials pick a buyer for the Washington Nationals soon. There are up to eight bidders for the Nationals, and the losers could turn their interest to Cincinnati, Greenberg said.

The Reds sellers would like to close the deal in November. If the Washington sale is delayed, that could keep potential buyers out of the Reds' mix.
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