The Baltimore Orioles, a Major League Baseball team, are set to be sold to a pair of private equity billionaires. The sale, valued at $1.725 billion, is pending approval from at least 75% of major league ownership. The group leading the acquisition is headed by David Rubenstein, co-founder of the Carlyle Group Inc., and includes Ares co-founder Michael Arougheti.
Rubenstein, who would become the team’s controlling owner, has a background as a lawyer and served as a deputy domestic policy advisor under President Jimmy Carter. He co-founded the Carlyle Group in 1987, and the global investment firm currently manages $293 billion worth of assets. Rubenstein had previously expressed interest in the Washington Nationals.
The current owner of the Orioles, John Angelos, agreed to the sale as he looks to pass on the team to new ownership. Angelos has been the team’s chair and managing partner since 2020, taking over from his father, Peter, who purchased the team for $173 million in 1993. Peter Angelos was diagnosed with dementia, leading to a public dispute within the Angelos family over control of the Orioles and other assets.
The change in ownership marks a new era for the Baltimore franchise. Under Angelos’ ownership, the Orioles made the playoffs just five times and won their first American League East pennant since 2014. The team also secured a new stadium lease, ensuring their presence in Maryland for at least the next 15 years.
With private equity fueling the ownership change, there is hope for increased financial resources for the cash-strapped franchise. Despite their success on the field, the Orioles have consistently ranked near the bottom in Opening Day payroll in recent years. A change in ownership could lead to increased spending and a more competitive team.
The sale of the Orioles reflects the ongoing trend of private equity investors entering the world of professional sports ownership. These investors bring extensive financial resources and management expertise, which could help revitalize struggling franchises or propel successful ones to new heights. As the deal awaits approval, fans and stakeholders eagerly anticipate the future of the Baltimore Orioles under new ownership.
