As scheduled: the St. Louis Cardinals have closed on their purchase of the Memphis Redbirds (Class AAA; Pacific Coast League), with the city taking control of AutoZone Park.
The Memphis Redbirds Baseball Foundation is now out of the baseball game with the sale of both assets, and Fundamental Advisors LP, the Foundation’s sole bondholder, retired the original bonds issued by the Memphis Center City Revenue Finance Corporation.
“We are pleased to finalize the purchase of the Redbirds and are looking forward to a long- term partnership with the city of Memphis,” said William DeWitt Jr., Chairman and CEO of the St. Louis Cardinals. “Finalizing this deal represents a positive move toward stability of professional baseball in Memphis.”
Memphis will lease the ballpark to the Redbirds via a long-term agreement. The purchase agreement includes a significant, multi-season capital investment in AutoZone Park, which will be used to add state-of-the-art features and fan-friendly amenities to the ballpark.
“This is a great day for the people of Memphis,” said John Pontius, treasurer for the Memphis Redbirds Baseball Foundation. “All of us stand to benefit from the significant planned improvements to AutoZone Park, which will enhance the fan experience and bring renewed excitement to the City. With the Cardinal’s best-in-class leadership, the Redbirds are destined for great things.”
“We are proud to announce the closing of this deal. With it comes long-term benefits for our great city, including stabilizing the future of the Redbirds and AutoZone Park for decades to come” said Mayor A C Wharton, Jr. “Through this transaction we will continue our successful re-vitalization of downtown Memphis – in fact, we are looking forward to the festivities tonight, with the highly anticipated ‘Battle of the Birds,’ when the Redbirds are hosting the Cardinals in a sold out pre-season exhibition game for their 2014 season opener at AutoZone Park.”
“Over the past three and a half years, together with the City and the Foundation, we’ve worked hard to stabilize the financial condition of the team and maintain the stadium at the highest level possible,” said Laurence Gottlieb, Chairman and CEO of Fundamental. “Thanks to all parties involved, both the Redbirds and AutoZone Park have bright futures ahead. We are proud of what we have achieved and believe it is the right time to pass the baton onto the City of Memphis and the world-class St. Louis Cardinals organization.”
Barrett Sports Group advised Fundamental on the overall deal structure. Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC acted as counsel with regard to bond and financing matters and Husch Blackwell, LLP acted as transaction counsel to Fundamental.
The city has issued $24 million in bonds for the ballpark purchase and improvement plan. The Redbirds purchase price was not announced (we’re told $16 million), with the Cards committed to $5 million in ballpark improvements under a 17-year lease.
RELATED STORIES: AutoZone Park sale clear final hurdle; Memphis approves purchase of AutoZone Park; Decision on AutoZone Park purchase delayed by Memphis; Memphis offers $20 million for AutoZone Park; city, Cards to pay $20M for upgrades; Cardinals to buy Redbirds, city to buy AutoZone Park; Redbirds still on market entering 2013; Status quo reigns in Memphis; Talk of AutoZone Park sale premature: Pontius; Memphis looking at buying AutoZone Park; Weiss, Global Spectrum take full reins of Memphis Redbirds tonight
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