The Philadelphia Phillies are valued at approximately $3 billion after raising capital.

• According to two sources, the Philadelphia Phillies recently secured nearly $500 million in funding from three new investors.
• The Major League Baseball team and its 25% stake in regional sports network NBC Sports Philadelphia are valued at approximately $3 billion, according to sources.
• The Phillies have not disclosed how they will use the funds from their capital raise, but there have been rumors that they may pursue free agent Juan Soto.

The Major League Baseball team, the Philadelphia Phillies, recently obtained nearly $500 million in funding from three investors in a deal that valued the team and its 25% stake in NBC Sports Philadelphia at approximately $3 billion, according to two sources.

The Phillies received a significant capital infusion of close to $600 million from two existing owners, managing partner John Middleton and Stanley Middleman, as part of the transaction, according to sources.

The Phillies announced on November 1 that new investors, including Mitchell Morgan and Guntram Weissenberger Jr., would be joining the team. The size of the investment and the identity of the third investor were not disclosed.

Since limited-partner stakes are typically valued at 20% less than control stakes due to the lack of control, a $3 billion limited-partner valuation translates to a $3.7 billion control valuation.

The sale of the Baltimore Orioles for $1.73 billion earlier this year and the $2.42 billion paid for the New York Mets in 2020 by Steve Cohen are impressive numbers.

Over a year ago, Middleman bought a 16.25% stake in the Phillies at a grossed-up valuation of $2.8 billion.

According to historic revenue calculations, a $3.7 billion control valuation for the Phillies would be eight times 2023 revenue, compared with multiples of 5.3 for the Orioles and 6.7 for the Mets.

In 2014, the Phillies secured a lucrative television deal with NBC Sports Philadelphia, worth an average of $100 million annually over 25 years, as well as a 25% stake in the RSN.

The decline in pay-TV revenues due to cord-cutting has put pressure on regional sports networks, with Diamond Sports Group being the most notable example, filing for bankruptcy in March 2023. This could result in a reduction in television revenue for some baseball teams.

Comcast's ownership of 75% of the RSN reduces the Phillies' exposure to risk.

The Phillies have not disclosed how they will use the funds from their capital raise, but there have been rumors that they may pursue free agent Juan Soto.

Landing Soto, who could earn between $50 million to $70 million annually, would likely result in a significant luxury tax bill for the Phillies, who already have a payroll of $262 million, the fourth highest in baseball, according to Cot's Baseball Contracts. The team is already facing a luxury tax of $10 million, formerly known as the competitive balance tax, according to Spotrac.

The Phillies' payroll for the 2025 season is projected to be $240 million, which is below the MLB luxury tax limit of $241 million.

According to a source, prior to the capital raise, the Middleton family owned 48.75% of the Phillies, the Buck family owned 32.5%, and the Middleman family owned 16.25%. Pat Gillick owned 1.5%, and David Montgomery owned 1%, the source stated.

The ownership interests after the capital raise are unclear.

Neither the Phillies nor Galatioto Sports Partners responded to requests for comment on the capital raise.