From SABR member Rob Mains at Baseball Prospectus on December 20, 2017:
I was going to write about the debt that the new Marlins ownership incurred in buying the team, and how that’s not a good excuse for the fire sale they’re conducting. In doing the research, though, I came upon something amazing. It’s amazing to me, at least. Maybe to you, too. Namely: There’s a hedge fund that makes out if the Marlins make money. They make out if the Marlins break even. And they make out if the Marlins lose money. You’ve gotta like those odds.
Here’s the financing for the Marlins purchase, per Forbes:
- $800 million cash (including $90 million of preferred stock)
- $400 million debt (all assumed from prior ownership, $300 million being refinanced)
In addition, ownership has pledged the team’s proceeds from MLB’s sale of BAMTech, roughly $50 million, and an additional $50 million to cover future losses.
I was going to look into the debt, but the preferred stock caught my eye.
Read the full article here: https://www.baseballprospectus.com/news/article/36767/flu-like-symptoms-not-gambling-cant-lose/
Originally published: December 28, 2017. Last Updated: December 28, 2017.