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New York Times hires Goldman Sachs to sell Red Sox stake
The New York Times said on Wednesday it hired banking firm Goldman Sachs to help it sell its stake in the Boston Red Sox baseball team, as the newspaper publisher struggles with heavy debt and declining ad revenue.
- Reuters
- Published: 22:59 January 29, 2009
Chicago: The New York Times said on Wednesday it hired banking firm Goldman Sachs to help it sell its stake in the Boston Red Sox baseball team, as the newspaper publisher struggles with heavy debt and declining ad revenue.
The 17.75 per cent stake is in New England Sports Ventures (NESV) which owns the Red Sox, their home field of Fenway park and adjacent real estate.
Analysts and sports bankers previously said the stake, the second largest behind that held by owner and hedge fund manager John Henry, could be worth up to $200 million (Dh734.70 million).
NESV also includes half of the Roush Fenway Racing Nascar team and an 80 per cent stake in the NESN regional sports cable TV network.
The US newspaper industry has been losing readers and advertisers as more people get news online and publishers cut marketing budgets amid the recession, forcing publishers to slash jobs and sell assets. Tribune which has agreed to sell the Chicago Cubs baseball team for $900 million, filed for bankruptcy last month due to its heavy debt load.
Earlier this month, the Times, saddled with more than $1 billion in debt, borrowed $250 million from Mexican billionaire Carlos Slim. It also is close to selling its interest in its New York headquarters building for as much as $225 million.
The Times acquired its stake in NESV for an estimated $75 million February 2002 as part of Henry's group, which bought the assets for $700 million including debt. The Red Sox have since won two World Series titles.
However, sports bankers said the stake could now prove too large and expensive in a recession, as well as unattractive since it lacks voting rights. One source familiar with the sale efforts said the Times has been asking too much for the stake.
A Barclays Capital analyst last year estimated the value of the Times stake at about $166 million. Several bankers have speculated NESV's debt at $100 million to $300 million, suggesting the Times stake could be worth as little as $124 million if the Red Sox and the other assets are worth about $1 billion.
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