SAS LOOKING INTO BUYING CAROLINA COURAGE SOCCER TEAM
Kim Nilsen - Triad (N.C.) Business Journal
CARY - SAS Institute, whose name adorns the field where the Carolina
Courage plays soccer, has emerged as a favorite among potential
buyers of the franchise.
SAS' chief marketing officer, Jim Davis, acknowledges that his
company has held discussions in the past with officials of the
Women's United Soccer Association about buying into the league. He
would neither confirm nor deny whether the software company is
considering buying the Courage.
The team's future has been tossed into the air as the league works to
implement a new ownership structure.
Over its first three seasons, the league has functioned as a
monolithic business in which all team operators own a financial stake
in the entire league, not just the teams they operate.
A single limited liability company that owns the league has six
shareholders - Time Warner Cable; Cox Communications; Cox
Enterprises; Comcast Corp.; John Hendricks, the founder of Discovery
Communications; and Amos Hostetter, the former chairman of
Continental Cablevision.
To address the ownership issue, the eight-team league has decided to
sell pieces of itself by converting to a mostly franchised format for
the 2004 season. There's been talk that Time Warner and Comcast, two
of the founding investors, will exit the league or lessen their
roles. Time Warner is the investor-operator of the Courage.
Meanwhile, SAS is exploring its options "We don't want them (the
Courage) to leave the community," Davis says.
He says his company is among those that have nudged the league to
retool its ownership structure and offer investors a shot at
controlling individual franchises.
"We've been vocal," Davis says. "We don't deny that."
Investors step forward
The league had received four investor proposals by early August,
according to SportsBusiness Journal, a sister publication of Triangle
Business Journal. WUSA President Lynn Morgan wouldn't name the
applicants, but she said one ownership proposal had gone through the
due diligence process and was awaiting board approval.
The Washington Post reported on Aug. 23 that SAS "is reportedly set
to take control" of the Courage. Davis says the article echoed
earlier speculation and that SAS was not contacted to comment for any
of the stories.
Dan Courtemanche, the league's vice president for communications and
business development, did not return a phone call from Triangle
Business Journal.
Hill Carrow, president of the Raleigh-based consulting firm Sports &
Properties Inc., says he believes SAS is interested in buying the
Courage. "I think SAS is the company," he says.
SAS easily meets at least one of the ownership requirements - a
financial net worth of at least $40 million. As the world's largest
privately held software company, SAS reported revenue of $1.18
billion for 2002.
Sponsorship dollars from the Cary-based company anchor two
PGA-affiliated golf tournaments, including this month's Senior PGA
SAS Championship.
Jim Goodnight, SAS' chief executive, and his wife, Ann, own Cary's
Prestonwood Country Club, which will host the SAS Championship, and
are building a luxury 150-room hotel in Cary. SAS signed a
three-year, $600,000 deal in 2002 for the right to call the Cary
soccer stadium and sports facility SAS Soccer Park.
Seeking ownership stability
Any new team owner would be asked to adhere to a new requirement the
league is attempting to implement: maintain ownership for at least
three years before selling. Other requirements include a commitment
to air at least half the team's games on local television and a
long-term lease agreement with a facility.
The Courage's other major backer, Progress Energy, has not been
approached about taking an ownership stake, says spokeswoman Julie
Hans. "If asked, we probably would not be interested," Hans says. The
Raleigh-based utility company views Triangle sports franchises as
economic development tools, "but that is the extent of our
involvement."
The league has not commented on the size of the investments it's
seeking. Current shareholders have contributed more than $80 million
to date, according to SportsBusiness Journal. "Each team, I'm sure,
would be valued differently in terms of market and market potential,"
Carrow says.
Groups interested in owning a team for the 2004 season have to submit
their proposals by mid-September. "Timing is going to be important on
several fronts," Carrow says.
Machinations over the ownership structure come at a time when the
league is battling declining attendance and stagnate television
ratings.
The league's average attendance fell 4 percent this season, from
6,957 in 2002 to 6,667 per game. The Courage lost some ground,
dropping from an average crowd size of 5,839 in 2002 to 5,737 this
year, according to the team. The stadium has a capacity of 6,914.
WUSA games aired on Pax TV scored a 0.1 rating, the equivalent of
109,000 households. Ratings showed no improvement from 2002,
according to SportsBusiness Journal.
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