A TechCrunch article: So, Recode reported today that Twitter was tinkering around with the idea of expanding its 140 character limit to a number a bit higher….10,000 characters. But what,...
Courtesy of FORBES:
Two sources who spoke on the condition of anonymity said that Miami Marlins president David Samson has said that there is a $1.6 billion “handshake agreement” for the MLB team. Jeffrey Loria paid $158 million for the baseball team in 2002.
In December, I wrote that Loria was looking for $1.7 billion for the baseball team.
Since Loria purchased the team in 2002, the Marlins have moved into a new, $639 million stadium paid for by taxpayers. Marlins Park could have been a financial windfall for the team. But during the ballpark’s first five seasons the Marlins have been one of the worst teams in baseball, losing more games than they have won each year. Paying for a stadium for a lousy team has ticked off supporters. Last season the Marlins had the lowest average attendance in the National League, 21,405.
My sources would not say who the $1.6 billion handshake agreement was with other than he is a real estate developer based in New York City. The problem, according to these sources, is the potential buyer is not liquid, meaning he does not have the cash to buy the Marlins because his net worth is tied up in real estate. Thus, for the real estate developer to purchase the Marlins would likely require more debt than MLB would be comfortable with.
Guggenheim Baseball Management also used a lot of debt to buy the Los Angeles Dodgers for $2 billion in 2012 from Frank McCourt. But Guggenheim had two huge advantages that a new owner of the Marlins likely would not have: hundreds of millions of dollars in hedge fund and insurance company money and a $6 billion bounty from a new cable television deal.
In contrast, the Marlins get a pittance from Fox Sports Florida in a deal than runs through 2020. A tripling in the value of their television deal would bring the Marlins only about $60 million a year, just one-fourth of the Dodgers annual average haul.
But the $1.6 billion price tag cannot be shrugged off, say my sources. MLB’s new collective bargaining agreement gives the sport labor peace through 2021. And some people are convinced the Marlins can be turned around. Last November, Solamere Capital was considering the possibility of buying the Marlins. My sources say the price being bandied about at that time was $1.4 billion.