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Date Posted: 15:40:33 12/27/11 Tue
Author: CHB
Subject: OK, now Mike & family finally own virtually all of the team

>>> Statement from the Bengals

Posted Dec 23, 2011

The sale of the minority ownership stake in the Cincinnati Bengals that had been held by the estate of former shareholder Austin E. “Dutch” Knowlton was completed Friday. The estate of Mr. Knowlton had previously reached terms to sell its shares to investors in New York, but through a right to match such terms, ownership of the Cincinnati Bengals will remain with the existing ownership group (for ca$h, possibly in the 200mil neighborhood). This transaction solidifies the local ownership of the Cincinnati Bengals, with the Brown family continuing to hold the controlling interest.

The Bengals have been locally owned since the Club’s inception in the mid-1960s and, as a result, have enjoyed long-term stability. The Club’s football operations will not be affected by the transaction and no further or carry-on transactions are contemplated.

“We are proud to be the owners of the NFL’s Cincinnati franchise,” said Bengals President Mike Brown, speaking on behalf of the Brown family. “We are committed to steps that will continue the Bengals as an asset for Greater Cincinnati.” <<<

According to Forbes, Paul & Mike bought their initial stake in the team for a 'mere' $8mil in 1967. Also according to that source, only Jerry Jones (& family) and Shah Khan (new owner of the Jags) similarly control their entire team ownership portfolio.

Thanks to the new 10-year CBA horizon & network TV contracts, owning an NFL team is one of the more prospectively profitable investments currently in the world. Perhaps more meaningful, Brown family finally controls all of it, effectively ending the absolute NEED for MFB to control costs as a way of maximizing profits (in the form of dividends paid to holders of shares in the sub-S corp structure deal which resulted from the original contested sale of the first part of the Knowlton shares sale in 1999, which allowed Brown to purchase those shares at below market in order to give Knowlton both an immediate cash boost plus an ongoing millions-dollar annual cash flow from those dividends that just sold) in order to allow themselves to be in position to complete this specific overriding ownership goal (no matter the circumstances beyond their control). With further profitability virtually guaranteed going forward in a 10-year window, might we be on the cusp of a new "golden age" in Bengaldom where money will be no real object (as long as it's spent efficiently)?

Now we finally see a practice bubble finally going up now that Mike no longer has to plot & scheme to make totally sure he has enough money to do what he just did when the time came?

Perhaps not incoincidentally, they also just announced today that Lippy will be retiring after the upcoming draft to go back & coordinate the defense at good ol' Moeller High!

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