The Tampa Bay Rays are in superior talks to promote the group to a gaggle led by Jacksonville, Fla., developer Patrick Zalupski. The deal values the group at roughly $1.7 billion, based on a number of sources who requested to not be named as a result of the main points are personal.
Zalupski has signed a letter of intent (LOI) to buy the group. An LOI shouldn’t be a purchase order settlement, and the deal finally may not be accomplished.
Stu Sternberg, the principal proprietor, bought the franchise for $200 million in 2004. Consumers have been circling the Rays lately, and The Athletic reported in March that MLB commissioner Rob Manfred and different house owners have been pressuring Sternberg to promote.
The Rays launched a press release confirming that the group has “commenced unique discussions” to promote. Zalupski and Sternberg didn’t return a request for remark.
If a deal is reached, it could mark solely the second MLB team sale since Steve Cohen paid $2.42 billion for the New York Mets in 2020. Final 12 months, David Rubenstein led a gaggle that bought the Baltimore Orioles for $1.73 billion.
The Rays’ lengthy, futile efforts to construct a stadium to switch Tropicana Discipline have been dealt a blow final fall by Hurricane Milton, which took the roof off the St. Petersburg, Fla. ballpark and stalled local government plans to fund a brand new constructing. The Rays are playing home games this season on the New York Yankees’ Steinbrenner Discipline, its Minor League Baseball advanced in Tampa, Fla.
Zalupski is the founder and CEO of Dream Finders Properties, which makes a speciality of new dwelling development for first-time dwelling patrons. The corporate has constructed and offered greater than 38,000 properties in 10 states from its begin in late 2008 in Jacksonville by means of the top of 2024, based on its most up-to-date 10-Okay submitting. The corporate went public in 2021 and has an enterprise worth of $3.4 billion. Zalupski, whose internet value is $1.4 billion per Forbes, serves on the College of Florida Board of Trustees, having been appointed in 2023 by Gov. Ron DeSantis.
Recognized restricted companions in Zalupski’s group embody Ken Babby—who owns a pair of Minor League Baseball groups: the Jacksonville Jumbo Shrimp and the Akron RubberDucks—in addition to Invoice Cosgrove, CEO of Strongsville, Ohio-based Union House Mortgage. Since 2020, Union House Mortgage has been the title sponsor of the Gasparilla Bowl, the annual school soccer bowl recreation performed at Tampa’s Raymond James Stadium.
Beneath Sternberg, the Rays have usually fielded a bottom-five payroll in MLB however have made 9 playoff appearances since 2008 and possess a profitable proportion of .545 throughout that point. Solely the big-market, free-spending Los Angeles Dodgers and New York Yankees have received extra video games.
Regardless of the on-field success, followers have largely averted the Trop, with attendance amongst MLB’s backside 4 yearly since 2011 and final above 18,000 per recreation in 2013. Failure to safe a brand new stadium or enhance fan help has triggered hypothesis of a franchise relocation from Tampa. The Rays’ funds have been propped up by annual revenue-sharing checks of roughly $60 million.
The Rays have been valued at $1.35 billion, based on Sportico’s most up-to-date MLB valuations, rating twenty ninth out of 30 MLB groups and simply forward of the Miami Marlins.
(This story has been up to date after the Rays launched a press release concerning the unique discussions to promote.)
