Jeter/Bush Team Still Lining Up Money For Marlins Deal

Posted: April 27, 2017 in Uncategorized
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We learned recently that Marlins owner Jeffrey Loria had elected to try to finalize a sale of the organization with a bidding group led by Derek Jeter and Jeb Bush. As noted at the time, though, that hardly means that a deal is inevitable.

Reporting continues to emerge regarding the still-developing situation. Jon Heyman of Fan Rag writes that the Jeter/Bush group’s emergence from other bidders came as a surprise — and may not yet be backed by the needed financial commitments. The would-be owners are said to be contacting a range of sources, including some connected with other bidding groups, to bolster the amount of equity that’ll be needed to obtain MLB approval. (The league typically requires at least three-fifths of the purchase price to come from cash.)

Barry Jackson of the Miami Herald hears similarly, reporting that Bush has been on the horn with possible co-investors this week. The team, though, is apparently confident that the needed cash (and, presumably, debt financing as well) will be found in due time. As Jackson expounds further (Twitter links), that belief explains why the club struck an agreement for some form of exclusive negotiation rights — the details of which remain unknown — with the new group. Bush, who’d be the control person, will apparently sit down soon with league officials to discuss the money situation.

In the aggregate, there’s still a fair bit of uncertainty, even if the Jeter/Bush team have the inside track to move into Marlins Park. Per Heyman, a look at the books led the second-place bidders (a group led by Tagg Romney and headlined by Tom Glavine) to back down from their initial willingness to commit something on the order of $1.4B. For Jeter and Bush, convincing others to put their cash at stake will require a compelling financial argument. We have heard indication both that the league approval process ought not be a problem and that the Jeter/Bush duo can find the rest of the equity needed to lock up a deal. If not, says Jackson, Loria could circle back to other prospective buyers.

 

 

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