Robert K. Kraft (born June 5, 1941) is an American business magnate. He is the Chairman and Chief Executive Officer of The Kraft Group, a diversified holding company with assets in paper and packaging, sports and entertainment, real estate development and a private equity portfolio. His sports holdings include the National Football League's New England Patriots and Major League Soccer's New England Revolution, and Gillette Stadium.
Since Robert Kraft purchased the team in 1994, the Patriots have experienced one of the most dramatic turnarounds in the history of sports. Now in his 20th season of ownership, Kraft has transformed one of the league's least successful clubs into what many observers view as a model NFL franchise. In its first 34 seasons of existence, the Patriots won a total of 225 games. Under Kraft's guidance, the franchise equaled that win total in just 19 years. In the five seasons immediately preceding his purchase (1989-93), the Patriots were a moribund team, winning just 19 of 80 games (.238 pct.) and recording the worst record in the NFL over that span.
When he bought the franchise on Jan. 21, 1994, Kraft announced his intention to bring a championship to New England, a tall order considering the team's previous success rate. But since then, under Kraft's leadership, the Patriots have won more division titles (12), conference crowns (6) and Super Bowl championships (3) than any other NFL team. In 2011, the Patriots claimed their sixth AFC Championship during Kraft's tenure, earning him the distinction as the first principal owner in NFL history to earn six trips to the Super Bowl. Since 1994, no other NFL team has appeared in more than four Super Bowls. In Kraft's 19 seasons, the Patriots have qualified for the playoffs 14 times, more than doubling the franchise's playoff appearances in their first 34 seasons.
Early life and career
Kraft was raised in an observant Jewish family. His father was a dressmaker in Boston's Chinatown. Kraft attended Brookline High School in his hometown, graduating in 1959; He is a 1963 graduate of Columbia University, which he attended on scholarship, and received an MBA from Harvard Business School in 1965. While at Columbia, Kraft joined Zeta Beta Tau Fraternity and played on the school's lightweight football team.
He began his professional career with the Rand-Whitney Group, a Worcester-based packaging company owned by his father-in-law Jacob Hiatt. He still serves as this company's chairman. In 1972, he founded International Forest Products, a trader of physical paper commodities. The two combined companies make up the largest privately held paper and packaging companies in the United States. International Forest Products is consistently among the top 100 US exporters/importers and in 2011 was No. 27 on the Journal of Commerce's list in that category.
In 1986, Kraft helped a minority business group acquire WNEV-TV, a CBS affiliate in Boston (now NBC affiliate WHDH-TV). He continued his investment in the entertainment field by buying several Boston radio stations. He is a member of a private equity group, which funded film, theatre, and television producer Scott Sanders' company, "Scott Sanders Productions."
Ownership of the Patriots
A Patriots fan since their American Football League days, Kraft has been a season ticket holder since 1971, when the team moved to the then-Schaefer Stadium.
In 1985, Kraft bought an option on the parcel adjacent to the stadium. The option would be the first in a series of steps which would culminate nearly a decade later in his eventual ownership of the team. Later, in 1988, Kraft outbid several competitors to buy the stadium out of bankruptcy court from Billy Sullivan for $25 million. The purchase included the stadium's lease to the Patriots – which would later provide Kraft leverage in purchasing the team.
In 1992, St. Louis businessman, James Orthwein, purchased the Patriots from Victor Kiam, who was facing bankruptcy and owed Orthwein several million dollars. For the next two years, rumors of a Patriots move to St. Louis were rampant, based on the fact that Orthwein wanted to return the NFL to his hometown, which had lost the Cardinals to Arizona in 1988.
In 1994, Orthwein offered Kraft $75 million to buy out the remainder of the team's lease at the Foxboro Stadium, which, if Kraft agreed, would free Orthwein to move the Patriots to St. Louis. However, Kraft rejected the offer and made a counter-bid—a then NFL-record $175 million for the outright purchase of the Patriots (a surprising move in that the Patriots were, at the time, among the least valuable franchises in the NFL), an offer Orthwein accepted.
The day after the NFL approved the sale in February 1994, Patriots fans showed their appreciation by purchasing almost 6,000 season tickets en route to selling out every game for the first time in the team's 34-year history. Every home game—regular season, postseason, and even preseason—has been sold out since. The Patriots responded by putting together a seven-game winning streak to end the 1994 season, making the playoffs for the first time since 1986. In 1996 Kraft founded the New England Revolution, a charter member of Major League Soccer which began playing alongside the Patriots at Foxboro.
After the failure of a number of stadium plans that included either revamping the area in Foxboro or relocating to Boston or a town near Boston, the Patriots nearly moved to Hartford, Connecticut, in 1999. Plans were also discussed about moving the team to Providence, Rhode Island (where the Providence Place Mall now stands). They reached an agreement with then–Connecticut Governor John Rowland to move to a new stadium intended to be the cornerstone of downtown redevelopment. After Rowland lobbied the Connecticut legislature to approve state funds for the stadium the Patriots were given another opportunity to resume negotiations with the Massachusetts legislators who had initially balked on paying for site improvements for a new stadium in Foxboro. At the last minute the Massachusetts legislature approved the subsidies and hurdles were cleared for what became Gillette Stadium in the Patriots' longtime home of Foxboro. The $350 million stadium, privately financed by Kraft, opened in 2002 as CMGI Field, before financial difficulties for CMGI resulted in Gillette taking over naming rights.
In 2007, Kraft announced plans to develop the land around Gillette Stadium, creating a $375 million open-air shopping and entertainment center called Patriot Place. The development opened in stages through 2007, 2008, and 2009 and included "The Hall at Patriot Place", a multi-story museum attached to the stadium, and the "CBS Scene", a CBS-themed restaurant.
The Patriots appeared in Super Bowl XX under their original owners, the Sullivans. Yet, this was one of only six playoff appearances in 33 years. However, since Kraft bought the team, they have made the playoffs 15 times in 20 years. They have also appeared in more playoff games (27) than in the team's first 34 seasons combined (10). The team won AFC East titles in 1996, 1997, 2001, 2003, 2004, 2005, 2006, 2007, 2009, 2010, 2011, 2012 and 2013; they represented the AFC in the Super Bowl in 1996 (lost), 2001 (won) 2003 (won) 2004 (won) 2007 (lost) and 2011 (lost). The Patriots finished the 2003, 2004, and 2010 seasons with identical 14–2 regular-season records, and also finished the 2007 regular season undefeated before losing to the New York Giants in Super Bowl XLII.
Kraft was principally involved in the 2011 NFL labor negotiations. He was credited for being a bridge-builder who brought the two sides closer together and a catalyst in negotiating a historic 10-year agreement. The deal was announced on Monday, July 25, 2011, while Kraft was still mourning the death of his "sweetheart", Myra Kraft, his wife of 48 years, who had died only five days before. In what became an iconic image of the CBA resolution, NFLPA representative and Indianapolis Colts center Jeff Saturday praised Kraft for his role in the negotiations, stating, "without him, this deal does not get done ... He is a man who helped us save football."
In Kraft's first 18 seasons as team owner the Patriots have won 193 regular season games and 19 playoff games (including Super Bowls XXXVI, XXXVIII and XXXIX). The team reached a milestone 200th win (encompassing regular season and playoffs) under Kraft ownership with their third win of 2011, a 30–19 win against the Oakland Raiders.
In 2005, a minor international incident was caused when it was reported that Russian President Vladimir Putin had taken one of Kraft's three Super Bowl rings. Kraft quickly issued a statement saying that he had given Putin the ring out of "respect and admiration" he had for the Russian people and Putin's leadership. Kraft later said his earlier statement was not true, and had been issued under pressure from the White House. The ring is on display with state gifts at the Kremlin.
Soccer
After selling $3.5 million tickets for the 1994 World Cup, the Kraft family saw a business opportunity to invest in the new professional soccer league Major League Soccer. In 1995, Kraft became the investor / operator of the New England Revolution from Major League Soccer. The team had a successful run from 2002 to 2007, with four MLS Cup appearances in six years. Kraft attended in person for three of the four appearances, opting for a regular season New England Patriots game instead of attending the 2006 MLS Cup between his Revolution and the Houston Dynamo.
In November 2005, Kraft met with Rick Parry, the Chief Executive of English Premier League team Liverpool. Kraft was rumored to be interested in investing money into the 2004–05 European Champions. Kraft told BBC Radio 5 Live: "Liverpool is a great brand and it's something our family respects a lot. We're always interested in opportunities and growing, so you never know what can happen." Eventually, however, the club was sold to American duo George Gillett and Tom Hicks. Liverpool was eventually sold to another local sports ownership in 2010, New England Sports Ventures, owners of the Boston Red Sox.
Philanthropy
The Krafts have donated over $100 million to a variety of philanthropic causes including education, child and women issues, healthcare, youth sports and American and Israeli causes. In 2011, the Krafts pledged $20 million to Partners HealthCare to launch the Kraft Family National Center for Leadership and Training in Community Health, an initiative designed to improve access to quality healthcare at community health centers throughout New England. Among the many institutions the Krafts have supported are Columbia University, Harvard Business School, Brandeis University, The College of the Holy Cross, Boston College, Tufts University, the Belmont Hill School, the Boys & Girls Clubs of Boston, and the Dana Farber Cancer Institute in Boston. One of their most distinctive projects is supporting American Football Israel, including Kraft Family Stadium in Jerusalem and the Kraft Family Israel Football League. In 2007, in recognition of a gift of $5 million in support of Columbia's intercollegiate athletics program, the playing field at Columbia's Lawrence A. Wien Stadium at the Baker Field Athletics Complex was named Robert K. Kraft Field.
He has received numerous honorary degrees from several colleges and universities and was awarded the NCAA's highest honor when he received the Theodore Roosevelt Award, "presented annually to a distinguished citizen of national reputation and outstanding accomplishments."
In 2011 Kraft was inducted into the American Academy of Arts and Sciences.
In 2012, he became the first NFL owner in the 43-year history of the honor to be selected for the George Halas Award by the Pro Football Writers of America. The award is presented annually to the NFL player, coach or staff member who overcomes the most adversity to succeed.
Following the April 15, 2013, Boston Marathon bombings, Kraft announced he would match up to $100,000 in donations made for the victims through the New England Patriots Charitable Foundation.
Personal life
A native of Brookline, Mass., Kraft attended local public schools before entering Columbia University on an academic scholarship. Upon graduation, he received a fellowship to attend Harvard Business School, where he earned a master's degree in business administration.
Kraft's love affair with football and the Patriots began decades ago. A Patriots fan since their AFL days in the 1960s, Kraft attended games at each of the team's Boston venues: Boston University Field, Fenway Park, Boston College Alumni Stadium and Harvard Stadium. When the team moved to then Schaefer Stadium in 1971, Kraft invested in season tickets for his family. He credits the memories and experiences shared with his family and other Patriots fans during those years for his passionate pursuit of ownership of the franchise.
Kraft serves on the board of directors for Viacom. He is also on the executive committee for the Dana-Farber Cancer Institute, where he established the Robert K. Kraft Family Blood Donor Center. He is a member of the Executive Committee of the Massachusetts Competitive Partnership. He is a trustee emeritus at Columbia and is a trustee at Boston College. He has received honorary degrees from several colleges and universities and was awarded the NCAA's highest honor when he received the Theodore Roosevelt Award, "presented annually to a distinguished citizen of national reputation and outstanding accomplishments." In 2011, Kraft received the Harvard Business School Alumni Achievement Award and received the prestigious honor of being inducted into the 231st class of American Academy of Arts and Sciences, one of the nation's oldest and most learned societies. With his induction, he joined the likes of many other patriots, including George Washington, Benjamin Franklin, John Adams and John Hancock. In 2012, he became the first NFL owner in the 43-year history of the honor to ever be selected to receive the George Halas Award, which is presented annually to the NFL player, coach or staff member who overcomes the most adversity to succeed. He was also inducted into Columbia's athletic hall of fame in 2012. In 2013, he received the Carnegie Hall Medal of Excellence.
Over the past four decades, the Kraft family has been one of New England's most philanthropic families, donating over $100 million in support of local charities and civic affairs. In 2011, the Krafts pledged $20 million to Partners HealthCare to launch the Kraft Center for Community Health, an initiative designed to improve the leadership of and access to quality health care at community centers in Massachusetts. With success, the model used will expand nationally.
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