Major League Baseball’s other 29 owners will vote on the sale of the Orioles from the Angelos family to a purchasing group led by billionaire David Rubenstein on Wednesday, Britt Ghiroli and Evan Drellich of The Athletic report.
Back in late January, John Angelos agreed to sell the controlling stake in the Orioles — and related assets, including the team’s stake in the MASN network — to Rubenstein’s group for $1.725 billion (a figure announced by the team at the time of the agreement). That sale is still pending majority approval from the league’s 29 other owners, though no pushback on the transition has been expected. Drellich and Ghiroli call the vote “a formality,” which generally aligns with prior reporting and expectations.
As reported back in January, Rubenstein’s group will initially be purchasing a 40% stake in the team — enough to cement him as the franchise’s new control person among other owners but not the entirety of the Angelos family’s stake. At the time the two parties negotiated the sale, it was agreed that the remainder of the Angelos family’s share in the team would be transferred to Rubenstein’s group following the passing of family patriarch Peter Angelos, the former Orioles control person and majority owner who’d since taken a step back due to health concerns and ceded control of the club to his sons, John and Louis (in what became a contentious battle for control of the organization that eventually saw John emerge as control person). This contingent was designed to avoid substantial capital gains taxes for the Angelos family.
Peter Angelos passed away this past weekend at 94 years of age. That won’t accelerate the transfer of the Angelos family’s entire stake in the team to Rubenstein’s group. Drellich and Ghiroli report that Wednesday’s vote will only be on the originally agreed upon 40% stake for Rubenstein & Co.; they’ll eventually formally acquire the remainder of the Angelos family’s 70% stake in the club, but that transaction will not be completed by Opening Day.
Rubenstein, 74, is a Baltimore native and the co-founder of private equity firm the Carlyle Group. Forbes estimated his net worth at $3.7 billion. His ownership group also includes several notable investors, including Orioles icon Cal Ripken Jr., NBA Hall of Famer Grant Hill, former Baltimore mayor Kurt Schmoke, former New York City mayor Michael Bloomberg and Ares Management co-founder Michael Arougheti, among others. Peter Angelos originally purchased the controlling stake in the Orioles for $173MM back in 1993.