Stanley Middleman, founder and CEO of Freedom Mortgage, has bought a 16.25% ownership stake of the Philadelphia Phillies. Pending necessary Major League Baseball approvals, the transaction is expected to close in July.
The stake is worth approximately $455 million, according to Forbes. The Phillies have been appraised at a reported $2.8 billion for the purposes of this transaction.
Founded in 1990 and headquartered in Boca Raton, Fla., Middleman’s Freedom Mortgage is an independent mortgage company that provides loans through wholesale and correspondent channels. According to the company, Freedom Mortgage was a Top-15 lender in 2022 with over $35 billion worth of loans across more than 119,000 units.
Middleman is a Philadelphia native and grew up “a huge Phillies fan,” he said in a statement. “It truly is a dream come true.” He told NMP a childhood highlight of the team was, "Watching Jim Bunning’s perfect game pitched on Father’s Day in 1964 and Tony Taylor saving the day with a great play in the field."
In a statement, John Middleton, the team’s managing partner, CEO and MLB control person, recognized Middleman’s success growing Freedom Mortgage as part of the inherent value he’ll bring to the ownership group – “his passion, commitment and perseverance in building his business. Those qualities, and many more, make Stan an important addition to our ownership group, and we are excited to welcome him to this organization.”
Middleman had been exploring investment opportunities in major league sports and was linked with the Washington Nationals and Cleveland Guardians before beginning discussions with the Phillies last summer.
In part to strengthen the team’s financial standing, the Phillies had been seeking to expand the club’s ownership group since at least last summer. In the fall, the Buck family, who were part of the group that bought the club from previous principal owner and president, Ruly Carpenter, for $30 million in 1981, announced their desire to reduce their ownership stake in the team.
The death in March of Phillie’s owner Bill Buck crytallized the Buck family’s decision to scale back their investment. Middleman’s stake accounts for the Buck family’s one-third reduction in their ownership stake, from 48.75% to 32.5%.
The reigning National League champions are poised to pay “the luxury tax” again this year with a payroll nearing a franchise-record $250 million. They currently have the fourth-highest payroll in Major League Baseball.
Middleton reportedly owns 48.75% of the team. The remainder of the limited partnership includes Pat Gillick (1.5%) and David Montgomery’s family (1%).
In December, UWM CEO Mat Ishbia with his brother bought the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury for $4 billion. Rocket founder Dan Gilbert bought the Cleveland Cavaliers in 2005.
