The New York Times Co. is actively trying to sell its stake in the Boston Red Sox , according to a person familiar with the matter.
The media company has repeatedly declined to say whether it is considering selling its Sox stake. But some investors have pushed the company to sell some of its noncore assets to raise cash and reduce debt as it struggles with declining advertising revenue. As recently as Dec. 9, chief executive Janet Robinson said the company planned to make some divestitures, without giving details.
Red Sox spokeswoman Pam Ganley declined to comment, citing the club's policy to avoid commenting on ownership issues.
In addition to The New York Times, Times Co. owns The Boston Globe, the Worcester Telegram & Gazette, the International Herald Tribune, About.com, and 16 smaller newspapers.
The company bought its 17.5 percent stake in New England Sports Ventures LLC, the holding company that owns the Sox, Fenway Park, and 80 percent of New England Sports Network, for $75 million in 2002. It was part of a consortium led by billionaire hedge fund investor John Henry that paid roughly $700 million for the team.
It's unclear how much money the Red Sox stake is worth. Reuters reported this month that the Red Sox share could fetch at least $200 million, citing analysts. But Marc Ganis, a Chicago sports consultant, said yesterday it is a poor time to sell a sports team.
Barclays Capital estimates Times Co.'s investment in New England Sports Ventures is worth about $166 million, The Wall Street Journal reported.
Many potential buyers have less money available because of the declining stock market. Sports teams, like most other businesses, will likely see reduced revenue because of the slow economy.
And investors could have a harder time borrowing money to buy sports teams because of the credit crunch.
In addition, Times Co. could be seen as a highly motivated seller that might be forced to sell its stake at a bargain price to raise cash.
And one person familiar with the Red Sox said the company's stake is in nonvoting stock, which could further reduce its value.
In addition, "It's a bad economic climate to be selling an illiquid asset," said Ganis, the president of Sportscorp Ltd., a Chicago sports consultancy.
Ganis said New England Sports Ventures is potentially worth $1.3 billion to $1.6 billion. But that figure is offset by any Red Sox debt, in addition to the likelihood that the Sox stake would sell at a discount, said Ganis and a business person formerly affiliated with the Red Sox.
It's unclear how fast a sale could occur, but Times Co. has a $400 million line of credit that has to be paid off or renegotiated by May, which could put pressure on the company to raise money.
News of a possible sale of Times Co.'s Red Sox stake was first reported on The Wall Street Journal's website last night.
Todd Wallack can be reached at twallack@globe.com
