The family of the late Carl Pohlad announced in October its intent to explore a possible sale of the franchise. Allen & Company, an investment banking firm based in New York, is facilitating the process with longtime Twins president Dave St. Peter representing the Pohlads.
St. Peter told Sports Headliners on Monday to remember there is no final decision to sell the franchise and the exploratory process is still in a preliminary stage. “After the first of the year I expect that process will move into another gear and you’ll start to see prospective buyers emerge, and ultimately, as we head closer to opening day (March 27), I think you’ll see then more information as its relates to kind of where that is heading—and ultimately if the Pohlads are going to engage in a sale or not.
“But it’s premature right now to really determine exactly the course we’re on there. We’re in, I would say, more of a diligence phase and that will continue here through the end of the year.”
There are potential buyers for the franchise that Carl Pohlad bought in 1984 from the Griffith family for $44 million (worth $133.52 million in today’s dollars, per Forbes.com). It’s believed the Pohlads might be asking $1.8 billion or more for the club which Forbes valued at $1.46 billion earlier this year.
The Orioles sold for a reported $1.7 billion earlier this year. It could be argued the Twins are the more valuable franchise because the Baltimore-based Orioles are less than 40 miles away from another MLB franchise, the Washington Nationals.
Of note, too, is that owning an MLB team is being in exclusive company. Only four of MLB’s 30 franchises have changed owners in the last 12 years, per Sportsbusinessjournal.com.
“There’s a robust market for the team,” St. Peter said. “Buyers are certainly raising their hand but there’s a process here you go through. Those buyers…I think will engage much more directly with the investment bankers (Allen & Co.) as well as with the team after the first of the year.
“…There’s a tremendous amount of interest in the Minnesota Twins and I am proud of the fact that it’s viewed very favorably on a lot of different fronts. The market, the ballpark, the people (employees), (the) fanbase. This is a very solid franchise that many prospective buyers have interest in.”
Who the interested buyers are is unknown and there has been minimal media conjecture. Speculation has included Twins fan and Minnesota business titan Marty Davis. Glen Taylor’s name has also been mentioned but at age 83 and embroiled in litigation to retain majority control of the Timberwolves and Lynx it’s believed his interest in the Twins is dubious.
“Yeah, there are some local groups that have demonstrated interest,” St. Peter said. “Yes, but not exclusively and it remains to be seen at what level those groups ultimately will engage throughout the process.”
Selling to Minnesota-based owners will lessen concern from fans that the franchise, which started here in 1961 after relocating from Washington D.C., will remain in Minneapolis. St. Peter said from the seller’s perspective that’s probably a preference to sell to Minnesota people “but it’s not a requirement.”
He is “highly optimistic,” though, that if the Pohlads choose to sell they will find a quality buyer who is committed not only to the Twins but also to “our marketplace and our community.”
The Twins have 15 years remaining on their Target Field lease. St. Peter said regardless of whether the Pohlads retain control, or a new owner is in place, he expects negotiations with Hennepin County in the near future that could result in extending the lease to 2059.
The Minnesota Ballpark Authority owns the acclaimed stadium that opened in 2010. The entity was created by the State Legislature in 2006 to oversee the design, construction and operation of the stadium. Stadium financing was a venture between the county and Twins.
“I don’t view this (potential franchise sale) as a relocation threat,” St. Peter said. “I know there’s a lot of talk about that, but I think it’s nonsense.”
St. Peter pointed out that the MLB Ownership Committee will play a significant role in a potential Twins sale. Not only would a final buyer be vetted, but bidders will also be investigated by MLB. That gives St. Peter confidence that any party expressing serious interest “is going to pass muster so to speak.”
St. Peter also assured that MLB regards the Minneapolis-St. Paul area and surrounding market as important. He added “this is a critical market for our league so there’s no interest in relocating the Twins.”
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