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Selling points New deal: Henry's group to give $30 million to charitiesPosted: Wednesday January 16, 2002 4:17 PMUpdated: Wednesday January 16, 2002 9:49 PM
BOSTON (AP) -- The Massachusetts attorney general agreed not to fight the sale of the Boston Red Sox to Florida Marlins owner John Henry after exacting another $30 million for the state's charities. The deal cleared the way for baseball's other owners to approve the sale later Wednesday. "I'm proud today that this sale can go forward," attorney general Tom Reilly said. "I'm looking forward to just being a fan, quite frankly." Henry offered $660 million for the team, Fenway Park and the NESN television network -- $90 million less than the highest bid. Reilly was critical of the deal, claiming that it shortchanged the charitable trust that owns 53 percent of the team. Under the agreement, the prospective owners will create a $20 million charity to fund youth, educational and other organizations. Another $10 million will be contributed to the Yawkey trust by the limited partners who agreed to sell their 47 percent share to the group led by Henry. The group, which could be in place by Opening Day, also includes former Padres owner Tom Werner, former San Diego and Baltimore Orioles president Larry Lucchino and former Senate Majority Leader George Mitchell -- all friends of baseball commissioner Bud Selig. The deal was announced only hours after talks had broken down and Reilly sent Selig a letter urging him to reopen the bidding. And the announcement came just an hour before baseball owners began meeting in Phoenix to vote on the team's sale, which they later approved.
"We had run out of patience," Reilly said. "It was important to us to get it done." With the agreement, Red Sox CEO John Harrington will share control of the Yawkey trust -- which will soon be worth almost a half-billion dollars -- with a board that will expand from four to nine members. The new trustees will have to be approved by the attorney general. "We will bring in professional management," Reilly said. "We wanted to get the foundation on sound footing and get it moving forward. That's what we accomplished." Reilly's letter to Selig had urged owners not to approve the sale to Henry's group, saying his review needed more time. "I have a responsibility not only to assure that the charities of the Commonwealth receive as much as possible from the sale of the Red Sox, but also to guarantee that the foundation is prepared to meet its obviously enhanced obligations," Reilly wrote to Selig. Harrington eventually gave Reilly what he was seeking. Thomas A. Yawkey bought the Red Sox in 1933 and controlled the team until his death in 1976. His wife, Jean R. Yawkey, died in 1992 and put the majority share of the team in a trust that has been controlled by Harrington. "I look forward to continuing to carry on Mrs. Yawkey's legacy in my role as trustee and executive director of her foundation for many years to come," Harrington said. Henry said the agreement to establish a New Boston Red Sox Foundation would continue the Yawkey's long history of community involvement. "We look forward to forging strong ties within the Boston area and throughout the New England community via this foundation for many years to come," Henry said in a statement. New York lawyer Miles Prentice and cable TV billionaire Charles Dolan have each submitted higher offers than Henry, but the Red Sox said Henry has the best chance of being approved by the owners at their meeting, which began Wednesday, in Phoenix. Prentice had no immediate comment, and Dolan released a statement saying the agreement with Reilly did not correct a flawed sale process.
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