Schott relinquishes control of Reds
Posted: Friday October 23, 1998 08:29 PM
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The Cincinnati Post reported that baseball would have sought to extend Marge Schott's ban if she didn't end her ownership Tom Hauck/Allsport |
CINCINNATI (AP) -- Marge Schott was forced to take the first step
toward giving up control of the Cincinnati Reds, agreeing
Friday to sell by the end of the year rather than face an indefinite
suspension. The controversial Schott, twice disciplined by
baseball for inflammatory remarks, was nearing the end of a suspension that
began in June 1996. Baseball gave her a choice: Agree to sell her general
partner shares or receive a third suspension for using the names of Reds
employees in falsified auto sales at her dealership. Schott
has until December 31 to sell most of her shares. John Allen, who has run
the club during her latest punishment, remains the managing executive in
the interim. The announcement amounts to a two-month extension
of the current arrangement that keeps her out of day-to-day operations. It
also prolongs the uncertainty over the team's future. Although
Schott told baseball she intends to sell her general partner shares and all
but one of her limited partner shares, sources told The Associated
Press she isn't close to a deal. If she fails to meet the
Dec. 31 deadline -- she has failed to live up to terms of her previous
agreements with major league baseball -- her suspension could be extended.
The agreement leaves the Reds' front office unsettled at a
crucial time. Allen has negotiated a preliminary agreement with Hamilton
County to build a baseball-only stadium, and residents will vote on a site
for it November 3. County commissioner Bob Bedinghaus, who has
spearheaded the stadium project, said there will be no setback as long as
Allen remains in charge. Bedinghaus expects the team's limited partners to
eventually buy Schott's shares. "I think what you saw today
was the beginning of a process that will consolidate ownership within the
existing limited partners," Bedinghaus said. "That can do nothing but help
the process as we move forward." Allen also must complete the
team's budget for 1999 while Schott seeks a buyer. Allen
declined to take phone calls. Reds spokesman Rob Butcher said neither
Schott nor the team had any comment. "It's between major
league baseball and Mrs. Schott," Butcher said. Schott was at
her office at Cinergy Field briefly Friday but left before the agreement
was announced. She did not return a message left at her home.
Schott took control of the team in 1984 and became president and chief
executive a year later. During the 1990s, she took a high profile in
running the franchise and twice wound up disciplined by baseball for
inflammatory remarks. She was suspended for the 1993 season
for remarks that were "racially and ethnically offensive," but returned a
year later. Another series of inflammatory remarks in 1996 prompted
baseball to force her to turn management of the team over to Allen through
this season. Although she was able to bounce back from her
previous punishments, she found herself cornered this time because of the
partnership agreement that gives her control of the team. The
agreement expires at the end of 2000 and the limited partners, who have
tried to pry the team loose from her control for a decade, are ready to
vote her out at that time. They are prepared to buy her controlling
interest in the team if she puts it up for sale. During her
latest suspension, she also gave baseball more ammunition to extend her
exile. She sold her General Motors dealership after the automaker accused
her of using the names of Reds employees to falsify auto sales to meet her
quotas. Faced with another suspension from baseball and
limited partners eager to be rid of her, Schott found herself backed into a
corner. Baseball suggested last spring that she should either sell or
expect another suspension that would last until the partnership agreement
expired. Commissioner Bud Selig accepted Schott's offer to
sell her two general partner shares and 3 1/2 of her limited partner shares
by the end of the year, leaving her with a minimal interest in the club.
"I respect Mrs. Schott's decision and will do everything I can
to ensure a dignified and orderly transition," Selig said.
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