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Size of MN Twins’ New Limited Partners Confirmed
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- Size of MN Twins’ New Limited Partners Confirmed
Jesse Johnson-Imagn Images Jesse Johnson-Imagn Images
The Minnesota Twins ended August by parting with nearly 40% of their roster . The selloff was largely seen as rooted in baseball reasons given the poor state of performance by the club . It was then revealed that the Pohlads mandated the selloff , and it got worse when they announced the team was no longer for sale .
Ultimately the Pohlads decided to retain the majority stake of their franchise. They did sell off a portion of the club , and while we don't yet know the identities of the new limited partners, we do have an understanding of their stake.
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Twenty percent of Minnesota Twins trades hands
Although the Pohlads didn't find a buyer at the $1.7 billion valuation they were seeking, they did find a pair of minority investors to help buy down their debt. The baseball team is carrying over $400 million in debt and have sold off at least one-fifth of the club to alleviate that issue.
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The Athletic's Dan Hayes confirmed the amount that will change hands once things are made official.
Sources confirmed that those limited partnerships are purchasing at least 20 percent of the club, moves that should help the team reduce accrued debt in excess of $430 million.
A sale of a minority stake helps the Pohlads to generate additional cash flow. That seems to be something they are severely lacking at the moment.
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Among the trades they made, Carlos Correa was shipped back to Houston along with $30 million just to get out of his future commitments. Ownership also fired nearly all of its pro scouting department. That move likely saves something like $400,000, which represents roughly 2% of the bottom line.
To what extent the minority partners get to speak into future decisions remains to be seen. It also likely depends on their identities and desire to be involved in baseball activities. It remains logical that the payroll will drop drastically next season, and that's regardless of whatever cash commitments the new owners are willing to pony up.
Related: MN Twins Axe Scouting Department
It's a sad state of affairs for the franchise, and everything is entirely self inflicted. The Pohlads pulled the plug following the 2023 season rather than pouring gas on what was a burning fire. Now they are just watching it all go up in flames.
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