The Marlins have just been sold for $1.2 billion.
Miami-Dade and the City of Miami need to hire competent (outside) counsel immediately and sue Jeffrey Loria to recover losses from the stadium deal.
The city and county entered into a deal with the Marlins which states:
Upon either a sale to a third party of a “control interest” (as deﬁned in the Major League Baseball Constitution in Baseball Rules and Regulations) in the Team or a sale of the Team’s Major League Baseball franchise in either case within the ﬁrst five years after the execution of this Agreement (other than following the death ofthe controlling owner), the Team shall or shall cause seller to pay to the County and the City, to be split on a pro-rata basis (including the value of the City’s contribution of the Baseball Stadium Site, the amount of the City’s and the County’s expenditures as required by Section 4.01, and the value of the City and the County’s respective expenditures associated with the Public Infrastructure) determined by each respective parties’ contribution to the Baseball Stadium, an amount equal to the following percentage of the net proceeds (as such term is deﬁned in the Management Agreement), after any applicable taxes, of sale that -are attributable to any increase in value of the franchise from the date of this Agreement (pro-rated int he case of a sale of the control interest):
If the sale occurs in: Percentage
Year 1 10%
Year 2 9%
Year 3 7%
Year 4 6%
Year 5 5%
The increase in value shall be based on an assumed value of the franchise of $250,000,000 as of the date of this Agreement, which assumed value shall be increased to give effect to any additional capital funding to the Team Afﬁliates (net of distributions) and an imputed, increase in value of 8% per annum from the date of this Agreement.
Since the sale occurred in year 5, the city and county are entitled to split 5% of a portion of the difference between the $250 million initial value and the reported $1.2 billion sale price. The only way to get a true accounting is by filing a lawsuit.
Loria gained control of the team from an initial investment reported to be just $12 million in the Montreal Expos, later swapped to ownership of the Marlins. He then threatened Miami-Dade with relocation, causing the government to spend hundreds of millions on a stadium at the height of the recession.
The timing of the stadium debt sale at a time when markets were frozen in 2009 means that taxpayers are on the hook for a reported $2 billion to $3 billion in payments.
stadium roof was damaged by hurricane irma and has yet to be repaired, despite the sale: