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Want to Own a Piece of the Red Sox?

The newspaper business has had more than its fair share of problems the last few years and they have only been exacerbated by the recession. No paper has been immune from the falloff in print readership and accompanying decline in advertising, including the venerable New York Times. In an effort to salvage the flagship Times, executives of the parent company have been examining all assets of the company and targeting any "nonessential" assets for the sale block.

Among the company's nonessential assets apparently is a 17.5% in New England Sports Ventures, the partnership put together by John Henry that purchased the Red Sox in 2002, along with Fenway Park and an 80% interest in NESN, the regional sports network. The Times is now shopping that partnership interest Barclay's Capital has pegged the value of the interest at $166 million, although in a better market it could easily be worth much more. The Company is said to be seeking $300 million, which seems a bit on the high side, particularly in this business climate. The Sox are however, a unique asset even for baseball.

The Times might package the interest with the Boston Globe in an attempt at a better price. The Times rebuffed inquiries from Jack Welch two years ago valuing the Globe at $550 to $600 million, a decision I'm sure is much regretted now. Barcaly's values the Globe today at only $20 million, after incurring steep losses.

Full post as published by Sports Biz on December 26, 2008 (boomark / email).