Posted on 09/13/2012 8:56:44 AM PDT by raccoonradio
The team is owned by the Fenway Sports Group, which also owns the English football team Liverpool FC. While no final decision has been made about a potential sale, and the talks appear to be in the early stages, executives at Fenway Sports are debating whether they have the financial resources to run both teams, according to people with direct knowledge of the matter.
The Red Sox have publicly denied that they are for sale. Reached Thursday, a spokesperson for the team said of the potential sale that “there is no truth to that rumor.” However, there has been talk for some time that the team is informally gauging interest in the club.
The price tag eyed for any potential sale would be a steep one, according to people who have spoke with Red Sox management: $1.3 billion. Forbes cites the value of the Red Sox at around $1 billion.
Financier John Henry is the principle owner of Fenway Sports, which bought the Red Sox in 2002 and produced immediate results, winning the World Series in 2004 and 2007. But the last two seasons have been dismal ones for the team, plagued by injuries and overpaid talent.
Recently, the team unloaded a slew of underperforming players, saving as much as $250 million through 2018.
Also likely weighing on the consideration to sell the team is the poor performance of Henry’s investment company, John Henry & Co. this year, these people say. The firm, which specializes in the futures market, has had a volatile year, with funds such as his Global Analytics losing nearly 16% this year, according to the company’s website.
But according to people with direct knowledge of the matter, the biggest challenge for Henry is running two expensive sports franchises. Fenway Sports purchased the Liverpool team for $476 million in 2010, and has been widely criticized for overpaying for players who have under-delivered.
In fact, Henry recently wrote an open letter to Liverpool fans, vowing not to overspend on talent in the future, but stating his commitment to keeping the team.
By weighing a sale of the Red Sox, Henry could devote more resources to the Liverpool team. Also, unloading Liverpool is considered more difficult compared with a franchise with the name recognition of the Red Sox, despite its lousy 2012 season.
Fenway also owns 80% of the New England Sports Network, where the Red Sox games are aired, as well as the Boston Bruins of the National Hockey League. It's unclear how the sports network would factor into any deal.
In fact, people close to executives inside Fenway say management has been increasingly focused not on the Red Sox, but on the future of the Liverpool team.
Probably true, it’s popularity is growing by leaps and bounds, I see people wearing Barcelona and Manchester United jerseys everywhere now.
As an Everton fan, I say, I like Liverpool right where they are right now. :)
I played soccer in college in the 1960s.
I don't believe I was brainwashed, LOL.
The Boston Red Sox have always overpaid for their players. They also have an annoying habit of keeping overweight, over-the-hill players on their team. They hit 20+ HRs a year but they also strike out 200 times and their home runs usually come with the bases empty and when they are losing 10-1.
Another thing the Red Sox do well is hit into double plays.
I don't believe I was brainwashed, LOL.
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Too bad. It might have been a good excuse.
“Excuse me, old chap, can you get me an autograph from Manny Ortez over there?”
When you’re 5ft 5in and 140 lbs, your chances of playing college fb (even in the 60s) was pretty low.
After the ridiculous price that the Dodgers got I think teams are crazy not to see if they can get 2 or 3 times what they thought their asset was worth.
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