The MLB Lockout Now Runs on Private Equity
Today’s guest columnist is Chris Koras, partner and head of sports at Working Capital Partners. In December 2022, I flew to the Dominican Republic to break a year-long contract stalemate. Our firm represented Rafael Devers. The Boston Red Sox had sent ownership and front-office executives to settle the negotiation directly with the player, hoping relationship …
The MLB lockout has transitioned into a scenario where private equity plays a significant role. In December 2022, Chris Koras, representing Rafael Devers, successfully negotiated a record $331 million deal between Devers and the Boston Red Sox. However, the landscape of labor disputes has changed due to ownership's development of a financial wall to neutralize superstar leverage during free agency.
MLB teams now have a systemic financial advantage, making resolve only credible when owners can survive their own threats. The shift in ownership strategy and capital structure has created a scenario where a work stoppage is viewed as a routine discount rather than a reason to walk away. Ownership's financial architecture is more robust, with access to revolving institutional liquidity, making them a formidable opponent in the labor negotiations.
Written by urgent.news from Yahoo Sports's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- The MLB Lockout Now Runs on Private Equity sportico.com
