Moorad Approved

[AZZenny]

Finally!
Selig took six months to approve agent's buy-in
Associated Press

TUCSON, Ariz. -- After six months of investigation and deliberation, commissioner Bud Selig has given his approval to former agent Jeff Moorad becoming a part-owner of the Arizona Diamondbacks.

Moorad and the team's managing partner, Ken Kendrick, revealed Selig's decision while watching the Diamondbacks' first full-squad spring training workout on Tuesday.

"It's been a long process," Moorad said, "but I think a beneficial one for all concerned. The last six months have given me an opportunity to get to know the club, to get to know the front office personnel, in addition to getting quite comfortable with the partnership that I'm about to become a part of."

The Diamondbacks raised eyebrows among other owners when they proposed making a man who was one of the most prominent player agents in the game a partner. Moorad had to provide the commissioner's office with vast amounts of records as part of the process.

"If you look at the history of baseball," Kendrick said, "Jeff is probably the highest profile person from the player rep side to seek a senior position on the ownership side, so they wanted to be extraordinarily thorough."

Moorad, a former partner of agent Leigh Steinberg, knows that some in the tight-knit world of baseball ownership don't like him entering their exclusive club.

"I'm sure that's the case at some levels," Moorad said, "but on the other hand, I ask to be judged over the long term by what I accomplish going forward. Hopefully now with an opportunity to do that, the naysayers will have a chance to at least evaluate me on the merits."

The commissioner's office was expected to officially announce Moorad's approval in the next few days.

Neither Moorad nor Kendrick would say how much money would be involved, but it is significant enough to make Moorad the team's fifth general partner in the team's majority ownership group.

Moorad, whose former clients include Diamondbacks star Luis Gonzalez, will oversee operation of the franchise as general partner.

"He will be the one of us on active duty," said Kendrick, who will remain managing partner and represent the team at owners' meetings.

Moorad, while at the center of the Diamondbacks' many offseason personnel moves, officially was only an adviser until Selig's approval. He was at the head table at the news conferences to announce the hiring of Wally Backman as manager, then a few days later, announcing Backman had been dismissed because of problems in his background.

"Baptism by fire sometimes is the best way to learn," Moorad said, "and it certainly was a fast-paced learning process, and one that I hope is not only successful for the team in the short term but one that can be helpful to me over the course of my career on the management side."

Moorad said that his move to the other side of baseball "really has been more comfortable than I might have assumed."

He said his familiarity with people in and around the game has helped ease the transition.

Kendrick said that Moorad also had assembled a group of investors who would become limited partners, pending approval from the commissioner's office.

The team, meanwhile, has a player payroll of just under $60 million, Kendrick said, with a budget slightly above $60 million. That would allow for a player acquisition in midseason if the team needs someone to strengthen its position down the stretch.

The other general partners are Dale Jensen, Mike Chipman and Jeff Royer. They were recruited three years ago by Jerry Colangelo to take financial control of the team.

Colangelo, who headed the group that brought major league baseball to Arizona in 1998, was to stay on as chairman, but left in a dispute over philosophy last year.

 

[azdad1978]

Moorad takes seat as 5th D-Backs general partner

Bob McManaman
The Arizona Republic
Feb. 23, 2005 12:00 AM

TUCSON - Six months after agreeing to walk away from a successful business as one of the more powerful player agents in professional sports, Jeff Moorad has now officially made the crossover to ownership upon being approved as the fifth general partner of the Diamondbacks.

Commissioner Bud Selig will make the announcement soon, but he has informed the club privately that Moorad has approval from baseball to purchase a 20 percent interest in the franchise and oversee the club's daily baseball operations for the rest of the general partners - Ken Kendrick, Dale Jensen, Mike Chipman and J.C. Royer.

Baseball officials have said there is no need for a formal vote from MLB owners on Moorad's status.



Per Selig's request, however, Kendrick will now assume the new title of managing general partner and will be the Diamondbacks' chief representative at all ownership meetings.

"I appreciate the commissioner's office and his staff working through the details of this process, which were cumbersome in some ways," Moorad said, "but at the end of the day it's how it ends that matters, and we're very pleased to have received approval from the commissioner."

Bigger job

Originally, Moorad had expected to assume more of what he termed "an employee role" with the Diamondbacks, serving as chief executive officer and ultimately, chairman, in the continued restructuring of club ownership last year that involved the eventual ouster of team founder Jerry Colangelo.

But as Selig and his staff dissected Moorad's involvement with the Diamondbacks and conducted a full investigation into his background, it became clearer that a loftier role in the organization was possible and, "as the discussions evolved there seemed to be comfort that, quite honestly, we didn't expect at the ownership level as well as general partner level," Moorad said.

"When given a choice, it was an easy one for me," said Moorad, who previously represented Diamondbacks sluggers Luis Gonzalez and Shawn Green as well as the club's new Opening Day starter, Javier Vazquez. "I grew up watching Al Davis manage the Oakland Raiders, and I said, 'I'll take that any day.' And I did."

There had been concerns in the industry, from ownership and the Major League Baseball Players Association alike, about an agent crossing directly into a co-owner's seat. Moorad, though, said he remained confident and optimistic through the process and he if felt he wouldn't have been granted approval, he wouldn't have become involved in the first place.

Asked whether his leap from representing players to owning and running a team could spur other power-backed agents to follow suit, Moorad laughed and said, "I wouldn't even begin to speculate on that, but I'm certainly one of the lucky ones and I consider myself fortunate to have this kind of opportunity."

Moorad reiterated that he intends to keep the front-office staff intact, but acknowledged that he would likely do some "fine-tuning." He did not reveal any details, except to say that the main baseball people would continue in their roles - and that he is impressed with their work over the past six months.

Kendrick's pep talk

Kendrick, who led the recruitment effort to bring Moorad aboard, addressed the club along with his new general partner before the Diamondbacks' first full set of workouts here Tuesday.

He said he told them that he believes they are capable of producing one of the best turnarounds in baseball history after losing 111 games in 2004.

"It's not so much a challenge, but a statement of what I hope we can achieve," Kendrick said.

The Diamondbacks were among the busier teams in the off-season, making moves resulting in eight new position starters and four new members of the starting rotation.

Despite all the additions, Kendrick said the team payroll has been reduced from about $77 million to just under $60 million, and that there is room to spend, if needed, at the trading deadline.

Moorad said the team has a clear direction.

"Jerry Colangelo and his team put a great foundation in place and it's our role to build on that and build into the future, and that's what we intend to do," he said. "But it's not going to be a hurried or rushed one. It's going to be methodical, it's going to be deliberate and hopefully in the end, a successful process."

http://www.azcentral.com/sports/diamondbacks/articles/0223dbacks0223.html

 

[azdad1978]

Moorad finally approved by MLB

By Jack Magruder, Tribune

TUCSON - The Diamondbacks publicly confirmed Tuesday that Jeff Moorad has been approved to join their ownership group, leaving major league commissioner Bud Selig's official announcement as the final formality.

Moorad will join the team as a general partner, one of five, with an equal 20 percent stake. As part of the process, partner Ken Kendrick will become the D-Backs' managing general partner, also pending Selig's approval.

"Baseball has requested that I agree to do that,'' Kendrick said. "We've known for about the last 10 days that this was all going to work out the way we had hoped.''

Kendrick and investors Dale Jensen, Mike Chipman and Jeff Royer joined the D-Backs partnership group in 2002, agreeing to put about $150 million into the franchise over a 10-year period. Moorad was hired in a franchise reorganization last August as a CEO-to-be, but Major League Baseball apparently felt uncomfortable in giving central authority to someone who was not heavily invested.

Moorad, an ex-player agent, will make a capital investment in the D-Backs, Kendrick said, not part of the original application.

"As it evolved, we changed to fit more of a comfort zone with baseball,'' Kendrick said. "Baseball recognizes, and I think properly, that those who have made significant investments need to take more of a mantle of leadership in an official role.

"I am going to play that role in the councils of baseball and Jeff is going to be the central figure on the day-to-day side of running our baseball operation.''

Both Kendrick and Moorad addressed the team Tuesday.

"Originally we had talked about an employee role, and as the discussions evolved there seemed to be comfort that we quite honestly didn't expect at the ownership level (among other major league teams) as well as at the general partner level at the club,'' Moorad said.

"When given a choice, it was an easy one for me. I grew up watching Al Davis manage the Oakland Raiders. I said ‘I'll take that title any day.’ I'm so happy to have that process behind us.''

Moorad said he plans no major changes, and that the six-month delay in approving his application has given him time to assess his front office.


http://www.eastvalleytribune.com/index.php?sty=36855

 

[AZZenny]

OK, I'm no math whiz - but in the most recent little piece on Moorad-Kendricks, which is basically a rehash, they cite some figures I can't make sense out of. I raise this because the whole new ownership thing is getting strange.

Initially they said Moorad would be CEO and would invest maybe $33 M in the franchise, if Selig would let him become an owner. (Selig has to OK anyone who invests in more than 5% of a team.) Now they say he was only meant to be CEO - as an employee, but Selig opened the door - in fact basically required - that he become a heavy investor, so he'll be a full partner, but he can't be the official representative at baseball owner meetings. They add today that Selig won't allow him to be named CEO.

"Along with investing in the general partnership, which owns just 1 percent of the franchise but has control, Moorad will invest as one of the numerous limited partners, a group that includes individuals and corporations. He declined to disclose his financial commitment. The five general partners own roughly 60 percent of the team, Kendrick said.

Then we get this:

"But the Diamondbacks also are paying $34.1 million in deferred compensation this season, mostly to former players. Luis Gonzalez is the only active player receiving it.

At the end of last year, the team owed $168.4 million to 16 players, Moorad said. Most of that will be paid over the next six years, according to Kendrick.

Another $33.4 million, with most of that being interest, will be owed after this season on deferred contracts, which brings the total in deferred payments to nearly $202 million.

OK, so after last season we owed $168 M, this year we pay off $34 M - leaving $134 M. So how do we owe only $33.4 M? Or are they saying on top of the current amount, there's a NEW bunch of deferrals owed? And how does adding $33M to 134 M make $202 M?

 

[FORKTUNG]

no doubt the *Another $33.4 million, with most of that being interest* means it's compounded interest from defering payments on the interest much less the principal amount over these years, heh.

Kinda like a credit card that charges interest on interest daily over the billing cycle.

 

[schillingfan]

I wonder if the $168 million refers to total owed as in all contracts plus deferments or just deferred payments?

I don't know how they can possibly owe $200 plus million in deferments.

Their payroll for 2001,the first year they took deferments was around $100 mil. All of the starters took deferments. Same with 2002.

In 2003 a lot of the big old contracts like Bell, Stottlemyre started to be gone. Williams, Womack were gone after 2003. So in just 3 years, how in the world did they acquire $200 mil in deferments? I know Curt and Randy's new contracts were deferred - but still, I don't see how the numbers add up.

 

[FORKTUNG]

They are still paying for Bell, Williams, Stottlemyre and others no doubt.

Part of Jerry's creative financing plans, heh.