Rays in talks to sell to group led by Jacksonville developer

TAMPA — The Rays announced Wednesday that they are in “exclusive discussions” with a group led by Jacksonville developer Patrick Zalupski “concerning a possible sale of the team.”

Per the Rays, the group also includes “prominent Tampa Bay investors” who were not named, though Tampa businessman Dan Doyle Jr. is believed to be one.

The group also includes Bill Cosgrove, CEO of Union Home Mortgage that sponsors college football’s Gasparilla Bowl at Raymond James Stadium, and Ken Babby, who owns two minor-league baseball teams.

Neither the team nor group officials made further comment.

Here is a general outline of how the deal is expected work:

The team would remain in the Tampa Bay area, as Major League Baseball commissioner Rob Manfred prefers, in a new stadium to be built, with sites in Tampa to be considered in addition to what St. Petersburg could offer. The new group also would seek to retain the core of the baseball operations staff.

Sportico first reported the discussions, saying the deal is for about $1.7 billion and noting that while Zalupski signed a letter of intent he does yet not have a purchase agreement “and the deal ultimately might not be completed.” A letter of intent comes with an expiration date, and if an agreement is not reached by then, discussions could be re-opened with other groups, potentially leading to competing, and higher, bids.

Memphis hedge fund founder Trip Miller told the Tampa Bay Times on Wednesday night that he is hoping for that opportunity, as his group already had made an undisclosed cash offer for the team and is prepared to compete with Zalupski’s offer.

“We are financially prepared if needed to bid more,” Miller said.

If an agreement with the Zalupski group is reached, Major League Baseball would have to do a thorough vetting and other owners would have to approve the sale. Those approvals would be expected, and potentially completed, near or shortly after the end of the season.

Principal owner Stuart Sternberg, who bought into the team in 2004, addressed the situation with staff in a Zoom call on Wednesday and was described as being somewhat reserved and somber. He also expressed some frustration about having to take this action since there wouldn’t be support to get a new stadium if he remained in charge.

Baseball operations president Erik Neander also addressed the players and onfield staff about keeping their focus on the good things they were doing on the field.

Stay updated on Tampa Bay’s sports scene Subscribe to our free Sports Today newsletter We’ll send you news and analysis on the Bucs, Lightning, Rays and Florida’s college football teams every day. Loading... You’re all signed up! Want more of our free, weekly newsletters in your inbox? Let’s get started. Explore all your options

Tampa Mayor Jane Castor, in a statement provided by a spokesperson, sounded open to having discussions about the future of the team.

“The Tampa Bay Rays are part of this community, and we want them to stay right here in Tampa Bay,” she said. ”We’re optimistic that any new ownership will recognize the passion of our fans and the value of keeping the team rooted where they’ve been supported from the start.”

St. Petersburg Mayor Ken Welch declined comment, and a city spokesperson said the Rays have not discussed a potential sale with them.

A group led by Sternberg bought an interest in the Rays for a reported $200 million in 2004 from the original ownership group headed by Vince Naimoli, then took over control of the team in October 2005 and led the team to considerable success. Since the 2008 re-branding as the Rays, the team has the third-best record in the majors at 1486-1240 (.545) and made nine postseason appearances.

Reports and rumors of a potential Rays sale have circulated several times over the past several years. After the team in March backed out of an agreement to build a new stadium as part of a massive redevelopment in downtown St. Petersburg, the Tampa Bay Times reported that at least four groups — three with Tampa Bay ties and one in Orlando — expressed interest in buying the team.

Without addressing those reports specifically, Rays president Matt Silverman said on March 13: “The team is not for sale.”

A $1.7 billion sale price would be a hefty return on investment. The Rays were valued at $1.25 billion earlier this year by Forbes and $1.35 billion by Sportico. The Orioles were sold last year for a reported $1.73 billion.

Zalupski, 44, is a home builder and developer from Ponte Vedra Beach. A donor to Gov. Ron DeSantis’ presidential campaign, he was appointed by the governor to the University of Florida Board of Trustees in 2023.

Zalupski, the chief executive and founder of Dream Finders Homes, is rumored to be the developer behind a controversial deal recently to trade away 600 acres of a wildlife preserve in St. Johns County. His general counsel previously told the Times that Dream Finders was not involved in the proposal, but when the Times asked repeatedly if Zalupski was involved in his personal capacity, there was no response.

Zalupski did not return a call, voicemail or text message seeking comment.

Dream Finders, according to Sportico, has an enterprise value of $3.4 billion.

Cosgrove heads Union Home Mortgage, which is based in Strongsville, Ohio. Babby owns two minor-league teams, the Triple-A Jacksonville Jumbo Shrimp and Double-A Akron RubberDucks.

There was no information provided on the “prominent Tampa Bay investors, but one likely candidate is Doyle Jr., the CEO of the Tampa-based office equipment company DEX Imaging, who has been reported to be involved in several previous attempts to buy the team, including a 2023 bid with Miller.

Thompson Whitney Blake, founder of the private equity firm Blake Investment Partners, said he’s known Zalupski for 15 years, and the two have done deals developing single-family homes in a handful of subdivisions.

He said the two have not discussed if Zalupski’s plans involve moving the team.

“If they’re going to move to Orlando or Tampa or Jacksonville, Patrick’s the right guy to do it,” Blake said. “Anything I’ve ever worked on with Patrick has gone well and anything he said he was gonna do he’s done.”

Blake offered the city of St. Petersburg $250 million to buy the Tropicana Field property on the same day Sternberg announced the club would not move forward to build a stadium and surrounding redevelopment.

He said if Zalupski relocates the Rays out of St. Petersburg, it could accelerate development on the Trop site. He said his deal would include building 2,000 units of affordable and workforce housing throughout the city.

“Depending on his next moves, this could certainly help our city come to a resolution,” Blake said.

Miller would not disclose the members of his Epping Forest Diamond Partners group because he said they signed non-disclosure agreements, but added many of them are Floridians.

Miller said if he were to win the bid, all options are on the table as far as location, but his preference would be to keep it in the Tampa Bay area. He said he loves the Atlanta Braves’ Battery as a redevelopment model and wants to build a similar year-round, multipurpose attraction.

Miller, who attended a Rays game at Steinbrenner Field this season, said a new stadium would either have a translucent or retractable roof.

Similar to Zalupski, Miller has a home in Jacksonville and lives nearby in Sea Island, Georgia, just north of the state border. He said he would be the lead investor but would feel comfortable if others in his group wanted to take the lead. His group’s structure, he said, allows for that.

“Our intent is to win here with our bid and provide the resources needed for a new stadium and build on a lot of good things that Stu and Matt and the team have done,” he said.

• • •

Sign up for our Sports Today newsletter to get daily updates on the Bucs, Rays, Lightning and college football across Florida.

Every weekday, tune into our Sports Day Tampa Bay podcast to hear reporter Rick Stroud break down the biggest stories in Tampa Bay sports.

Never miss out on the latest with your favorite Tampa Bay sports teams. Follow our coverage on X and Facebook.

Click here to read article