Mysteries Of Pittsburgh

THE NATION suffered its most astonishing economic meltdown since the Great Depression last week, so perhaps it wasn't surprising to see a hedge-fund manager pull back on a $550 million investment. Yet when Stanley Druckenmiller, 55, founder of Duquesne Capital Management, took himself out of the running to buy a majority interest in the Pittsburgh Steelers last Thursday, his decision had little to do with the economy and a lot to do with the brothers Rooney.

Each of the late Art Rooney Sr.'s five sons—including his eldest, Dan, 76, the team's chairman—owns 16% of the franchise that cost Art $2,500 to found in 1933 and that is now worth between $800 million and $1.2 billion, according to Goldman Sachs. But that ownership structure has become problematic: The family owns racetracks in Florida and New York that have installed poker tables and slot machines, respectively, putting the Rooneys in violation of the NFL's gambling policy; the league also wants at least one owner of each team to hold at least a 30% share, an edict the Steelers are violating; and the brothers have begun worrying about inheritance taxes their descendants could pay.

To that end, four of the brothers (all except Dan, who hopes to become the principal owner) approached Druckenmiller, a passionate Steelers fan, last February about purchasing their 64% share. Druckenmiller made an offer in August, and last Thursday the Rooneys turned it down. Druckenmiller then withdrew without making a counteroffer. "It has become clear that the Rooneys need substantial additional time to assess their options," he said in a statement.

While the NFL has not set a hard deadline for the Rooneys, the family knows it must come into compliance. A league without the Rooneys running the Steelers is not something the tradition-minded NFL savors. Still, rules are sacred in the NFL, so though a new principal owner has not yet emerged, there are likely to be fewer Rooneys in the league's future.

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