Howard Milstein has agreed in a letter to split a $400 million loan to buy the Washington Redskins with his brother, Edward, but has provided no documentation to back up the proposal, a league spokesman said yesterday.

The loan is part of an $800 million package put together by the Milsteins and Daniel Snyder that won the bidding war to buy the Redskins from the estate of the late Jack Kent Cooke.

Howard Milstein was originally going to borrow the $400 million himself, which would violate the NFL's debt rules, so the league asked that the loan be split between the brothers.

The lack of documentation that the loan will be split between the brothers may be a major obstacle when the league finance committee meets in Phoenix today to determine whether to recommend that the owners approve the sale at their annual meeting next week.

Another concern of the NFL is that the Milsteins are borrowing their entire share of the transaction. The brothers also want to use the team itself as collateral for the loans.

That would make it the most highly leveraged deal in NFL history, and NFL officials fear it would saddle the team with too much debt and hamper its operation. It could also lead to the banks taking over the team if Milstein has a cash flow problem in the future. It could also set a precedent for future sales that don't involve any equity.

After the eight-man finance committee makes its recommendation, the entire ownership is expected to vote on the proposal Tuesday.

If the sale is rejected, the Milsteins are expected to sue the league and contend that as long as the banks are willing to lend them the money, the league should approve the sale.

Pub Date: 3/13/99