David Rubenstein-Led Group Agrees To Buy Baltimore Orioles For $1.7B
A group of investors led by billionaire David Rubenstein has agreed to purchase the Baltimore Orioles for $1.7B.
The team officially announced the sale Wednesday afternoon after multiple news outlets reported it Tuesday evening. The sale is still subject to review and approval from Major League Baseball's Ownership Committee and a full vote from MLB owners.
Rubenstein would become controlling owner of the team when the deal closes. He is joined in the investor group by Ares Management Corp. co-founder Mike Arougheti, Ares Credit Group co-Heads Mitchell Goldstein and Michael Smith, Orioles legend Cal Ripken Jr., former Baltimore Mayor Kurt Schmoke, NBA legend Grant Hill, billionaire Mike Bloomberg and business leader Michelle Kang, the announcement says.
“I am grateful to the Angelos family for the opportunity to join the team I have been a fan of my entire life,” Rubenstein said in a release. “I look forward to working with all the Orioles owners, players and staff to build upon the incredible success the team has achieved in recent seasons. Our collective goal will be to bring a World Series Trophy back to the City of Baltimore.”
Rubenstein was born in Baltimore and co-founded private equity giant the Carlyle Group in D.C. He is also the lead backer behind Declaration Partners, an investment firm with two real estate funds. He has a net worth of $4.6B, according to Bloomberg.
Reports first emerged in early December that Rubenstein was pursuing a deal for the team.
Rubenstein’s group will initially take a 40% ownership in the team and will purchase the remaining equity after the current owner, Peter Angelos, dies, The Baltimore Sun reports. The family would avoid a massive capital gains tax on the sale by delaying the transaction’s completion until after 94-year-old Angelos' death.
Angelos, a renowned attorney and Baltimore native, purchased the team in 1994 for $173M. His eldest son, John Angelos, has served as the team's CEO in recent years.
The announcement said the Angelos family would continue to hold a "sizable" investment in the team, and John Angelos would serve as senior advisor.
“When I took on the role of Chair and CEO of the Orioles, we had the objective of restoring the franchise to elite status in major league sports, keeping the team in Baltimore for years to come, and revitalizing our partnership group,” John Angelos said in the release. “This relationship with David Rubenstein and his partners validates that we have not only met but exceeded our goals.”
John Angelos' tenure leading the team includes milestones such as hiring general manager Mike Elias, who rebuilt the team's roster over five years, culminating in winning the American League East last season.
Additionally, the team negotiated a new lease agreement in December with the state that binds the team to Oriole Park at Camden Yards for the next 30 years.
The lease deal paves the way for the team to hammer out agreements regarding development rights around the ballpark. After agreeing to the new leases in early December, the team said it plans to “expand, develop and implement an envisioned downtown corridor and Camden Yards campus.”
The details of that vision remain unknown. As part of the deal, the team has four years to iron out ground leases and redevelopment plans for the properties surrounding the ballpark, including the MARC rail station behind the B&O Warehouse building that provides offices for the team and additional tenants.
“Importantly, the impact of the Orioles extends far beyond the baseball diamond,” Rubenstein added in the release. “The opportunity for the team to catalyze development around Camden Yards and in downtown Baltimore will provide generations of fans with lifelong memories and create additional economic opportunities for our community.”
UPDATE, JAN. 31, 3:40 P.M. ET: This story has been updated with more information and statements from the announcement.
