“It’s something our family has been interested in doing for some time,” he said. “We’ve already invested a lot of time and money in it. … Right now it {the asking price} is $150 million. Put it this way: We had trouble getting to the original asking price of $140 million. Reg and Jacobs never made the deal. That’s a lot of balls and bats.
“But in light of what’s been happening, it will depend on what we think the future of the sport is going to be. … If you can buy it for $70 million {as Jacobs did} and sell it for $140 {million}, that’s a good thing. Right now, the {baseball} television deal looks horrible, but if you go to pay-per-view, it might look good. There could be a labor problem, a strike, but there also could be a salary cap.
“If we were going to do it, the family would have to control it. But this is an opportunistic organization. Our cash flow provides good opportunities to acquire businesses like that. … Now it’s time to look at opportunities. I know a lot about the sports business. I won’t rule anything out.”
Other sources have said Fugett, who played for the Cowboys and Washington Redskins until 1980, also has expressed interest and made inquiries about the possibility of purchasing other sports properties, including the Washington Bullets and Capitals and Maryland’s thoroughbred racing tracks.
Fugett would say only that “if it’s for sale, it’s something we understand and could add value to. This company will be looking at other opportunities all across the board. That’s all I really want to say.”
Learning a New Position
For most of the last six months, Jean S. Fugett Jr. has said little about his sudden ascension to the board room last January. Until this week, a man who had once edited his college newspaper, served as a pro football analyst for CBS and worked as a reporter for The Washington Post had turned down interview requests from most of the country’s major newspapers, magazines and broadcasting outlets.
“You couldn’t believe the list just from the first month alone,” Fugett said. “I just felt it would be too much of a distraction, so we decided to wait. My strategy for the first few months was to get an understanding of my job.
“It was more than a full-time proposition. … I wish I had six more hours a day. … Numbers I had once looked at only briefly, I really had to study now. I had to make sure I knew what the problems were. My job was to get in control of these responsibilities.”
Fugett was hardly a novice in matters concerning his brother’s company, acquired in a leveraged buyout for $985 million in 1987. Fugett had earned his law degree from George Washington in 1981, initially attending night classes while an active player and union representative with the Redskins.
As a football player, he was highly skilled but had a reputation as an underachiever. He lived for game Sundays but was not particularly enamored of practice or the weight room. “He didn’t play up to his potential,” Cowboys teammate Cliff Harris recently told the Dallas Morning News. “He didn’t maximize his talent at all.”
But away from football, he was a dynamo, with a strong sense of family responsibility. After law school, he started his own Baltimore-based law firm and took in a younger sister, Sharon, also an attorney. Three years ago, he decided to join the Baltimore firm of Rifkin, Evans, Silver and Rozner in “of counsel” status.
“We’d been recruiting Jean for quite some time,” said Alan Rifkin, a partner in a firm with a high profile in Maryland business and political circles. “We were enamored with the total package. He’d been a pro athlete, had a great education, had run his own shop and had a very nice practice.
“The bottom line on Jean is that he’s a very competent, highly qualified attorney. He also had great aspirations to be involved in sports, and we asked him to help us create a sports law practice. He was far down the road in that when his brother died. When it became clear that Jean would be offered the chairman’s position, he came and asked if he could take a leave from the firm. When we talked about it, Jean concluded it would be better if he assumed that role with no strings attached.”
Reginald Lewis had brought his younger brother into his business dealings long before in a part-time capacity, and had also named him as a member of the TLC Beatrice board.
“His brother called on him regularly,” Rifkin said. “He looked to Jean for the kind of counsel you can only get from someone in your own family — the truth, the critical advice you need. There was always a flurry of calls to Jean right before a board meeting. We encouraged that kind of participation. … He continued to gain more and more responsibility on the board. He was thoroughly prepared for what happened.”
Fugett represented a wide range of clients before leaving Rifkin’s firm, including lobbying in Annapolis for clients such as Crown Petroleum, several insurance companies and Joe De Francis, the majority owner of Laurel and Pimlico thoroughbred racetracks. He also represented a dozen pro athletes, including Cowboys defensive lineman Tony Tolbert.
Too Busy to Talk
Beginning in May 1992, Fugett was a co-host on a daily sports talk show at Washington’s WTEM radio from 7 p.m. to midnight. He resigned in January because of his brother’s illness and the mounting workload in his practice and with TLC Beatrice. Sources at the station say Fugett’s show probably was not going to be renewed because of weak ratings, but WTEM was still interested in retaining his services for its Redskins programming.
There is no time for any of that now as Fugett shuttles between New York, Paris and occasional family visits back in the Baltimore-Washington area. He is immersed in the business. And contrary to some reports at the time of Reggie Lewis’s death, Fugett said there was never any intention of him downsizing or selling the company.
“People ask me about him all the time,” said Mike Miller, president of the Maryland Senate who got to know Fugett during his frequent lobbying efforts in Annapolis. “They want to know about how he’ll be able to command such a large corporation. I believe a person of his drive, his intelligence and his enthusiasm, which he’s demonstrated over and over again, can add a new dimension to the corporation and add to his brother’s success.”
“Jean definitely knew the business,” said Washington attorney/sports agent Brig Owens, his former Redskins teammate and still a good friend who talks to Fugett regularly. “When it first happened, a lot of people were telling the media he ought to sell the company. Jean didn’t want to hear that. Some people said he wasn’t capable of running it without ever giving him the benefit of the doubt. He’s fooling them all.
“George Allen used to tell us consistency is the truest measure of performance. That’s what Jean’s done with his life and with the company. All I hear are good things.”
TLC Beatrice is a privately held company, but an analyst at a leading investment firm who tracks the corporation said it’s too early to tell what impact Fugett has had.
“There’s been no major change that I know of,” the analyst said. “Each of the units in TLC Beatrice are run by people who have been in the business for a long time. I think Mr. Lewis had all the confidence in the world in those people.
“Unless Mr. Fugett went in there and told them what to do, which I doubt, I don’t think their operations should be affected by anything other than the usual market influences and the European recession. The company was in good shape when he took over. They hardly have any debt. They probably don’t have $150 million in cash sitting around either {to purchase the Orioles}, but they’re definitely well-positioned to get it. Operationally, the company is doing very well.”
Studying His Craft
Fugett credits his brother for preparing him for a role he would have been happy not to fill. Fugett said he idolized Reggie Lewis as the perfect role model — scholar, athlete, graduate of Harvard Law School, successful attorney, businessman and philanthropist.
He recalled the trepidation he felt telling his big brother he had selected Amherst over Harvard when he graduated from Cardinal Gibbons High School in Baltimore. “I was scared to tell him,” Fugett said, “but we compromised. I told him I’d go to Harvard Law instead.
“I’d been working with him ever since my retirement from football {in 1980 because of a knee injury}. Everything I had done was focused as an assistant to him. I came to New York and learned legal skills from his partners. The last few years, 10 days to two weeks a month I’d go up to New York to TLC. They were my major client.
“I knew at some point I’d have a role that could be larger if I wanted it. … The circumstances of how this happened made it very difficult. But as far as my knowledge of the company, I’ve been here since Day One. Nothing has been a surprise, and my experience has served me well.
“Being the one who now has to make the final decision makes it difficult. … I’ve got 5,000 employees all over the world. You learn that you can’t just focus on one issue. You have to look at the whole picture. I learn as I go along. I feel better now than I did a month ago. I’ll feel better in a month than I do now.
“My brother has been my guiding light since the day I was born, such a shining example of someone who worked so hard and became so succesful,” Fugett said. “I’ve been trying to emulate him for a long time.”