MLB Rule Change Allows Investors To Get Stakes In Multiple Teams
MLB will allow investment funds to "take minority stakes in multiple clubs, a move that lets the league capitalize on sky-high team valuations," according to Scott Soshnick of BLOOMBERG NEWS. Sources said that the change, which was made earlier this year, could "bring in cash from Wall Street firms and college endowments." It is MLB's "answer to a problem affecting all the major U.S. sports leagues: Teams' multibillion-dollar valuations have made it difficult for part-owners ... to find buyers for their stakes when it's time to sell." Sources said that Galatioto Sports Partners has "created a $500 million vehicle -- the GSP Baseball Fund -- to invest in teams." A source said that the GSP Baseball Fund will "accept a maximum 100 investors and has a minimum contribution of $1 million." The source added that the fund has "received regulatory approval from all of the required federal agencies" (BLOOMBERG NEWS, 10/16). MLB Commissioner Rob Manfred recently confirmed that MLB changed its rules "almost a year ago," and they provide "flexibility for a new ownership group in terms of putting the capital structure together" (Eric Prisbell, THE DAILY).