Private equity billionaires David Rubenstein and Mike Arougheti are set to purchase the Baltimore Orioles from the Angelos family in a deal that values the Major League Baseball (MLB) franchise at US$1.72 billion, according to several outlets.
Confirmed:
- As first reported by the Puck, Rubenstein, who is co-founder of Carlyle Group, and Arougheti, the co-founder of Ares Management, will acquire the Orioles in a phased deal
- Billionaires will buy an initial 40 per cent stake immediately and then the remaining 60 per cent of team shares after the death of Angelos family patriarch Peter, age 94, for tax purposes
- Rubenstein, a Baltimore native, is set to be the controlling owner
- According to the Financial Times (FT), a broader ownership group will emerge that may also include local Maryland business leaders, philanthropists and sports legends, potentially including Orioles icon Cal Ripken Jr
- Deal awaits the approval of MLB owners, with no fixed timeline for closure
Context:
The Orioles sale comes amid internal legal disputes between the team’s current chief executive, John Angelos, and his brother Lou regarding the family trust. John Angelos has been the Orioles managing partner and chair since 2020, when Peter Angelos’ dementia meant he was no longer able to run the team he acquired for US$173 million in 1993.
Rubenstein and Arougheti are acquiring a team that won the American League East division last year with one of MLB’s lowest payrolls. The Orioles also recently finalised a deal with the Maryland Stadium Authority to remain at their Camden Yards home for another 15 years, with a path to expand the commitment to 30 years.
Coming next:
The completion of this transaction hinges on MLB owners’ approval and the resolution of the Angelos family’s legal disputes, as well as what happens next with the Orioles regional sports network (RSN) dispute over the Mid-Atlantic Sports Network (MASN) with the Washington Nationals.
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