By Field Level Media
Sep 23 (Field Level Media) – Major League Baseball restructured its ownership rules this past summer allowing private equity firms to hold up to 20% of a franchise, Front Office Sports reported Wednesday.
The change aligns with the NBA, NHL and MLS, which have a 20% private-equity ownership cap. The NFL limits private equity ownership to 10% of its franchises. The NFL welcomed private equity ownership last year.
One stipulation to the new MLB rule is that private equity cannot own more than a franchise’s controlling owner. MLB rules allow a controlling owner to own a minimum 15% of a franchise.
Private equity would be limited to a 15% ownership in a franchise if that is how much a controlling owner possesses.
MLB did not announce the recent changes.
A total of 10 teams are private-equity affiliated, including the Arizona Diamondbacks, Baltimore Orioles, Cleveland Guardians, Milwaukee Brewers, Seattle Mariners, St. Louis Cardinals and Athletics, per research by PitchBook.
Teams like the San Francisco Giants, New York Yankees, Chicago Cubs and Los Angeles Dodgers are among another eight that have a private-equity connection.
According to the report, a PE firm can invest in as many as eight NBA franchises. MLB reportedly has not put a cap on how many franchises can be connected to a single firm.
(–Field Level Media)
