The Tampa Bay Rays confirmed on Wednesday that they began exclusive discussions concerning a possible team sale with a group led by Jacksonville home builder Patrick Zalupski that includes "prominent" Tampa Bay investors.
In a statement announcing the negotiations, the team did not identify the local investors and added that neither the Rays nor the possible suitors would have further comment.
However, having a group with local investors would give hope to those who want to keep the team in the Tampa Bay area, rather than relocating to Jacksonville or another market. In an interview with WDAE radio, Hillsborough County Commissioner Ken Hagan said he was “very confident” the group wants to stay in the region.
The news of the discussions was first reported by Sportico, which wrote that Zalupski signed a letter of intent and that the deal values the team at roughly $1.7 billion. Stuart Sternberg, the Rays' principal owner, purchased the franchise for $200 million in 2004.
At this point, there is only that – a letter of intent – with no guarantee a sale will be completed.
But there is no question the potential buyers have the financial muscle to follow through, should a deal come to fruition and become approved by Major League Baseball.
ALSO READ: Tampa-area investors interested in buying the Rays and keeping them in the region
Zalupski, 44, is the founder, president and CEO of Jacksonville-based Dream Finders Homes, which builds single-family houses in Florida, including the Tampa Bay area, and other states. Forbes lists his net worth at $1.4 billion. He was also appointed by Gov. Ron DeSantis to the University of Florida Board of Trustees, through 2028.
Also in the group is Ken Babby, the founder and CEO of Ohio-based Fast Forward Sports Group, a sports ownership and management company that owns the Jacksonville Jumbo Shrimp, the Triple-A affiliate of the Miami Marlins, and Akron RubberDucks, the Double-A affiliate of the Cleveland Guardians. In 2016, at age 36, Babby was named to Sports Business Journal's "40 under 40" list.
Another minority investor is Bill Cosgrove, 63, the president and CEO of Union Home Mortgage, which has headquarters in the Cleveland area. Since 2020, Union Home Mortgage has been the title sponsor of the Gasparilla Bowl played at Tampa’s Raymond James Stadium.
The Rays have been looking for a new home for when their contract at Tropicana Field in St. Petersburg ends in 2028. They've been playing this season in Tampa at Steinbrenner Field after Hurricane Milton ripped off the stadium's fabric roof last year.
In March, Sternberg pulled out of a public-private agreement to build a $1.3 billion stadium in St. Petersburg as part of a redevelopment project for the Historic Gas Plant District.
ALSO READ: St. Petersburg's mayor, other officials disappointed after Rays nix stadium agreement
Following that decision, St. Petersburg Mayor Ken Welch said he was done negotiating with Sternberg but was open to new ownership if the Rays were sold. At the time, team president Matt Silverman said the franchise was not for sale.
“If in the coming months, a new owner, who demonstrates a commitment to honoring their agreements and our community priorities, emerges, we will consider a partnership to keep baseball in St. Pete. But we will not put our city’s progress on hold as we await a collaborative and community-focused baseball partner,” Welch said.
Major League Baseball commissioner Rob Manfred reaffirmed a commitment to the Tampa Bay area in March but wanted Sternberg to come up with a "go-forward" plan to get a stadium built in the region. According to a report by the Athletic, MLB owners were pressuring Sternberg to sell.
Pinellas County Commissioner Chris Latvala wrote on X that all indications were that Manfred never wavered on his commitment to the Tampa Bay area. Hagan told WDAE he "got the sense" that Manfred was pushing for a sale and was “encouraged” it would go through.
“I’ve discussed the possibility of this particular ownership with commissioner Manfred a couple of months ago and candidly shared with the commissioner that if the time came when we were in position to potentially partner with this local ownership group that I was 100% confident that we could get a deal done in Hillsborough County,” he told WDAE host Tom Krasniqi on "The Drive With TKras."
Hagan served as a point man for the county when the Rays were close to moving to Ybor City in 2018. He said Ybor was still "an option" despite the Tampa Bay Sun's Tuesday announcement of plans to build a women's soccer venue in the same area.
"There is still potential for a ballpark to be in the Ybor-Port (Tampa Bay) general location," he told Krasniqi. "... That’s not going to be on the table for an extended period of time, but ... I think (Wednesday's) announcement will only make that a greater possibility."
When looking at Hillsborough, Sternberg was focused on Ybor, Hagan said, but a new ownership group might be open to other locations, including the Florida State Fairgrounds and former Tampa Dog Track.
The Rays pulled out of the $900 million Ybor stadium over financing concerns, primarily the need for more up-front money from the team. The Rays were to pay around half, with the rest from opportunity zone investments and private investors, including landowners.
While too soon to consider stadium financing this time around, Hagan said, "We would dust off the last proposal; we would start there, but there would be the potential for other sources.”
He mentioned the recently extended half-cent Community Investment Tax, which helped build Raymond James Stadium in the mid-1990s. He also referenced DeSantis saying state tax dollars could be involved in infrastructure.
In a separate interview with WDAE's Krasniqi, Latvala said he approve the Zalupski group if they wanted to negotiate a deal in Pinellas, but said it appeared Hillsborough was a first choice.
“I would guess that they’re more in line with wanting to build in Tampa, but that’s just a guess,” Latvala said. “I love the (Tampa Bay) Bucs and the (Tampa Bay) Lightning. … Playing across the bridge has no bearing on my fandom.
“I think Pinellas residents will understand that, as well. Them playing in Hillsborough County is a whole lot better than them playing in Orlando or Nashville or Montreal.”
Latvala also said Zalupski is “good friends” with DeSantis.
DeSantis discussed that possibility in May while also stressing no tax dollars would be used to build the actual stadium.
The governor also said MLB officials told him the Rays would not be allowed to leave the state. He added that leaving Florida would make "baseball look poorly that they couldn't hack it in really big markets."
“I think they understand that this is the fastest-growing state,” DeSantis said. “It's the third largest state in the country. To have a major league team leave, like, that's not something we want, obviously, but actually (it) is bad for the league.”
The governor also conveyed that different team ownership may be beneficial.
ALSO READ: DeSantis says MLB wants the Rays in Florida, but no state money will go toward a stadium
“Now, the Rays do need a new stadium. I think everybody understands that. I know that the current owner basically does not have a path forward in Pinellas County," DeSantis said. "I think the goal would be, if there's a new owner, to then have an ability to do a stadium in a place that would be economically viable. And I think you can do it. I absolutely think it can work.”
Orange County Mayor Jerry Demings has confirmed there is more than one investment group interested in acquiring an MLB team for Orlando, whether that be the Rays or an expansion franchise.
