SCRANTON — An investment group will buy Mandalay Baseball Properties LLC’s 50 percent share in the Scranton/Wilkes-Barre RailRiders in a deal expected to have no significant impact on either the operation of the franchise or the future of minor league baseball in Northeast Pennsylvania.
The New York Yankees organization will retain its 50 percent ownership of its Triple-A affiliate, and the local RailRiders management, including president and general manager Rob Crain, will stay in place, members of the SWB Investors LLC group told The Times-Tribune on Wednesday.
“You will find we are the exact opposite of the previous ownership in terms of they were a corporate entity and we are a bunch of guys who love baseball, love the Yankees, love having fun, and a lot of us have been friends for many years,” David Abrams, one of the new prospective owners, said in a conference call.
The RailRiders announced Mandalay has entered into a definitive agreement to sell its interest to SWB Investors, whose principals include Mr. Abrams, David Blitzer, Grant Cagle and Michael Hisler.
“We are really excited to be here and be invested here but are not looking to shake things up in any way,” Mr. Blitzer said. “We think it’s a terrific franchise and it’s well-run.”
The terms of the transaction were not disclosed.
The deal is subject to approval by the International League and Minor League Baseball, along with review by the commissioner’s office of Major League Baseball.
Aside from the four principals, SWB Investors anticipates expanding to add ownership interests from Northeast Pennsylvania before the sale’s formal closing, which is expected by the end of the year.
Mr. Blitzer said those secondary investors are expected to include individuals with Scranton/Wilkes-Barre roots “all the way to people who are living in that region today.”
Two members of the investment group have professional sports management experience. Mr. Cagle is a minority owner of the Mobile BayBears, the Double-A affiliate of the Arizona Diamondbacks; Mr. Blitzer is a comanaging owner of both the Philadelphia 76ers of the NBA and New Jersey Devils of the NHL.
Mandalay and the Yankees are partners in SWB Yankees LLC, which purchased the RailRiders franchise from the Lackawanna County Multi-Purpose Stadium Authority in 2012, for $14.6 million.
As part of that deal, SWB Yankees signed a 30-year lease for the authority-owned PNC Field in Moosic, which underwent a $43.3 million reconstruction prior to the 2013 season. The RailRiders just completed the second year of the lease.
Mr. Abrams and Mr. Blitzer said neither SWB Investors nor the Yankees are interested in moving the franchise elsewhere.
“The location for the Yankees is good, and for us it’s great because there is a lot of support in Northeast Pennsylvania,” Mr. Abrams said. “That is not going to be any issue at all as far as keeping the team where it is.”
Mr. Blitzer said the deciding factors that prospective investors look at in terms of minor league baseball are the affiliation, the market, the facilities and the management team.
“We think that we have a winner in all of those categories. ... You really have a wonderful location, team, ballpark and management team, and obviously the partnership of the Yankees and the affiliation of that franchise is a fantastic asset,” he said.
In a statement, Lonn Trost, New York Yankees chief operating officer, said the Yankees remain “fully committed” to the RailRiders and Scranton/Wilkes-Barre.
“The Yankees’ relationship with Mandalay Baseball has been successful for the community as well as the Yankees’ Triple-A franchise, and we look forward to continuing our relationship with the community in conjunction with the new ownership group, with which we have great confidence,” Mr. Trost said.
Seaport Capital LLC, the private equity firm that holds a controlling interest in Mandalay Baseball Properties, announced more than a year ago that it was exploring selling the company, either as a whole or piecemeal by franchise.
The sale will end what Mandalay CEO Art Matin called “a true labor of love for the past eight seasons” as the company moved from managing the Scranton/Wilkes-Barre franchise for the Yankees to equal partner and owner.
As Mandalay exits, the franchise “is in very good shape and has a bright future there in Northeast Pennsylvania,” he said.
“One thing we as a company feel very good about is the new ownership group are guys who have a tremendous amount of passion for baseball, for minor league baseball and for sports in general, and I think they will be very good owners in tandem with the Yankees,” Mr. Matin said.
Lackawanna County officials are looking forward to working with a new partner to improve the franchise, Commissioner Corey O’Brien said.
“I’m impressed with their energy,” he said. “They are baseball fans and they understand the importance of family entertainment. They have a level of energy and enthusiasm that I think will translate well in this market.”
Commissioner Jim Wansacz said the investment group had the opportunity to purchase any of the Mandalay properties but was interested only in Scranton/Wilkes-Barre, which speaks to the potential of the franchise and the area.
“These are a bunch of guys who really love baseball and are really passionate about sports. ... They see great things and great promise here,” Mr. Wansacz said.
Contact the writer: dsingleton@timesshamrock.com