MLB sets schedule for sale of team

Major League Baseball yesterday began the formal sale process of its Washington franchise and is making a push to name the club’s new owners by the end of the year.

Working on a significantly faster pace than with most team sales, MLB officials are seeking requests for applications by Nov.1. Formal bids likely will be due later in November, and a rapid winnowing of those offers will occur in December. Baseball franchises are typically sold over a four-to-six-month process, but some recent sales have required nearly a year to complete.

“This is the first step, simply trying to identify out there who’s interested in the club,” said Rich Levin, MLB senior vice president. “Right now we’re obviously tied up with the [League Championship Series] and the World Series coming up in a few days. But once the season wraps up, we’ll certainly need to focus as closely as possible on the Washington franchise.”

The naming of the team, formerly known as the Expos, is a big concern. While MLB commissioner Bud Selig said he wants a new owner to help determine the new name, both Levin and Expos team president Tony Tavares said yesterday MLB may select the name soon after the World Series.

“That’s being considered,” Levin said. “Bud does want to involve the new owner in this, but we also understand the importance of having a new name in place.”

The leading candidates, as they have been for weeks, are Senators, Nationals and Grays.

The price for the franchise, which is moving to the District from Montreal, likely will exceed $300million and could push toward $400million. MLB owners paid $120million for the Expos franchise early in 2002 and then ran up more than $60million in operating losses during the protracted search for the team’s new home.

A large collection of bidders is expected. The Washington Baseball Club, led by District financier Fred Malek, stands as an early favorite. But that group will be tested by Long Island developer Mark Broxmeyer, Tennessee investment banker Brian Saulsberry and possibly a group led by Hall of Fame slugger Reggie Jackson. Local businessman William Collins III, the dominant figure in Northern Virginia’s unsuccessful 11-year pursuit of baseball, also is considering a bid.

“We’re excited. We intend to make a very aggressive and responsible proposal, and feel we have a very solid package to offer baseball,” Malek said. “But this isn’t really about us. It’s about putting the best foot forward for the success of the Washington franchise.”

After the initial expressions of interest in the club, prospective bidders will undergo preliminary background and financial checks to verify their ability to purchase and operate the team.

Putting a specific value on the Washington franchise, however, will require some guesswork. A much-discussed compensation deal between MLB and Baltimore Orioles owner Peter Angelos remains incomplete. One of the potential terms of that agreement is the creation of a new regional sports TV network. That network would air games of both the Orioles and the Washington club, and a majority equity stake of the venture would go to Angelos.

But without specific terms in place, it is unknown how much the Washington club will reap annually from local TV, one of the largest single revenue sources for any baseball team.

Meanwhile, Tavares said he will have little involvement in the franchise sale process, at least until it reaches a probable buyer conducting final due diligence.

“At least in the early stages, I think we’ll be out of that process,” Tavares said yesterday. “Once it gets to somebody really looking at player contracts, our financial obligations, that’s when we’ll get involved.”

In other developments:

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