The Boston Red Sox are on the market.
Owners of the storied franchise are not only thinking about selling the team, but have even begun pitching it to potential buyers, FOX Business Network reports.
The Red Sox are owned by Fenway Sports Group, which also owns Liverpool FC of Barclay’s Premier League in Europe. Executives of Fenway Sports are debating whether they have adequate financial resources to run both teams, according to insiders.
What’s the asking price for one of baseball’s most iconic franchises? A whopping $1.3 billion, according to people who have spoken with team management. Forbes estimates the team’s value at a mere $1 billion.
Fenway Sports bought the Red Sox in 2002, and saw an almost immediate return on their investment with World Series victories in 2004 and 2007. But the last two seasons have not nearly been as successful as the team has been plagued with injuries and underperformance from its big money players.
John Henry, the principle owner of Fenway Sports, witnessed his investment company, John Henry & Co., plummet this year. The firm, which specializes in the futures market, lost nearly 16 percent of its Global Analytics fund, according to the company website.
Decreasing capital has only added to Henry’s challenge of running two expensive sports franchises. The decision to unload the Red Sox instead of Liverpool FC is likely a wise business decision. The Red Sox will fetch a higher price and will be easier to sell because of the team’s rich history and tradition.
The franchise’s recent fire sale of talent could sweeten the deal for a potential buyer as it would allow new ownership the freedom to choose a new direction for the club.
Fenway also owns 80 percent of the New England Sports Network, which carries the Red Sox and the Boston Bruins of the National Hockey League. The package deal could be worth between $1.5 billion and $1.6 billion.