DeBartolo associate says he was enraged by alleged shakedown

Natalie Gott

Friday, March 24, 2000 | 2:02 a.m.

BATON ROUGE, La. - A business associate of former San Francisco 49ers owner Eddie DeBartolo Jr. said Friday he believed DeBartolo paid $400,000 to Edwin Edwards to secure a riverboat casino license well before DeBartolo admitted it.

Ed Muransky, who played for the Oakland Raiders from 1982 to 1985, said DeBartolo paid the former governor in 1997 despite strong warnings from Muransky and another partner in the project, Hollywood Casino Inc.

Hollywood executive Jack Pratt felt that Edwards involvement "was death to the project," Muransky said.

Muransky's testimony will lay the foundation for DeBartolo, who has a plea agreement with federal prosecutors, to take the witness stand next week.

Edwards, his son Stephen, and five others have been on trial in U.S. District Court since Jan. 10, accused of trying to manipulate the way the state awarded riverboat casino licenses. The schemes allegedly began before Edwards took his fourth and final term in office in 1992 and continued after he left office in 1996.

DeBartolo has said he was forced to make the payment and pleaded guilty in October 1998 to not reporting a felony. His plea forced him to give up DeBartolo Entertainment Corp. and the 49ers.

Muransky said DeBartolo told him on March 5 that Edwards had demanded the $400,000 payment during a meeting at a Baton Rouge bar to ensure there would be no problems with the casino license.

DeBartolo "seemed very distressed," Muransky said. "He said he had talked to the governor and he needed $400,000 immediately."

Muransky said he went "ballistic" when he heard about the demand because he had cautioned DeBartolo all along not to deal with Edwards.

DeBartolo assured Muransky that he would not give Edwards the money, but maintained regular contact with Edwards during the application process.

Muransky said he became suspicious a few day later when, while signing company checks, he ran across one made out to DeBartolo for $200,000. But he decided not to inquire about the check because DeBartolo did not draw a salary from the company and often loaned and withdrew money from it as needed.

Muransky's fears were rekindled on March 12, 1997, a day before the state gambling board was to meet to award the 15th riverboat license, when DeBartolo set up a meeting with Edwards at a San Francisco restaurant.

"I went wild," Muransky said. "I knew the reason the meeting was taking place."

DeBartolo told Muransky the meeting had nothing to do with the gambling license, but Muransky said he did not believe him.

Prosecutors alleged in the indictment that DeBartolo gave Edwards $400,000 in a suitcase that day.

Most of Muransky's testimony in the morning focused on his relationship with DeBartolo that blossomed from a brief meeting at the University of Notre Dame in the mid-1970s. Their current business partnership formed in the mid-1990s, after the death of DeBartolo's father, shopping magnate Eddie DeBartolo Sr.

Muransky also discussed a five-year, $50,000-a-month consulting contract that Stephen Edwards unsuccessfully sought from DeBartolo Entertainment.

Stephen Edwards included a letter stating the contract was drawn up according to conversations between Edwin Edwards and DeBartolo, Muransky said.

Muransky said he had never discussed that contract and refused to approve it. When asked whether anyone at DeBartolo Entertainment was paid $50,000 a month, Muransky replied, "Maybe Steve Young or Jerry Rice."

After DeBartolo Entertainment received a river boat license, Stephen Edwards submitted another retainer agreement, but this one was for $10,000 a month. DeBartolo Entertainment never agreed to that one either, Muransky said.