New York Times (NYT) Will Have A Tough Time Selling Its Stake In The Red Sox

The New York Times (NYSE: NYT) is going to have a tough time in its attempts to sell its minority stake in the Boston Red Sox baseball team and as it is considering whether to sell the Boston Globe, the FT reported.

Bids have not yet come in for 17.75% in the baseball team and a related broadcasting business, but three people familiar with potential buyers valued the stake at just $50 million based on public information, which is a third less than The New York Times paid for it in 2002. When the Times first considered selling the Red Sox stake last year, it had hoped to quadruple its $75 million investment.

The Boston Globe is not officially for sale, but some Boston investors, wanting to rescue the hometown paper, "have flirted with the idea of buying it as a way to snatch the Red Sox stake", reported the FT.

HOwever, people close to investors said that they'd be unwilling to buy the Globe unless labor contracts were altered, $110 million in pension liabilities and other costs were eliminated in a bankruptcy restructuring.

New York Times management has pressed Globe unions to agree to $20 million in cuts by May 1 or risk shuttering the paper.

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