Rams' future in St. Louis appearing shakier
May 31, 2009 12:58 AM
Posted by ESPN.com's Mike Sando
If you aren't following Bernie Miklasz on Twitter, now might be a good time to start. The St. Louis Post-Dispatch columnist just let followers know that the Rams have retained Goldman Sachs to help find a buyer for the team, and that selling to an out-of-town buyer could be an option.
This should shock no one. Rams owner Chip Rosenbloom has been open to offers. The latest development means the team will be seeking a buyer. It's what an owner does when being "open to offers" doesn't produce a buyer.
Miklasz has filed a column providing additional details and analysis:
Rosenbloom wants to sell to local owners, but none have stepped forward.
Rosenbloom declined comment to Miklasz, saying he didn't want to disrupt efforts to build a winner. Might be too late on that one.
The Rams can break their stadium lease agreement after the 2014 season if the Edward Jones Dome does not rank among the top eight NFL stadiums. Miklasz called that "virtually impossible" given that about two-thirds of NFL teams will have stadiums newer than the Edward Jones Dome by 2010.
Moving the Rams back to Los Angeles jumps out as an obvious possibility. The league has wanted to return to the city. The Rams have roots there. I'm heading to St. Louis for Rams minicamp next week. The team won't be gone by then, of course, but the NFL's future in St. Louis appears more tenuous without strong local candidates among potential buyers.
I had expected the Rams to take this step earlier given the massive estate-tax bill the current ownership group assumed once longtime owner Georgia Frontiere passed in January 2008. A prominent St. Louis tax expert provided the following information to me at that time:
The tax is due nine months after the date of death.
Upon application, the IRS has discretion to extend the payment date. This is usually for a limited amount of time. An extension prevents late-payment penalties, but interest will still be due from the original due date for payment.
There are also circumstances where payment of the tax can be deferred for a number of years. (Again, interest must still be paid.) Whether extended deferred payment is available is often a complicated question.
Ms. Frontiere's estate might be able to borrow to pay the tax. Or it might have assets other than the franchise that it can liquidate to pay the tax. Absent those options, and absent a deferral as described above, the estate would probably consider selling its interest in the franchise.
I asked the Rams to clarify this last season. They refused. I had not followed up on the matter this offseason. I do not know to what extent the estate-tax situation might be playing into Rosenbloom's decision. However, I wanted to pass along the information at this time, as it could help us understand one of the potential issues.
