247 Local Media247 Local Media

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Few Common Issues That Occur While Transporting a Car

    February 3, 2023

    An Overview of Online Casinos vs Traditional Casinos

    December 8, 2022

    Types of Specialists for Erectile Dysfunction

    October 31, 2022
    Facebook Twitter Instagram
    • Home
    Facebook Twitter Instagram
    247 Local Media247 Local Media
    Subscribe
    • Home
    • Automotive
    • Business
    • CBD
    • Crypto
    • Education
    • Entertainment
    • Fashion
    • Finance
    • Health
    • Home Improvement
    • Law \ Legal
    • News
    • Shopping
    • Sports
    • Technology
    • Travel
    • Contact US
    247 Local Media247 Local Media
    Home»Business»Tampa Bay Rays owner Stu Sternberg sued for alleged ‘fraudulent transfer’ of team control
    Business

    Tampa Bay Rays owner Stu Sternberg sued for alleged ‘fraudulent transfer’ of team control

    By June 30, 2022No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Tampa Bay Rays owner Stu Sternberg sued for alleged ‘fraudulent transfer’ of team control
    Share
    Facebook Twitter LinkedIn Pinterest Email
    Tampa Bay Rays owner Stu Sternberg sued for alleged ‘fraudulent transfer’ of team control

    [ad_1]

    A group of the Tampa Bay Rays’ minority partners filed suit against principal owner Stuart Sternberg this week, alleging he improperly enriched himself by secretly transferring operational control of the MLB franchise to an entity he controlled.

    The legal spat centers on the minority owners’ claim that Sternberg “wrongfully and surreptitiously” transferred legal ownership of the team in 2020 from an existing partnership structure to an entity called “Rays Baseball Club.” The partners say they did not learn about the transfer until months after it occurred.  

    “These actions have stripped plaintiffs of the value of their long-held investments in the franchise and team,” the lawsuit says.

    The minority owners participating in the lawsuit against Sternberg are listed as the MacDougald Family Limited Partnership, Stephen Waters, a trust in Waters’ name, Robet Kelinert and Gary Markel. They collectively own less than 10% of the Rays franchise.

    The Rays minority partners are suing Sternberg for violation of Florida’s Unfair and Deceptive Trade Practices Act and unjust enrichment and fraudulent transfer.

    The lawsuit alleges, among other claims, that Sternberg and the Rays Baseball Club entity failed to disclose a $376 million payment from regional broadcast partner Fox Sports Sun, which was “received after the ownership of the club and franchise had been transferred out of the partnership and into RBC.”

    The partners accuse Sternberg of having “intentionally concealed” the existence of the Rays Baseball Club entity.

    “The effect of all of this is that the partnership has been reduced to a mere shell, with no revenues from baseball-related operations, no cash flow, and no responsibilities of the management of the Rays team and franchise to the limited partners – the very reason the limited partnership was formed,” the lawsuit said.

    Tampa Bay Rays
    The minority owners control less than a 10% stake in the franchise.
    Getty Images

    The Rays and an MLB representative declined to comment on the lawsuit.

    “What was represented as merely moving assets to a wholly owned subsidiary was in fact a targeted and concealed plan to eliminate our clients individual rights, while allowing both RBC and Sternberg broader rights than those provided under the partnership agreement, necessitating this lawsuit,” said Courtney Fernald, a member of the legal team representing the minority owners and managing partner at Englander Fischer.

    The Athletic was first to report on the lawsuit.

    The latest filing marked the third time this year that the minority owners have sued Sternberg during an escalating legal battle over control of the Rays.

    The same partners also sued Sternberg in May 2021 and accused him of engaging in a long-running “scheme to squeeze out the limited partners” and seize full control of the franchise, the Tampa Bay Times reported.

    The Rays rank among the least valuable MLB teams, with an estimated valuation of $1.1 billion according to Forbes’ calculations.

    [ad_2]

    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Few Common Issues That Occur While Transporting a Car

    February 3, 2023

    Beyond Meat, Impossible struggle due to ‘woke’ perception: analysts

    September 26, 2022

    Developer hustles to build ‘Bustle’ in Penn Station area

    September 26, 2022
    Add A Comment

    Comments are closed.

    Editors Picks
    Recent Posts
    • Few Common Issues That Occur While Transporting a Car
    • An Overview of Online Casinos vs Traditional Casinos
    • Types of Specialists for Erectile Dysfunction
    • When students’ basic needs are met by community schools, learning can flourish
    • Walmart and Target Are Hiring 140,000 Seasonal Workers
    Archives
    • February 2023
    • December 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • September 2021
    Facebook Twitter Instagram Pinterest Vimeo YouTube
    • Home
    © 2022 - 247 Local Media- All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.