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Wednesday, October 16, 2019

Investors Get Path to Buy Stakes in Major League Baseball Teams

Major League Baseball is now allowing investment funds to take minority stakes in multiple clubs, a move that lets the league capitalize on sky-high team valuations.

Traditionally, baseball owners have been wealthy individuals, but the new policy could bring in cash from Wall Street firms and college endowments, according to the people familiar with the change, which was made earlier this year.

It’s MLB’s answer to a problem affecting all the major U.S. sports leagues: Teams’ multibillion-dollar valuations have made it difficult for part-owners—known as limited partners, or LPs—to find buyers for their stakes when it’s time to sell. MLB teams are worth an average $1.78 billion, up 8% from the previous year, Forbes estimates. And the Yankees, tops in the league, are approaching $5 billion.

RoyalsRetro (AG#1F) Posted: October 16, 2019 at 01:13 PM | 5 comment(s) Login to Bookmark
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   1. Jefferson Manship (Dan Lee) Posted: October 16, 2019 at 03:06 PM (#5891121)
I don't know enough about regulation for investment funds: Does this require the clubs to open their books? That seems like something they'd avoid at just about any cost.
   2. Traderdave Posted: October 16, 2019 at 03:12 PM (#5891126)
If it's done under Rule 144A, which governs private placements to institutions only (no retail) they can get away with a lot of secrecy. The question is really not so much what they are required to show in those instances, but how much investors will demand to see.
   3. The Duke Posted: October 16, 2019 at 05:31 PM (#5891158)
The big red warning sign that valuations are unsustainably high is when the owners start selling off to passive investors. Not surprising - attendance down, ticket prices sky high, streaming tv monetized already. The crash is coming
   4. The Duke Posted: October 16, 2019 at 05:34 PM (#5891160)
The big red warning sign that valuations are unsustainably high is when the owners start selling off to passive investors. Not surprising - attendance down, ticket prices sky high, streaming tv monetized already. The crash is coming
   5. Brian C Posted: October 16, 2019 at 07:19 PM (#5891177)
Great, I can't wait for my 401k to take a huge drop every time the Yankees lose.

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