Tuesday, April 20, 2004
Phyllis Kahn: Let's Get Behind Community Ownership of the Twins
In this Minneapolis Star Tribune op-ed piece, by Minneapolis Rep. Phyllis Kahn discusses her proposal for community ownership of the Twins.
Kahn's bill, which has 34 co-sponsors in the Minnesota House of Representatives, would forbid the use of any state funds to support the Twins unless the club was transferred to community ownership. Under her plan, the Twins would issue two classes of stock. Class A stock would have full voting rights; Class B stock would be able to vote only on proposals to relocate the franchise. Any proposal to move the Twins out of Minnesota would require the approval of 80% of both the Class A and Class B shares.
She envisions that the Class B shares would be bought by locals for their novelty value, while the more serious investors would opt for Class A stock. The Twins would first be transferred to a nonprofit corporation, which would hold title for up to a year while stock in the club was sold to the public.
There would be three types of Class A shareholders. A private managing partner would be allowed to purchase up to 25% of the Class A shares, and would have full responsibility for operating the club. Other large investors would be allowed to buy up to 5% each, subject to the requirement that at least 50% of the Class A shares be held by owners of 1% or less.
In the unlikely event that this bill were to become law and the more unlikely event that the Pohlads agreed to sell the Twins to such a group, the restrictions on Class A ownership could still doom the deal. The plan requires a minimum of 56 Class A investors -- 50 1% shareholders, 5 5% shareholders and the 25% shareholder/managing partner -- with even the 1% shareholders required to invest over $1 million apiece.
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In this Minneapolis Star Tribune op-ed piece, by Minneapolis Rep. Phyllis Kahn discusses her proposal for community ownership of the Twins.
Kahn's bill, which has 34 co-sponsors in the Minnesota House of Representatives, would forbid the use of any state funds to support the Twins unless the club was transferred to community ownership. Under her plan, the Twins would issue two classes of stock. Class A stock would have full voting rights; Class B stock would be able to vote only on proposals to relocate the franchise. Any proposal to move the Twins out of Minnesota would require the approval of 80% of both the Class A and Class B shares.
She envisions that the Class B shares would be bought by locals for their novelty value, while the more serious investors would opt for Class A stock. The Twins would first be transferred to a nonprofit corporation, which would hold title for up to a year while stock in the club was sold to the public.
There would be three types of Class A shareholders. A private managing partner would be allowed to purchase up to 25% of the Class A shares, and would have full responsibility for operating the club. Other large investors would be allowed to buy up to 5% each, subject to the requirement that at least 50% of the Class A shares be held by owners of 1% or less.
In the unlikely event that this bill were to become law and the more unlikely event that the Pohlads agreed to sell the Twins to such a group, the restrictions on Class A ownership could still doom the deal. The plan requires a minimum of 56 Class A investors -- 50 1% shareholders, 5 5% shareholders and the 25% shareholder/managing partner -- with even the 1% shareholders required to invest over $1 million apiece.
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