March 27: As expected, the Angelos family’s sale of the Orioles to Rubenstein’s group has been approved by the league’s other owners, MLB commissioner Rob Manfred announced in a press release. The approval was unanimous.
“I congratulate David Rubenstein on receiving approval from the Major League Clubs as the new control person of the Orioles,” Manfred said in a statement within today’s release. “As a Baltimore native and a lifelong fan of the team, David is uniquely suited to lead the Orioles moving forward. We welcome David and his partners as the new stewards of the franchise.”
The Orioles will hold a press conference to discuss the sale tomorrow morning at 11am ET.
March 25: Major League Baseball’s other 29 owners will vote on the sale of the Orioles from the Angelos family to a purchasing group led by billionaire David Rubenstein on Wednesday, Britt Ghiroli and Evan Drellich of The Athletic report.
Back in late January, John Angelos agreed to sell the controlling stake in the Orioles — and related assets, including the team’s stake in the MASN network — to Rubenstein’s group for $1.725 billion (a figure announced by the team at the time of the agreement). That sale is still pending majority approval from the league’s 29 other owners, though no pushback on the transition has been expected. Drellich and Ghiroli call the vote “a formality,” which generally aligns with prior reporting and expectations.
As reported back in January, Rubenstein’s group will initially be purchasing a 40% stake in the team — enough to cement him as the franchise’s new control person among other owners but not the entirety of the Angelos family’s stake. At the time the two parties negotiated the sale, it was agreed that the remainder of the Angelos family’s share in the team would be transferred to Rubenstein’s group following the passing of family patriarch Peter Angelos, the former Orioles control person and majority owner who’d since taken a step back due to health concerns and ceded control of the club to his sons, John and Louis (in what became a contentious battle for control of the organization that eventually saw John emerge as control person). This contingent was designed to avoid substantial capital gains taxes for the Angelos family.
Peter Angelos passed away this past weekend at 94 years of age. That won’t accelerate the transfer of the Angelos family’s entire stake in the team to Rubenstein’s group. Drellich and Ghiroli report that Wednesday’s vote will only be on the originally agreed upon 40% stake for Rubenstein & Co.; they’ll eventually formally acquire the remainder of the Angelos family’s 70% stake in the club, but that transaction will not be completed by Opening Day.
Rubenstein, 74, is a Baltimore native and the co-founder of private equity firm the Carlyle Group. Forbes estimated his net worth at $3.7 billion. His ownership group also includes several notable investors, including Orioles icon Cal Ripken Jr., NBA Hall of Famer Grant Hill, former Baltimore mayor Kurt Schmoke, former New York City mayor Michael Bloomberg and Ares Management co-founder Michael Arougheti, among others. Peter Angelos originally purchased the controlling stake in the Orioles for $173MM back in 1993.
Excellent.
Doesn’t bother me to tell you all I told you so! For sale, then not for sale. Then the owner dies and then, wow surprise surprise the deal is back on.
Truly prescient
.178iq – I believe that there wasn’t a “not for sale” moment in this transaction. So, what the heck are you talking about?
Agreed,
To quote the Million Dollar Man Ted DiBiasi “Everybody’s got a price”. They were never not for sale, they were always for sale for the right price.
You don’t think that if someone knocked on the Yankees door and offered $10B for the club that they wouldn’t consider it?!
178iq, this sale was announced in January. You are a bit late to the party
Hey 78IQ, you are a moron. Cite your sources for when the team was not for sale. We’ll wait…
You’re lying. You were factually wrong when you made the false claims that the team was for sale and then not for sale. Just stfu instead of repeating your lies.
The deal was never “off”. You’re perhaps thinking of the Nats, who were for sale and now are not.
The Orioles deal was announced back in January, and the next step has always been a vote of MLB owners to approve the initial 40% purchase of Angelos’ share of the team.
Who other than 78IQ upvoted this factually wrong comment?
Let’s Go O’s!!
Now what’s the effect on the MASN situation? The Nationals want to know.
Hopefully Rubenstein will immediately settle that so both sides can move past it
Or Nats can move back to Montreal
Or better yet the o’s can move back to St Louis. Maroons. Ahahaha!
And the Yankers can move back to Baltimore.
Which would suck because the Orioles have superior talent.
I’m not sure there is any active dispute on the MASN contract. It’s pretty clear. The litigation was over valuation of the rights over a specific 5 year period. The next 5 year period may be pending, but I think it was resolved in principle. Regardless, the Os will always get the bulk of the MASN profits.
@AtlantaOriolesFan is correct.
The issue today is really more so that in the new age of cord cutting and streaming, regional sports networks aren’t as valuable as they once were. So it really complicates the rights and revenue picture.
No effect.
The focus now is more potential real estate deals and the local voter’s disposition towards corporate welfare. Amazon has already offered to step in on defunct TV deals and even if the annual value goes down it’s still a small fraction of potential profits compared to urban real estate.
He can’t do any worse than the Angelos, so he’s got that goin for him, which is nice. Ahahaha!
Remains an interesting transaction in that they didn’t “shop it” for highest value, which makes me wonder if what they perhaps lose on the front end they’re gaining on the backend.
I could be wrong but I suspect it had to do with two factors. One, it’s been reported that Rubenstein has been quietly working on this purchase for a number of years and it’s just now coming to fruition. It wouldn’t surprise if the Angelos family was showing a sort of “loyalty” to Rubenstein in working somewhat in exclusivity in making the deal if he agreed to purchase for something close to market value. Two, Rubenstein is a Baltimore guy and I would not be surprised if the late Mr. Angelos delivered something sort of an ultimatum to the family that if the team was ever to be sold to find a group who would all but guarantee the team stays in the city. Peter Angelos was doggedly loyal to the city and I could easily see that being one of his requirements for selling the team.
A consortium of Rubenstein and Bloomberg with Cal Ripken, Jr. as a face makes me believe that is the very likely the case for passing the baton rather than selling to the highest bidder.
So MLB is only voting on the first 40% of team ownership with a later vote on the remaining 70% to come at a later date. In the end Rubenstein’s group will own 110% of the Orioles. Got it.
All of the minority partners already sold their interests to Rubenstein;s group. That amounted to 30% ownership of the team. The Angelos sold what amounts to a 10% share in the team initially. That part of the sale was already approved by the owners.
Now the other owners will be voting on an additional 40% share in the team and the Angelos ownership share in MASN being purchased by Rubenstein’s group.
The Angelos will still hold a large portion of ownership, about 20%, but with this Rubenstein’s group will become the majority owners and have control of the team.
In the sales agreement Rubenstein’s group also got the right to purchase the remaining Angelos share in the team at an undefined future date or dates.
Angelos was not the only owner who died recently. I forget his name, but he was a notorious cheapskate and he may been the problem.
Including Peter Angelos, 3 of the Orioles owners have passed away recently including Tom Clancy and Harvey Meyerhoff.
Tom Clancy has been a decade. It wasn’t Meyerhoff. I think he sold real estate and may have been a landlord too.
Wayne Gioioso Sr was his name. He was a real tightwad and a landlord in an old decaying city. I don’t want to say what that means. He died on a really cold day because he chose to walk instead of paying the valet.
Some fiction here. He had a heart attack while walking a couple blocks with his son to a party. The temperature was 45F, so it was not a “really cold day.” His heart was a time bomb waiting to go off. It’s not like he wouldn’t have had the heart attack if he hadn’t walked those two or three blocks.
And while Baltimore is an old city for America, it is a beautiful city with some of the most diverse architecture in the country. Only certain areas are “decaying.” which you can also find in New York and almost every other city. None of the commercial properties owned by Mid-Atlantic Properties – the company he worked for – could ever be declared “decaying.” In fact, all the properties in their portfolio are located in Towson, MD, not Baltimore.
I know he personally used to own a property in Hampden, which is a vital, vibrant neighborhood in Baltimore that is a lot of fun.
I’m not looking to praise Gioioso, just to provide a factual recount of his death.
How can he acquire an additional 70% after the initial 40%. Am I missing something cause that math isn’t mathing?
Its a typo. The Angelos family owns 70% of the Orioles. They had agreed to sell 40% to Rubenstein in this initial transaction with an agreement in place to make the remaining 30% available to Rubenstien following the death of Peter Angelos (they would avoid some tax liability on the 30% doing it that way)
I believe the 40% is accurate. He will then later get the remaining 60 not 70
I believe after the deal is made the ownership stakes will be 40% Rubenstein, 30% Angelos and 30% Other investors. I am unsure whether Rubenstein has plans to by the last 30% that is not owned by the Angelos family.
Os1995 – That’s the plan of their structured purchase/sale.
I thought it was 30% that was the minority owners. The 10% that equals the value of what the team was worth when Angelos bought it. The angelos still own 60% until the 2nd part was finished.
This isn’t right. There’s minority stake shareholders too.
Os1995, The write up they made on this sale is even worse than that.
When this all started the Angelos family owned 70% of the team and a small group of minority partners or their estates owned the remaining 30%.
Initially the Angelos sold a 10% share in the team to Rubenstein’s group and the minority partners all sold their combined 30% share in the team to Rubenstein.
Now Rubenstein’s group will buy an additional 40% share in the team from the Angelos bringing their ownership stake in the team to 80% plus they will purchase the Angelos stake in MASN. THAT is what MLB owners will be voting on.
It has not been revealed what the amount the minority partners received for their 30% share of the Orioles, but the Angelos family will receive a total of $1.725 billion for the 50% share in the Orioles that they sold plus their share of MASN.
The Angelos family will still hold 20% share in the team for now. Rubenstein’s group has an agreement in place to buy the rest of that at some undefined future date or dates.
Pads Fans, where are you reviewing that information? That doesn’t sound like the information that has been reported by any of the other sources covering the sales.
That is exactly what was in the Sun. He has it right.
The press releases and multiple Baltimore area news outlets, but the Baltimore Sun mostly.
Agreed @ GoRav
It could be 70% of the remaining 60% thus making 82% of the 100%. But from an Oriole point of view, you hope the new owner decides to take the whole 125% available, thus having an immediate 25% paper profit prior to anyone remembering how to count….
“He and his ownership group will have a 40 percent stake in the team to begin the season. Following the death of former owner Peter Angelos on Saturday, Rubenstein and company are soon to likely acquire a larger stake in the team: the remainder of the 70 percent the Angelos family owned. The second acquisition will not be completed by Opening Day, a person briefed on the process said.”
Remaining 30%. 70% is written in present tense.
Ahh that makes sense
Yes.
Rubenstein’s group already purchased a 30% stake in the Orioles from a small group of minority partners for an unreported amount of money.
They also have already purchased a 10% stake in the team from the Angelos family.
All of that has already been approved by MLB and the other owners earlier and Rubentein’s group now holds a 40% stake in the team.
If/when approved, the purchase this article is mentioning will be for the purchase by Rubentstein’s group of an additional 40% stake in the Orioles from the Angelos family, bringing the Rubenstein group’s total share of ownership of the Orioles to 80% with the Angelos continuing to hold a 20% stake.
Rubenstein’s group will also be acquiring the Angelos stake in MASN in full.
Rubenstein’s group holds an option to buy the Angelos remaining stake in the Orioles at an undefined future date or dates.
Yogi – bless him. The guy that would thank you from the heart of his bottom,not the bottom of his heart. Then again George was involved…
I read it as acquiring 40% now and then 30% later. 70% is the total.
The MASN mess needs to get fixed before this is approved.
I think we can safely assume it will be taken care of once Rubenstein is in command. One pathway is he simply agrees to settle the debts and close the door on that nasty little episode. Another pathway could include a planned closure of MASN and Rubenstein negotiates a broadcast deal with his friend down I-95, Ted Leonsis. He owns Monument Broadcasting and does not have regular programming to fill the summer months and this would be a near-perfect parnership between old friends. It would also allow the new ownership group to split the rights between traditional broadcast with Monument and streaming with the planned MLB packages that will eliminate blackouts.
Let’s hope the new owners will add to their young core to increase the competition in the AL East.
I’d rather they first focus on keeping their young core long term first before they go adding outside players. The club is so logjammed w elitely talented young players, there’s no room for many of these guys.
It’s going to get to the point where every time they add someone, someone pretty good needs to go too.
30+ years and only a 10x return. Actually terrible. Not that I feel bad for them.
The Nationals diverging into the Oriole’s original territorial rights and market share may have depressed their valuation when compared to other unaffected franchises. Angelos fought hard to prevent the Montreal Expos from moving into D.C.
“…to prevent MLB from moving the Expos to DC.”
ftfy
One thing of note that we sometimes lose track of when we debate how big a contract to a player is too big: O’s delay sale until Peter Angelos has passed to save capital gains tax. Presumably, that’s not deferring, it’s using some type of step-up basis calculation. A reminder that wealth is treated differently.
why wouldn’t the family wait? do you unnecessarily pay more taxes than you have to?
You sure do.
Because the middle class carries the burden while the rich exploit the carried interest loophole and the elimination of the estate tax.
You both defend and subsidize them.
Congrats?
Read “veto” instead of “vote” for a second in the title
Immediately start handing out extensions to win over the fan base and set yourself up for longterm success. Adley, Burns, Gunnar and Holiday for starters.
Exactly, got this nucleus of core guys just starting to plant their feet, start signing em to long-term deals. Atleast re-sign the homegrown talent u do like and spend lil money on pitching. Don’t be afraid to take on big contract of good P through trade of some of your prospect wealth. Baltimore is built to contend now n that window should be wide open for nice spell. Real Oriole fans have paid dues w/losing culture lasting decades. Go O’s !!!
borass is hendersons,burns and holidays agent.he doesnt do extensions . you may get addley on an extension tho.
Right on slimray. Extend Adley. Get the most out of Henderson and Holliday while you can then don’t hold on to them too long like Angelos did with Machado. Both are destined for careers with big market teams as long as Boras is their agent.
I wonder if new ownership had already been in place if they wouldn’t have sent Jackson Holliday back to the minors (a financial move if there ever was one). Should be giving this guy a long term contract, not sending him down to work on “hitting lefties”.
His high school prom was a year ago
Doubtful.
Jax can come up when he masters backhanding grounders instead of circling them. And when he can plant his right foot and make a halfway decent strong throw.
And when he doesn’t strike out every time he faces a lefty.
holiday is on a long term contract.the orioles have him for at least 6 years.what more do you want.
This just is not accurate. He’s barely out of high school and they want him to learn a new position. This move was not nefarious at all
Nobody wants Holliday to be a platoon player.
That’s awful for his development and he’s not the best option against LHP right now. I’m confident that he’ll get there but he simply is not right now.
There’s nothing wrong with the O’s decision to option a guy who barely saw Norfolk.
Enjoy Holliday and Henderson while you can. Trade them when you can get a maximum value in return. Both have big market team careers in their future … regardless of who is their agent.
So, and no I’m not trolling, what does this place the total value of the club and assets at? Is the $1.75 billion 40% of the total value? So the club is actually valuated around $4.4 billion then?
Just curious if anyone can clarify that?
Thanks
According to article, IF I understand correctly. He overpaid at 1.75B, but agreed to take an immediate transfer of 40%,.then the balance after Peter Angelo died.
The Angelo family has to pay tax too, even though.they are uber rich but.the lawyers figured away to reduce the tax burden. (you think?)
Peter would have had to pay tax on the sale and the family taxed on what they inherited from him. ? Now I’m confused. If I ever get rich I WILL get a lawyer first thing.
You should.comsult.your. it sound complicated.
just make sure you have accountants to periodically check your bank accounts so your interpreter can’t “steal” 4.5 million… just sayin’
He vastly underpaid for the Orioles. “Baseball insiders view Orioles’ valuation as ‘low’ following sale. selling for just $1.725B was “one of surprise and in some cases disbelief,” as several industry analysts “all used the same word to describe the price: ‘low,’” according to Rosenthal & Ghiroli of THE ATHLETIC.”
It is widely thought that if MLB and owners don’t want the Angelos family out so badly, rather than approving 100% without any dissenting opinions in a record under two months timeframe they may have in other situations asked Angelos to widen his scope to allow for other potential higher bidders. Unless John is that loyal to Baltimore and Peter’s last wishes, which I have my doubts, he even botched the sale of the team as far as maximizing the family’s ROI.
Easily found via Google searches on national articles.
Also, it’s Angelos. Not plural for Angelo. Angelos. Like any other last name that ends with an s.
Having been a lifelong fan of the Orioles… I’m really having a hard time believing that the O’s are this talented, are starting a season where there’s at least one media talking head is speaking about them making the World Series AND ownership will likely change hands… and that the new ride begins all in < a week. What world are we living in?
Lovin' it.
So great. Been through a lot of bad years waiting for these times. I still don’t believe we can have good things. I will believe it when I start seeing some much needed extensions.
Rubenstein has long said that Jerry Reinsdorf serves as an inspiration to him on matters of business and counseled him on what it means to own a sports franchise so good luck with all of that.
In fairness, Reinsdorf is good at making money and negotiating new stadium/real estate deals.
JR just won’t hire astute, strong-willed execs that know how to create a sound player development infrastructure. Elias is inherited by the new owner to take care of that aspect most important to fans.
Bye bye Angelos family and good riddance.
So did the D-Backs make a deal with Monty before Baltimore had a chance?
Seems kinda quick after the former owner just passed away. He was the owner until the day he did pass on.
I guess it makes sense. Approve the sale of the team before opening day.
Heard much angst over the years with John A owning the O’s , having read now much on what he did quietly seems he may have been a hard business man but a soft heart. Took care of many families quietly in his employee who battled illness. Very charitable quietly.
RIP
Not John. His father Peter. John just sold the team and his father passed away coincidentally close to the MLB approval of the sale which timing wise was not related to Peter’s passing.
Yes sorry I meant Peter
How this deal will affect the funding for the new grain pier is anyone’s guess.
What you are talking about is anyone’s guess.