LOVERRO: Sale of Nationals still tangled up in fate of the Orioles

David Rubenstein is in talks to buy the Baltimore Orioles, according to a report by Bloomberg.

What does this mean? For the Orioles? For the Nationals?

The 74-year-old billionaire — the high-profile figure behind Washington’s Carlyle Group — is a Baltimore native who has made it known in the past that he would like to own the Orioles. But he has also been reported to be partners with Monumental Sports boss Transparent Ted Leonsis in talks to buy the Washington Nationals.

Rubenstein may be a big baseball fan with very deep pockets (he is worth $4.6 billion, according to Bloomberg) but he’s not going to be able to own both teams. Baseball may be in a 21st century mode, with pitch clocks and second base extra-inning runners, but I doubt they are open to billionaires owning multiple teams.

On the other hand, who would have thought they would let one baseball team own another’s television rights?

What does this mean for Nationals fans who were hoping that the Lerner family, who in April 2022 announced they were exploring a sale, would sell to prospective buyers Rubenstein and Transparent Ted? Any number of possibilities.     

It could be a message to the Lerners that the money Transparent Ted and Rubenstein have offered for the Nationals could disappear, and that the bid has a shelf life. The line of billionaires queued up on South Capitol Street willing to pay the Lerners $2 billion for the team has reportedly never materialized.

The Lerners likely wanted more — particularly after the sale of the Texas Rangers and the Philadelphia Phillies. The Rangers’ value rose to $3 billion with the sale of 10% of the team in May, while the Phillies sold a 16.25% share of their club in June that set their franchise value at $2.8 billion. After those numbers, the Lerners likely raised their expectations.

Then again, the whole deal with the Nationals is still complicated by the fact that the Orioles — and their Mid-Atlantic Sports Network — still own Washington’s television rights and there are still questions about whether the settlement over disputed television revenue for the Nationals has been paid yet by MASN.

And members of the Lerner family are conflicted about selling. Sources say managing principal owner Mark Lerner wants to hang on to the team, while other family members want to sell.

What about the Orioles? Because of the MASN deal, the futures of both teams are linked. Any Nationals sale may have to wait until the Orioles have new owners and Major League Baseball orders the whole MASN deal scrapped as part of any sale agreement for the Baltimore franchise.

Are the Orioles really for sale?

Sources have maintained Peter Angelos, the team’s 94-year-old owner who has been incapacitated for several years, has dictated in his will that the baseball team be sold upon his death. It would cost the family hundreds of millions of dollars in taxes if the team is sold while Angelos is alive.

Rubenstein’s bid is likely for a minority buy-in for the team, with provisions to take full control at some point, similar to what Steve Bisciotti did when he purchased 49% of the Baltimore Ravens from Art Modell in 2000 and then took over full ownership four years later.

The Baltimore Banner reported that Angelos’ son John, who now runs the team, told his best buddy, Maryland Gov. Wes Moore that the Angelos family does not intend to sell their “majority” stake. That opens the possibility of Rubenstein considering a Bisciotti-type deal.

Other prospective bidders have been waiting for a shot at the Orioles.

Jim Davis, a cousin of Bisciotti who, along with Bisciotti, co-founded the Allegis Group, the largest staffing company in the country. Davis, who is reportedly worth $4.5 billion, is an already-vetted Major League Baseball owner, with 10% of the St. Louis Cardinals, is interested.

Ken Babby, founder and chief executive officer of the Fast Forward Sports Group and the owner of two minority league baseball franchises, the Class AAA Jacksonville club and the Class AA Akron team, is in the mix, according to sources. He is the son of Lon Babby, who was the general counsel for both the Washington Redskins and the Baltimore Orioles.

And what about Transparent Ted? Bloomberg once reported that he let it be known that he would be interested in purchasing the Orioles if they became available. Could the Capitals and Wizards owner be part of the Rubenstein deal? He has a desperate need for baseball programming for his Monumental Sports Network, whether it’s the Orioles or the Nationals.

If Rubenstein is out of any Nationals sale, is Transparent Ted still in?

Two cities and their teams are tied together by coaxial cable. It’s long past time to cut the cord.

You can hear Thom Loverro on The Kevin Sheehan Show podcast.