Even after getting the deal and the Miami Marlins for $1.2 billion, the winning Derek Jeter-Bruce Sherman team is looking for investors, sources say. It isn’t clear whether they need investors to get more comfortably to the $1.2 billion figure or are worried about having the money to cover certain losses over the next few years that could amount to $200 million or more (the team is said to be losing about $70 million this season). Word is that Sherman had to invest an extra $100 million late, stretching his investment to $400 million, and Michael Dell’s “preferred” equity deal (believed to be for $150 million) with the Jeter-Sherman group sounds suspiciously like a loan — and comes at a rate of 14 percent no less — so it seems that a bit of financial solidifying is necessary. The Dell piece is potentially worrisome, and some people familiar upon hearing about the arrangement suggest that “it appears to be a fancy way to get around the debt rule.” (MLB wisely instituted a rule of no more than 40 percent debt after the Frank McCourt debacle, and apart from the Dell money, Jeter-Sherman is right at 40 percent). Other MLB owners are getting their first close look at the deal this week at a Chicago meeting, but an MLB source said their initial review suggests there are “no issues” with the Sherman-Jeter Marlins deal. In the meantime, the buying group is talking to potential investors, just as they have been doing over the past several months, as Darren Rovell of ESPN reported. One of those potential investors is second-place finisher Jorge Mas, but it is unclear whether he’d want to invest without being the control person, and sources suggest Sherman is likely to remain the “control” person even if Mas were to invest a significant sum.
Jeter's group still seeking investors despite winning Marlins bid
Fanrag Sports | Aug 17