Sporting News, July 30, 1984
With two seasons completed and several USFL franchises seeing serious red in their ledgers, it is not surprising that we are now seeing some ownership changes across the league. League sources have revealed that no fewer than 4 franchises are likely to propose ownership changes or restructuring to the League’s Executive Finance Committee. According to our sources within the league offices in New York, we should anticipate the following announcements to be made official over the following few weeks.
OAKLAND
The Oakland Invaders are bringing in a new majority owner. While Ted Taube is expected to remain a significant member of the ownership group, and may retain his position as Team President, it is anticipated that the Invaders will announce that the new lead investor in the franchise is William Millard, tech entrepreneur and owner of the computer retail chain Computerland. Millard is a Bay Area resident, and while attendance in Oakland has been poor this past season, the franchise is expected to remain at the Oakland-Alameda Stadium.
LOS ANGELES
The LA Express are expected to announce that Mr. Frederick Woodruff (“Ted”) Field will be added to the ownership group as soon as this month. Mr. Field is best known as the founder of Interscope Communication, whose film “Revenge of the Nerds” was a huge hit this past summer. While Interscope is the newest of Mr. Field’s investments, he has a diverse portfolio and was recently listed in the Forbes ranking of the wealthiest men in America. Mr. Field is expected to be a silent partner, with Alan Harmon staying on as the head of the ownership team.
DENVER
The Denver Gold are in final negotiations for the sale of the franchise by Ron Blanding to an ownership group headed by the brothers Dick and Charles Monfort. The two brothers are local investors linked to Montford of Colorado, a meat packing consortium. They have been vocal advocates for bringing Major League Baseball to the Denver market. It is anticipated that they will continue this effort, while also bringing a more risk-tolerant attitude to the Gold. Mr. Blanding opted to sell the franchise after the league ownership executive committee put into place salary cap requirements which would force greater expenditure by the Gold on player and staff. Denver has been one of the most frugal franchises in the league, a concern which other owners cite as part of their attempts to balance expenditure and revenue sharing. It is anticipated that the Montford brothers will seek to bring in through free agency and the draft a more nationally recognizable talent pool.
CHICAGO
The league is also preparing for Dr. Ted Dietrich and the ownership group of the Chicago Blitz to seek either a new ownership group or league-sponsored ownership for the Blitz. Chicago has been on of the lowest revenue-generators in the league in both 1983 and 1984. The transfer from Jim Joseph to Dr. Dietrich as the two swapped franchises (Chicago and Arizona) has not led to greater revenue for the Blitz and it seems clear that Dr. Dietrich will seek to sell off the franchise. It is anticipated that the league will require that the franchise retain its Chicago location as this has direct impact on the league’s television contracts, Chicago being one of the largest markets in the 16-team league.
BOSTON
George Matthews, owner of the Boston Breakers has also expressed interest in a possible sale of the franchise. While they are only at the exploratory stage, it seems clear that limited capacity, first at Nickerson Field, and now at Harvard Stadium, as well as poor attendance overall, may be motivating factors for the franchise to relocate from Boston should a sale come through. Unlike Chicago, a departure from the Boston market would not immediately lead to alterations in the league’s television contracts with ABC and ESPN. Obviously, any relocation would need to be approved by the owner’s executive committee, and the destination city would have to be considered a market comparable to those already in place.
While it is certainly a positive to see new investment in the USFL, particularly in those cities which have proven to be difficult for the league, the potential for franchise suspension or relocation adds significant risk for the league. Any signs of instability will only heighten concerns as the league discusses possible rescheduling of the 1985 or 1986 season from spring to fall, and may cause ongoing negotiation with sponsorship partners as well as with ABC/ESPN to be impacted.