Baltimore, Maryland – The recent sale of the Baltimore Orioles baseball team for $1.725 billion has left many in the industry surprised. The sale to a group led by David Rubenstein has raised questions about the valuation of the franchise, with some analysts and officials expressing disbelief at the relatively low price.
Several factors have been cited to explain the acceptance of the $1.725 billion valuation, which is significantly below that of other recent MLB team sales. These factors include possible frustrations over lease negotiations for the Orioles at Camden Yards, the family’s cash-flow issues, and the influence of Georgia Angelos, the wife of the team’s owner, Peter Angelos.
The sale comes amid ongoing disputes over television rights fees and the ownership of the Mid-Atlantic Sports Network (MASN), in which the Orioles are the majority shareholder in a dual ownership with the Washington Nationals. The inclusion of MASN in the sale has led to speculation that the group might sell the network to Ted Leonsis, the owner of NHL, NBA, and WNBA franchises in Washington.
Furthermore, the sale has raised questions about the future valuations of other MLB teams, as the Orioles’ relatively low sale price could potentially impact the market in the coming years.
The sale has also brought to light family dynamics, with reports suggesting that the influence of Georgia Angelos played a significant role in the decision to sell the team. The family’s decision to identify a buyer before Peter Angelos’s death through a two-step sale – 40 percent now and 60 percent later – has enabled them to receive an infusion of cash while avoiding a full capital gains tax that they would incur if they sold the entire club before Peter’s death.
Overall, the sale of the Orioles has sparked intrigue and speculation within the baseball world, prompting discussions about the intricacies of team valuations, ownership dynamics, and the future landscape of the sport.