Robert Castellini expected to buy Reds: Lindner to give up control

[CincyRedsFan30]

Castellini group expected to buy majority stake in Reds

By Cliff Peale, John Erardi and John Fay
Enquirer staff writers

An ownership group led by local businessman Robert Castellini is expected to buy a majority stake in the Cincinnati Reds and will likely assume operating control of the team, sources said today.

The team is expected to issue a press release at 4 p.m.

Under terms of the agreement, it’s believed that Reds owner Carl Lindner will give up control of the team.

Castellini, 64, is the president of Castellini Co., a fruit and vegetable wholesaler, and has ties to baseball. He is part of the St. Louis Cardinals’ ownership group headed by Cincinnatian Bill DeWitt, who is that team’s chairman. Castellini and DeWitt previously invested in the Baltimore Orioles.

Sources say brothers Thomas L. and W. Joseph Williams are in Castellini’s ownership group. Tom Williams is the president of North American Properties, which is headquartered in Cincinnati. Joseph Williams is the chairman.

North American Properties has offices in Atlanta, Dallas, Ft. Myers and Minneapolis.

It was started in 1954 by William J. Williams, who owned the Reds with his brother James from 1980-84.

Three minority owners of the team put shares totalling 51.5 percent up for sale on March 8. That consortium included the Louise Dieterle Nippert Trust, local investor George Strike, and a subsidiary of Gannett Co., which owns The Enquirer.

Although more than 50 percent of the team went up for sale, owner Carl Lindner is “CEO for life” of the Reds, per his ownership agreement. Lindner owns 37.5 percent of the club.

Lindner has first right to match any offer for the shares on sale, along with William Reik, an investment manager in New York who controls about 11 percent of the team. A source today said Reik will retain that percentage of ownership in the team. It’s not known whether Lindner will keep his share of the team.

Assuming an agreement is reached with the Castellini group and a contract is signed, the next step in the deal requires approval by Major League Baseball owners.

While the sale would end the mystery of who controls the Reds, only time will tell the answer to this question: How much money will the new owners spend on the Reds, and what is the status of chief operating officer John Allen, general manager Dan O’Brien, and manager Jerry Narron.

O’Brien and Narron each have one year remaining on their contracts.

In 2005, the Reds’ payroll was just under $62 million. Although that represented a $16 million increase over 2004’s payroll, the returns were modest. The team finished 73-89, good for fifth place in the six-team National Central League Division. Cincinnati has not had a winning season since 2000. It’s the longest losing streak since the team endured 11 straight losing seasons, from 1945-55.

By way of comparison, the New York Yankees’ payroll last year was the highest in the league at $208,306,817. The World Champion Chicago White Sox’s payroll was just over $75 million.

Tom Williams became president of North American Properties in 1991. He was a lawyer at the law firm of Frost & Jacobs, has a bachelor of arts degree from Georgetown University, and a law degree from the University of Cincinnati.

Joe Williams has a bachelor’s degree from Xavier University. The brothers were also part of the Cardinals ownership group.

[redsfan28]

THANK GOD Lindner has given up control of the Reds. Now maybe we can do something.

[missionhockey21]

Castellini huh, at least it sounds like the guy digs baseball. Nothing against Lindner who had good intents with buying the team, to keep it in Cincy but obviously isn't a baseball guy. What's the word on this guy CRF?

[CincyRedsFan30]

It sounds like he is a good choice. He's been with the Cards and is part of the Bill DeWitt group(who is of course from Cincy). If he helps the organization get run with a GM similar as the one in place in St. Louis, I'll be pleased.

[missionhockey21]

I like it as well that he is involved with DeWitt. It's a shame that DeWitt didnt buy his hometown team.

[CincyRedsFan30]

When MLB officially approves this, the group needs to quickly dump Allen, O'Brien and Narron and hire a new COO to hire a new GM over the winter, who can then bring in a new field manager.

[CincyRedsFan30]

Here is the official Press Release. It sounds like Mr. Castellini understands that the business of making changes needs to happen quickly and he sounds excited to do it. His last line would indicate he understands that the COO/GM need to be removed too:


The Cincinnati Reds, LLC, the entity which owns the Cincinnati Reds Major League Baseball franchise, today announced that its owners intend to sell a controlling interest in the Club to a group of Cincinnatians led by Robert H. Castellini, Chairman and Chief Executive Officer of Castellini Company. Other members of the purchasing group include Thomas L. Williams and William J. Williams, Jr., President and Chairman, respectively, of Cincinnati-based North American Properties. The purchase price of the interests sold will be based on an enterprise value for the Club of approximately $270 million. Upon consummation of the transaction, it is expected that Mr. Castellini will become the CEO of the Reds.
Several of the existing owners, including Reds’ Chief Executive Officer Carl H. Lindner, George L. Strike, and William J. Reik, Jr., intend to retain an interest in the Club. The owners of the Club who intend to sell all their current interests are Great American Insurance Company and a subsidiary of Gannett Co., Inc.
Mr. Castellini stated that, "Carl has meant so much to the Reds and the City of Cincinnati. As such, we are thrilled that he has agreed to continue his association with the Club as a significant partner in our ownership group. I look forward to finalizing the agreement and submitting our group for MLB approval in the very near future as we are very excited about this opportunity and are eager to get started on the work ahead."

[missionhockey21]

Allen has to be gone, he serves no purpose to this team and his power extends way above any other man in his position. And as for O'Brien, that needs to be the first move. We don't need to evaluate Dan O, we know what he is capable of (or rather not capable of). Let's not let some other teams snatch up the good GM's on the market. Hopefully this new ownership group will be proactive.

[redsrbetter]

OK, we have our new man to either cuss or love. Hopefully we see a complete difference in manners. First on the plate has to be a bye bye to Allen. Then we will see that he means business and knows what he is doing. Perhaps a new GM afterall? It is perfect timing fellas.

[CincyRedsFan30]

Allen has to be gone, he serves no purpose to this team and his power extends way above any other man in his position. And as for O'Brien, that needs to be the first move. We don't need to evaluate Dan O, we know what he is capable of (or rather not capable of). Let's not let some other teams snatch up the good GM's on the market. Hopefully this new ownership group will be proactive.

I would think he would have to be gone...and within the next couple of weeks or so. He is part of the cancer that is our recent years of failure. He will almost certainly go. And O'Brien would seem to goeth as Allen goeth, followeth Allen...because they are part of the same mold that have to do with that said cancer.

We need to have a new regime in place in order to make changes for this coming season. Obviously we can't expect them to turn us into the Cards this year, but if we move quickly and efficiently enough, we could at least have a chance of competing this year, while still keeping in mind the future, which is what any team without a Yankees payroll needs to do.

[CincyRedsFan30]

December 27, 1996
Castellini worried about stadium plans
Robert Castellini, a local businessman who owns extensive riverfront property, wrote a letter to County Commissioner Bob Bedinghaus detailing his fears that new stadium plans would exclude much of his property. Recently released plans showed a stadium for the Bengals located east of Central Avenue. Castellini believes the stadiums for the Reds and Bengals should be located as far apart as possible to facilitate other riverfront development and include his property.

[Wally Mo Pena]

how long are all of the contractual issues going to take to resolve? I doubt that we'll get a new GM this year if it takes more than a few weeks, and i have to imagine that it will. I don't really know much about this side of the business, butit does seem like having someone in there at this point is better than no one, and we just gave narron his contract, so their not going to fire him.

I think Allen will get the boot soon after the new group takes control, and then dano and narron will have their year to pull things out without the medling of allen. Maybe narron and dano will get the axe if the reds are out of it quickly again, but i think they'll be around for the beginning of the season at least.

[Providence A's]

Here is the link from ESPN.com:

http://sports.espn.go.com/mlb/news/story?id=2211811

CINCINNATI -- Carl Lindner agreed Wednesday to sell the controlling interest in the Cincinnati Reds to a group of area businessmen, keeping baseball's first professional franchise in local hands.

The group is headed by Robert Castellini, chairman of a Cincinnati-based produce company, and relatives of a family that owned the team from 1966-84.

The family sold control of the team to Marge Schott in the 1980s, setting up one of the club's most turbulent periods. The Reds won a World Series in 1990 but were tainted by her repeated offensive remarks.

This can only be a good thing for Reds fans...now maybe some moves will be made to better the team. good luck.

[ghettochild]

Uncle Castellini?

[bipster]

going from bananas to produce. I like it