The Baltimore Orioles are set to usher in a new era of ownership following the passing of former owner Peter Angelos. Angelos, who bought the team in 1993 for $173 million, reached an agreement with private equity billionaires David Rubenstein and Mike Arougheti in January to sell the team for $1.725 billion. The deal included a provision that the new ownership group would initially hold a 40% stake in the team, with the option to acquire the remaining interest upon Angelos’ death.
With Angelos’ passing, the option to acquire his stake in the Orioles can now be exercised. This option was structured to only be exercisable upon his death for tax purposes. This strategic move allows for the basis of Angelos’ stake to be stepped-up to its date of death value, ensuring that there will be no gain recognized upon the sale of his stake by his estate or heirs. Tax expert Robert Willens praised the precision of the deal, stating that it will save the family over $250 million in federal and local taxes.
The sale of the Orioles to Rubenstein and Arougheti was approved by the Maryland Stadium Authority, who also approved the use of $400 million in public money for ballpark improvements at Camden Yards. The deal also includes the team’s stake in its regional sports network, MASN. However, the sale still needs to be approved by at least 23 of Major League Baseball’s 30 owners before it can be finalized. The transfer of ownership is expected to bring significant changes to the franchise moving forward.
The Orioles have had a tumultuous history under Angelos’ ownership, with mixed results on the field and financial struggles off the field. The new ownership group, led by Rubenstein and Arougheti, brings a fresh perspective and financial backing to the team. Their investment in the Orioles signals a new chapter for the franchise, with potential for growth and success in the years to come. Fans are eager to see how the new ownership will impact the team’s performance and competitiveness in the league.
Major League Baseball is closely monitoring the ownership transition of the Orioles, as any change in ownership requires the approval of a majority of team owners. The league’s owners will need to review and approve the sale to Rubenstein and Arougheti before it can be officially completed. The stakes are high for the Orioles, as a successful ownership transfer could set the stage for a brighter future for the franchise both on and off the field. The transition to new ownership marks the end of an era for the Orioles and the beginning of a new chapter in their history.
As the Orioles prepare for a new era under the ownership of Rubenstein and Arougheti, fans and players alike are eager to see what changes lie ahead for the team. The financial backing and fresh perspective of the new owners bring hope for a revival of the franchise’s fortunes. With the sale of the team now set to proceed following Angelos’ passing, the Orioles are poised for a transformative period that could see them rise to new heights in the world of Major League Baseball.
