Times Co.'s stake in Red Sox said to be in play

The New York Times Co. is actively trying to sell its stake in the Boston Red Sox, according to a person familiar with the matter.

The media company has repeatedly declined to say whether it is considering selling its Sox stake. But some investors have pushed it to sell some of its noncore assets to raise cash and reduce debt as it struggles with declining advertising revenue.

As recently as Dec. 9, chief executive Janet Robinson said the company planned to make some divestitures, without giving details.

In addition to The New York Times, the company owns The Boston Globe, the Worcester Telegram & Gazette, the International Herald Tribune, About.com, and 16 smaller papers.

The Times Co. bought its 17.5 percent stake in New England Sports Ventures LLC, the holding company that owns the Sox, Fenway Park, and 80 percent of the New England Sports Network, for $75 million in 2002. The company was part of a consortium led by billionaire hedge fund investor John Henry that paid roughly $700 million for the team.

It’s unclear how much money the Times Co.’s Red Sox stake is currently worth. Reuters reported this month that the Red Sox share could fetch at least $200 million, citing analysts.

But Marc Ganis, a Chicago sports consultant, today noted that it's a poor time to sell a sports team.

Many potential buyers have less money available because of the declining stock market. Sports teams, like most other businesses, are likely to see reduced revenue because of the slowing economy. And investors could have a harder time borrowing money because of the credit crunch.

It’s unclear how fast a sale could occur, but the Times Co. has a $400 million revolving credit facility that expires in May, which could pressure it to raise money.

News of a possible sale of the Times Co.’s Red Sox stake was first reported on The Wall Street Journal’s website.
(By Todd Wallack, Globe staff)