Seaport Capital LLC, which includes a majority stake in Mandalay Baseball Properties, is selling its share of the holding company that owns five minor-league baseball teams, including half of the New York Yankees’ Triple-A affiliate.
Seaport, based in New York, has retained Game Plan LLC to sell the holding company, said Bob Caporale, the Boston-based firm’s chairman.
Included in the portfolio are the Dayton Dragons, Erie Seawolves, Frisco Roughriders, Oklahoma City Redhawks and Scranton Wilkes-Barre Railriders, which are co-owned by the Yankees. The teams are expected to generate more than $40 million in revenue this year, according to the retainer announcement distributed by Game Plan, a copy of which was obtained by Bloomberg News.
“Minor-league baseball is a great business,” Caporale said in a telephone interview.
Bill Luby, the Seaport partner who oversees Mandalay Baseball, declined in a telephone interview to put a valuation on the company, saying he’d rather let the market do that.
Mandalay was the last investment remaining from Seaport’s 2000 fund, said Luby, who is also part owner of Derby County Football Club in England.
“It has run its course,” he said. “We think we’ve developed a unique set of assets and that there’s an opportunity to do a lot more.”
Caporale said he sees three categories of possible buyers: someone who wants the company to do more in sports entertainment; someone who wants to create a national minor-league footprint by expanding operations into hockey or basketball, or an equity fund interested in a pure investment.
Investors in Mandalay Baseball Properties include basketball Hall of Fame player and Los Angeles Dodgers part-owner Magic Johnson; Peter Guber, part owner of basketball’s Golden State Warriors and the baseball Dodgers, and two-time Heisman Trophy winner Archie Griffin.
Mandalay also owns minority interests in Professional Sports Catering and 4Topps Premium Seating, the developer of a patent-pending premium seating product for sports and entertainment venues.