The Philadelphia Phillies recently completed a major capital raise, securing close to $500 million from three new investors in a deal that values the MLB team and its 25% stake in NBC Sports Philadelphia at around $15 billion, according to sources close to the transaction. This capital raise also included additional contributions from existing stakeholders, managing partner John Middleton and Stanley Middleman, pushing the total infusion to approximately $600 million.

This investment brings the Phillies’ valuation into a rare financial tier for Major League Baseball franchises. Typically, limited-partner stakes, which offer no control over the team’s decisions, sell for about 20% less than control stakes. This means that the $15 billion valuation is closer to an estimated control value of $18.5 billion. For context, the Baltimore Orioles were sold earlier in the year for $1.73 billion, and the highest price ever paid for an MLB team remains the $2.42 billion that Steve Cohen spent to acquire the New York Mets in 2020. The Phillies’ control valuation of $18.5 billion highlights the financial strength and market position of the franchise.

 

Philadelphia Phillies' $15 Billion Valuation Boosted by Strategic Capital Raise
Philadelphia Phillies’ $15 Billion Valuation Boosted by Strategic Capital Raise

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Much of this high valuation is due to the Phillies’ advantageous local television deal with NBC Sports Philadelphia. Signed in 2014, this deal ensures an average of $100 million per year in rights fees for 25 years and includes a 25% ownership stake in the regional sports network. However, the economics of regional sports networks have become more challenging with the rise of cord-cutting. For example, Diamond Sports Group, another major player in regional sports, filed for Chapter 11 bankruptcy in 2023. While other MLB teams may face declining television revenues, the Phillies are somewhat shielded due to Comcast’s 75% ownership in NBC Sports Philadelphia, which provides a degree of financial insulation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Phillies have not disclosed specific plans for the capital raised, though some speculate the funds could be used to make a competitive bid for free agent Juan Soto, a high-caliber player who could command an annual salary of $50 million to $70 million. Acquiring Soto would significantly increase the Phillies’ payroll and push the team into luxury tax territory. The team’s payroll reached $262 million in the 2024 season, the fourth-highest in MLB, and resulted in a $10 million competitive balance tax payment. Heading into 2025, the Phillies’ payroll stands at approximately $240 million, just below the MLB luxury tax threshold of $241 million.

Prior to this capital raise, the Phillies’ ownership structure included the Middleton family at 48.75%, the Buck family at 32.5%, and the Middleman family at 16.25%, with smaller stakes held by Pat Gillick and David Montgomery. It is unclear if these proportions have shifted following the recent capital raise.

The Phillies and Major League Baseball have not commented on the specifics of the transaction, nor has Galatioto Sports Partners, the advisory firm that represented the Phillies in this capital raise.

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