| One of the best kept secrets in Philadelphia is the | | | | John was the closest thing to passionate out of the |
| phantom group of people we loosely call the Phillies | | | | group. Rumor has it, Middleton was a big reason why |
| owners. The Phillies' ownership group has remained | | | | the Phillies signed Jim Thome in 2002. He has been |
| more of a mystery in this town than Bigfoot or the | | | | attributed as declaring, "I'll pay for him myself!" |
| Bermuda Triangle. | | | | It was announced in November of 2007 that |
| While winning the World Series in 2008 took a ton of | | | | Middleton had sold his family cigar company to the |
| heat off the Phillies owners, fans renewed their | | | | Altria Group, owners of Phillip Morris, for $2.9 billion. |
| hatred for the faceless, nameless individuals who we | | | | Fans had a brief moment of hope that maybe, just |
| never see or hear when the club dealt Cliff Lee for | | | | maybe, we could have an ownership committed to |
| the likely reason of saving $9 million bucks. It is time | | | | winning. David Montgomery shut down those dreams |
| now that we investigate these Phillies ghosts, who | | | | instantly. In a statement, Montgomery said, "John |
| are quite skilled at remaining invisible. David | | | | Middleton is a limited partner with the Phillies and his |
| Montgomery is here to speak for the owners that | | | | personal and business interests have no impact on |
| allowed so many years of horrid baseball before | | | | the operation of the ballclub." That's a pretty strong |
| getting lucky in 2008, and to make sure that fans | | | | statement from the very mild mannered |
| never, ever learn who they really are. | | | | Montgomery. As you will soon learn, that is exactly |
| David Montgomery said recently that the Phillies | | | | what it means to be a limited partner, limited. But, if |
| owners are in the red and have been since they | | | | John Middleton could somehow grab a majority |
| took over the team. HA! I guess we should all bow | | | | stake, he could have called the shots and told |
| down and thank these wonderful people for selflessly | | | | Montgomery to hit the road if he wanted. |
| throwing away their hard-earned money for our | | | | Hard to say if Middleton even attempted to buy the |
| enjoyment. Right. Montgomery was not lying, but he | | | | team, but the program during a ceremony in 2004 at |
| was surely bending the truth as well as any politician | | | | Amherst said, "Montgomery runs the show. He just |
| out there. I bet they have been losing money... in | | | | reaffirmed that fact. The partners are supposed to |
| their operating costs. But the team value is an | | | | stay out of the way, and these partners do. It is |
| entirely different story. Let's put it this way: The | | | | fairly well known that John S. Middleton has been an |
| original group bought the team in 1981 for $30 million. | | | | outlier on some issues - breaking loose the money to |
| The 2008 Phillies were reportedly worth $481 million | | | | sign Jim Thome was thought to be one of them." |
| (and that's before winning the World Series). That's | | | | David Montgomery |
| over a 1,600 percent increase in the value of the | | | | Bill Giles hired David Montgomery in 1971 to work in |
| team...1,600 percent! Trust me, they are NOT | | | | the Phillies' ticket sales office and he later became |
| LOSING MONEY. | | | | Sales Director. When the current group bought the |
| Before revealing these Phillies Phantoms, let's discuss | | | | team, Giles appointed Montgomery as his top |
| how exactly they came to be the owners. In 1981 | | | | assistant in 1982. Quite possibly his most revealing |
| when Ruly Carpenter announced he was selling the | | | | quote was, "I just believe the organization needs an |
| team, Bill Giles assembled a group of investors to buy | | | | image that's not directly tied to wins and losses." |
| the Phillies. With only $50,000 of his own to spend, he | | | | Bill Giles |
| needed a little help. He took a 10 percent share of | | | | Giles started with the Phillies as the vice president of |
| the team, oversaw the day-to-day operations, and | | | | business operations in 1969. He was the team vice |
| became the spokesperson of the group, allowing the | | | | president until 1982, team president from 1982 to |
| others to hide in the shadows. | | | | 1987, and General Manager from 1984 to 1987. Giles |
| The Buck brothers invested $5 million. Widener family | | | | decided to step down as general partner in 1997 and |
| heir Fitz Dixon and horse-racing mogul Bob Levy | | | | took the title of managing partner. He is the son of |
| combined for $3.5 million. John D. Betz from Betz | | | | former National League president Warren Giles and |
| Laboratories pledged $5 million. Taft Broadcasting | | | | the current honorary president of the National |
| took care of the rest, throwing in $15 million. | | | | League. |
| In 1986, Taft Broadcasting sold its 47 percent share | | | | Limited Partners |
| to Bill Giles and crew for $24.1 million. Bob Levy and | | | | Before moving forward, it is helpful to know what it |
| Fitz Dixon have also since cashed out. Bill Giles handed | | | | means to be a limited partner. Bill Conlin describes it in |
| over his general partner position to David | | | | better detail in his article on the limited partnership, |
| Montgomery in 1997, who also took a sliver of the | | | | but here is the Cliff's Notes version. Basically, the |
| company. | | | | general partner (was Giles, now Montgomery) |
| That leaves Claire Betz, the Buck Brothers, and John | | | | gathers the group, negotiates the sale of the team, |
| Middleton as the unnamed sources remaining. Let's | | | | is responsible for all debt and lawsuits, and gets a |
| see what we can dig up, shall we? Let's meet the | | | | little extra coin in the form of a salary. |
| cast: | | | | So, what does it mean to be a limited partner? It |
| Claire S. Betz | | | | means they are limited to their cash investment and |
| Claire S. Betz is approaching the age of 90 and | | | | nothing else. Don't like what is going on? Want to get |
| shares time between her homes in Gwynedd, PA and | | | | rid of David Montgomery? Too bad. When they |
| Key Largo, Florida. Claire's husband, John Drew Betz, | | | | agreed to terms as limited partners, they gave all the |
| bought his share of the Phillies in 1981 and she took | | | | power to the general partner. |
| over ownership amidst a nice little soap opera. See, | | | | As Conlin said regarding Montgomery, "Unless you can |
| her son, Peter Betz, was murdered by her | | | | prove misfeasance and worse, it would be hard to |
| 16-year-old grandson, Justin Betz, in 1988. Justin | | | | dislodge him." He says they probably also signed an |
| pleaded guilty to third-degree murder and John died | | | | agreement not to criticize the Phillies' leadership |
| of cancer at the age of 72 during the trial. That's | | | | publicly. Just like in the Marge Schott situation many |
| when she took over his share. The Inquirer's Bill Conlin | | | | years ago, if David Montgomery does not want to |
| valued her stake at 33 percent of the team in a | | | | leave, he won't. Simple as that. |
| November 2007 article. | | | | Moving On |
| The Betz' made their fortune through a family-owned | | | | We should have no reason to hate any of the |
| water-purifying company called Betz Laboratories of | | | | individuals running the team. We don't know them, |
| which John Betz was the chairman. Betz Laboratories | | | | and they haven't done anything illegal or unethical |
| was later sold to General Electric. She and David | | | | that we know of. In fact, they appear to be very |
| Montgomery are also on the board of the Schuylkill | | | | principled and classy people. |
| Center, a local conservation group. When Claire | | | | However... |
| passes away, the other partners will likely buy her | | | | Buying a professional sports team is not just another |
| shares. | | | | investment where you can let your stock broker do |
| The Buck Brothers | | | | all the work and call you every once in a while with |
| The Buck brothers: Alexander K. Buck, J. Mahlon | | | | an update. Especially when you ask the city and |
| Buck, Jr., and William C. Buck. Officially known as | | | | state for $260 million to help build your new ballpark, |
| Tri-Play Associates, the three brothers are involved | | | | you have given up the right to be "fiercely private" |
| with T.D.H. Capital Corp., a venture capital firm based | | | | as Middleton was described by Amherst. |
| in Radnor, PA. The firm was started in 1977 and | | | | We have a rare opportunity for greatness with the |
| primarily invests in small businesses. | | | | current team. We need to take advantage of the |
| They also have been heavily involved in local charity, | | | | moment while we can, and our ownership group has |
| including gifts to the zoo, orchestra, and education. | | | | shown us time and time again that they won't do |
| "The Bucks are very principled. Very, very | | | | anything to help. We already missed the boat once |
| gentlemanly. Very, very private," says J.B. Doherty, | | | | by forcing Cliff Lee out. Let's stop it right there and |
| general partner of TDH Capital. | | | | get them out of here. |
| John Middleton | | | | Just imagine for a second how different things would |
| John S. Middleton is in his mid-fifties and splits his time | | | | be if someone like Pat Croce, Ed Rendell, or heck |
| between Bryn Mawr and Stone Harbor. He is a 1977 | | | | even Comcast-Spectacor was running the team.... |
| graduate of Amherst College, and according to them, | | | | Don't hold your breath. We won't get a new owner. |
| "Middleton heads his family's business, which includes | | | | Many have tried, and none have succeeded. The |
| McIntosh Inns, Bradford Holdings, and Double Play, | | | | Bucks, the Betz', and the Middletons will keep passing |
| Inc." He inherited his portion of the ownership from | | | | around their shares among themselves until the time |
| his father, Herbert H. Middleton. He is also on the | | | | that we are all ghosts, just like them. |
| Board of Trustees of Penn Medicine. | | | | |