MLB’s Rays in Advanced Talks for $1
The Tampa Bay Rays remain in sophisticated talk with sell the group to a group led by Jacksonville, Fla., developer Patrick Zalupski. The deal values the team at roughly $1.7 billion, according to numerous sources who asked not to be called since the information are private.
Zalupski has signed a letter of intent (LOI) to purchase the team. An LOI is not a purchase arrangement, and the offer eventually might not be completed.
Stu Sternberg, the principal owner, purchased the franchise for $200 million in 2004. Purchasers have actually been circling the Rays over the last few years, and The Athletic reported in March that MLB commissioner Rob Manfred and other owners were pressing Sternberg to sell.
The Rays released a statement verifying that the group has actually “commenced exclusive discussions” to sell. Zalupski and Sternberg didn’t return an ask for remark.
If a deal is reached, it would mark only the 2nd MLB team sale since Steve Cohen paid $2.42 billion for the New York Mets in 2020. In 2015, David Rubenstein led a group that purchased the Baltimore Orioles for $1.73 billion.
The Rays’ long, futile efforts to construct an arena to replace Tropicana Field were dealt a blow last fall by Hurricane Milton, which took the roofing system off the St. Petersburg, Fla. ballpark and stalled local government plans to fund a new structure. The Rays are playing home games this season at the New York Yankees’ Steinbrenner Field, its Minor League Baseball complex in Tampa, Fla.
. Zalupski is the founder and CEO of Dream Finders Homes, which focuses on brand-new home building for novice home purchasers. The company has constructed and sold more than 38,000 homes in 10 states from its start in late 2008 in Jacksonville through the end of 2024, according to its most recent 10-K filing. The company went public in 2021 and has a business worth of $3.4 billion. Zalupski, whose net worth is $1.4 billion per Forbes, serves on the University of Florida Board of Trustees, having actually been selected in 2023 by Gov. Ron DeSantis.
Understood limited partners in Zalupski’s group consist of Ken Babby– who owns a pair of Minors Baseball teams: the Jacksonville Jumbo Shrimp and the Akron RubberDucks– along with Costs Cosgrove, CEO of Strongsville, Ohio-based Union Home Loan. Given that 2020, Union Home Loan has been the title sponsor of the Gasparilla Bowl, the yearly college football championship game played at Tampa’s Raymond James Stadium.
Under Sternberg, the Rays have actually normally fielded a bottom-five payroll in MLB but have actually made nine playoff appearances because 2008 and have a winning portion of.545 throughout that time. Only the big-market, free-spending Los Angeles Dodgers and New York City Yankees have won more games.
Despite the on-field success, fans have actually mainly prevented the Trop, with attendance amongst MLB’s bottom 4 every year since 2011 and last above 18,000 per game in 2013. Failure to secure a brand-new stadium or enhance fan assistance has actually set off speculation of a franchise relocation from Tampa. The Rays’ finances have been propped up by yearly revenue-sharing checks of approximately $60 million.
The Rays were valued at $1.35 billion, according to Sportico’s latest MLB valuations, ranking 29th out of 30 MLB teams and just ahead of the Miami Marlins.
(This story has been upgraded after the Rays released a statement about the special discussions to sell.)