Philip Anschutz

From Wikipedia, the free encyclopedia

This article or section is missing citations or needs footnotes. Using inline citations helps guard against copyright violations and factual inaccuracies. (August 2007)

Philip Frederick Anschutz (born 28 December 1939 in Russell, Kansas) is an American businessman and supporter of conservative Christian causes. With an estimated current net worth of around $7.8 billion, he is ranked by Forbes as the 31st richest person in the USA.

Contents 1 Life 2 Land ownership 3 Rail and petroleum businesses 4 Millennium Dome 5 Summary of business interests 6 Political and Christian activism 7 External links 8 References

[edit] Life

Anschutz's father was a land investor who invested in ranches in Colorado, Utah and Wyoming, and eventually went into the oil-drilling business. Anschutz's grandfather, Carl Anschutz (born November 10, 1859, in Samara), emigrated from Russia and started the Farmers State Bank in Russell, Kansas. Anschutz grew up in Hays, Kansas, with part family located in Wisconsin (the location of his father's oil-exploration business, Circle A Drilling, where he lived near Bob Dole). In later years, Anschutz contributed to Dole's political campaigns. He graduated from Wichita High School East in 1957, and graduated with a bachelor's degree in business from the University of Kansas in 1961, where he was also a brother of the Sigma Chi Fraternity.^[1]

A member of the Evangelical Presbyterian Church, he is a conservative Christian. He and his wife, whom he met when he was 16, have three children. It has been reported that he owns an extensive collection of western art. It includes George Catlin's 1832 Bull Dance, George Inness's 1856 Afterglow on the Prairie, and important works by Georgia O'Keeffe, Frederic Remington, Fritz Scholder, and Charles Marion Russell.

When filmmakers made a movie about Red Adair in 1967, Anschutz struck a deal with Universal Pictures to permit filming real fire fighters extinguishing a real oil blaze on his land for a $100,000 fee. The footage was used in the 1968 John Wayne movie Hellfighters.

Mr. Anschutz was inducted into the Junior Achievement U.S. Business Hall of Fame in 2002.^[2]

[edit] Land ownership

In 1970 he bought the 250,000-acre (1,000 km²) Baughman Farms, one of the country's largest farming corporations, in Liberal, Kansas for $10 million. The following year, he acquired 9 million acres (36,000 km²) along the Utah-Wyoming border. This produced his first fortune in the oil business. In the early 1980s, the Anschutz Ranch, with its 1 billion barrel (160,000,000 m³) oil pocket, became the largest oil field discovery in the United States since Prudhoe Bay in Alaska in 1968. He sold a half-interest in it to Mobil Oil for $500 million in 1982.

For several years Anschutz was Colorado's sole billionaire. With his acquisition of land in other Western states, he is thought to own more farm and cattle land than any other single private citizen in the United States.

He then moved into railroads and telecommunications before venturing into the entertainment industry. In 1999, Fortune magazine compared him to the nineteenth-century tycoon J.P. Morgan, as both men "struck it rich in a fundamentally different way: they operated across an astounding array of industries, mastering and reshaping entire economic landscapes."

[edit] Rail and petroleum businesses

In 1984 he entered the railroad business by purchasing the Rio Grande Railroad's holding company, Rio Grande Industries. Four years later, in 1988, the Rio Grande railroad purchased the Southern Pacific Railroad under his direction. With the merger of the Southern Pacific and Union Pacific Corporation in September 1996, Anschutz became Vice-Chairman of Union Pacific. Prior to the merger, he was a Director of Southern Pacific from June 1988 to September 1996, and Non-Executive Chairman of Southern Pacific from 1993 to September 1996. He was also a Director of Forest Oil Corporation, beginning in 1995. In November 1993 he became Director and Chairman of the Board of Qwest, stepping down as a nonexecutive co-chairman in 2002, but remaining on the board. He has also been a Director for Pacific Energy Partners and served on the boards of the American Petroleum Institute, in Washington, D.C. and the National Petroleum Council in Washington, D.C.

In May 2001, the Bush administration upheld Anschutz's right to drill an exploratory oil well at Weatherman Draw, in south-central Montana where Native American tribes wanted to preserve sacred rock drawings. Environmental groups, preservationists, and 10 Indian tribes had appealed the decision without success. Reports at the time noted that Anschutz had donated $300,000 to Republican causes in the previous four years. In April 2002, the Anschutz Exploration Corporation gave up its plans to drill for oil in the area. They donated its leases for oil and gas rights to the National Trust for Historic Preservation, which has pledged to let the leases expire, and the Bureau of Land Management said it had no plans to permit further leases there, and would consider formal withdrawal of the 4,268 acre (17 km²) site from mineral leasing in its 2004 management plan.

In May 2003, Anschutz agreed to pay $4.4 million for accepting IPO shares from Salomon Smith Barney in exchange for his firm, Qwest's, investment banking business. The payment was roughly equal to his profit from the practice of IPO "spinning".

In February 2006, the Denver Rocky Mountain News reported that Anschutz would not stand for re-election to the boards of Qwest and Union Pacific, and would resign from the board of Regal Entertainment, so that he could focus on his other investments. ^[3]

On June 24, 2008, it was announced that Anschutz would buy Xanterra Parks and Resorts, which had purchased the Grand Canyon Railway in 2007. Negotiations for the sale began on June 5 and the sale is expected to be completed in Fall 2008.^[4]

[edit] Millennium Dome

Anschutz's investment in the Millennium Dome in London, (through his company Anschutz Entertainment Group who redeveloped it to The O₂) has caused him to become involved in the controversies surrounding former British Deputy Prime Minister, John Prescott. A large part of Anschutz's proposed investment in the Dome is conditional on the granting of a 'super casino' license by the British government. The controversy surrounds the extent of Prescott's influence on this critical decision. Anschutz has met Prescott personally on several occasions since 2004, including a two-night stay at Anschutz's ranch in 2005, footing the bill for hospitality and gifts. The emergence of this controversy in June 2006 has resulted in Anschutz cancelling a scheduled further meeting.^[5]

In January 2007, the decision on the "Super Casino" surprisingly went to a proposal in Manchester, as opposed to the apparently more likely winning bids from Blackpool and the Anschutz proposal in London. A spokesperson for Anschutz Entertainment Group advised that they would be looking into the reasons behind the decision and that the company were "taking time to examine the findings in full and considering our position". ^[6]

The decision to have the super casino in Manchester was not a great surprise considering Anschutz invested in the city in 2004, when he spent £50m on the MEN arena and the winner of the casino licence is a close ally of Anshutz, Sol Kerzner. ^{[7] [8]}

[edit] Summary of business interests

Anschutz owns or has major interests in about 100 companies, including the following:

• Anschutz Entertainment Group, which has stakes in two U.S. soccer teams, including the MLS's Los Angeles Galaxy and Houston Dynamo; the NHL's Los Angeles Kings; the AHL's Manchester Monarchs; the ECHL's Reading Royals; the NBA's Los Angeles Lakers; Staples Center; Home Depot Center; Major League Lacrosse LA Riptide; the Swedish soccer team Hammarby IF, Swedish hockey team Djurgårdens IF; the German hockey teams Hamburg Freezers and Eisbären Berlin; and the Kodak Theatre in Los Angeles. In the UK they own the Manchester Evening News Arena, the London Arena, and the Millennium Dome which is being redeveloped as a multi-purpose arena, and re-launched under the name "The O₂".
• Anschutz Film Group (reorganized Crusader Entertainment now known as Bristol Bay Productions and Walden Media). Involved in the production of the movie Atlas Shrugged, and previously involved in the production of the movie Holes in 2003 and the commercially successful The Chronicles of Narnia: The Lion, the Witch, and the Wardrobe in 2005.
• Clarity Media Group is a Denver headquartered Publishing Group who is developing print Examiner and online Examiner.com publications. ^[9]
• Forest Oil
• Pacific Energy Group
• 17% stake in Qwest Communications, which became a Baby Bell upon the purchase of US West
• Regal Entertainment Group, the largest movie theater chain in the world with approximately 6,000 screens. Anschutz owns more than half of the company, which is a collection of former bankrupt chains.
• Union Pacific Railroad (Anschutz is the company's largest shareholder, with a 6% stake.)
• Clarity Media Group, a newspaper conglomerate which includes:
  • The San Francisco Examiner (purchased in 2004)
  • The Washington Examiner, which was spun off from a number of D.C. area suburban dailies.
  • The Baltimore Examiner, which was launched anew in April 2006. (Anschutz has trademarked the name "Examiner" in more than sixty cities.)
• The Oil & Gas Asset Clearinghouse, which is an auction company designed for the Oil & Gas Business

• NRC Broadcasting, which owns a string of radio stations in Colorado.

• Anschutz brought David Beckham to the United States. Beckham is now employed by Galaxy Media and plays on an Anschutz-owned soccer team, Los Angeles Galaxy of Major League Soccer.
• The Anschutz Investment Company purchased LightEdge Solutions in February 2008. LightEdge is a business-to-business hosted services provider focused on Wide-Area-Networking, Voice-over-IP, Hosted Microsoft applications (Exchange, OCS, SharePoint), hosted servers/storage collocation cage and rackspace and Business Continuity Services.

[edit] Political and Christian activism

Anschutz, a Republican donor and supporter of George W. Bush's administration, has been an active patron of a number of religious and conservative causes:

• Helped fund Colorado's 1992 Amendment 2, a ballot initiative designed to overturn local and state laws that prohibit discrimination against individuals on the basis of sexual orientation.^[10]
• Helped fund the Discovery Institute, a think tank based in Seattle, Washington that promotes intelligent design and creationism and criticizes evolution. ^[11]
• Supported the Parents Television Council, a group that protests against what they believe to be television indecency.^[11]
• Financed and distributed Christian films, such as Amazing Grace and The Chronicles of Narnia: The Lion, the Witch and the Wardrobe, for mass audiences through his two film production companies and ownership of much of the Regal, Edwards and United Artists theater chains. In addition, as a producer Anschutz reportedly required the removal of certain material related to drug use and sex in the 2004 film Ray because he found it objectionable.^[12][11]

[edit] External links

• #31 Philip F Anschutz, Forbes 400 Richest Americans, September 21, 2006
• Philip Anschutz, Chairman and CEO, The Anschutz Corporation, Denver, CO, The Horatio Alger Association of Distinguished Americans.

[edit] References