Foul Called on Patriots Owner

BOSTON — The Massachusetts Supreme Court today ruled that the 1977 financial reorganization plan used by New England Patriots owner William H. Sullivan Jr. to retain control of the National Football League team was illegal.

The justices, in a pair of related decisions, ruled unanimously that Sullivan acted illegally in paying all public non-voting stockholders of the team $15 a share in 1977--instead of a projected value of $80--as a way of cementing his control of the team.

The court said it would normally order such a deal rescinded. But due to the passage of time and the changed positions of some of the parties in the case, the justices said Sullivan must pay damages to the stockholders based on their share of the present value of the Patriots, which won the conference championship this season, but lost the Super Bowl game to Chicago.

The justices returned the case to Superior Court so damages could be computed.