Jeb Bush and Derek Jeter were determined to buy the Miami Marlins, but there’s a little matter of getting the funds together to complete the deal.
The pair had emerged as the “preferred bidder” with a $1.34 billion offer, beating out another bid by Tagg Romney (Mitt Romney’s son) for $1.1 billion.
Major League Baseball requires that the investor group have a “cash cushion,” and Jeter is having difficulty raising enough money to meet the requirement, Fox Business reported.
The Marlins are not only losing money, but are saddled with an estimated $400 million debt and the league is requiring that the new owner not be stuck with more debt just to buy the faltering team.
Bush and Jeter were reportedly looking to raise $900 million in cash, along with additional financing from Citigroup. But now, Major League Baseball has added a requirement that the new buyer have a $500 million cash cushion as well.
“Major League Baseball will not allow a situation where a new team owner is saddled with so much debt that they can’t effectively manage a franchise,” one league official reportedly stated.
Kristy Campbell, a spokeswoman for Bush, denied that the bid was in jeopardy, but would not provide any further comment on the matter.
Although Romney’s bid was less, he has more cash at his disposal, and would be more likely to come up with the required cash cushion.
Fox Business reported that Bush and Jeter were planning to invest only $50 million combined, and raise the rest of the money from outside investors.
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