The New York Times is reportedly looking to sell their 17.5 percent stake in New England Sports Ventures (NESV), which owns the Boston Red Sox, Fenway Park, and the majority of New England Sports Network (NESN), according to the Wall Street Journal, citing two unnamed sources familiar with the discussions.
According to the WSJ, Barclays Capital estimates the Times Co.'s investment is worth about $166 million in NESV, but could fetch as much as $200 million on the open market, despite the recession.
Times Co. became a minority partner in the Red Sox and its associated assets in 2002 when John Henry, Tom Werner, and Larry Lucchino purchased the storied club.
The Times Co. is the largest stakeholder behind Mr. Henry.
According to the WSJ, “The Times Co. has taken several cost-cutting steps recently to satisfy its funding requirements, which includes a $400 million revolving credit facility that expires in May. The company recently slashed its quarterly dividend by three-quarters and said it plans to borrow as much as $225 million against its Manhattan headquarters.”
Maury Brown is the Founder and President of the Business of Sports Network, which includes The Biz of Baseball, The Biz of Football, The Biz of Basketball and The Biz of Hockey. He is contributor to Baseball Prospectus, and is available as a freelance writer. Brown's full bio is here. He looks forward to your comments via email and can be contacted through the Business of Sports Network.
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