Carlyle Co-Founder David Rubenstein Plans to Purchase the Orioles
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- Category: Baseball
- Created: Saturday, 03 February 2024 10:07
Carlyle co-founder David Rubenstein is part of the investor group that plans to buy the Baltimore Orioles. Ares Management Chief Executive Officer Michael Arougheti is also part of the group. Also, they offered $1.73 billion for the Major League team.
According to pay per head solution experts, MLB must first approve the proposed multi-stage arrangement.
The consortium will start by buying a nearly 40% share from the Angelos family, the current Orioles owners. To reduce the family's tax liability, they want to purchase the remaining stake in the team upon the passing of Angelos patriarch Peter, who is 94.
As a significant minority stakeholder, Arougheti will have a lesser role than Rubenstein, who would be regarded as the "control person" according to MLB regulations. Someone in the know says that the ownership group will be more diverse and might include prominent Marylanders, charitable donors, and sports figures like Cal Ripken Jr., a Hall of Fame shortstop for the Orioles.
Carlyle Co-Founder David Rubenstein to Acquire the Orioles
Rubenstein was born and raised in Baltimore. Also, he is one of the founders of the $4 trillion private equity business. In 1987, he co-founded the Carlyle Group with William Conway and Daniel D'Aniello. In 2017, he stepped back as CEO of an investment firm with about $400 billion in assets and shifted his attention to charitable work and private equity.
Arougheti is a founder of Ares Management, a company rapidly expanding its presence in its industry. Under his watch, the investment firm's assets under management have increased to approximately $400 billion. Also, the firm is in New York.
According to a sportsbook watchdog, the $6 billion paid for the Washington Commanders of American football is notable among the recent transfers of American sports franchises. It is the highest price ever paid for a professional club. Also, hedge fund tycoon Steve Cohen bought the New York Mets for $2.4 billion in 2020. It was the most ever paid for a Major League Baseball franchise.
The value of teams in major sports leagues, especially the National Football League in the United States, has soared into the billions due to the rapid appreciation of their national television rights. Companies involved in sports have become more valuable as an investment opportunity due to the increasing number of private equity and sovereign wealth funds pouring money into the sports industry. Once completed, it is one of the MLB changes in recent years.
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