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Baltimore Orioles set for $1.725 billion sale to David Rubenstein group

Reported by Usatoday
Feb 1, 2024· 2 min read
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Key Takeaways
  • • David Rubenstein, Carlyle Group co-founder with an estimated net worth of $3.7 billion, has agreed to purchase the Baltimore Orioles from the Angelos family for $1.725 billion, ending 31 years of family ownership that began with a $173 million acquisition in 1993.
  • • The ownership consortium includes private equity executive Mike Arougheti (Ares Management co-founder), Ares Credit Group principals Mitchell Goldstein and Michael Smith, Michele Kang, former Baltimore Mayor Kurt Schmoke, former New York Mayor Mike Bloomberg, Hall of Famer Grant Hill, and franchise legend Cal Ripken Jr.
  • • The transaction is structured as a phased deal with Rubenstein's group initially acquiring a 40% control stake, pending MLB approval from the league's 30 owners, though publisher context indicates the sale was subsequently approved by MLB owners.
  • • Rubenstein, a Baltimore native, positions the acquisition as a commitment to competitive spending and winning, stating the collective goal is to "bring a World Series Trophy back to the City of Baltimore" while relying on fan support.
  • • The $1.725 billion valuation represents a 10-fold increase from the Angelos family's original $173 million purchase price in 1993, reflecting substantial franchise value appreciation over three decades.
Summary
David Rubenstein, co-founder of the Carlyle Group and a prominent Washington philanthropist, has agreed to purchase the Baltimore Orioles from the Angelos family for $1.725 billion. Rubenstein, age 74 with an estimated net worth of $3.7 billion, will lead the ownership group with significant financial backing. The transaction ends a 31-year ownership tenure by the Angelos family, who acquired the franchise in 1993 for $173 million—a transaction that reflects the dramatic appreciation in MLB franchise valuations over three decades.

The incoming ownership coalition represents a blend of private equity capital, local political figures, and sports industry personalities. Mike Arougheti, co-founder of Ares Management, joins Rubenstein as a principal investor alongside Mitchell Goldstein and Michael Smith of the Ares Credit Group. The group also includes Michele Kang, former Baltimore Mayor Kurt Schmoke, former New York Mayor Mike Bloomberg, Hall of Famer Grant Hill, and Cal Ripken Jr., the franchise's most storied player. This combination of financial firepower and local credibility signals an intent to position the organization competitively within the MLB landscape.

Rubenstein, a Baltimore native, has pursued sports ownership interests previously, exploring bids for the Washington Commanders (ultimately acquired by Josh Harris) and the Washington Nationals. In his statement regarding the Orioles acquisition, Rubenstein emphasized his long-standing fandom and commitment to competitive performance, stating "our collective goal will be to bring a World Series Trophy back to the City of Baltimore." The deal is structured as a phased acquisition, with the group initially acquiring a 40% control stake, pending approval by MLB ownership. Publisher sources indicate the sale was subsequently approved unanimously by MLB owners, formalizing the ownership transition from the Angelos family to the Rubenstein-led consortium.

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Sources

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AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Usatoday Baltimore Orioles set for $1.725 billion sale to David Rubenstein group