Orioles ink deal to sell team to Baltimore’s David Rubinstein for $1.725 billion – Baltimore Sun

Orioles ink deal to sell team to Baltimore’s David Rubinstein for $1.725 billion – Baltimore Sun

The Angelos family has reached an agreement to sell the Orioles to private equity billionaire David Rubinstein, three sources with direct knowledge of the deal told The Baltimore Sun. Rubinstein is set to take over as the team’s controlling person as part of the deal that values ​​the team at $1.725 billion.

The Angelos family has owned the team since Peter Angelos bought it for $173 million in 1993. 2022 legal documents revealed that the now ailing owner wants to sell the team after his death so his wife, Georgia, can “enjoy the great fun.” The wealth they have made together.” His eldest son, John, has been the person in control of the team since 2020.

Rubinstein, 74, is a philanthropist and founder of The Carlyle Group. He is a native of Baltimore and a graduate of Baltimore City College.

He will initially assume a 40% ownership stake in the Orioles with an agreement to buy the remaining shares upon the death of family patriarch Peter Angelos, according to one source.

The Angelos family would be subject to significant capital gains taxes if the team was sold before Peter Angelos’ death. Angelos, who is 94 years old, has been suffering from deteriorating health for more than six years.

Legendary Oriole Cal Ripken Jr. is expected to be part of the ownership group, one source said.

This source also said the deal includes Mid-Atlantic Sports Network, the regional television network owned by the Orioles and Washington Nationals. The Orioles own the majority of MASN under a complex agreement that arose when the Montreal Expos moved to Washington — within the Orioles’ media zone — in 2005. The two teams split the rights fees and profits from MASN, with the Orioles receiving the bulk of MASN’s profits.

The Orioles and Nationals were unable to agree on how much each club should receive from a five-year period spanning 2012-16, leading to multiple arbitrations and a decade of dispute. That litigation was finally settled last summer and fees were quickly agreed upon over the next five years, from 2017 to 2021.

A spokesman for John Angelos declined to comment. The Orioles, MLB and the Maryland Stadium Authority did not immediately respond to requests for comment.

MLB has yet to officially approve the sale. The league has strict protocols that include vetting potential investors and owners voting on a sale.

Puck News, a journalist-owned media outlet that covers the financial and political elite, was first to report the sale on Tuesday evening.

The Angelos family’s intention to sell the team became public as the family struggled to control the Orioles after Peter Angelos became incapacitated. Luis Angelos, the youngest of Peter’s two sons, sued his mother and brother in 2022 over what he described as John Angelos’ attempt to control the family’s wealth and ownership, including the ball club.

According to the suit, John Angelos stalled and thwarted plans to sell the team, unilaterally torpedoing interest from “one group of highly credible buyers.”

Subsequent filings in the lawsuit, which was dropped last February after an apparent private settlement, revealed that the family had hired investment bank Goldman Sachs and law firm Jones Day to handle a potential sale.

The sale price of $1.725 billion is slightly more than Forbes’ valuation of $1.713 billion, which ranked the Orioles 18th out of 30 MLB teams.

The Orioles recently agreed to a lease with the state of Maryland — which owns Oriole Park at Camden Yards — to stay in Baltimore for at least 15 years and possibly more than 30 years. This agreement had been negotiated for years and included two governors and two stadium authorities. The chairs were agreed upon in December, shortly after Bloomberg announced that Rubinstein was “in talks” to acquire the team.

(Tags for translation)Orioles

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