Looks like Spurs will stay in S.A. - Local business leader buys USAA share in team

Businessman Peter M. Holt bought USAA’s stake in the San Antonio Spurs on Wednesday, a move that virtually assures the team will stay in the city. Terms of the deal weren’t disclosed. But Holt’s purchase of 13.37 percent of the franchise - worth an estimated $16.7 million - will give him the second-largest share of the Spurs, behind Oklahoma City-based Gaylord Properties.

Other owners, businessmen and insiders predicted Holt will be an energetic and active owner who soon may ascend to a leadership role among the diverse group of Spurs investors.

“I am adding to the strength and stability of the team in that I am from San Antonio and I, along with the other owners, want to keep it in San Antonio,” Holt said after the announcement Wednesday.

USAA, which sources said paid $4 million cash and assumed a $10 million subordinated note for its share in 1993, said selling its stake is consistent with the firm’s previously stated goal to shed all but its core business of insurance and financial services.

“One of the objectives we’ve had since making the original investment was to do our best to keep the team in San Antonio,” company spokesman John Walmsley said. “We have been told that (keeping the team here) was a primary consideration (of Holt’s), and we’re glad that he stepped forward,” he said.

Mayor Bill Thornton welcomed Holt’s purchase and said the businessman’s move not only solidifies the Spurs’ future in San Antonio, but also demonstrates the team’s financial viability.

"I think all of us agree that it’s important to keep the team in San Antonio, but I also believe Peter Holt is a smart, savvy businessman,"Thornton said.

The team, which is co-owned by 20 other companies and individuals, lost money for the first time in the 1995-96 season.

Spurs officials and owners have said they will not fund ongoing losses and must have a new arena to generate enough revenue to offset skyrocketing player salaries.

Holt, the 47-year-old president and chief executive officer of The Holt Cos.’ Caterpillar dealerships, reserved comment on the arena question - at least for now.

“It’s one of those learning curve things,” he said. "Maybe in 90 days I can give you a better answer. I need to spend some time with the Spurs and learn about the complexities of the

Alamodome/arena issue."

Thornton said he spoke with Holt about the pending purchase several weeks ago, and the subject of a new arena came up.

"The thing that I told Peter Holt was, `Let’s all be realistic. The Spurs seem to have this fixation with a facility right now,’ " Thornton said.

“I told him I’m not certain they have a facility problem, but I am concerned that they do have a financial problem. I made a commitment to him that, when it was right for San Antonio . . . whatever was done would be some type of facility that would accommodate basketball.”

The franchise, which was valued recently at $125 million by Financial World magazine, also was dubbed “high-risk” by the publication, in part because of limited revenues available at the Alamodome.

But Holt said he wasn’t worried.

“There certainly is some risk, but I don’t think I’ve ever been in a business that didn’t have risk,” he said.

“But I look at the ownership group and it has been very successful. I have a lot of confidence in the ownership of the Spurs, the team’s management and the city of San Antonio, and I think we can make it work,” he said.

By all accounts, Holt is a “doer,” who won’t be an absentee owner.

“This is great news for the franchise; Peter is a very upbeat guy,” said Charles Amato of Southwest Business Corp., which owns a minority share of the Spurs.

“I believe he tried to buy the whole team about a year ago but that didn’t work. But everything Peter touches works. He’s a winner. He hates to lose.”

Former minority owner Bob Coleman said Holt’s bid is "the best news I’ve heard in a long time.

“Peter is a good businessman and he wants to be active,” Coleman said. “I think we’ll see some big differences in the franchises, I’m sure he has a lot of plans.”

Spurs President and Chief Executive Officer Jack Diller said Holt has a “willingness to dedicate time” to the Spurs.

"We are about to enter a period of time that is absolutely critical to this franchise . . . trying to solve the overall financial problem and the facility problem.

“We are fortunate to have his dynamism, time and willingness,” Diller said.

Holt, who has season tickets not far from Diller’s, said he supports the team’s business and basketball management.

“I’m not going to tell you I am a basketball expert, because I’m not, or that I can run a team,” he said.

“But I believe there are lots of ways to stabilize the team and keep it here in San Antonio. I didn’t get into this to accomplish anything else.”

While the basketball side “is doing well,” Holt said the franchise now must “figure our how to get it from red ink to black ink.”

Asked how he would do that, Holt said simply: “I’m not there yet. Maybe in a few months I’ll discuss that.”

Other owners have publicly said they might sell their stakes if the circumstances were right.

Many of the owners are focused on their own businesses and have acted more as passive caretakers than active managers.

Sources said that even Gaylord Properties might be willing to divest its commanding share in the near future.

One insider said he was surprised Wednesday’s announcement did not include Holt’s purchase of Gaylord’s share, as well.

Another source said Gaylord is “miffed” that its attempts to purchase more shares failed because local owners did not trust Gaylord to keep the team in San Antonio.

Since 1993, Gaylord, which initially held 9.99 percent of the company, has bought U.S. Long Distance Corp.'s 2.03 percent share and almost half of SBC Communications Inc.'s original stake.

The Oklahoma-based company is a subsidiary of Gaylord Entertainment Co., the Nashville company that has tried to lure sports teams to the Tennessee town.

Some sources close to the situation predicted Wednesday that Holt would buy more shares of the team and might become its chairman before long.

Spurs Chairman Robert McDermott, who in 1993 arm-twisted and cajoled most of the current owners to ante up millions of dollars to keep the team in San Antonio, called Holt’s investment “a good fit” for the team.

“Not only is he civic-minded, but he’s emotionally attached to the idea of owning a basketball team . . . I think he’s going to have a big impact,” he said.

Asked if he would feel comfortable passing along his chairmanship to Holt, McDermott said: “Peter might be the right guy.”

Staff Writers Tom Orsborn and Cindy Tumiel contributed to this report. - - -

Who owns the team?

Gaylord Properties - 20.10%

Peter M. Holt - 13.37%

ARA RBI Inc. - 9.99%

Zachry Hospitality - 9.99%

Kinetic Concepts Inc. and James R. Leininger - 8.64%

SBC Communications Inc. - 7.00%

Valero Management Co. - 5.06%

International Bancshares Corp. - 3.72%

Stephen Lang - 2.87%

Mrs. Irving A. Mathews - 2.87%

Jack Diller - 1.88%

R&B Partnership (Russell and Bruce Hill) -1.69%

Paul R. Markey - 1.69%

Felix L. Stehling - 1.69%

George C. `Tim’ Hixon - 1.69%

Clear Channel Communications - 1.69%

Robert F. McDermott - 1.69%

Southwest Business Corp. - 1.69%

Richard Cantu Trust - 0.84%

Raul Cantu Jr. Trust 0.84%

An additional 1 percent is owned by the corporate general partner, San Antonio Athletic Club Inc.