Bloomberg: Carlyle Group/David Rubenstein In Talks To Purchase Orioles

[accinfo]

2 minutes ago, sportsfan8703 said:

I think Rubenstein sells the naming rights of the stadium. 

If he does I could care less.  If he runs the team by offering competitive contracts to the home grown stars and adds a player or two in free agency that fills in needs that is all I care about.  It is the owner’s right to maximize his profits.  

[Orioles1954]

Team love to announce big news on Friday afternoon. Could be a Merry Christmas for us long-time fans.

[Roll Tide]

2 hours ago, Orioles1954 said:

Team love to announce big news on Friday afternoon. Could be a Merry Christmas for us long-time fans.

Beyond the lease?

[Warehouse]

6 hours ago, interloper said:

I think we're looking at a minority stake purchase pretty soon yeah? Pump some cash into the system right now, then buy later? Dunno if any of that is actually how things work but something is happening it seems.

I recall hearing that Peter’s assets were being put into a revokable trust to get around the capital gains issue.  If so, I could see something happening sooner rather than later.

I’d bet on Rubinstein taking a 49% share in Baltimore Orioles, Inc., which would give him ~35% share of Baltimore Orioles Limited Partnership (BOLP).  John stays as MLB Control Person, but David is very involved in Club oversight playing a much more active role than the LPs. 

There is the question of whether Rubinstein would get a Bisciotti-like path to majority control.  I’d guess no given that he is already fairly advanced in age.

I don’t think this transaction would provide a direct cash infusion to the Orioles, as the funds would be buying out Angelos family shares.  However, the deal would dramatically improve the Angelos’s near-term liquidity.  John would be much less dependent on near-term cash flow from the Club to fund his lifestyle.  This could change how he views risk/reward trade-offs of player investments, putting more weight on upside outcomes and less weight on the worst case scenario. 

[Roll Tide]

21 minutes ago, Warehouse said:

I recall hearing that Peter’s assets were being put into a revokable trust to get around the capital gains issue.  If so, I could see something happening sooner rather than later.

I’d bet on Rubinstein taking a 49% share in Baltimore Orioles, Inc., which would give him ~35% share of Baltimore Orioles Limited Partnership (BOLP).  John stays as MLB Control Person, but David is very involved in Club oversight playing a much more active role than the LPs. 

There is the question of whether Rubinstein would get a Bisciotti-like path to majority control.  I’d guess no given that he is already fairly advanced in age.

I don’t think this transaction would provide a direct cash infusion to the Orioles, as the funds would be buying out Angelos family shares.  However, the deal would dramatically improve the Angelos’s near-term liquidity.  John would be much less dependent on near-term cash flow from the Club to fund his lifestyle.  This could change how he views risk/reward trade-offs of player investments, putting more weight on upside outcomes and less weight on the worst case scenario. 

I hope you’re wrong …. I’m hoping the Angelos ownership fades into history.

[Frobby]

27 minutes ago, Warehouse said:

I recall hearing that Peter’s assets were being put into a revokable trust to get around the capital gains issue.  

A revocable trust doesn’t affect taxes at all.  https://registers.maryland.gov/main/publications/REV-TRUST-FACTS.pdf. There are reasons to have one, but taxes generally aren’t one of those reasons.  

[Warehouse]

27 minutes ago, Frobby said:

A revocable trust doesn’t affect taxes at all.  https://registers.maryland.gov/main/publications/REV-TRUST-FACTS.pdf. There are reasons to have one, but taxes generally aren’t one of those reasons.  

Got it.  So any transaction likely needs to wait.

[Frobby]

6 minutes ago, Warehouse said:

Got it.  So any transaction likely needs to wait.

For me, the big unknown is what happens while Georgia Angelos is alive.  Spouses typically inherit assets without estate taxes being due.   And Georgia is a lot younger than Peter.   

[accinfo]

2 hours ago, Frobby said:

A revocable trust doesn’t affect taxes at all.  https://registers.maryland.gov/main/publications/REV-TRUST-FACTS.pdf. There are reasons to have one, but taxes generally aren’t one of those reasons.  

Yes you can’t avoid the capital gains taxes if Peter Angelos sells or transfers his ownership while he is still alive.  

[Justinlstn]

2 hours ago, Frobby said:

For me, the big unknown is what happens while Georgia Angelos is alive.  Spouses typically inherit assets without estate taxes being due.   And Georgia is a lot younger than Peter.   

Yeah but I still think she's 81 years old herself. I don't wish anything against her but realistically most folks don't live to be Peters age and if they do usually don't have the best quality of life. I would expect her to want to resolve the future of the franchise fast, especially since she seems to (from what I've read about her) wanting to sell the team.

[spiritof66]

10 hours ago, interloper said:

I think we're looking at a minority stake purchase pretty soon yeah? Pump some cash into the system right now, then buy later? Dunno if any of that is actually how things work but something is happening it seems.

I would doubt that. Why would someone invest money in the Orioles with a risk that he won't end up as the majority owner? 

[Frobby]

10 minutes ago, Justinlstn said:

Yeah but I still think she's 81 years old herself. I don't wish anything against her but realistically most folks don't live to be Peters age and if they do usually don't have the best quality of life. I would expect her to want to resolve the future of the franchise fast, especially since she seems to (from what I've read about her) wanting to sell the team.

The average life expectancy of an 81 year old female is 9 years.  

[Satyr3206]

The MASN problem getting dealt with. The Lease issue being addressed. Talk about a new Owner. Generally where there is smoke there is fire. I have no idea how it would be structured or the timeline but I would say something is going on.

[AnythingO's]

3 hours ago, Frobby said:

For me, the big unknown is what happens while Georgia Angelos is alive.  Spouses typically inherit assets without estate taxes being due.   And Georgia is a lot younger than Peter.   

Doesn't Georgia get the benefit of a bump up in asset value from $173 M to current after PA dies, which would avoid most Cap gains tax????

[Going Underground]

34 minutes ago, AnythingO's said:

Doesn't Georgia get the benefit of a bump up in asset value from $173 M to current after PA dies, which would avoid most Cap gains tax????

Depends if Peter is the sole owner or if his wife is a joint tenant of the asset. Joint tenancy would only be a 50% bump up .