After a flurry of last-minute developments, a group of investors led by outgoing Florida Marlins owner John W. Henry emerged victorious in securing the Boston Red Sox with a $700 million offer, more than twice the previous highest price ever paid for a Major League Baseball team.
Henry’s team, which includes television producer Tom Werner, former Baltimore Orioles executive Larry Lucchino, and former U.S. Senator George Mitchell, surpassed Long Island cable television magnate Charles F. Dolan in the race to take over the team after the Yawkey family’s seven-decade ownership.
In a joint statement, Henry, Werner, and their partners expressed their commitment, saying, “The Boston Red Sox embody the spirit and passion of New England. We will be active and visible members of this community and always remember that the team belongs not to us, but to all of you.”
Sources close to the situation revealed that Dolan had submitted a higher bid of $720 million, but after extensive discussions, Red Sox CEO John Harrington and the team’s limited partners unanimously rejected Dolan’s offer, citing concerns about potential delays in obtaining the necessary approvals from Major League Baseball and 23 team owners.
Another bidder, New York lawyer Miles Prentice, backed by the private equity firm Quadrangle Group, also reportedly made a higher offer than Henry’s, but the limited partners were skeptical about his ability to secure swift approval from league owners.
Red Sox attorney Justin P. Morreale did not comment on specific rival bids but noted that the Henry-Werner group’s offer was the most solid and without significant contingencies, unlike other proposals which had practical or legal complications.
The Henry-Werner bid included $410 million for the majority stake in the Yawkey Trust, which has been in place since 1933, along with $250 million for the limited partners who held veto power over the sale. The assumption of $40 million in debt brought the total value to $700 million.
If Major League Baseball owners approve the Henry-Werner bid next month, it could lead to the preservation of Fenway Park, as Werner’s group plans to renovate and expand the historic ballpark rather than build a new stadium elsewhere.
A late-breaking twist occurred when an alliance between Henry and local bidders Joseph O’Donnell and Steve Karp fell apart just hours before the meeting. Despite earlier encouragement from MLB Commissioner Bud Selig, the two sides failed to reach an agreement over who would have operational control.
Harrington emphasized that the Henry-Werner group was the “highest qualified” bid, expressing confidence that they would be able to deliver on the Red Sox’s future success. Henry plans to relocate his family to Boston and serve as co-chairman and managing general partner, with Werner as the other co-chairman. Lucchino, the former president of the Orioles and Padres, is expected to be named CEO.
Werner confirmed that they had entrusted Lucchino with all baseball operations decisions, and the group plans to focus on building a championship team. Additionally, Les Otten will oversee Fenway Park’s renovation project.
The sale agreement includes provisions for limited partners to exchange their shares for equivalent ownership stakes in the new group, and the Henry-Werner team is eager to bring in more local investors to help achieve their goal of a World Series title.
Other local business figures involved in the deal include Boston advertising executive Ed Eskandarian, TJX CEO Ben Cammarata, and apparel executive Marty Trust. Notably, The New York Times Co. is a minority investor, but it has pledged not to interfere with its newspapers’ coverage of the Red Sox.
At the lengthy meeting of limited partners at Fenway Park, it was ultimately decided that while Dolan and Prentice’s bids could have offered slightly more money, the certainty of the Henry-Werner group’s approval made it the better choice, avoiding the risk of delays or re-bidding.
Despite Dolan’s higher initial bid, his connection to the Cleveland Indians, owned by his brother Larry, raised concerns about potential conflicts of interest. Dolan’s group expressed disappointment, but privately, advisers claimed the bidding process was inconsistent and detrimental to their chances.
Harrington worked to strengthen his position with the limited partners by negotiating favorable contract extensions, which helped sway the decision in favor of the Henry-Werner bid. While Mayor Thomas M. Menino, a key figure in the future of Fenway Park, declined to comment, the outcome seems set to bring a new era for the Red Sox.