The Giants sold a 10% ownership stake in the franchise to the private equity firm Sixth Street this week, as first reported by Ken Belson and Lauren Hirsch of The New York Times. The team did not confirm the specific share that it sold but announced what it called a “strategic partnership” with the firm on Tuesday.
Financial terms remain unreported. Team president/CEO Larry Baer said in a statement that the deal “allows (the Giants) to further strengthen our franchise on the field and in the community.” The New York Times writes that the Giants intend to use the money for improvements to Oracle Park and the Mission Rock mixed-use development surrounding the stadium, as well as the team’s Spring Training complex in Scottsdale.
Baer downplayed the possibility that the sale would have an impact on the team’s player payroll. “This is not about a stockpile for the next Aaron Judge (a former free agent target),” Baer told The New York Times. “This is about improvements to the ballpark, making big bets on San Francisco and the community around us, and having the firepower to take us into the next generation.“
So they just pulled in $400M? OK
How much needs to be done in Scottsdale? Only used for what 15 Giant games a year in Feb and March? I thought the city of Scottsdale was the owner? Maybe I’m wrong but a few more food stands would be nice. I use it more during Fall Ball season and they never seem to get more than 1000 fans in the stands during those games
….and it begins. Prepare for a gradually 10% worse product with an abrupt 10% price hike.
The Giants are using the money to make capital improvements of Oracle Park, its players facilities, and its surrounding 12 acre area. The private equity firm wants an ROI so why would they be interested investing in a diminished baseball product?
Umm, the ROI is in the steadily increasing value of franchises, aka the valuation of the 10% stake they just purchased.
I would never shill for free.
you can do that.
but I would never do something like that.
It’s a wait and see situation but I went by the Park this morning and there were two guys in Stuart Hughes Suits out front firing the statues.
This move could set a precedent for a shadow funding cycle. If Sixth Street’s investment yields returns (e.g., via Mission Rock real estate revenue), the Giants could later repurchase the stake or sell another sliver, recycling capital indefinitely while keeping CBT payroll flat on paper.
This is a legal end-run around baseball’s spending guardrails—quietly banking $300-400M in future roster flexibility under the guise of “community bets,” unnoticed by a public fixated on he next “Aaron Judge” signing or stadium facelifts.
They did sign Arson Judge though, who had a heck of a year.
So they couldn’t raise funds themselves? Had to sell a stake off? Interesting, business is business I guess
Err, PE investment is about cutbacks when that is the only clear path towards a return on investment. That isn’t the case with ownership stake in a major pro sports team, as those have been reliably improving in value for some time now.
Except when it involves Bay Area investments. Those are going in the WRONG girection.
Downtown is a ghost town this wreeks of desperation
So does your screen name.
FF:Not you again. Please
I think your social life is a literal ghost town that reeks of desperation, FrugalFarhan.
Give FF a break, he’s still working on spelling wreak before he gets to middle school.
Teams will be selling a percentage of themselves to sports betting firms before you know it.
Another weird aspect of these stakes going to private equity is that they are not limited to investing in just one team. They can invest in multiple teams. What will be the repercussions of a handful of these each possibly owning 10-15-20% of all of MLB?
I would think MLB has to approve any sales and would be likely to block a company investing in multiple teams.
A lot of minor league teams are now owned by one firm, so I can see that happening, just as I can see teams with corporate names like Japan at some point. We already see it on stadiums.
Private equity already owns stakes in multiple teams.
From the article :
“ Baseball was the first major league in North America to welcome major funds. Now, more than half of Major League Baseball’s 30 teams, including the Boston Red Sox and the Chicago Cubs, have relationships with private equity groups.
Arctos, another private equity firm, owns about 2 percent of the Giants, as well as stakes in the Houston Astros, the San Diego Padres and other teams.”
Part of the Guggenheim group is private equity so I don’t think they really cut back. They might defer, but they don’t necessarily cut back.
Are there ever non-strategic partnerships?
Only in politics.
Romeo and Juliet
The value of that real estate is almost certainly higher when the Giants sell out their games in the neighborhood. A bad team will affect Mission Rock negatively — less pedestrian traffic at the businesses, less demand to live there. Granted it’s an open question how many millions of dollars in annual payroll it’s worth, but it’s a potential reason to be willing to technically lose money on the baseball side to put a good team on the field… not a reason to cut payroll.
Unless they know they are the only show in town now and can do whatever they want. They are becoming the A’s with an ownership group that cares only about their returns. Weird but feels like I’ve been saying this for a few years now
Some people claim that the Giants tried to prevent the A’s from leaving … these people are stupid.
The Giants had special hats made for their sudden new friends in the dockworkers union at the Port of Oakland that relentlessly protested Howard Terminal … and who have now been left in the dust, hopes for support to ‘Bring back bulk shipping! No automated ports!’ abandoned. Those dockworkers even took time off the job to drive to Sacramento and speak against the plan, wearing their Giants+ILWU branded hats.
Baseball deserves the Oakland A’s, not money and politics.
You’ve been talking a lot for a few years now, FrugalFarhan. But speaking facts? Not sure about that.
FF is a moron. Weak baseball mind and poor analysis. Anyone who says the Giants are becoming the As doesn’t have a clue about baseball. More so, all he does is whine about the organization and even found a way to be negative about a $400mil in flux of investment.
Private equity has ruined everything else, why not MLB? lol.
They want to build an Atlanta-style ballpark neighborhood. That takes money. Private equity firms have money. And real estate experience to make the dream happen. I don’t know why Giants fans would complain about this.
Owners are bad. That’s why.
All good here. Trying to increase around the ballpark revenue to increase payroll and pumping more dollars into improving player development. It’s really just a continuation of what they have been doing.
Haters will find a reason to explore the negative. Just read FFs post on all things baseball.
This is about investment in the real estate which will improve the fan experience around the park and stadium itself. But people will find a way to spin it negatively.
Is it a good thing that the ownership group is worried more about their real estate investments more than the product on the field? I’ve never heard a single Giants fan complain about Oracle Park so where is this money really going? I’m just a dumb teenager so maybe one of those smart guys who kept defending how this team has been run the last 6 years can explain how this is going to improve our chances of making the playoffs this year
lol. Nah mate. You have it all wrong. People think you are an adult that thinks and acts like a child. Hope that helps.
FF: Never said you were dumb. But your posts prove you might be. And you won’t be a teenager until next year. You really need to get over your Farhan infatuation.
No. Age has little to do with it. You’re dumb no matter how old you are.
Every time you write, you reinforce that. But you’re getting a lot of attention, which probably makes you happy
You literally just posted downtown was a mess. Now you state you haven’t heard one person say oracle is a poor experience…
Selling a stake to private equity is exactly like inviting pirates on board.
“exactly like inviting pirates on board.”
So, you’re saying we get Joey Bart back?!
@Cal
I disagree. Expect them to offer a lot of deferred contacts next year. This will be the pattern in the pattern in the near future. Woes out to the Pittsburgh Pirates.
Cal2,632, TonyGwynnSD19 is this your new account?
More owners interested in real estate investments. Perfect