Twins Corporation Remains Under Pohlads' Governance During Minority Share Transfer
Minnesota Twins to Welcome New Investors as Ownership Changes
The Minnesota Twins, a Major League Baseball (MLB) team with a rich history, are set to undergo a significant change as the Pohlad family announces plans to bring in two new minority investment groups.
Since 1984, when Carl Pohlad bought the team for just $44 million, the family has been at the helm. Over the last decade, the Twins have been one of only five MLB teams to change hands, with the Mets (2020), the Royals (2020), the Marlins (2017), and the Mariners (2016) being the others.
The identities of the two new investment groups are yet to be revealed, pending MLB approval. One group hails from Minnesota, while the other is an East Coast-based family, specifically from New York. The other LP group is an East Coast family not currently invested in major sports.
The new LP deals carry a higher implied valuation, suggesting a bright future for the Twins. The funds from the raise will go towards paying down team debt, which currently stands at approximately $400 million.
The Twins, who have won the World Series twice since 1984 but have struggled recently, are currently in fourth place in the AL Central and have little chance of reaching the postseason. In a bid to strengthen their squad, the Pohlads traded away nearly a dozen players at the trade deadline two weeks ago, including club record free-agent signing Carlos Correa, who was sent to the Houston Astros.
The new investment groups will form a new corporate board to assist the Pohlads on strategy and decision-making. This move is expected to provide fresh perspectives and potentially revitalise the team's fortunes.
The Twins' local media rights have been affected, with the struggling Diamond Sports Group carrying the team's games in 2024 at a reduced rate, and MLB taking over the production and distribution of Minnesota games starting this season.
Hogan Lovells served as legal advisor to the Pohlads during the sale process. The Twins, valued at $1.7 billion according to Sportico's MLB valuations, are at least the third team in the last few years to run a formal process that included a potential control stake before ultimately deciding to do something smaller.
This development comes as the Trail Blazers have been bought by Tom Dundon from Paul Allen's estate for $4.25B, as per a related story. Interestingly, both the Los Angeles Angels and Washington Nationals have also explored sale options in the past few years, but ultimately decided to keep their teams.
The Twins, despite their recent struggles, remain a beloved part of the Minnesota community. With the addition of new investors, fans can look forward to an exciting new chapter in the team's history.
- The two new investment groups, one from Minnesota and the other from New York, are expected to bring fresh perspectives and potentially revitalize the Minnesota Twins' fortunes as they form a new corporate board to assist the Pohlad family with strategy and decision-making.
- The funds from the investment raise will be used to pay down the Twins' significant team debt, which currently stands at approximately $400 million, and could mark a bright future for the beloved MLB team.
- Media rights have also been a topic of discussion, as the Twins' local games will now be produced and distributed by Major League Baseball, whereas the struggling Diamond Sports Group will carry the team's games in 2024 at a reduced rate.
