The Sky Is Not Falling: The Pohlads Retaining Ownership of Minnesota Twins Has Silver Linings

[Eric Blonigen]

Image courtesy of © Bruce Kluckhohn-Imagn Images

Okay. I’m gonna start this piece with some real talk, because I think it’s important to be very clear about a few things.

Wednesday’s news that the Pohlad family was taking the Twins off the market in favor of taking on minority investors was a gut punch. If you are feeling a certain way, I totally get it. My Twins fandom runs deep, and has for decades. I was excited about the possibility of new ownership coming in, opening their pocketbooks, and helping the Twins field a playoff roster through spending at levels commensurate with market size. You know, having at least an average payroll. My emotional reaction to the news was bordering on despair. This jeremiad rang true to me.

I went through the five stages of grief yesterday, much like many of you. Reactions on social media have been overwhelmingly negative. Reading through posts and comments on Bluesky and Reddit, there are calls for boycotting the team and organizing stunts to try to force a sale. And you know what? I get all that, too. The news is frustrating. Disheartening. Disappointing. It can portend more of the same letdown we have all experienced over the past 21 months, since the 2023 playoff series win.

And yet, having prefaced all that, it may not make sense to be pre-miserable about reverting back to the status quo, for several reasons. Firstly, this is not the status quo. Bringing on two “significant minority partners” does change things. To what degree things change remains to be seen, but there are at least a few things to consider that can be seen as harbingers of hope.

The last thing I will tell you is that I am not a Pohlad family apologist—far from it. I have rarely been accused of being Pollyanna in my adult life, and consider myself more of a realist than an optimist. That said, the realist in me sees five aspects of the news that do provide some hope that things can be different, sooner rather than later.

1. With a cash infusion, ownership may not have quite the same payroll limitations
This is the biggest one. It’s been well-documented over the past several months that the Twins have taken on over $425 million in (likely leveraged) debt. The Pohlads (probably) borrowed against the team to have more flexibility in their moribund real estate empire. This debt, and the interest payments, have probably taken something in the ballpark of $40 million a year right off the Twins' bottom line. With declining TV revenues and reduced gate sales at Target Field, and without a surfeit of positive cash flow from their other businesses, the Pohlads (by all accounts) have been struggling with cash to fund an appropriate team payroll.

The Athletic’s Dan Hayes reported that the two minority investors, whose identities will be revealed once approved by MLB, acquired more than 20% of the club, at a higher valuation than the $1.7 billion the Pohlads were seeking in the sale. To look at some rough numbers, let’s be a bit conservative here. Let’s say the investors acquired 24% of the team, at a $1.8 billion valuation, both of which shouldn’t be too far off the mark. That works out to be $432 million. Worst-case scenario, that should clear out the debt in its entirety, which gives the Pohlads a clean slate to work with.

It’s possible (and I mean possible), that this will result in the immediate flexibility to add the $40 million debt payments directly back to the payroll. If they sold more than 24%, or at a higher valuation, there could even be surplus cash. Time will tell what Joe Pohlad does with this.

2. Joe Pohlad actually seems interested in running the team
Did you hear that one of the conditions of sale that the Pohlads were pitching to potential ownership groups was that Joe Pohlad wanted to stay involved in the team? Me, too. All indications (including his own words) are that he is a baseball fan, and a Twins fan, specifically. He claims to want to win. The other Pohlads? That’s a little fuzzier. One of the many things we don’t know is how the ownership structure is shared among the various Pohlads. Another thing we don’t know is how many of the Pohlads have wanted to get out from owning a baseball team. It’s possible (again, possible) that the new minority owners will actually also be buying out specific Pohlads' stakes in the team. If team shares are divided among people who are passionate about the team, that can also change the calculus around how winning, the fan experience, and payroll are prioritized in relation to the other family business.

3. With 20%+ sold, it may be easier to sell the rest, down the line
Look, even for a billionaire, raising $1.7 billion while maintaining enough cash on hand to still be solvent is a tall order. Most ownership groups would need to work through various minority ownership stakes and financing in order to raise the necessary capital without mortgaging or liquidating other assets. But what about raising 76% of that capital? That’s a little bit easier. It’s possible (yes, once again, possible) that there are future prospective owners who would be all-in on offering $1.3 billion for a 76% stake in a Major League Baseball team. So, it could be easier to sell a couple of years from now, should the Pohlads once again find themselves in need of a significant cash infusion without taking on significant debt. It’s also possible that now that they have broken the seal, it’ll be easier or more palatable to sell off additional slices of the team to the same groups or new ones.

4. The minority owners could bring fresh perspective and new ideas
The Pohlads have done a remarkable job of alienating the Twins fanbase over the past few years (and let’s be honest, probably for a lot longer than that). What if the minority owners bring more of a fan or team focus? What if they can help the Pohlads avoid some of the ill-advised and tone-deaf comments, statements and press releases they have given recently? What if they are marketing savants who find ways to make it more attractive to attend games? What if there are clauses in their purchase agreements that stipulate certain payroll levels? To be clear, this is all purely speculation, and could be wishful thinking. But there are real possibilities here, and it’s important to at least consider them. At the very least, hopefully, we won't see more things like this.

5. Byron Buxton is glad to hear the news
Byron Buxton went on record saying he is glad the Pohlad family is retaining ownership:

“Everybody knows I want to be a Twin. It's good to know that the people that signed me are still in charge. To be able to move forward, it’s exciting,” Buxton said. “Going forward, that makes the conversations a little bit easier knowing that my whole tenure here, I’ve worked under the Pohlads. Just knowing the family a little bit, that’s the special part of being able to have those conversations down the road.”

For what it’s worth, Rocco Baldelli also expressed happiness. Now, this could be a case of comfortability and the devil you know being better than the devil you don't know. But, it’s fair to assume that Buxton and Baldelli have at least a bit of information that we are not privy to.

Will these hopeful notes come to fruition? I’m not going to pretend to know the answer to that. However, I do think it’s fair to give Joe Pohlad and his new minority partners a fair shake to live up to the claims that he cares, wants to win, and stands with the fans. It’s fair to give the benefit of the doubt that a huge cash infusion will allow him to make different decisions, freed from the constraints of being cash-poor and leveraged to the eyeballs. It’s fair to hope. It’s fair to give the Pohlad family the opportunity to prove our worst assumptions and fears correct. And, it’s fair to allow them to prove us wrong. It’s fair to hope that the Twins still have a bright future. There are few alternatives to explore, as fans, anyway.

Your move, Joe.

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[LA Vikes Fan]

Well said. We may be whistling past the graveyard, but well said. 

[jkcarew]

I assume the author of this piece drew the short straw at the TD staff conference call yesterday and was forced to carry the ‘write something good about this’ mantle. I’ll cut Eric some slack.

 

Meanwhile, let’s all take a moment to rejoice in the fact that, um…well, you know, it could have been worse.

[CRF]

Sorry, but there's no way I'd trust the Pohlads to use this "clean slate", to start putting money back into the team. The success of the Twins has never been a priority for them. 

[Vanimal46]

The cons of this news far outweighs the 1 or 2 silver linings. The Pohlads’ relationship with fans is fractured beyond repair. 

[Glorybound]

Blah blah blah. The Pohlads record speaks for itself. Even if they wanted to extend a player like Joe Ryan they won’t be able to because of what has transpired. The only free agents you are going to be able to sign are some washed up players who should likely retire. There is no way to sugar coat this anymore.

[mikelink45]

Stop it - enough.  Let's see what happens.

[The Great Hambino]

43 minutes ago, Eric Blonigen said:

2. Joe Pohlad actually seems interested in running the team

 

This is supposed to be a silver lining? 

[HerbieFan]

There was one baseball fan in the Pohlad family and her name was Eloise.  40 years of Pohlad ownership tells us exactly what to expect going forward.  I sincerely hope I'm wrong.  I've been a Twins fan for 50 years and, even at a young age, celebrated when Calvin Griffith sold the team.  Was hoping to be able to do so again.  No such luck.

[LastOnePicked]

I applaud the effort, but I don't think you've quite worked through the stages of grief yet. I hate to toss cold water, but ...

1) The Pohlads certainly knew of all of this before the trade deadline. What we all witnessed was a sell-off. There will be no payroll bump. In fact, they'll be looking to offload Lopez and Ryan in the offseason.

2) Why is this a silver lining? If I love an organization, the last thing in the world I want to hear is that a rich fool with more money than sense is excited about running that organization.

3) They would have already announced this, if that were the intent. No, they just needed cash, so they opened the door to investors. They have no intention of sharing their family legacy toys.

4) The minority partners could bring new ideas, sure. None of them will be listened to. Silver spooners tend to believe they're the smartest people in any room, despite any evidence to the contrary.

5) Come on. Buxton is loyal to the people who have paid him millions. I'd probably say the same if a Pohlad lined my pockets with a good contract after several injury years.

Sorry, yesterday's news was absolutely the worse-case-scenario for this club moving forward. What am I saying? - I mean, for this stagnant club going nowhere.

[Patzky]

Hey, your words needed to be heard at least by me. Probably by Peter too. I wanted so much to think the black cloud was an overreacting to the announcement yesterday, but I found no simpatico, no cause to not panic or (worse)! give up on the team.

You have valid points but thank you, mostly, for pause to consider. Buxton seems pleased. A pleased Buck can't be a bad thing. My ultimate taste test will be what happens with Pablo and Ryan. They're key not only to remaining competitive but to indicate to fans that there is indeed still an iota of caring about them from ownership.

Thank you again for writing this.

[Teflon]

Quote

I went through the five stages of grief yesterday, 

After discovering CBD gummies I now only go through two, tops. I think taking a few in your pockets to games in 2026 may be a good idea.

[Patzky]

Just now, Teflon said:

After discovering CBD gummies I now only go through two, tops. I think taking a few in your pockets to games in 2026 may be a good idea.

In clear plastic bags obviously.. so the other fans know why you're happy.

[tony&rodney]

The Pohlads remaining means more of Falvey. That is the problem.

[TheLeviathan]

*Me trying really hard to find any of these as actual silver linnings

[Doctor Gast]

For me, it has never been about the money or the Pohlads, although I'm not a fan of theirs. It's been how Falvey & Co. has run this organization. Joe's desire to control the Twins doesn't encourage me, it saddens me. For the Pohlads, Falvey, Baldelli, Tingler, Conger, Watkins & Co are all joined at the hip, & if one stays, they all stay. I can't see removing one without removing all. I haven't heard anything different, only them promoting each other. For years, I've advocated for change from top to bottom, not sell off, especially by Falvey & I certainly don't want him in charge of the rebuild. 

Since they are staying, for them to get me back. the Pohlads have to admit that they have no idea about running a team. Get someone who does, who'll clean house from top to bottom. Without change, there cannot be change. It's lunacy to think otherwise.

[D.C Twins]

You spin me right round baby right round.... 

 

[Vanimal46]

4 minutes ago, tony&rodney said:

The Pohlads remaining means more of Falvey. That is the problem.

That’s the biggest con out of all of this. Falvey/Rocco aren’t going anywhere and this ridiculous pitching experiment we’re doing in the minors lives on. 

[StiltedGopher]

Is that you, Joe?  

[D.C Twins]

"For what it’s worth, Rocco Baldelli also expressed happiness. Now, this could be a case of comfortability and the devil you know being better than the devil you don't know."

Of course Rocco is happy... he is going to get paid a great salary for more years when he will clearly never manage a MLB team after his tenure here. 

[nicksaviking]

54 minutes ago, The Great Hambino said:

This is supposed to be a silver lining? 

Right. Joe Pohlad also wanted to run two different radio stations and they soon went bankrupt.

As to the debt situation, the real estate market isn't in any better shape than when they started dumping their losses on the Twins. I've seen enough HELOCs to know that people who find a quick way to consolidate their debt, don't tend to change their ways, they just start accruing different debt which will later need to be dealt with.

[S Bart]

2 hours ago, Patzky said:

Hey, your words needed to be heard at least by me. Probably by Peter too. I wanted so much to think the black cloud was an overreacting to the announcement yesterday, but I found no simpatico, no cause to not panic or (worse)! give up on the team.

You have valid points but thank you, mostly, for pause to consider. Buxton seems pleased. A pleased Buck can't be a bad thing. My ultimate taste test will be what happens with Pablo and Ryan. They're key not only to remaining competitive but to indicate to fans that there is indeed still an iota of caring about them from ownership.

Thank you again for writing this.

Well said...if they dump Pablo and Joe (top 2 pitchers), it will show that your silver lining article is malarkey. One thing to remember is that the public paid for the majority of Target Field and there should be some consideration due to their investment.

[rv78]

Two statements that spell doom for Twins fans.... Joe is running the team and Rocco is happy. There isn't anything that says bad news more than that. Also, I've never known minority investors to be in charge enough to be able to make changes. They're known more as "silent" investors. In this case "suckers". Nice try, but the positive spin you put on this doesn't work because too much of the old still remains.

[Hubie29]

I guess I get a kick out of all the comments about how we had a fire sale to save money blah blah blah. Our team was terrible!!  NOT ONE player we traded is worth fretting over, including Varland.  It is actually a breath of fresh air to get rid of the dead weight and play the youngsters. I would rather watch this group of players rather than what we traded. 

[DocBauer]

Ahhh....the Minnesota Twins. The team you hate to love and and ownership you love to hate. (Snicker)

I've never been a Pohlad apologist in any way, but I was also never a basher. I was kinda proud of them when they were the SECOND? organization to jump on board during covid to retain everyone and pay them. About 2019 through 2023 they re-signed Buxton, took a FA shot on Donaldson, then brought Correa on board for a Twins record deal, and had payroll around 90-95% of league average. 

And then they blew up Fandom and any chance to maintain all the good will and team momentum in one harsh budget changing notification while the fans were still upbeat, happy, and optimistic. That's when I became a "disliker" of ownership.

When MLB cuts you a check of well over $100M before the season begins, before any tickets are sold, before counting any Twins centric TV and radio $ is added, etc, etc, how can you be over $425M IN DEBT unless you are just running the team poorly? And as far as PR goes? I'm just not going to go there for fear of saying something I'll regret later. (Sigh)

Over the last 24+ hours, EVERYTHING Eric brought up in his 5 points has gone through my head. 

It's very possible these new investors are simply playing a long game of a future return on their investment 5-10-15-20 years from now and are content to just sit back and do NOTHING. But that idea sounds a little fatalistic and short-sighted IMO. I have a hard time believing any new investor in the team, with a seat at the table, doesn't want to know exactly where and how their $ is going to be spent. Further, wouldn't they be interested in seeing their minority owner investment grow? Would they really be content just sitting back, smoke a big cigar, grab another glass of scotch, and just say: "wake me up when someone wants to buy me out and give me a return on my investment"?

It's possible.

It's also possible 2 groups investing well over $400M in the Twins might want a say so about where their $ is going to be spent, and how can this team/investment be run better? Each new investment group will probably select a chair person to have a seat at the table, even as minority owners. Can you imagine the repercussions if they ask the Pohlads where the $ was spent and they say it was a paydown for their debt? I'd think lawsuits might be forthcoming if that was the case. But that's just speculation on my part because I have little idea about someone making a $400-500M investment in a business/professional sports team.

I'd LIKE to think said minority owners would like to see growth in their new product OTHER THAN just normal inflation of said product over the next several years/decades. Wouldn't that just make a little sense?

I have no illusions of a massive payroll increase. I think ANY fan of the team has ONLY EVER ASKED to be around league average to keep the team competitive. Wouldn't new investors want the same vs 1.5M or less fans coming to the ballpark and a sour taste in the mouths of fans? Would they truly be happy and content to see their new product immediately bottom out?  And again, would they be content to just sit back and play the long game knowing they'll make back their investment PLUS in another 10 years or so.

Or might they have some new marketing ideas to grow their new investment? Might they want to see their new investment grow as a product for an even better return 10yrs from now?

My HOPE is the new investors, even as minority owners, will bring ideas and pressure to make the overall product better, more marketable, and even more profitable going forward.

Not saying it's going to happen. But it's my HOPE. I just can't imagine investing in a new product and being content to sit back and do and say nothing and just wait for a return a decade from now.

[palmspringstwinsfan]

Eric, it’s incumbent on you to share what you’re smoking or ingesting with all the other Twins fans. We should all get to hallucinate like you 

[darin617]

2 hours ago, tony&rodney said:

The Pohlads remaining means more of Falvey. That is the problem.

Why? Because Falvey did what he was told to do? If Falvey went rogue and went overboard with the fire sale he most likely would have been fired. The deadline has passed and what do they really need him for until the season is over. 

[Richie the Rally Goat]

Take comfort in the familiar embrace of an ownership group who has open contempt for their customers.

[LewFordLives]

We don't know who the new minority owners are, but I highly doubt they will have any new ideas or interest in running the club. Otherwise, why would they only take a minority stake? Most likely it's just some rich guys looking for a place to park money.

[glunn]

Quote

1. With a cash infusion, ownership may not have quite the same payroll limitations
This is the biggest one. It’s been well-documented over the past several months that the Twins have taken on over $425 million in (likely leveraged) debt. The Pohlads (probably) borrowed against the team to have more flexibility in their moribund real estate empire. This debt, and the interest payments, have probably taken something in the ballpark of $40 million a year right off the Twins' bottom line. With declining TV revenues and reduced gate sales at Target Field, and without a surfeit of positive cash flow from their other businesses, the Pohlads (by all accounts) have been struggling with cash to fund an appropriate team payroll.

If the purchase price is going to the sellers (members of the Pohlad family) then I suspect that none of it  will be used to pay down the debt.