BOSTON -- Responding to a surprising $700 million late bid
from Charles Dolan, the Boston Red Sox held telephone discussions
Friday with the team's limited partners.
Dolan, the chairman of Cablevision Systems Corp., made the new
bid Thursday, three weeks after the Red Sox agreed to a $660
million offer from a group headed by Florida Marlins owner John
Henry.
"We had a healthy discussion with the limited partners this
afternoon which will continue over the weekend," said Daniel
Goldberg, a lawyer for the Red Sox. "We will have further comment
when it is appropriate."
State Attorney General Thomas Reilly met with major league
baseball's lead lawyer as part of his investigation into whether
the office of commissioner Bud Selig improperly guided the team
into agreeing to the offer from Henry's group on Dec. 20.
The Red Sox are not bound by their agreement with Henry, a
source close to the team said, speaking on the condition of
anonymity.
"Our latest offer gives us another opportunity to own a
wonderful franchise in a great city and we hope that the trust
accepts it," Dolan spokeswoman Nancy Sterling said, adding the
team had made it clear that bids would be considered up until the
sale in finalized.
"The documents if you see them are very specific in that area
in that it basically says the Red Sox can deny bids, the Red Sox
can accept bids and then change their minds," she said.
Reilly, who has an appointment to speak with Selig on Saturday,
is investigating whether charities that would benefit from the sale
were shortchanged when the team accepted Henry's offer instead of a
$750 million bid from a group headed by New York lawyer Miles
Prentice. The Red Sox claimed the Prentice offer did not have
secure financing.
Baseball owners have been notified there could be a vote next
week on a conditional approval to the sale to Henry's group, a
high-ranking official of another team said, also on the condition
of anonymity.
Dolan's bid upended the sale just as it appeared to be winding
down, more than a year after the process began. Henry was attending
the annual dinner of the Boston chapter of the Baseball Writers'
Association of American when Dolan's new offer became public.
Henry said he wasn't worried, but left the dinner early to meet
with advisers in his hotel suite.
Red Sox chief executive officer John Harrington has not
commented on the Dolan bid. Harrington runs the Jean R. Yawkey
Trust, which owns a 53 percent controlling share of the Red Sox.
"By contrast with the previous (Prentice) one, I think there is
a much stronger obligation on John Harrington to take account of
this new offer, assuming it's a totally financially viable offer,"
said Paul Weiler, an expert on sports law at Harvard Law School.
Weiler said the Red Sox would only be committed to Henry's bid
if they had signed a binding contract. Otherwise, the Yawkey Trust
is obliged to seek the best deal it can for the charities that will
benefit from the sale.
Two sources -- one close to the negotiations and another close to
one of the bidding groups, both speaking on condition of anonymity
-- also said Friday that Red Sox lawyers led bidders to believe that
offers would be considered until the sale is complete.
Sterling said the latest offer would provide more for the Yakwey
Trust charities than the other bids.
There was no comment Friday from Henry's group.
Reilly, emerging Friday from a meeting with Bob DuPuy,
baseball's chief legal counsel, said, "It's very clear from this
process there were no rules, the rules were changed hour by hour,
bidder by bidder."
DuPuy described the discussion as "cordial" and said there was
"nothing troubling" about the sale. He also denied Reilly's
allegation that baseball owners directed the team to accept Henry's
bid, saying Harrington was free to ask for owners' approval of any
purchaser he chose.
DuPuy said baseball owners have scheduled "discussion and
possible action" on the sale when they meet next week.
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