Endeavor to Sell 10 Minor League Baseball Teams

Silver Lake has entered an agreement to purchase Diamond Baseball Holdings from Endeavor for $280 million.

Formed last year, Endeavor owns 10 minor league baseball teams through DBH — including affiliates of the St. Louis Cardinals, Chicago Cubs, and New York Yankees. The company purchased six clubs in December and four in January for $64.2 million.

Endeavor president Mark Shapiro said the company’s “relationship with MLB and the MLBPA took priority given the importance of our overall agency business and our continued investment in our baseball representations practice within WME Sports.”

• The MLBPA previously claimed Endeavor’s ownership of player agents in its WME Sports division was a conflict of interest.
• Shapiro said there was little indication that a potential conflict would have prohibited Endeavor’s ownership plans.

“As we continue our active acquisition strategy, we will remain focused on key markets, historic brands, modernized facilities, and local, regional, and national partnerships within each of these important communities,” DBH CEO Peter Freund said. 

Silver Lake is Endeavor’s majority investor, with 69% of the company’s voting power. The transaction, expected to close in Q4 pending customary conditions and approvals, will allow Endeavor to pay down debt.

Silver Lake’s Sports

Silver Lake has other sports entities in its portfolio. 

The firm invested $130.45 million in New Zealand Rugby earlier this year and has participated in multiple rounds for Fanatics, including a $350 million round for Fanatics Trading Cards last year.