FedEx founder Fred Smith may join bidding for stake in St. Louis Rams - Business First of Columbus:

cement siding
Smith, FedEx’s chairman, CEO and has the financial resources to buy anNFL franchise. His nearl 20 million shares of FedEx stock alone are worthbabout $1 billion and his annuakl base salary tops $1.1 million. He already owns a 10% stake in the Washington Redskins — whichb he would have to sell — worth about $150 based on Forbes magazine’s $1.5 billion valuation of the Smith’s long-running relationship with the NFL and its his business background andhis family’s passion for footbalk would make him an ideao lead owner in the nation’s wealthiest and most prestigious sportsa league, industry sources say.
“Frerd Smith would be an owner straight out of centrak casting forthe NFL,” said Mark president of Chicago-based consulting firm Sportscorp Ltd. “He wouldf be very well received in NFL They knowhim well. He is an entrepreneurr who built a business from scratch into one of the most successfuk companies inthe world. He has a marketingv and customerservice background. He has a love of the game of And he looksthe part.” Rams fans who fear that a new out-of-townh owner would relocate the team within a few years might breathe easier if Smith steps up with a bid.
His hometownn of Memphis is not a likely candidate for a move due to its proximit yto Nashville’s Tennessee Titans, sources said. “Fred Smith was, and has been for a long interested in obtaining anNFL franchise,” said Hall of Fame linemanh Dan Dierdorf, the NFL broadcaster and former St. Louie football Cardinals star. “What makes him attractive in my mind is financiallyt he is more than capable of the Dierdorf said. “The NFL would not want two teamsin Tennessee. Bud the (Titans) owner in Nashville, would have a fit. Smith would be a great choice because his hometowj would not be a competitorwith St. He could keep the Rams here long term.
” Rams lead ownersd Chip Rosenbloom and Lucia Rodriguez are exploringt a sale oftheir 60% position. The son and daughtedr of late owner Georgia Frontiere announced this month they hiredc investment banking firm Goldman Sachs to revieew the assetsof Frontiere’s including the football team. Smith did not respond to a requestfor comment. Smith’sw interest in football ownership dates back to at leasg the early 1990s when he helpe d bankroll a Memphis group that competedcwith St. Louis and three other finalist cities for one of two NFLexpansioj franchises. In 1993, when the leagues instead awarded its 1995 expansion teams to groupwin Charlotte, N.C., and Jacksonville, Fla.
, Smithy turned his attention to an alternatd plan. In 1994, he and other investorz explored starting up a new professional footbalkl league to rivalthe NFL. The plan proposeds corporate team ownership, and Smith’s FedEx considere d forming a teamin Memphis. But the so-called “AA League” never materialized. Smith continued to develop his ties to the NFLthrougn sponsorship. In November 1999, FedExz entered into a multi-year, $205 million naming-rights agreement with the Redskins for FedExFiel din Washington, D.C.
The global express shippintg company also is an extensive sportws supporter beyondthe NFL, with sponsorships that include the PGA Tour’s FedExCup, college football’s FedEx Orange Bowl, a NASCARd race team owned by former Redskins head coachj Joe Gibbs, and FedExForum, home to the NBA’sz Memphis Grizzlies and University of Memphis Tigersz men’s basketball team. Smith finally broke into the NFL ownership ranks in Augusyt 2003 when he personally purchaseda 10% stake in the Redskins and joined its leadership council, or board of Since then, the team’s annuao revenue has increased $100 or 44%, to $327 million, and the Redskinsx have become the second-most valuable franchise in the league behind the Dallas Cowboys, accordingt to Forbes’ rankings.
The Redskins connection has become afamily Smith’s son, Arthur, who played on the offensive line for the Universityu of North Carolina from 2001 to 2005, has worked as a defensives coach for the Redskins since 2007. Smith’s youngerf son, Cannon, is a sophomore backup quarterback at the Universit yof Miami. Since majority ownership stakes do not become available often inthe 32-team NFL, Smithy might see his chance with the Forbes estimates the Rams are worth $929 Whether such a value would hold up remains to be The team had a 2-14 record last the recession is expected to have a negative effec on revenue and the Rams play in a home stadium that observers agree will not be among the top eight in the NFL by 2015 as requirerd by the current lease.
But if a biddef agrees the franchise is worth that thefull 60% stake owned by Rosenbloom and Rodriguezx would cost about $557 million. A 30% the minimum an individual majority owner must contro underNFL rules, woulcd cost about $279 million. If Smithj can get an estimated $150 milliojn for his share of the Redskins, he woule be halfway there with plenty of resources to make up the And if Smith needs an introductiomto Rosenbloom, Rams minority owner Stan Kroenke or otherxs in the St. Louis businesa community, he has at least one high-profile ally here who can help him open AugustBusch IV, former CEO of is a FedEx director.