From CNBC: 2024-11-08 13:58:47

John Middleton, Managing Partner of the Philadelphia Phillies, recently signed autographs at the London Series game. The team raised close to $500 million from three new investors, valuing the team and its stake in NBC Sports Philadelphia at $3 billion. Middleton and another owner also invested more money, totaling close to $600 million.

New investors, including Mitchell Morgan and Guntram Weissenberger Jr., joined the Phillies, raising the team’s valuation to $3 billion. The valuation is impressive compared to the $1.73 billion sale of the Baltimore Orioles and the $2.42 billion paid for the New York Mets. Middleton previously bought a 16.25% stake at a $2.8 billion valuation.

The Phillies have a lucrative local TV deal with NBC Sports Philadelphia, offering stability amidst cord-cutting challenges in the industry. The team’s exposure to revenue risks is lower due to Comcast owning 75% of the RSN. Speculation suggests the team may pursue free agent Juan Soto, potentially incurring a significant luxury tax bill.

With a $262 million payroll last season, the Phillies are among the highest in baseball. Pursuing Juan Soto, who may earn $50-70 million annually, could further increase their luxury tax obligation. Heading into the 2025 season with a $240 million payroll, the team is near the MLB luxury tax limit of $241 million.

Before the recent capital raise, the Middleton family owned 48.75% of the Phillies, while the Buck family owned 32.5% and the Middleman family owned 16.25%. Pat Gillick and David Montgomery owned the remaining shares. The exact ownership breakdown post-capital raise is unknown. MLB and Phillies representatives declined to comment on the matter.



Read more at CNBC: Philadelphia Phillies raise capital at $3 billion valuation