Fenway Sports Group, parent company to the Boston Red Sox, has ended discussions to sell a minority stake to RedBall Acquisition at an approximately $8 billion valuation.
RedBall is a SPAC led by famed Oakland Athletics executive Billy Beane and investor Gerry Cardinale.
Reports came out in October that RedBall was looking to raise $1 billion for a roughly 25% stake in Fenway Sports Group, but the company says it could not raise enough capital at the asking price for the proposed SPAC structure, according to Axios.
On top of the $575 million that RedBall raised in its IPO, the company also hoped to raise up to $950 million from Cardinale’s private equity firm, RedBird Capital Partners, as well as outside investors.
While negotiations to go public are over for now, Cardinale and Fenway Sports Group could still wind up with a private investment deal. Meanwhile, RedBall will still target an acquisition — potentially in soccer or gaming, Axios reported.
In addition to the Red Sox and Fenway Park, Fenway Sports Group’s properties include Liverpool F.C., New England Sports Network, the Salem Red Sox, Roush Fenway Racing and Fenway Sports Management.
The Red Sox were valued at an estimated $3.3 billion last year, according to Forbes, nearly ten times the $380 million the ownership group paid in 2002.