The Peter Principles (Ch. 1): So, just how did Angelos become ‘King’ of Baltimore baseball?

March 19, 2014 | Nestor Aparicio

The Peter Principles (Ch. 1): So, just how did Angelos become ‘King’ of Baltimore baseball?

IT WAS HOT AS HADES in that lower Manhattan federal courtroom. Jam-packed with bidders, curiosity seekers and baseball fans, the Baltimore Orioles franchise was up for grabs on August 2, 1993, and the bidding was as steamy as the air in the room once the price began to rapidly accelerate into the stratosphere.

The fact that there was any bidding at all was somewhat surprising to Peter G. Angelos, a Baltimore attorney who had begun a power play five months earlier to purchase the Major League Baseball franchise that was being sold off via an auction nearly 200 miles away from its home on the Chesapeake Bay. In the hours leading up to the auction, Angelos managed to turn his sole competitor from a previous suspended bid for the team during June into a partner. William DeWitt Jr., a Cincinnati native whose father once owned the St. Louis Browns in the 1940s and a minority investor in the Texas Rangers, joined Angelos’ celebrity-led local group from Maryland just hours before the bidding was to begin in the sweltering Custom House. DeWitt was promised a role in the operations and management of the club.

It was an amazing coup for Angelos to pull DeWitt from being a worthy, legitimate competitor into a teammate that morning, after convincing him that he’d be involved and an influential part of the eventual winning group. It was shocking that DeWitt had pulled out because several times over the previous eight months, he was convinced that he was already the winning bidder and new owner of the Orioles.

In February 1993, after six months of lengthy, arduous negotiations on a fair price, DeWitt had entered into a deal with Orioles majority owner Eli Jacobs to buy the team for $141.3 million. Jacobs, who was in his final days of semi-liquidity and quietly on the verge of bankruptcy, didn’t have the legal authority to close the deal with DeWitt once the banks seized his assets in March. Instead, the Orioles wound up at auction five months later and suddenly Angelos – with DeWitt now shockingly a member of his ownership team – believed he would emerge victorious without breaking a sweat in the summer heat of The Big Apple.

But that afternoon, after entering the courtroom in what he believed would be a rubber-stamped win, instead he found himself embroiled in a bidding war with a stranger he never strongly considered to being a worthy foil in the fray.

Jeffrey Loria, a New York art dealer and Triple-A baseball team owner, wanted badly to be a Major League Baseball owner. Baltimore native and former NFL player Jean Fugett represented a group led by TLC Beatrice, which featured a rare minority bid for an MLB franchise on that day in New York. One bidder, Doug Jemal of Nobody Beats The Wiz electronics stores, had early interest but bowed out before the steamy auction.

That August day, the bidding began at $151.25 million, which included a “stalking fee” of $1.7 million which was originally awarded to DeWitt’s team because of his vast due diligence and legal work done months earlier when he thought he had won a deal to secure the Orioles in the spring.

George Stamas, who represented Angelos’ group during the bidding process, opened the bidding at $153 million, which was seen as a good faith gesture from the combined bid with DeWitt, which could’ve been perceived as artificially deflating the sale price by judge Cornelius Blackshear. Loria, who was a stranger to the Angelos group, immediately raised it by $100,000. Stamas barked out, “One million more – $154.1!”

And for the next 30 minutes, the bids drew north from the $150 millions into the $160s. With every bid, Loria would raise by $100,000. Stamas, on behalf of Angelos, raised it by $1 million at a time. After 13 rounds of back and forth money, Angelos had the leading bid $170 million. Fugett, who had been completely silent during the auction, asked the judge for a recess.

The request was granted and the judge headed to his chambers.

And, suddenly, it got even hotter in a blazing courtroom on a sweltering day in The Big

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6 Comments For This Post

  1. Franchise Says:

    Nestor-

    Is the “stranger” bidder you refer to in this blog the same Jeffrey Loria (spelling Lorie) who is currently the principal owner of the Philadelphia Eagles????? or the previous owner of the Florida Marlins???

    Thanks,

    Franchise

  2. Franchise Says:

    Nestor-

    Just retribution punishment for the son of the “Chicagoan Carpetbagger” father Robert Irsay would be for Jimmy Irsay to give back all the records, history and HOF induction of 11 BALTIMORE Colt players and coaches back to the Charm City…. That includes all of the media guide propaganda in Indianapolis as well as the Canton, OH sacrilegious nonsense at the Pro Football Hall of Fame….Plus give back the horseshoe and the blue and white colors and name Colts to the City of Baltimore…Roger Goodell are you listening???…This is just punishment for Jimmy Irsay since owners should be held to higher standards….The apple does not fall far from the tree… Robert & Jimmy Irsay are one in the same…absolute garbage….But the Commissioner will simply slap him on the wrist!!!…Jimmy Irsay tried to ransom Art Modell for $44Million for the marketing rites to OUR Baltimore Colts….Voluntarily checked himself into what REHAB clinic?

    Regards,

    FRANCHISE

    Franchise

  3. unitastoberry Says:

    Franchise in the last few days I have heard many taking up for Jimmy. I had nothing against him until he was offered a sizeable amount of money to make things right and return the name to Baltimore. This was before Manning arrived to rescue the Irsays. After he turned that offer down he became garbage in my mind just like his daddy. His genes finally caught up with him and I’m glad he didn’t kill anyone driving around wasted. Sorry no sympathy for him.

  4. Steve from Sandpoint Says:

    Irsay, a A-HOLE just like his dad, wishing the worse for him !!!

  5. charlie Says:

    another important triumph in baltimore sports history, for wnst and nestor. THANKS.

  6. Go Tigers Fan Says:

    Steve from Sandpoint, you may want to check your wishes. What you wish for Irsay, someone could wish the same for YOU.

    The Colts are gone, get over it. You have the Ravens now so the past is past, the present is present.

    Robert Short stole the Senators from me so what did I do? I chose to root for the next closest team to P.G County where I lived at the time. That team I chose was the Orioles and no I don’t give a darn about the Nationals.

    My advice to you – live for the present, not the past.

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