Cleveland MLB Team Looking to Sell Large Minority Stake

On the cusp of changing its name, Cleveland’s MLB team may also have an ownership change on the horizon.

Chairman and CEO Paul Dolan is on the hunt for a minority owner who could eventually take majority control of the team. Dolan co-owns the team with his father, Lawrence Dolan (uncle to New York Knicks and Rangers owner James Dolan). 

The team is looking to sell 30% to 40% of the team at a $1.4 billion valuation. Forbes valued the team at $1.16 billion in March.

• Most of the stake would be what was previously owned by Kansas City businessman John Sherman — close to 30% — plus some of Paul Dolan’s stake. Sherman had been in line to eventually acquire the Cleveland team when he pivoted to the Kansas City Royals.
• Sherman’s stake has been in escrow since he purchased the Royals for $1 billion in 2019.
• The Dolan family purchased the team for $323 million in 2000.

A potential complication in the sale is the timeline in which a buyer could take minority control. The Dolan family could reportedly retain control for at least five years — potentially longer than some investors want to wait.

The team is in the process of finalizing its name change to the Cleveland Guardians, which involves resolving a legal dispute with a roller derby team with the same name. 

It is also awaiting city approval on a 15-year stadium lease with two five-year options that would end any question of the team’s relocation.