Ovitz Getting Earnest
Michael Ovitz, who already has spent millions of dollars of his money to catch the NFL’s attention, has agreed along with his ownership group to give the league $25 million in earnest money to demonstrate interest in bringing an expansion team to Los Angeles.
Ovitz and partners Ron Burkle and Tom Cruise will surrender the money if they are selected to own the expansion franchise and then fail to execute the terms of their agreement with the league.
NFL officials, who initially suggested a down payment of $100 million, lowered their request after consulting with Ovitz. They said they were impressed by his group’s commitment.
“You have to respect their resolve and responsiveness in the past few days,” said Roger Goodell, the NFL’s vice president of football operations. “We will just have to see now how things play themselves out.”
Burkle cut short a vacation to meet with FBI agents Friday as part of the NFL’s background check in preparing to select an owner for the league’s 32nd team at Tuesday and Wednesday’s meetings in Atlanta. The league has completed its investigation of Ovitz’s background.
“I have backed Michael all the way through this,” said Burkle, a self-made billionaire who owns supermarkets. “And I’m still with him.”
Ovitz and Burkle received an option on nearly 100 acres of land at Hollywood Park this week with a Dec. 8 deadline to acquire an expansion franchise or buy the land for $55 million. Ovitz and Burkle are considering buying the land, which would still give them control of the site if the league delays its decision next week.
Houston’s prospective owner, Bob McNair, in response to the Ovitz group’s late rally, has decided to increase his franchise bid. McNair told a newspaper in Houston he doesn’t believe anyone in Los Angeles can come close to matching his new offer, which is expected to be more than $625 million.
“I haven’t seen any way that anybody can do that,” he said. “Is there some miracle fix out there? Possible. Is it probable? I don’t think so.”
Ovitz said his group has no intention of matching or even keeping pace with Houston’s bid. Ovitz’s bid is not expected to be much more than what Cleveland paid for an expansion team. Cleveland paid $540 million, which included repayment of a $75-million loan to the city for stadium construction by owner Al Lerner.
“Houston has $200 million in public money that we don’t have, so they can go higher,” said Ovitz, who has never asked partners Burkle and Cruise to help him cover expenses over the past two years while pursuing a football team.
“We will make a very substantial offer, and we have been advised by the league that it has no expectation of us to match Houston’s offer. We believe the NFL wants and intends to be in Los Angeles, and that’s what we will be negotiating through the weekend before going to Atlanta. We’re doing everything we can.”
*
NFL HOLDS AN AUCTION
Bob NcNair has upped Houston’s ante, giving the NFL owners exactly want they want: a bidding war.
Page 9
FATAL CONNECTION
A young man found dead last week at Michigan State attended the same church as Dimitrius Underwood.
Page 9
More to Read
Go beyond the scoreboard
Get the latest on L.A.'s teams in the daily Sports Report newsletter.
You may occasionally receive promotional content from the Los Angeles Times.