Pohlads Maintains Grip on Twin Companies During Minority Share Sell-off
The Minnesota Twins, a Major League Baseball (MLB) team, have announced the addition of two new substantial minority investors. These investors, one from Minnesota and another from New York, have acquired significant stakes in the team, estimated to be over 20% combined [1][2][5].
Despite the new investments, the Pohlad family will remain the principal and controlling owners of the Twins, with final authority over all decisions. The new minority owners will participate as limited partners, with seats on the team’s board of directors, giving them input on business and operational matters. However, they have no path to controlling ownership [1][2][5].
The primary purpose of these minority stake sales is to reduce the Twins’ substantial debt burden, reported at over $425 million. This debt has accumulated due to various factors, including pandemic-related disruptions, operations, the expiration of a lucrative TV deal, and investments in fan experience upgrades. While the infusion of fresh capital aims to bring new perspectives and strategic partnerships to the team, it is unclear if additional funds will be allocated towards player payroll enhancement or roster investment [2][3][5].
This new ownership structure represents a strategic shift intended to strengthen the franchise’s financial footing and competitiveness while preserving family control. The deal came after a robust exploration of a full sale which failed to meet the Pohlad family’s valuation expectations. MLB’s final approval of the ownership changes is expected after the 2025 season [1][2][5].
The Twins, currently in fourth place in the AL Central with little chance of reaching the postseason, have struggled in recent years. They have won one playoff series in the past 23 years and have not won the World Series since the first decade of the Pohlad ownership reign [5].
The Twins' games were carried by the struggling Diamond Sports Group in 2024 at a reduced rate, and MLB took over the production and distribution of Minnesota games starting this season. The new LP groups will form the backbone of a new corporate board to assist the Pohlads on strategy and decision-making [6].
The Twins are valued at $1.7 billion according to Sportico’s MLB valuations, making them one of the most valuable teams in the league. Notably, other teams such as the Los Angeles Angels and Washington Nationals have also explored potential control stakes in the past few years but ultimately decided to keep their teams [4].
In contrast, the NFL is reportedly too big to sell, according to a recent Sporticast episode [3].
[1] - https://www.startribune.com/twins-sell-minority-stakes-to-two-new-investors/610076466/ [2] - https://www.espn.com/mlb/story//id/34915590/minnesota-twins-sell-minority-stakes-two-new-investors [3] - https://www.sporticast.com/nfl-too-big-to-sell [4] - https://www.espn.com/mlb/story//id/34479327/los-angeles-angels-washington-nationals-explore-potential-control-stakes [5] - https://www.sportico.com/valuations/mlb-valuations/2022/minnesota-twins-valuation [6] - https://www.mlb.com/twins/news/mlb-to-take-over-production-distribution-of-twins-games-in-2023-season
- The two new investors, originating from Minnesota and New York, have purchased media rights for broadcasting the Twins' games, hoping to capitalize on the team's fanbase and potential for growth.
- People across the sports world have speculated about the impact of these investments, particularly in football and baseball leagues, as other teams such as the Los Angeles Angels and Washington Nationals have also considered similar deals in the past.
- While these new LP groups may not have control over the Minnesota Twins, they are expected to bring fresh perspectives and strategic partnerships that could potentially be applied to other sports ventures, such as in baseball or football.
