Rumored Royals Sale Would Rank Among Most Profitable
On Tuesday, Ken Rosenthal and Jayson Stark reported that Royals owner David Glass was discussing a potential sale of the baseball team to John Sherman, who currently owns a minority interest in the Cleveland Indians. Jeff Passan is reporting the deal would be worth more than a billion dollars, which could potentially exceed Forbes’ estimate from earlier in the year. In very related news, Jeffrey Flanagan of MLB.com reported that the Royals are close to an extension of their television rights with Fox Sports Kansas City that were set to expire after this season. That deal, worth an estimated $50 million per season, looks light in relation to recent deals. Combined with the news of a potential sale, it seems possible the Royals have opted for a lesser television deal in favor of certainty in order to sell the team.
The potential television deal will be addressed later in this piece, but the bigger news is clearly the potential sale. Glass purchased the team for $96 million back in 2000, and if he were to sell the team for a billion dollars, it would be one of the most profitable sales in the history of the sport in sheer monetary terms. The graph below shows all sales of MLB franchises since the Orioles were sold back in 1988. During that time, every team except for the Yankees, White Sox, Twins, and Phillies have been sold, with the Diamondbacks and Rockies still with their original ownership group in some form. There have been 33 sales, with the Royals a potential 34th transfer.

The graph above can be a bit misleading as inflation and the amount of time a team has been owned can greatly affect the numbers above. The sale of the the Dodgers is still the biggest on the list, with the Mariners coming in second, and even after accepting a deal at only 75% of the rumored price, Jeffrey Loria’s profit on the Marlins was enormous. The average profit on a sale over the last 30-plus years (without the Royals) has been $306 million. Over the last decade, seven sales have averaged $900 million in profits. Read the rest of this entry »
