Monday, 10 March 2008

Tri-City Fund Raising Underway

Sports Notes
By Gil Gilmore

[Tri-City Herald, Oct. 1, 1952]
The formation of the Tri-City Booster Club and the plans made for the sale of stock at last have cleared up the waters a great deal on what the backers have in mind.
As sort of a rehash, here are some or the questions that have been asked and will be asked again and some of the answers.
Question: How much money will it take to buy out Dick Richards and gain control of the club?
Answer: Mike Cronin, chairman of the Booster Club board, puts the figure at 550,000. But Mike points out that all of this money may not be necessary for buying the shares Richards controls. In any case, the additional money will be needed for operational expenses such as spring training, equipment, etc., for the first season if the deal goes through.
I personally think that is slicing the cheese pretty thin—especially if the club hopes to avoid taking up a collection at the end of the season if they have a bad year.
Question: What happens if the Tri-City Booster Club feels Richards' price is too high and refuses to buy from him?
Answer: In that event the club will undoubtedly move from this area. Richards has notified the league that he will not field a team in the Tri-City area next year. Here Richards feels he holds "an ace up his sleeve." It isn't likely that the league directors would stop him from moving if the Boosters fail to buy from him. But even if the directors tried to stop him from moving, Richards says the visiting team would come here but find no team to play. Since the directors of the league are owners of the teams, that obviously would cost them, considerable and they would get nothing in return.
Question: If Richards holds such an "ace up his sleeve" what will stop him from asking an inconceivable price for the club?
Answer: A couple of things. First of all there is a limit to what any other town will pay for the club. Secondly, Richards has a lease arrangement with the Tri City Athletic Association which he must live up to for two more years. Harold Matheson says the association would probably have to go to court over the matter but they feel Richards would have to pay them about $15,000 if he breaks the lease. That would represent a loss to Richards that would have to be deducted from his "outside" sale price.
Question: On what does Richards base his price of $7,000 a share?
Answer: That was the original selling price per share when baseball came to the area three years ago. How it was arrived at no one knows but presumably the figure was reached with the common consent of the six men and the athletic association who then owned the club.
PJchards says now that all he wants is his money back, that is, $7,000 a share. Many people, and practically all leaders in the Boosters, feel that his investment has dropped in value since then and consequently is not worth $7,000 a share. Between those two attitudes will be the basis for negotiating.
Question: What is the Athletic Association's role in the negotiations now?
Answer: The association took the initiative in getting the drive started and it was natural that they should do so. From now on they are expected to play a secondary role. It is the hope of many in the Booster Club and in the association that eventually the two organizations can be merged.
The reason for not merging them now is because the association owes considerable money on bonds which will come due at an accelerated rate lor the next 10 years. Were the new members of the Booster Club brought into the association, the money they invest to buy the club conceivably could be liable for the payment of the association's debts.
It is hoped that the Boosters can make money in future years and if they do, the association will share in the profits up to their one-seventh part of he club. Then perhaps, the association can pay off their bonds and a merger can be affected.
Question: How much time does the Booster Club have to raise the money and negotiate a deal?
Answer: As things stand now, about 30 days. That, at least, was implied in the telegram-to the association by Robert Abel, president of the league.
Question: What happens to money collected in the next 30 days if by then no deal is made with Richards?
Answer: It will be returned. The money is being placed in a bank under the individual's name until a deal is made or things are called off,. If a deal is made then stock will be issued.
Question: How much is a share of stock?
Answer: Fifty dollars. Cronin urges that anyone sending in money now send it in in multiples of 50. This price was set after much discussion. Many people felt that the small investor should not be cut out. However, for convenience of administration it was felt that this was the best sale price.
Question: Where should the money be sent?
Answer: Tri-City Booster Club, Box 312, Kennewick, Wash.
Question: When should I send the money?
Answer: Right now.
Question: If I wish to aid in the solicitation of stock sales who should I contact and where?
Answer: Any member of the board will take care of it for you. The board members and addresses are:
Dwight C. Hendricks, 207 Armistead, Richland, or at. work at Ganzel's Barbershop, Richland; Howard Young, Siberry's Department Store, 410 W. Lewis, Pasco; J. F. Boyd, Richmond Building, Kennewick; V. J. Cronan, 508 No. Seventh St., Pasco; L.L. Lindler, Connell, phone 2276; Mike Cronin, 227 Second Ave., Kennewick, phone 2012 or 4751.
These are only some of the questions that have come up in recent weeks. If you have any others I would be happy to try and find the answers for you. Or you can contact anyone of the members of the board.

Cronin Says $3,000 Received By Fund
[Tri-City Herald, Oct. 3, 1952]
Mike Cronin, chairman of the Tri-City Baseball Booster club said today that $3,000 has been received toward the purchase of Tri-City Braves.
“More is coming in daily," Cronin said, “the need is urgent and the time is short.”
He urged those who wished to buy stock in the club to send their money to the Tri-City Booster Club, Box 132, Kennewick.
He said escrow arrangements have been made with a local bank and the money will be held there until deal is. made with the present majority stockholder, Dick Richards. If a deal is not made, the money will be returned.
Meanwhile, the board met Thursday night at the Tri-City Country club and approved a letter to be sent out to potential subscribers to the purchase fund.

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