Alliance Sports LLC (“Alliance Sports”), in partnership with funds managed by Oaktree Capital Management, L.P. will provide loans to Minor League Baseball (“MiLB”) teams in need of capital through a newly created fund.
The fund will be for MiLB teams impacted by COVID-19 who need financing. Eligibility criteria includes all levels of MiLB affiliated teams with a trailing EBITDA of greater than $300,000 and a trailing three-year average revenue of greater than $3,000,000. Loan sizes are expected to range from $1 million to $10 million, with a 2 to 5-year term and an interest rate of 8-12%.
“We believe that Alliance Sports is uniquely positioned to provide capital to MiLB teams,” said Larry Botel, President of Alliance Sports. “As fellow owners, we have a deep understanding of the details of the business and have the ability to work with owners to create financings that we believe meet the needs of the teams without being over burdening.”
Alliance Sports, founded by Gary Green (CEO) and Larry Botel, owns and operates the Omaha Storm Chasers, the Triple-A affiliate of the Kansas City Royals; the Richmond Flying Squirrels, the San Francisco Giant’s Double-A affiliate; the Montgomery Biscuits, the Tampa Bay Rays’ Double-A affiliate; and Union Omaha, a USL League One Team. Alliance Sports also owns the digital platform and publication Baseball America Magazine.
This portfolio of business has put Alliance Sports in a unique position to provide capital to the minor league sports industry.