Yankees sell $3.3B in cash, stock for sale during ‘sharpshoot’ auction
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A Yankees’ sale of $3 billion in cash and stock for a one-time auction was among the top items on the agenda for a “sharpshoot” auction on Tuesday in New York City.
The New York Stock Exchange is selling all of the shares in the Yankees, including the team’s ownership stake, which includes a controlling interest in the team, in a multi-year auction.
The Yankees are one of the most valuable sports franchises in the world, but their owners’ shares are at the mercy of a bankruptcy judge who is considering whether to force the team to sell its shares.
The auction will go live on the New York stock exchange on Tuesday, and the shares will go for auction as part of a five-day public sale starting Thursday.
The share sale is part of the broader reorganization of the Yankees’ business that includes an $11 billion plan to spend on luxury equipment, luxury seating and a brand new ballpark.
The company is still trying to reach a deal on whether to sell more shares to raise more money to fund the plan, said Michael Pachter, chief executive of the sports business at Wells Fargo Securities.
The team’s shares are worth about $11.5 billion.
The sale of the team has been long anticipated, given that the Yankees have a long history of paying up-front for shares.
They have also faced intense criticism from some Yankees fans for paying for the team with cash that was not theirs.
Last year, the Yankees paid $2.7 billion for a 49.8 percent stake in the franchise.
That was the most ever paid for an NBA team.
The deal for a 52.8 share stake is still in the works.
The team’s current ownership group, led by President Randy Levine, has already agreed to pay $3,350 million for an 8 percent stake that the team plans to buy for $7 billion.
Levine said he plans to spend the rest of the money he receives from the sale on the team and to spend it in the form of a long-term investment.
A Yankees’ sale of $3 billion in cash and stock for a one-time auction was among the top items on…