Angels Take It to the Bank

The investment bank handling the sale of the Angels plans to start soliciting bids at about the same time the World Series champions open training camp next month.

Lehman Bros., the investment bank, is expected to approach qualified buyers within the next two weeks, according to a source familiar with the sale process. The bank will offer detailed financial information about the franchise and invite potential buyers to place initial bids within another two to three weeks.

Major League Baseball officials have approved distribution to about 10 interested parties, according to the source, with “four or five” of those parties described as “serious.” Those top candidates, all individuals or partnerships but not corporations, are believed to include Mexican billionaire Carlos Peralta and a group led by theater impresarios James and Robert Nederlander.

Donald Watkins, the Alabama businessman all but dismissed by Disney executives after failing to convince them he could finance a purchase of the team, is believed to be in the larger group of interested parties.

Peter Ueberroth, the former baseball commissioner, said Wednesday his partnership remained interested in buying the Angels but would not enter an auction to do so.

Ueberroth said he is not working with Lehman and is instead pursuing the purchase directly with Disney. In 1995, Disney agreed to pay $140 million to buy the team from the Autry family, outbidding Ueberroth’s investment group.

“The Angels clearly have increased in value because of their performance on the field and because of management’s efforts to field a winner,” Ueberroth said. “While we understand there may be an auction, we will not be a bidder in the process.

“We understand the financials and the costs of operating a major league club. We choose to remain a buyer outside of any auction process. We remain interested in this very special franchise.”

Disney does not comment on sale matters, and so the company declined to say Thursday whether it would consider a buyer who bypasses the bidding.

Ueberroth declined to explain his decision. But, according to an investment banker involved in sports finance but not involved in the Angel sale, Ueberroth’s group might simply determine its proposed purchase price and go no higher.

“All buyers go through a calculation of what they think the value is,” the banker said. “They may justifiably see no need to take part in an auction process.”

Even including playoff revenue, the Angels claimed an $11-million loss in their championship season. In figures released before Congress, the Angels claimed $100 million in losses from 1995-2001.

Disney said it would raise the player payroll by $20 million this year, to a club-record $84 million, presumably leaving to new owners the question of whether to slash payroll, find revenue sources Disney could not or sustain financial losses on a team that could cost $200 million.

In 1999, Disney negotiated to sell the Angels and Mighty Ducks in 1999 for $450 million. After three years of on-again, off-again efforts to sell the teams, Disney last September hired the investment bank to find qualified buyers and expedite a sale.