Hogan Lovells and Wachtell, Lipton, Rosen & Katz are among several major law firms instrumental in the much-anticipated transaction that will witness Major League Baseball’s Baltimore Orioles change hands from its previous owner and legal professional, Peter Angelos, to David Rubenstein. Rubenstein, not just distinguished for his achievements in private equity, but also recognized for his legal expertise, is prepared to acquire the Orioles for a sum exceeding $1.7 billion, consolidating its status as one of the relatively few remaining significant American professional sports franchises under legal ownership. The full story is available on Bloomberg Law.
Notably, the skyrocketing valuations of professional sports teams in recent years have, for the most part, sidelined attorneys interested in acquiring ownership, instead redirecting them towards investing in emerging sports or minor leagues. However, the Orioles seem to counter this trend. An attorney closely involved in the Orioles deal disclosed the staggering amounts involved in sports sales today typically attract buyers from the financial world.
Rubenstein, a native of Baltimore and host of a Bloomberg Television show, amassed his wealth as a co-founder of The Carlyle Group Inc. His career, however, commenced as an associate at Paul, Weiss, Rifkind, Wharton & Garrison in New York, followed by a stint at a precursor firm of Pillsbury Winthrop Shaw Pittman in Washington. Rubenstein might have ceased practicing law years ago, but he maintains a status of ‘good standing’ with the District of Columbia Bar. Cal Ripken Jr., a renowned Orioles player part of the Rubenstein-led ownership group poised to take over the franchise, exemplifies another legal connection.
Beyond Wachtell and Hogan Lovells, several other law firms are involved in this transaction, according to two sources briefed on the matter. The deal awaits approval from the league and fellow MLB team owners. The Rubenstein’s bid for the Orioles has Wachtell serving as external counsel, a firm already noted for its work for The Carlyle Group and involvement in key transactions with high-profile figures. Besides, Hogan Lovells is extending counsel to some potential members of Rubenstein’s new ownership group, including Michael Arougheti, head of alternative asset manager Ares Management Corp., and investors Mitch Goldstein and Mike Smith. Comprising partners from Hogan Lovells are Michael Kuh, Adrienne Ellmann, and Matthew Schernecke, along with senior associate Zohra Sayedy.
This proposed deal continues the Orioles’ legacy of legal ownership. The team is currently owned by Peter Angelos, a notable plaintiffs’ lawyer specializing in asbestos litigation, and his son John Angelos. The Angelos family acquired the Orioles in an auction for $173 million in 1993 following the bankruptcy filing of the team’s previous owner, Eli Jacobs, a lawyer turned financier. Including in Jacob’s ownership group were R. Sargent Shriver Jr., co-founder of Fried, Frank, Harris, Shriver & Jacobson, and his son, Robert ‘Bobby’ Shriver III, along with Larry Lucchino, another former partner at Williams & Connolly who served as the Orioles president.