Future owners list?

[Can_of_corn]

If it was only 14 million John would have opened the books.   The number is a lot higher.without even counting MASN.

[Frobby]

None of us really know the financial condition of the Orioles and the Angelos family or the tax consequences associated with a sale now vs. later.  There’s not a person here competent to judge when is the most advantageous time for the Angelos family (or their partners) to sell the Orioles.  They’ll do what they do.  

I do feel strongly that a winning franchise with an energized fan base is more valuable than a losing franchise with a disillusioned franchise.  
 

[EddeeEddee]

31 minutes ago, Can_of_corn said:

It's profitable to own a team as an ongoing endeavor.  How much profit did this team generate last year?  If they sell do you think they can reinvest into something else as profitable?

The Orioles -- and most sport franchises owned for many years -- tend to have far more value upon selling the team than they do in their ability to generate income and cash from year to year.  They are currently valued at about $1.7 billion according to Statista -- around a 1000 % increase over the $173 million Angelos and his partners paid for the team 30 years ago.  

Here's the team's operating income since 2002, also according to Statista. 

https://www.statista.com/statistics/829611/baltimore-orioles-operating-income/

The last couple years have been pretty good, but the team mostly lost money between 2016 and 2020.  Who knows how accurate this is since sports franchises are nearly always privately owed?  I wouldn't be surprised if the Orioles have been a bit more profitable than these numbers suggest but nowhere near the $1.5 billion profit the team could bring in a sale.  And it may be the Angeloses should not waste too much time deciding to sell if cable viewership continues to decline -- replaced by who knows what.  Sports franchises could very well go through a value correction just like everything else in this economy.

[Frobby]

9 hours ago, EddeeEddee said:

 I wouldn't be surprised if the Orioles have been a bit more profitable than these numbers suggest but nowhere near the $1.5 billion profit the team could bring in a sale.  

You can’t really compare the profit a team makes in a year, or even in 10 years, to the profit earned on a sale of a team.   When prospective buyers are deciding what they is willing to pay, they are asking themselves this question (with a bit of simplification): how much profit do we think this team will throw off every year on average, how much risk is involved, and what is the likely long-term rate of inflation?   So let’s say they think the team will generate $100 mm/yr. and inflation will run at 3%.  They’ll run a calculation of what that income stream, into perpetuity is worth after the inflation adjustment: $100 mm for year 1, $97 mm for year 2, $94.1 mm for year 3, etc. and sum all that together.  Then they’ll discount that number pretty heavily for risk, because it’s not like you’re buying a US treasury bond.  

[Going Underground]

They are not selling unless forced by MLB. John and Wes want to built around the stadium and they are tied together. Don't see a sale in the next four years 

[Going Underground]

So odds they sign the lease in a month?  Heard discussion are moving slowly but basically you sign and you get your money.Then the state has to figure out what type of bond /loan ration they can get. 

 

I have no doubt that we will relatively rapidly move towards the renewal of the public-private partnership and I would be very disappointed if I’m not able to work with the governor and his team…to make that happen in the next six months. I’d love to have that as an All-Star break gift for everybody, really,” Angelos said.  “There’s just no there there other than we’re going to get that done.  That’s always been one of the things I committed to and I have no intention of not seeing that happen.  I know the governor and his folks are just as keen on it as we are.”

[HakunaSakata]

On 6/12/2023 at 11:52 AM, OriolesMagic83 said:

Dan Snyder anyone?  I doubt mlb would approve him, but going San Diego style in the free agent market would keep a lot of fans excited.

Seriously? I hope to god you're being sarcastic and it just didn't translate well to text. Dan Snyder is arguably the WORST owner in professional sports in the last 20+ years. 

[OriolesMagic83]

3 hours ago, Frobby said:

You can’t really compare the profit a team makes in a year, or even in 10 years, to the profit earned on a sale of a team.   When prospective buyers are deciding what they is willing to pay, they are asking themselves this question (with a bit of simplification): how much profit do we think this team will throw off every year on average, how much risk is involved, and what is the likely long-term rate of inflation?   So let’s say they think the team will generate $100 mm/yr. and inflation will run at 3%.  They’ll run a calculation of what that income stream, into perpetuity is worth after the inflation adjustment: $100 mm for year 1, $97 mm for year 2, $94.1 mm for year 3, etc. and sum all that together.  Then they’ll discount that number pretty heavily for risk, because it’s not like you’re buying a US treasury bond.  

Also, prospective buyers have to calculate how great will it feel to own one of only 30 mlb teams and be the figurehead of the embodiment of a city's hope and dreams.

[Frobby]

21 minutes ago, HakunaSakata said:

Seriously? I hope to god you're being sarcastic and it just didn't translate well to text. Dan Snyder is arguably the WORST owner in professional sports in the last 20+ years. 

He’s literally moved to England because nobody here can stand him.  https://www.washingtonpost.com/sports/2023/01/02/dan-snyder-england/.  He’s probably the most hated non-politician in the DC Metro area.   I’m sure the suggestion was facetious.   

[Frobby]

4 minutes ago, OriolesMagic83 said:

Also, prospective buyers have to calculate how great will it feel to own one of only 30 mlb teams and be the figurehead of the embodiment of a city's hope and dreams.

That can go seriously south.  

[OriolesMagic83]

12 minutes ago, Frobby said:

That can go seriously south.  

Obviously, but profit margin is not a major consideration for some owners like Cohen.

[Going Underground]

18 minutes ago, Frobby said:

He’s literally moved to England because nobody here can stand him.  https://www.washingtonpost.com/sports/2023/01/02/dan-snyder-england/.  He’s probably the most hated non-politician in the DC Metro area.   I’m sure the suggestion was facetious.   

I thought he moved to London because he  is a big Clash fan?

 

[Frobby]

9 minutes ago, OriolesMagic83 said:

Obviously, but profit margin is not a major consideration for some owners like Cohen.

I’m just saying that there are a number of owners who lost serious social standing in their communities because people hated the way they ran their sports franchises.   Peter Angelos is a good example, Dan Snyder is another.   And it’s not all about how much money is spent on the team.  Angelos was reviled for his firing Davey Johnson and Jon Miller even when the O’s had a top 5 payroll.  

[Billy F-Face3]

4 hours ago, Frobby said:

I’m just saying that there are a number of owners who lost serious social standing in their communities because people hated the way they ran their sports franchises.   Peter Angelos is a good example, Dan Snyder is another.   And it’s not all about how much money is spent on the team.  Angelos was reviled for his firing Davey Johnson and Jon Miller even when the O’s had a top 5 payroll.  

That's not even getting into the weeds of the controversy and polarization surrounding the 1994-1995 MLB strike. Peter handled the strike in his own way and everbody had an opinion about it. Whether positive or negative. He was furious with the players union and yet he was still the only owner who refused to use replacement players.

And everybody had something to say about it all. 

[Can_of_corn]

2 minutes ago, Billy F-Face3 said:

That's not even getting into the weeds of the controversy and polarization surrounding the 1994-1995 MLB strike. Peter handled the strike in his own way and everbody had an opinion about it. Whether positive or negative. He was furious with the players union and yet he was still the only owner who refused to use replacement players.

And everybody had something to say about it all. 

It's amazing to me that he wouldn't hire replacement players but he paid Millar and Walker.