Denver Post Selling Half of Stake in the Colorado Rockies
US hedge fund Alden Global Capital which also owns the Denver Post have been exploring options to sell part of its 7.3% stake in the Major League Baseball’s (MLB), Colorado Rockies.
Forbes in 2012 valued the Rockies at $464 million (AUD $674 million) but currently, according to Sportivo, the MLB club is valued at $1.43 billion (AUD $2 billion) and with that valuation, a 3% stake would be worth around $43 million (AUD $62 million).
The newspaper wanted to sell off the MLB franchise stake in 2012 and since acquired sports-focused investment bank Park Lane in search of potential buyers but nothing materialised.
The hedge fund purchased the Denver Post in 2011 and expanded its portfolio by including the Chicago Tribune, the Mercury News, the Orlando Sentinel, and the Boston Herald but has faced criticism from the public, accusing it of buying up legacy papers and then selling off their assets and laid off staff.
The NBA, NHL, MLB, and MLS changed their ownership rules and now are allowing private equity firms to buy up passive stakes in teams.
The hedge funds can all capitalise inside terms, whilst maximising their interest in sports ownership.
Additionally, Major League Baseball does not have a “cap” on the number of teams. A single fund can hold in its portfolio but in other leagues like the NHL and NBA and MLS the limit is approximately five.
Arctos Sports Partners has invested in the Dodgers, Cubs, Giants, Padres, Astros, and Red Sox to see its returns.
Other funds in the market , Denver Post, have recruited Inner Circle Sports, an investment bank focused on the global sports, media, and entertainment industry to assist in the sale , while brothers team Dick and Charlie Monfort, Rockies representatives declined to comment as well as the Inner Circle in its portfolio’s.