Randy Lerner
Encyclopedia
Randolph D. Lerner is an American
entrepreneur
and sports team owner.
Lerner has been the owner of the American football
team, the Cleveland Browns
, of the National Football League
since October 2002, and the Chairman of Aston Villa Football Club
of the English Premier League since 2006. His personal fortune is estimated at USD
over 1.5 billion in 2008.
Lerner graduated from Columbia University
in 1984, spending 1983 at Clare College
in Cambridge, England. He graduated from Columbia Law School
and is a member of the New York
and District of Columbia Bar Association
s. Prior to entering the business world, he worked as a lawyer in New York City.
as an investment analyst. In 1991, he started an independent investment firm with Progressive capital called Securities Advisors, Inc. (SAI), which he owned and managed until 2001. SAI initially specialized in arbitrage
before shifting its focus to equity investing.
His father Al Lerner
became chairman of MBNA Corporation investing $800 million of his own money in the initial public offering (IPO) of the corporation. In 1993, Randy became a director at MBNA
. Upon the death of his father on October 23, 2002, Randy became company chairman. He was involved in the sale of MBNA Corporation on January 1, 2006 to Bank of America
for $35 billion.
, died in October 2002 - four years to the day after he was awarded the new Browns franchise. He also serves as a member of the National Football League
's Business Ventures Committee. Lerner has generally been a low key owner since assuming control of the franchise.
, Fulham
and Aston Villa
. Although he had grown up in the United States, with a father who had been involved with the Cleveland Browns franchise under Art Modell
, Lerner's interest in England's top flight endured long after he had returned to the States. On July 24, 2006 it was reported that Randy Lerner intended to purchase English Premier League club Aston Villa following a statement from Cleveland Browns management indicating Lerner was pursuing business interests in the United Kingdom
. Lerner pulled out of the bid to buy Aston Villa two days later after talks with the club chairman Doug Ellis
broke down but the following day reports emerged that Lerner might still make a formal £64 million bid for the club.
On August 14, 2006 it was confirmed that Lerner had reached an agreement of £62.6 million with Aston Villa for a takeover of the club. The statement to the London Stock Exchange
confirmed that 60% of the club's shares, including the 39% stake of Doug Ellis
had been sold to Lerner, beating competition from consortia led by Michael Neville, Nicholas Padfield
QC, and Athole Still. At this stage, the sale still awaited the approval of the shareholders of Aston Villa, although it was expected to be approved without a hitch.
On August 25, the LSE
announced that Lerner had secured 59.69% of Villa shares, making him the majority shareholder. He also appointed himself Chairman of the club.
The BBC
reported on September 5, 2006 that Lerner had now moved closer to taking full control of the club, after increasing his share to 85.5%.
By the time that the September 18 1pm deadline had been reached RAL had acceptance of 89.69% of the share. Due to the acceptance only being 0.31% below the conditional limit, RAL accepted it and made the bid unconditional.
On September 19, 2006 Aston Villa PLC executive Chairman Doug Ellis
and his board resigned, to be replaced by Randy Lerner as Chairman and General Charles C. Krulak, Bob Kain
and Michael Martin
as non-executive directors. At the close of the deal in 2006, Lerner became the second American owner of a Premiership club.
In early June 2011, Lerner controversially appointed manager Alex McLeish from relegated rivals Birmingham City.
For the 2008/2009 and 2009/2010 seasons, Aston Villa forwent traditional shirt sponsorship, which is nowadays a very lucrative revenue stream, by instead wearing on their shirts the name of a local children's hospice, Acorns
. For the 2010/2011 season this sponsor was replaced by Fxpro, which pays for its sponsorship, however Aston Villa and Lerner have both stated they will continue to work closely with Acorns.
where he owns the Community Square shopping complex as well as the Meeting House Restaurant in the complex. The Wall Street Journal reported that Cleveland Browns Transportation was the most frequent flyer in and out of East Hampton Airport
with 390 trips logged between 2007 and 2011.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
and sports team owner.
Lerner has been the owner of the American football
American football
American football is a sport played between two teams of eleven with the objective of scoring points by advancing the ball into the opposing team's end zone. Known in the United States simply as football, it may also be referred to informally as gridiron football. The ball can be advanced by...
team, the Cleveland Browns
Cleveland Browns
The Cleveland Browns are a professional football team based in Cleveland, Ohio. They are currently members of the North Division of the American Football Conference in the National Football League...
, of the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
since October 2002, and the Chairman of Aston Villa Football Club
Aston Villa F.C.
Aston Villa Football Club is an English professional association football club based in Witton, Birmingham. The club was founded in 1874 and have played at their current home ground, Villa Park, since 1897. Aston Villa were founder members of The Football League in 1888. They were also founder...
of the English Premier League since 2006. His personal fortune is estimated at USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
over 1.5 billion in 2008.
Lerner graduated from Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
in 1984, spending 1983 at Clare College
Clare College, Cambridge
Clare College is a constituent college of the University of Cambridge in Cambridge, England.The college was founded in 1326, making it the second-oldest surviving college of the University after Peterhouse. Clare is famous for its chapel choir and for its gardens on "the Backs"...
in Cambridge, England. He graduated from Columbia Law School
Columbia Law School
Columbia Law School, founded in 1858, is one of the oldest and most prestigious law schools in the United States. A member of the Ivy League, Columbia Law School is one of the professional graduate schools of Columbia University in New York City. It offers the J.D., LL.M., and J.S.D. degrees in...
and is a member of the New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and District of Columbia Bar Association
Bar association
A bar association is a professional body of lawyers. Some bar associations are responsible for the regulation of the legal profession in their jurisdiction; others are professional organizations dedicated to serving their members; in many cases, they are both...
s. Prior to entering the business world, he worked as a lawyer in New York City.
Business history
Lerner's business career began at the Progressive CorporationProgressive Corporation
The Progressive Corporation , known as the Progressive Casualty Insurance Company through its subsidiaries, provides personal automobile insurance, and other specialty property-casualty insurance and related services in the United States....
as an investment analyst. In 1991, he started an independent investment firm with Progressive capital called Securities Advisors, Inc. (SAI), which he owned and managed until 2001. SAI initially specialized in arbitrage
Arbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices...
before shifting its focus to equity investing.
His father Al Lerner
Al Lerner
Alfred "Al" Lerner was an American businessman and philanthropist. He was best known as the Chairman of the Board of credit card giant MBNA and the owner of the Cleveland Browns of the National Football League...
became chairman of MBNA Corporation investing $800 million of his own money in the initial public offering (IPO) of the corporation. In 1993, Randy became a director at MBNA
MBNA
MBNA Corporation was a bank holding company and parent company of wholly owned subsidiary MBNA America Bank, N.A., headquartered in Wilmington, Delaware, prior to being acquired by Bank of America in 2006...
. Upon the death of his father on October 23, 2002, Randy became company chairman. He was involved in the sale of MBNA Corporation on January 1, 2006 to Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
for $35 billion.
Cleveland Browns
Control of the Browns was given to Lerner, when his father, Al LernerAl Lerner
Alfred "Al" Lerner was an American businessman and philanthropist. He was best known as the Chairman of the Board of credit card giant MBNA and the owner of the Cleveland Browns of the National Football League...
, died in October 2002 - four years to the day after he was awarded the new Browns franchise. He also serves as a member of the National Football League
National Football League
The National Football League is the highest level of professional American football in the United States, and is considered the top professional American football league in the world. It was formed by eleven teams in 1920 as the American Professional Football Association, with the league changing...
's Business Ventures Committee. Lerner has generally been a low key owner since assuming control of the franchise.
Aston Villa
During his time at Cambridge Lerner followed English football (soccer), taking an interest in three teams: ArsenalArsenal F.C.
Arsenal Football Club is a professional English Premier League football club based in North London. One of the most successful clubs in English football, it has won 13 First Division and Premier League titles and 10 FA Cups...
, Fulham
Fulham F.C.
Fulham Football Club is a professional English Premier League club based in southwest London Fulham, in the London Borough of Hammersmith and Fulham. Founded in 1879, they play in the Premier League, their 11th current season...
and Aston Villa
Aston Villa F.C.
Aston Villa Football Club is an English professional association football club based in Witton, Birmingham. The club was founded in 1874 and have played at their current home ground, Villa Park, since 1897. Aston Villa were founder members of The Football League in 1888. They were also founder...
. Although he had grown up in the United States, with a father who had been involved with the Cleveland Browns franchise under Art Modell
Art Modell
Arthur B. Modell is an American businessman, entrepreneur and former National Football League team owner. He owned the Cleveland Browns franchise from 1961–1995 and the Baltimore Ravens franchise from 1996–2004. Modell is the grandson of the late Morris Modell who founded the northeast...
, Lerner's interest in England's top flight endured long after he had returned to the States. On July 24, 2006 it was reported that Randy Lerner intended to purchase English Premier League club Aston Villa following a statement from Cleveland Browns management indicating Lerner was pursuing business interests in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. Lerner pulled out of the bid to buy Aston Villa two days later after talks with the club chairman Doug Ellis
Doug Ellis
Herbert Douglas Ellis, OBE , is an entrepreneur, best known as the former chairman of Aston Villa Football Club.-Early life:...
broke down but the following day reports emerged that Lerner might still make a formal £64 million bid for the club.
On August 14, 2006 it was confirmed that Lerner had reached an agreement of £62.6 million with Aston Villa for a takeover of the club. The statement to the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
confirmed that 60% of the club's shares, including the 39% stake of Doug Ellis
Doug Ellis
Herbert Douglas Ellis, OBE , is an entrepreneur, best known as the former chairman of Aston Villa Football Club.-Early life:...
had been sold to Lerner, beating competition from consortia led by Michael Neville, Nicholas Padfield
Nicholas Padfield
Nicholas Padfield is a British lawyer, QC, and is currently deputy High Court judge. He made headlines in 2006 by heading a business consortium named AV06, its being one of the parties interested in taking over the running of the British association football club Aston Villa F.C.Following a bid...
QC, and Athole Still. At this stage, the sale still awaited the approval of the shareholders of Aston Villa, although it was expected to be approved without a hitch.
On August 25, the LSE
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
announced that Lerner had secured 59.69% of Villa shares, making him the majority shareholder. He also appointed himself Chairman of the club.
The BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
reported on September 5, 2006 that Lerner had now moved closer to taking full control of the club, after increasing his share to 85.5%.
By the time that the September 18 1pm deadline had been reached RAL had acceptance of 89.69% of the share. Due to the acceptance only being 0.31% below the conditional limit, RAL accepted it and made the bid unconditional.
On September 19, 2006 Aston Villa PLC executive Chairman Doug Ellis
Doug Ellis
Herbert Douglas Ellis, OBE , is an entrepreneur, best known as the former chairman of Aston Villa Football Club.-Early life:...
and his board resigned, to be replaced by Randy Lerner as Chairman and General Charles C. Krulak, Bob Kain
Bob Kain
Bob Kain is the former CEO of sports and lifestyle management and marketing firm IMG .In September 2006, Kain became a board member of Aston Villa following Randy Lerner's acquisition of the club.-References:*...
and Michael Martin
Michael Martin
Michael Martin may refer to:*Micheál Martin, Irish politician*Michael Martin , Australian rules footballer*Michael Martin , fictional character on the Australian soap opera Neighbours...
as non-executive directors. At the close of the deal in 2006, Lerner became the second American owner of a Premiership club.
In early June 2011, Lerner controversially appointed manager Alex McLeish from relegated rivals Birmingham City.
Philanthropy
Randy Lerner has supported the National Portrait Gallery since 2002. On January 23, 2008 it was announced that he had donated £5 million to the gallery, the largest single donation that it has ever received. In recognition the ground floor galleries will be named "The Lerner Galleries".For the 2008/2009 and 2009/2010 seasons, Aston Villa forwent traditional shirt sponsorship, which is nowadays a very lucrative revenue stream, by instead wearing on their shirts the name of a local children's hospice, Acorns
Acorns Children's Hospice
Acorns Children’s Hospice Trust is a registered charity, offering a network of care and support to life-limited and life-threatened children and their families across the heart of England. Acorns has three hospices, situated in Birmingham, Walsall and Worcester as well as a Community Team that...
. For the 2010/2011 season this sponsor was replaced by Fxpro, which pays for its sponsorship, however Aston Villa and Lerner have both stated they will continue to work closely with Acorns.
Personal
Lerner has a house in Amagansett, New YorkAmagansett, New York
Amagansett is a census-designated place that roughly corresponds to the hamlet by the same name in the town of East Hampton in Suffolk County, New York on the South Shore of Long Island. As of the United States 2000 Census, the CDP population was 1,067. Amagansett hamlet was founded in 1680.The...
where he owns the Community Square shopping complex as well as the Meeting House Restaurant in the complex. The Wall Street Journal reported that Cleveland Browns Transportation was the most frequent flyer in and out of East Hampton Airport
East Hampton Airport
East Hampton Airport is a public airport in Wainscott, New York, three miles west of the central business district of the village of East Hampton, in Suffolk County, New York, USA. It is owned and operated by the Town of East Hampton....
with 390 trips logged between 2007 and 2011.