Liverpool owners Fenway Sports Group have agreed a deal to sell one of the sports teams in their portfolio.
The Boston-based ownership group, who have sporting assets that include the Reds, the Boston Red Sox baseball team, the Pittsburgh Penguins ice hockey franchise and the NASCAR team RFK Racing, have entered into an agreement to sell the Salem Red Sox, a Minor League affiliate of their MLB team in Boston, according to the Boston Globe.
The Salem team, a Class A affiliate that competes in the Carolina League, are to be taken over by Diamond Baseball Holdings, having been under FSG control since 2007. Salem will remain an affiliated team of the Boston Red Sox despite the new ownership.
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“For 16 years, Allen (Lawrence, Salem general manager) and the entire team in Salem have been incredible partners who have made the entry point into the Red Sox Minor League system one that is welcoming and sets the standard for our culture,” Red Sox president and one of FSG’s most senior partners, Sam Kennedy, said in a press release.
“Our connection to Allen and the entire player development team in Salem will remain intact and I know the organisation is in good hands with DBH leaders like Pat Battle and Peter Freund at the helm.
“What they are doing to enhance the Minor Leagues through investment and technology will benefit Salem greatly and I have no doubt they will continue to build on what has been established in Salem under Allen’s capable guidance.”
FSG acquired the Salem Red Sox team from Hardball Capital in 2007, with Hardball having paid around $8m for team when they purchased it of businessman Kevin Bowles in 2006. The value of the deal to sell the team to Diamond Baseball Holdings has not been made public.
The value of the Salem Red Sox formed part of Boston Red Sox’s valuation, which stands at $5.21bn (£4.29bn), according to the latest insights from US sports business website Sportico.
FSG are currently in what they themselves have described as ‘growth mode’, where they are looking at adding more sporting assets to their portfolio, with a potential NBA expansion franchise at the top of the list in the coming seasons, a project that basketball icon and FSG partner LeBron James will likely helm when the 38-year-old calls time on his glittering career.
A potential sale of Liverpool had dominated the news agenda since it was revealed back in November that FSG were seeking third party investment. But FSG principal owner John W. Henry moved to quash rumours of a full sale of the Reds last month in a Q&A with the Boston Sports Journal.
Earlier this month Henry, in an exclusive interview with the ECHO, reaffirmed the commitment of FSG to Liverpool’s long-term future and revealed that potential investors had been identified as a result of their focused search that took place in recent months, a search led by FSG partner Mike Gordon and facilitated by US investment banks Goldman Sachs and Morgan Stanley.
The search for investment into Liverpool specifically has been borne from a desire to recapitalise the business at a time when valuations are high and the need for capital to aid a rebuild of the Reds’ first team is a pressing matter this summer.
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