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One fine mess

Documents reveal controversy in Red Sox sale

Posted: Thursday February 14, 2002 7:42 PM

BOSTON (AP) -- Disgruntled losing bidders for the Boston Red Sox traded accusations with team CEO John Harrington in early January as they tried to reopen the bidding, according to documents obtained Thursday by The Associated Press.

One of the bidders, Cablevision Systems Corp. chairman Charles Dolan, claimed he was told by team lawyer Justin Morreale on Dec. 19 that a $660 million bid would make him the winner. The sale, for the same price, was announced the next day to a group led by Florida Marlins owner John Henry.

Henry was awarded the team on the grounds his financing was more complete and his proposal better aligned with major league baseball rules.

On Jan. 11, Dolan wrote Harrington: "Our bid was the same as Henry's bid and it was the amount we were told we needed to win."

Dan Goldberg, a partner of Morreale, on Thursday denied Morreale said any such thing, adding Morreale could not have known whether $660 million would win the bidding since Henry hadn't submitted his final offer.

"Justin never told him what number to put in, and never told him that some particular number would win the bid, and it would be illogical for somebody to think that he would do that," he said. "Mr. Dolan has been told in response to his assertions that never happened."

The thousands of pages of documents, obtained under the Freedom of Information of Act, are related to Attorney General Thomas Reilly's investigation into whether the team shortchanged the Jean R. Yawkey Trust by passing on higher offers in favor of Henry, whose purchase of the team was approved by major league owners on Jan. 16.

Reilly withdrew his objections after Henry's group promised more money for the trust.

The documents reveal a series of sharp correspondences, particularly between Harrington and Dolan, who later upped his offer to $750 million. The Red Sox maintained Dolan's bid was incomplete, as was a belated offer of $755 million from New York lawyer Miles Prentice. After reconsidering, the Red Sox stayed with their decision to sell to Henry.

In exchanges with Harrington, Dolan denied he would have had trouble gaining approval from other owners because his brother, Larry, owns the Cleveland Indians. He claims he and his brother spoke to baseball commissioner Bud Selig twice last year, including once Dec. 18, just two days before the sale. In the second meeting, according to Dolan, Selig said Charles Dolan "would be no more or less likely to be approved by the owners than any other bidder."

Harrington replied the next day, chiding him on the details of the sale, "suffice it to say that you know better than to believe everything you read in the newspaper."

"You were told the day prior to the limited partners meeting to put your best offer forward -- not to leave any money on the table -- since the limited partners were likely going to vote that day," Harrington wrote

On the question of owners approval, he added, "you obviously are well aware" of the owners' concerns about his media interests, cross-ownership of other sports teams, and his brother's interest in the Indians.

Two days later, Harrington outlined more specific objections to Dolan's increased bid.

"It is not surprising to me ... that the limited partners decided several days ago to reconfirm [the sale to Henry]," he wrote. Still, he said he would pass on the new bid for their consideration.

Bob Popeo, a lawyer for Dolan, did not immediately return a telephone call seeking comment.

The papers also reveal the Red Sox believed bidders were colluding, violating the bidding agreement, though they do not say which ones. On Sept. 7, Morreale wrote to the bidders reminding them of the rules.

"We have recently learned of apparent violations of this covenant," Morreale wrote. "The Trust will not tolerate collusions or combinations of bidders."


 
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