The Ongoing Sale Process of the Minnesota Twins
Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, spoke with Front Office Sports about the ongoing sale process of the Minnesota Twins. The article notes that the Pohlad family, the current owners of the team, are "asking for a price that's about in line with the value of the most recent MLB team sale." However, there are complications with the asking price because the Twins reportedly have several hundred million in debt. "MLB enforces a debt service rule that is meant to ensure teams maintain fiscal stability. Debt must be approved by the league, and if the amount of debt rises too high, MLB can step in to offer emergency financial assistance."
“I haven’t heard anything about the Twins being in distress, so certainly, at least in the opinion of MLB, it seems to be within the realm of approved debt,” said Irwin.
According to the article, Kishner believes that, despite the perceived challenges facing the Pohlads, they are likely going to “walk away with a nice chunk of change at the end of the day.”
“Any conversation should start with the general economic principle of supply and demand,” Kishner tells FOS. “There’s a very limited supply of professional sports teams. The Twins are a professional team and they have some significant history. I wouldn’t be surprised if they ultimately get the price they are thinking they deserve.”
Read the full article in Front Office Sports here. Access may require a subscription.