Posts Tagged ‘Team Sale’

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NEW YORK (AP) Derek Jeter has about a 4 percent stake in the group buying the Miami Marlins and retired NBA great Michael Jordan approximately half of one percent, part of a $1.2 billion purchase from Jeffrey Loria that includes $800 million in cash.

Bruce Sherman, who will become the controlling owner, has the highest equity stake in the group, about 46 percent according to details obtained by The Associated Press. The figures were provided by a person who spoke on condition of anonymity because they had not been announced.

Jeter, the former New York Yankees captain who led the team to five World Series titles, will head the team’s baseball and business operations.

”He understands that people are watching and he understands that he’s not being judged by the fact that he can play shortstop for the New York Yankees and get world championships that way,” outgoing Marlins president David Samson said Thursday. ”It’s a whole new game and he knew it from day one.”

The incoming group, unanimously approved by baseball owners on Wednesday, will assume $100 million in the team’s debt and is restructuring an additional $300 million of the club’s debt. The sale is scheduled to close Monday, the day after the regular season ends.

”Are people happy for a change? They may be. And I hope they’re much happier,” Samson said. ”I guess my wish would be that Derek Jeter and Bruce Sherman get every benefit of the doubt and that every fan and every person in South Florida looks at this as a new beginning.”

The new ownership committed a $50 million reserve fund to the franchise, which also will receive about $50 million more for reserves as the Marlins’ share of money The Walt Disney Co. is paying to acquire additional equity in BAM Tech, which was spun off from Major League Baseball’s digital company.

Sherman was co-founder of Private Capital Management, based in Naples, Florida.

Among others in the ownership group (and their approximate stakes) are Viking Global co-founder David Ott (10 percent), Energy Capital Partners senior partner Doug Kimmelman (8 percent), Sigma Group founder Jaime Montealegre (7 percent) and The Beekman Group managing partner John Troiano (5 percent).

Sherman, Jeter, Kimmelman, Ott and Troiano will serve on the team’s board.

As part of the $800 million being paid by the incoming group, $90 million is preferred equity.

Loria bought the franchise for $158.5 million in 2002 from John Henry, who became part of the Boston Red Sox ownership group. Samson joined the Marlins along with Loria, his stepfather.

The Marlins won the World Series in 2003 but have not been to the postseason since, the second-longest postseason drought behind Seattle (2001). Samson said the team operated at a loss this year, when it had a $116 million payroll for its roster as of Aug. 31, according to MLB figures.

”A lot of things have happened over the years when it comes to losing money,” Samson said. ”Jeffrey funded this team by himself for 16 seasons. There were several seasons where he didn’t have to but way, way more when he did have to. Some years our payroll was too high, some years our payroll was just right – and then we’d get in the race and our payroll would get too high again.”

Samson met with team employees at Marlins Park, a stadium built with public financing that opened in 2012.

”It’s with a definite heavy heart and it is with an amount of emotion that I don’t often show or feel that I say goodbye to this organization,” he said. ”But I will never say good-bye to this community.”

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Mikhail Prokhorov wants to offload the Brooklyn Nets but it hasn’t been easy.

Prokhorov was unsuccessful in his initial plans to auction a minority stake in the Nets, so his new strategy is to sell a controlling stake in two stages, according to Josh Kosman of the New York Post.

The plan would have the potential buyer first purchase a minority stake, then include an option to buy the entire franchise after three years, Kosman writes.

Prokhorov believes the Nets could sell for at least $2 billion based on the recent transactions in Houston ($2.2 billion) and Los Angeles ($2.1 billion).

The Barclays Center, where the Nets play, will still be retained by Prokhorov. However, rent may be lowered in order to entice a sale. Suitors are likely waiting on a new lease before proceeding with offers.

Alibaba executive vice chairman Joe Tsai is reportedly interested in purchasing the Nets, according to Kosman. There’s also a host of “Wall Street types” that are also keeping tabs on the situation.

Prokhorov purchased 80 percent of the New Jersey Nets for $200 million in 2010 and relocated to Brooklyn in 2012. That acquisition allowed him to build the Barclays Center, which quickly grew to become one of the top sports and concert venues in New York City. He eventually purchased full control of both the Nets and Barclays Center in 2015 for an additional $1.7 billion.

The Russian Oligarch promised to deliver a championship within five years of the team’s purchase, and promptly spent deep into the luxury tax for a host of former All-Stars. The execution of that strategy failed miserably as the Nets only have one playoff series win in seven seasons to show for Prokhorov’s bottomless spending.

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Longtime owner Les Alexander has agreed to sell the Houston Rockets to local businessman Tilman Fertitta, the team announced Tuesday.

The deal was first reported by FOX26’s Mark Berman. Multiple reports peg the price at an NBA record $2.2 billion, exceeding the $2 billion paid by Steve Ballmer for the Los Angeles Clippers in 2014.

The sale includes the Toyota Center and is subject to approval by the NBA Board of Governors.

Alexander put the Rockets up for sale in July. He purchased the franchise back in 1993 for $85 million, overseeing the team to its only two NBA championships in 1994 and 1995.

“I am excited to welcome and pass the torch to Tilman,” Alexander said in the team statement. “I … don’t think I could have found anyone more capable of continuing the winning tradition of our Houston Rockets.”

Fertitta – with an estimated net worth of $2.8 billion – owns the Golden Nugget casino chain as well as several restaurants. He also hosts a CNBC reality show, “Billion Dollar Buyer.”

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Owner Dan Gilbert has pledged he will never move the Cleveland Cavaliers out of the city. Yet as a businessman, that doesn’t mean he wouldn’t listen to offers for the franchise.

Sources outside the Cavs organization told Cleveland.com’s Joe Vardon they suspect Gilbert will consider selling the team within the next few years.

On one hand, there’s simple logic to gauging the market for the team. Gilbert became majority owner of the Cavs in 2005 for $375 million. Forbes estimated the value of the team at $1.2 billion earlier this year, and that figure is probably not far off – the Los Angeles Clippers set the NBA’s current benchmark by selling for $2 billion in 2014.

Furthermore, the Cavs reportedly lost a league-high $40 million during their 2015-16 championship season, although that was due in part to a $54 million luxury tax bill.

The bigger elephant in the room is LeBron James‘ future with his hometown team. Gilbert is said to be “fixated” on what decision LeBron makes next summer. The Cavaliers’ success is directly tied to James, and multiple reports have indicated that the main objective for the Cavs in honoring Kyrie Irving‘s trade request was to recoup young assets in the event of a rebuild.

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After it was reported Friday that the Miami Marlins were sold to the bidding group led by Derek Jeter and venture capitalist Bruce Sherman for $1.2 billion, team president David Samson confirmed the news Saturday at Marlins Park.

“Yesterday at about 11:30 p.m. we finalized an agreement with a group led by Bruce Sherman (and) Derek Jeter to purchase the Marlins from Jeffrey Loria. We submitted that agreement to Major League Baseball for its approval,” Samson told reporters, according to the Miami Herald’s Clark Spencer.

Samson said Loria was impressed by the group of investors, of which there are reportedly 16, including NBA legend Michael Jordan.

“It was very important from Jeffrey’s standpoint that there was an ownership group that had not just connections to Miami but an understanding of what it means to be in Miami and run a team like the Miami Marlins and all the possibility that comes from being in a great city like ours,” he said.

MLB’s owners will vote to approve the purchase in September, Samson said. He expects the deal to be closed in early October.

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Tennessee Titans controlling owner Amy Adams Strunk revealed Tuesday that one-third of the team is for sale.

Susie Adams Smith is beginning the process of selling her share of the team, and the Titans will not interfere with her decision, Strunk said.

Here is the statement:

Recently Susie (Smith) began the process of selling her portion of KSA Industries, which includes a fractional indirect interest in the Tennessee Titans. We respect her right to make this decision and will cooperate fully with the process, which will not impact team operations in any way.
Regardless of the outcome of this process, I will continue to serve as the controlling owner of the Titans. The remaining two-thirds of the team controlled by myself, Kenneth Adams IV, Barclay Adams and Susan Lewis is not and has never been for sale.
Both personally and as a group, we have invested time, effort, and capital to improve this franchise and we are excited to see the results on and off the field for years to come.

Strunk took over as controlling owner in 2015, also serving as the co-chairman of the team’s board of directors.

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Carolina Hurricanes owner Peter Karmanos Jr. is making headway in selling the franchise.

There are reportedly 11-12 groups of prospective owners interested in buying the team, according to Chip Alexander of the Raleigh News & Observer.

Among the groups is one led by former Texas Rangers CEO Chuck Greenberg. Karmanos “likes” Greenberg, Alexander notes, and is apparently giving him time to put together his group.

“Once (Greenberg) has done that, we’ll examine whether his offer cuts the mustard,” Karmanos said.

It was reported on July 13 that Greenberg was close to purchasing the Hurricanes for $500 million, but Karmanos noted if he has to wait, the price may rise to $550 million or $600 million if the Canes have a successful season.

Karmanos reportedly has a term sheet in place to sell the team, but there’s still no purchase agreement.