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BlueSox ownership group opposes deal

Power to sell stock questioned

The majority ownership group of the Butler BlueSox opposes the City of Butler Parks Recreation Grounds and Facilities Authority’s proposed deal to sell its portion of the team.

The authority announced Wednesday that it reached a deal to sell its 40 percent ownership to the Nonprofit Development Corporation of Butler for $40,000. The two sides signed the agreement and the deal is pending approval from the Prospect League, which the BlueSox are in.

But there is debate on whether the authority has the power to sell its share to the nonprofit group.

Butler attorney William “Wink” Robinson, one of the co-owners of the BlueSox’s other 60 percent, said the majority ownership has the first right to buy any stock for sale under a 2009 agreement.

Robinson said the authority did not tell the majority group, which also includes Ray Conlon, Dr. Mike Fiorina, Gordon Marburger and Matt Clement, that it was exploring a sale.

“We were blindsided by the announcement,” he said.

Robinson said the five owners in the Perfect Game LLP ownership group will meet next week to discuss their options on whether they want to buy part of the authority’s stake in the team.

“There is an interest from us,” he said. “And that could be a combination of the current majority and outside investors.”

Robinson said he submitted a letter to Leo Stepanian II, the solicitor for the authority, in September stating the group had interest in buying part of the authority’s 40 percent stake.

But Art Cordwell, a member of the authority, said the majority group never formally approached the board with any interest in buying its 40 percent.

Cordwell said the authority did not talk with the majority ownership before selling the team.

“We didn’t think we had to,” he said, noting the majority group has sold stock in the past without consulting the authority.

Conlon is selling his share of the team to Roger Snodgrass of Center Township. Robinson said that sale has been approved by the league and should be completed in January.

Cordwell said he has never seen the clause stating the majority group gets the first chance at the stake.

“We’re not aware of that,” he said. “And we went through the solicitor to make sure there were no legal problems with the deal.”

Stepanian, who was the authority’s solicitor in 2009, said he doesn’t remember the clause being part of the agreement.

While Robinson said the majority group would like to examine its options of buying the available 40 percent, he said the group was open to working with the Nonprofit Development Corporation.

“One of the things we’d like to do is sit down with the prospective purchasers and talk,” he said. “It could be a wonderful opportunity for all of us.”

Mike Robb, executive director of the nonprofit group, said he still hopes the deal will go through.

“We’re still ready to enter into an agreement and be willing and able partners with the majority ownership,” he said.

Robinson said he had a good discussion with Robb on Thursday and is looking forward to meeting with him soon.

“We’re not opposed to the idea of Mike’s group at all,” he said.

“It just happened so suddenly its only appropriate for us to challenge the agreement.”

Robb said the nonprofit is ready to take any steps needed to acquire the share of the team.

“We want to follow all the provisions by the league,” he said. “We hope this gets resolved, and we can enter into a long lasting relationship.”

Robb said the nonprofit is interested in the club because it helps the community, which in turn supports nonprofits.

“It falls in line with our mission,” he said. “It makes sense for us to be a partner with the community.”

Cordwell said the authority now will have to go back and review the legal documents to see what needs to be done to finalize the agreement.

“We’ve got to go back and retrace a few steps,” he said.

The BlueSox team is a Prospect League member for college baseball players. The team played 32 home games at Pullman Park in 2013.

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