Oh boy, the Orioles are on the brink of something big. Late Tuesday night, whispers started swirling around. David Rubenstein, a big shot from Baltimore with a hefty bank balance thanks to private equity, is rumored to be the new king of the Orioles’ castle. He’s supposedly shelling out a cool $1.725 billion to take it off the Angelos family’s hands. Initially, Rubenstein’s crew will grab 40% of the team, with plans to scoop up the rest after Peter Angelos, the long-standing owner, passes away. Yeah, it sounds a bit grim, focusing on the tax benefits of waiting, but that’s the business world for you.
The ink hasn’t dried yet, and nobody’s spilling the beans on when it will. But, this hot topic is expected to be the talk of the town at the upcoming MLB owners’ meeting. If Rubenstein seals the deal at $1.7 billion, this transaction will be the third fattest in MLB’s history, trailing only behind the sales of the New York Mets and the Los Angeles Dodgers.
So, what’s got Rubenstein itching to sign the check? Well, we’ve dug up five juicy bits that might just explain his game plan.
1. Benefits of new lease
Just a hop, skip, and a jump back, the Orioles and Baltimore city came to a sweet agreement. They’re sticking together at Camden Yards for the long haul. They’ve got until 2027 to figure out the nitty-gritty of developing the land around the stadium. It’s all a bit hazy without the fine print, but the Angelos family was eyeing this, thinking there’s gold in them hills. And it looks like Rubenstein is ready to roll up his sleeves and dive in. A few years back, CBS Sports shed some light on how MLB teams are dipping their toes into real estate, building up areas around their ballparks to rake in more dough.
Teams are crafting their own little kingdoms, complete with bars, shops, and restaurants. This “mixed-use” strategy isn’t just for kicks; it’s a long-term moneymaker. But, it’s not all sunshine and rainbows. Having control over the neighborhood brings its own set of headaches. According to Frank, teams aim to mold their surroundings to attract a specific crowd: white, well-off, tech-savvy males. Nabbing those development rights and playing their cards right could sweeten the deal for both Rubenstein and the Orioles.
2. MASN resolution
Another thorn in the Orioles’ side was their long-standing feud with the Washington Nationals over MASN and media rights fees. Last month, they finally buried the hatchet, agreeing on the local media rights for 2017-21. They told the Supreme Court of New York they’re cool with an MLB arbitration decision, which means each team gets a hefty $304 million for those five years. While this might not have been top of Rubenstein’s worry list, it’s one less headache for the Orioles moving forward.
3. Plethora of talent
Rubenstein won’t have to stress about building a team from scratch. Word on the street is that Baltimore’s front office is top-notch, thanks to Mike Elias from the Houston Astros. They’ve got a knack for picking and grooming players. The Orioles are boasting some serious talent, with catcher Adley Rutschman and infielder Gunnar Henderson already making waves. And that’s not even counting the other hotshots waiting in the wings. Plus, let’s not forget, this team clinched the American League East last season with a stellar 101-61 record. Things are looking up, and there’s room to grow.
4. Wide-open budget
How deep Rubenstein will dig into his pockets for the Orioles is still up in the air. But, the Orioles haven’t been big spenders lately, ranking pretty low in Opening Day payroll. They’ve got a clean slate for 2025, with hardly any financial commitments. This opens up a world of possibilities to bring in some heavy hitters to chase after a championship. Even if Rubenstein just aims for a league-average payroll, it could make a world of difference, especially while the team’s stars are still on the cheaper side.
5. Chance for glory
With all these pieces falling into place, it’s clear the Orioles are on the upswing, both on the field and in the boardroom. But for Rubenstein, a lifelong Orioles fan, the cherry on top would be bringing home a World Series title to Baltimore for the first time since 1983. For a guy who’s all about the bottom line, this has got to tug at his heartstrings.
