CINCINNATI (AP) – The Brown family has increased its control of the Cincinnati Bengals.

The team announced Friday that the Browns have obtained the shares held through the Austin Knowlton estate. Investors in New York had made a deal for the shares that had been estimated at 30 percent of the club. But the Brown family exercised rights to match the terms to acquire the last major piece of the team that had been outside the family.

Terms weren’t announced.

Bengals President Mike Brown says in a statement that the family is committed to having the Bengals remain an asset to the region.

Brown’s late father, Paul Brown, was an original owner and the first Bengals coach in 1968. The team plays in Paul Brown Stadium.

(Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

CINCINNATI — The Brown family has increased its control of the Cincinnati Bengals.

The team announced Friday that the Browns have obtained the shares held through the Austin Knowlton estate. Investors in New York had made a deal for the shares that had been estimated at 30 percent of the club. But the Brown family exercised rights to match the terms to acquire the last major piece of the team that had been outside the family.

Terms weren’t announced.

Bengals President Mike Brown says in a statement that the family is committed to having the Bengals remain an asset to the region.

Brown’s late father, Paul Brown, was an original owner and the first Bengals coach in 1968. The team plays in Paul Brown Stadium.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

CINCINNATI (AP)—The Brown family has increased its control of the
Cincinnati Bengals.

The team announced Friday that the Browns have obtained the shares held
through the Austin Knowlton estate. Investors in New York had made a deal for
the shares that had been estimated at 30 percent of the club. But the Brown
family exercised rights to match the terms to acquire the last major piece of
the team that had been outside the family.

Terms weren’t announced.

Bengals President Mike Brown says in a statement that the family is
committed to having the Bengals remain an asset to the region.

Brown’s late father, Paul Brown, was an original owner and the first Bengals
coach in 1968. The team plays in Paul Brown Stadium.

The Brown Family is about to purchase the 30% of the NFL’s Cincinnati Bengals they do not own for $200 million from the Knowlton estate. Austin Knowlton, a founder of the team, died in 2003.

Minority stakes of this size typically sell at 15% discounts because limited partners have little to say about how the team is run. Assuming that 15% discount, and the team’s $100 million of debt, the deal gives the Bengals an enterprise value of around $870 million. We valued the Bengals, which are run by team president Mike Brown, at $875 million recently, 25th out of the league’s 32 teams.

Despite their dismal play on the gridiron in recent years, the Bengals are highly profitable because of the very favorable lease they have at Paul Brown Stadium. The Brown family is paying cash for the stake and the deal is expected to be finalized next week. The profitability of the Bengals should increase even further due to the NFL’s new collective bargaining agreement, and the new television deals the league has recently struck with ESPN and the broadcast networks.