Re: Articles
Posted: Mon Jun 27, 2022 2:13 pm
David Blitzer officially joins Guardians as minority investor, with pathway to majority ownership
By Zack Meisel
David Blitzer officially joins Guardians as minority investor, with pathway to majority ownership.
The successor to the Dolan family, the longest-tenured owners in Cleveland's franchise history, is officially in place.
An agreement has been finalized for David Blitzer to join the Guardians organization, initially as a minority investor, but with a pathway to become majority owner. Sources suggested to The Athletic throughout the last year that Paul Dolan was seeking to maintain control for about five more years.
For now, Blitzer is purchasing about 25 to 30 percent of the team, multiple sources said. Matt Kaulig, a Cleveland-based businessman who played quarterback at the University of Akron in the ‘90s, will also be part of the minority investor arrangement.
The Dolans purchased the franchise from the Jacobs family for $323 million in 1999. About 15 years later, they hired Allen & Co., a sports banking boutique led by Steve Greenberg, son of former Cleveland GM Hank Greenberg, to help them identify a new partner. Through that process, they secured John Sherman as a minority owner and potential successor, but after about three years with the organization, Sherman instead paid $1 billion for his hometown Kansas City Royals.
Paul Dolan has been seeking a replacement for Sherman ever since. Last year, Dolan and the team’s top executives completed the process of changing the team name, which had stood for more than a century. They also extended the club’s ballpark lease, which will tether them to Progressive Field in downtown Cleveland through at least 2036 and includes $435 million in ballpark upgrades and renovations. The contract also includes a pair of five-year options.
As Dolan checked those items off his task list last summer, he ramped up his efforts to land a new business partner. He provided ballpark tours for several interested parties, and he engaged in what he described as “meaningful discussions” with Blitzer as the year unfolded. Any agreement was bound to include an eventual transfer of power, according to several sources with knowledge of the negotiations. Sherman also had a path to majority ownership etched into his pact, though his came without a specific timeline and instead was left up to Dolan’s discretion, sources said.
Blitzer already has stakes in an array of teams from various leagues, including the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, as well as several soccer clubs in both the United States and in Europe.
The league’s owners approved Blitzer’s investment in the Guardians earlier this month, which commissioner Rob Manfred confirmed at the owners’ meetings about two weeks ago.
The Guardians opened the season with a payroll just shy of $70 million, which ranked 27th in the league, ahead of only the rebuilding Athletics, Pirates and Orioles.
In late March, Forbes valued the franchise at $1.3 billion, which ranked 24th among MLB teams.
By Zack Meisel
David Blitzer officially joins Guardians as minority investor, with pathway to majority ownership.
The successor to the Dolan family, the longest-tenured owners in Cleveland's franchise history, is officially in place.
An agreement has been finalized for David Blitzer to join the Guardians organization, initially as a minority investor, but with a pathway to become majority owner. Sources suggested to The Athletic throughout the last year that Paul Dolan was seeking to maintain control for about five more years.
For now, Blitzer is purchasing about 25 to 30 percent of the team, multiple sources said. Matt Kaulig, a Cleveland-based businessman who played quarterback at the University of Akron in the ‘90s, will also be part of the minority investor arrangement.
The Dolans purchased the franchise from the Jacobs family for $323 million in 1999. About 15 years later, they hired Allen & Co., a sports banking boutique led by Steve Greenberg, son of former Cleveland GM Hank Greenberg, to help them identify a new partner. Through that process, they secured John Sherman as a minority owner and potential successor, but after about three years with the organization, Sherman instead paid $1 billion for his hometown Kansas City Royals.
Paul Dolan has been seeking a replacement for Sherman ever since. Last year, Dolan and the team’s top executives completed the process of changing the team name, which had stood for more than a century. They also extended the club’s ballpark lease, which will tether them to Progressive Field in downtown Cleveland through at least 2036 and includes $435 million in ballpark upgrades and renovations. The contract also includes a pair of five-year options.
As Dolan checked those items off his task list last summer, he ramped up his efforts to land a new business partner. He provided ballpark tours for several interested parties, and he engaged in what he described as “meaningful discussions” with Blitzer as the year unfolded. Any agreement was bound to include an eventual transfer of power, according to several sources with knowledge of the negotiations. Sherman also had a path to majority ownership etched into his pact, though his came without a specific timeline and instead was left up to Dolan’s discretion, sources said.
Blitzer already has stakes in an array of teams from various leagues, including the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils, as well as several soccer clubs in both the United States and in Europe.
The league’s owners approved Blitzer’s investment in the Guardians earlier this month, which commissioner Rob Manfred confirmed at the owners’ meetings about two weeks ago.
The Guardians opened the season with a payroll just shy of $70 million, which ranked 27th in the league, ahead of only the rebuilding Athletics, Pirates and Orioles.
In late March, Forbes valued the franchise at $1.3 billion, which ranked 24th among MLB teams.