David Rubenstein, renowned for his philanthropic endeavors after amassing a fortune in private equity, is set to extend his charitable acts to the Baltimore Orioles’ beleaguered payroll. The co-founder of the Carlyle Group has reportedly agreed to acquire the Orioles from the Angelos family for a staggering $1.725 billion, as per Puck News’ Tuesday report.
Joining Rubenstein in this ownership bid is fellow private equity tycoon Mike Arougheti, the co-founder of Ares Management. However, it is Rubenstein, aged 74 with a net worth estimated at $3.7 billion, who will provide the predominant financial backing for this proposed acquisition.
Pending approval from Major League Baseball and its 29 other owners, Rubenstein, a native of Baltimore, will secure ownership of a sports franchise after previously exploring bids for the Washington Commanders (ultimately sold to a group led by Josh Harris) and the Nationals, which remain for sale without any viable offer in sight.
This potential deal marks the end of a 31-year ownership era by the Angelos family, led by patriarch Peter Angelos, who acquired the Orioles for $173 million in 1993. With Peter Angelos, now 94, in declining health, his son John Angelos has assumed control of the club to MLB after a protracted family battle involving John, his mother Georgia, and John’s brother, Louis.
According to Puck’s report, Rubenstein intends to acquire a 40% stake in the club until Peter Angelos’ passing, following which the new owners will acquire the remaining stake. MLB owners are scheduled for a quarterly meeting in Orlando, Florida, next week; however, approval of the sale is unlikely until the following quarter after substantial due diligence by the league.
Under the Angelos ownership, the Orioles did not reach a World Series. Still, after three seasons of 100 or more losses in the four years from 2018-2021, the team experienced a resurgence in the 2023 season, winning 101 games and securing their second American League East title since 1997.
John Angelos expressed concerns in an August interview with The New York Times about the necessity to significantly increase prices to retain the Orioles’ young stars. He also postponed extending the club’s lease at Camden Yards, hoping for the development of a multi-use project near the stadium, which played a pivotal role in the ballpark renaissance of the ’90s.
With a year-end deadline approaching, the team and the state finalized a 30-year lease on December 18. However, plans to develop areas around Camden Yards were temporarily shelved. The club holds an out clause after 15 years if state approval for development around the stadium is not granted.
Now, the franchise and ownership seem poised for a new beginning.
Rubenstein, who recently stepped down as chairman of the Kennedy Center after a 27-year reign during which he donated $111 million to the national cultural arts center, seems enthusiastic about building upon the Orioles’ recent success. With promising players like Rookie of the Year infielder Gunnar Henderson, All-Star catcher Adley Rutschman, and a highly regarded farm system, Baltimore’s on-field future looks exceptionally bright.
As for the financial front, the Orioles had a payroll of $60.7 million in 2023, ranking among the lowest in MLB. Even with expected increases due to arbitration, the 2024 payroll is projected to remain in the bottom third of the league. The potential acquisition by Rubenstein and Arougheti could inject additional resources into the club’s coffers in the coming months.