Sale Back On? Varde Partners

[GP830]

https://sports.yahoo.com/articles/report-minnesota-twins-sale-back-032821248.html

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[Parfigliano]

15 minutes ago, GP830 said:

https://sports.yahoo.com/articles/report-minnesota-twins-sale-back-032821248.html

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I do not expect anything to happen until a new CBA is in place.

[SF Twins Fan]

This is all coming from Charlie Walter’s, so I would take it with a massive boulder of salt.

[Vanimal46]

Don’t get my hopes up…

[lecroy24fan]

An investment company can only have 20% max team ownership.

[tony&rodney]

It is pretty weird that Charlie Walters managed a career writing a column of limited ....

[jctwins]

I'll say it was underreported what Tom said during the press conference regarding whether his role was a factor in a sale. He said it wasn't, or shouldn't be. I heard that as him not ruling out that they might still have a sale in mind, in spite of his current sense of commitment to the team. He may just as well be committed to getting the house in order to position for a better sale.

[Brock Beauchamp]

I'm truly excited to complain about our incoming private equity overlords.

[jaimedude]

Private Equity cannot not be managing partner, there has to be a lead owner, managing partner in charge. Even of there is some sort of sale I expect Tom Pohlad and his family to remain involved with Twins ownership. Just think there is part of the Pohlad clan that want's to cash out, part of their ownership share, not be involved in Twins, and or MN United ownership. 

[TheLeviathan]

Spoiler Alert: It has never been off.  They set a price they wanted, didn't get it, pulled it back from the market and now they're trying to slap a fresh coat of paint and remodel the bathroom so they can put it back on the market.

They never stopped intending to sell.

[Vanimal46]

6 hours ago, jaimedude said:

Private Equity cannot not be managing partner, there has to be a lead owner, managing partner in charge. Even of there is some sort of sale I expect Tom Pohlad and his family to remain involved with Twins ownership. Just think there is part of the Pohlad clan that want's to cash out, part of their ownership share, not be involved in Twins, and or MN United ownership. 

Private equity majority owned and Tom P still being the spokesperson is a special type of hell I don’t want to experience 

[C-Gangster]

Starting to like Tom P hope they don't sell. It seeks like Tom genuinely wants what's best for the team and the fans.

[Whammy]

I view this as "there's always a price"

I'm sure the the Pohlads view hanging onto the Twins until after a new CBA as a smart financial decision, but if someone came along tomorrow and offered 2.5 Billion, then all this "we're in this for the long term" talk goes out the window, which is totally understandable. 

[TheLeviathan]

5 hours ago, C-Gangster said:

Starting to like Tom P hope they don't sell. It seeks like Tom genuinely wants what's best for the team and the fans.

You should avoid HSN at all costs.

[Whammy]

Like I said above, the Pohlads are looking at their asset and thinking, that if certain things are implemented in the new CBA their asset might be worth significantly more money. Obviously that's why they think it makes sense to hang on to franchise.

They might think to themselves that if a salary floor/cap gets implemented with revenue sharing the team might be able to sell for $2.3B. And they might think there's a 50% chance of that happening. There isn't much downside to hanging onto the Twins and hoping that system gets implemented. If it doesn't get implemented, then it's worth the same as it is today (roughly).

But then along comes Varde Partners. They can do math too. Maybe they have different projections. Maybe they think it'll be worth $2.5B and there's a 60% chance that it happens. They are private equity so they'd murder their mothers if it meant 1% more to the bottom line, so they make the Pohlads an offer.

$1.9B.

That's more than the current "valuation" of $1.7B, but less than the real prize of $2.3B if things go well in with the CBA. What's better? A 100% chance of getting $1.9B, or a 50% chance of getting $2.3B

And if you're Varde Partners, what's you max number?

Everybody's got a number that will make them say yes. It's just about finding that number.