If Orioles owner Peter Angeles is able to make a successful bid for the Washington Redskins, he'll probably have to pay a record price for an NFL franchise.

He'll also have to overcome two obstacles -- the fact that most NFL owners prefer to keep the team in the Cooke family, and the league's cross-ownership rule, which currently wouldn't permit the Orioles owner to own an NFL team.

Since the owners changed the cross-ownership rule just last year to allow Wayne Huizenga of the Miami Dolphins and Paul Allen of the Seattle Seahawks into the league, stretching it again shouldn't be a problem if Angelos has the high bid.

The bidding for the Redskins will likely top the $530 million price that Al Lerner recently paid to obtain the expansion Cleveland franchise.

"There's not another one like it because of its tradition and the fact it's in the nation's capital," Dallas Cowboys owner Jerry Jones said of the Washington franchise yesterday. "It most assuredly will be the highest price ever."

The record price would be supported by the revenue streams provided by the team's new stadium that features 80,000 seats, including 15,000 pricey club seats (although not all are sold), and 208 luxury boxes.

According to information provided by the New York investment firm of Morgan Stanley Dean Witter to prospective owners -- and confirmed by an NFL owner who didn't want to be identified -- the Redskins have an operating profit of $70 million a year, although that's reduced by the debt service on their new stadium.

The Redskins' profit margin is probably topped only by the Cowboys, who have 375 luxury boxes. Jones wouldn't say just how profitable his team is. "I'm mum on that," he said.

Although Angelos has obtained a 100-page confidential information memorandum filled with figures detailing the team's revenues, cash flow, expenses, stadium debt and terms of the sale, he has yet to actually make a bid for the team.

"It's kind of premature even though I told them I was interested. I got the preliminary information about the parameters of the sale from the investment banker who's arranging the sale," Angelos said from his office.

The Cooke legacy

When Jack Kent Cooke died in April 1997 at age 84, he stipulated that his estate, worth up to $800 million, be sold so the proceeds could be placed in a foundation that will award scholarships to underprivileged children.

His son, John Kent Cooke, has stated publicly and privately that he has a financing plan to buy the team although his father didn't leave him enough money to buy it.

If Cooke's bid is similar to other bids, the NFL owners are likely to approve the sale to him.

"I'm for John Cooke," said Dan Rooney, the president of the Pittsburgh Steelers. "I would like to see him stay."

Buffalo Bills owner Ralph Wilson seconded the motion.

"I hope John is able to keep the team. It's been in the Cooke family for decades," he said.

Cooke has represented the team for years at league meetings since his father rarely attended them and he has operated the team since his father died.

But if Cooke can't match the highest bid, the highest bidder would likely get the nod of the other owners.

Cross-ownership rule

If Angelos has the high bid, they would likely change the cross-ownership rule the way they did in March 1997 when they voted 24-5-1 to allow Huizenga and Allen into the league.

The new rule stipulates an owner can own other teams in the same town (Huizenga owns the baseball Florida Marlins and NHL Panthers) or a team in a town that doesn't compete with an NFL team (Allen owns the NBA Portland Trail Blazers and Portland doesn't have an NFL team).

Since Angelos' Orioles compete with the Ravens, he would be in violation of the current rule.

But the NFL has a long history of tailoring its rules to specific situations. When Huizenga bought the Dolphins in 1994, he said he'd sell his other teams if the league didn't change the rule by 1996.

When commissioner Paul Tagliabue couldn't get the votes to change the rule in 1996, he simply extended the agreement a year until he could get the votes. It helped that Huizenga threatened a lawsuit and the league has a long history of losing court battles.

"Are you kidding? That's a sure bet," said one owner, who didn't want to be identified, when he was asked if the league would change the rule for Angelos.

Angelos has made earlier attempts to join the NFL fraternity. After Baltimore failed to get an expansion team in 1993, Angelos spoke to both Los Angeles teams at the time -- the Rams and the Raiders -- about moving here. He also made an offer to buy the Tampa Bay Buccaneers for $210 million in January 1995.

So he isn't exactly a stranger to the NFL owners.

Opposition, resignation

But Bob Kraft, the owner of the New England Patriots who is chairman of the finance committee, was skeptical that the owners would change the rule for Angelos or any other owner competing with an NFL team.

"The intent of the rule is not to have owners competing against each other with teams in other cities. If we violate that, then we have no cross-ownership policy. If another NFL owner came in and bought the Red Sox, I don't think I'd look favorably on that," Kraft said.

Even some of the executives who opposed the rule change seemed resigned to the fact that the league couldn't reject Angelos.

"I always thought it was better when we had a strong rule that prohibited cross-ownership, but we've passed over that bridge now," said Mike Brown, owner of the Cincinnati Bengals, who voted against the change.

Brown added, "There are some owners in this league who feel this is a free country and you ought to be able to own whatever you want."

Chuck Schmidt, the president of the Detroit Lions who also voted against the rule change, said, "We still feel strongly about it, but maybe you have to change with the times."

Jones said he wanted to reserve his opinion, but he has a long history of favoring the highest price. "I'm all for them maximizing their price," the Cowboys owner said.

Angelos could argue that Baltimore and Washington are virtually the same market, which would pass muster with the current rule. That was basically the position that Tagliabue took when he helped deny Baltimore an expansion franchise in 1993 because of its proximity to Washington.

Rooney, though, said, "Baltimore is not Washington."

Modell: No impact on Ravens

Ravens owner Art Modell said it wouldn't have an impact on the Ravens if Angelos owned the Redskins.

"No, it's a franchise that's already been there. It's not like they are new and moving into our market," he said.

On the cross-ownership issue, Modell said, "Cross-ownership has been a problem in this league for a long time. If the league observes the rules, then they have to be consistent. There has been nothing this marginal where the two teams have been 28 to 30 miles away, but they are in the same market. I'm sure there is going to be a lot of heated debate, a lot of discussion. I have no opinion of my own."

If Angelos owned the Redskins, though, he could probably put together marketing deals for both the Redskins and Orioles and maximize the value of both franchises.

Angelos has several weeks to get his bid together if he makes one. The investment firm is accepting queries from interested parties until Nov. 23. The firm would like to have the deal completed to present to the owners at their meeting in March in Phoenix.

Angelos said: "I expect to talk about it in November, and that will come after certain information is filed and [there's] a plan for a purchase price."

When he said how he could purchase a Washington football team and oppose a baseball team for Washington, he pointed to the example of the San Francisco Giants and the Oakland Athletics, who have trouble both drawing in the Bay area.

Angelos said he'd be delighted if Cooke wanted to join his group, but said, "That makes it sound presumptuous, but I certainly wouldn't exclude him. I wouldn't mind it at all."

Other candidates

Before the team was officially put up for sale by the trustees on Sept. 9, New York financier Andrew Penson made a bid of $450 million for the team, but he will likely have to boost his bid to stay in the running.

Maryland land developer Nathan Landow, a member of the Penson group, said of Angelos, "He certainly is a credible prospective purchaser with a great experience and commitment sports as well as to this metropolitan area. He'd be a great owner. He'd be an asset to the league."

Landow said he will meet with Penson next week. One issue they'll discuss is "whether or not we hold at this [$450 million] price."

Howard Milstein, the co-owner of the New York Islanders, also has indicated he'll make a bid for the team. But he declined to bid more than $450 million for the Browns, which probably won't be enough to get the Redskins.

Another possible prospective buyer is Houston businessman Bob McNair, who said he might be interested in the Redskins if he fails in his bid to get an expansion team for Houston.

The Redskins' current 0-7 record is not expected to affect the sale price because a new owner could increase revenues with a winning team.

PTC Pub Date: 10/31/98