Latest news with #PatrickZalupski
Yahoo
6 hours ago
- Business
- Yahoo
Dream Finders Homes: Riding Out the Storm
Key Points Dream Finders reported solid growth in revenue and home closings, but higher expenses weighed on earnings. The company is following its playbook through the downturn, completing two acquisitions in the quarter. Dream Finders has ample resources to be opportunistic while housing is slow, but investors shouldn't expect a turnaround until macro forces realign and home buyers return to the market. 10 stocks we like better than Dream Finders Homes › Here's our initial take on Dream Finders Homes (NYSE: DFH) financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Revenue $1.06 billion $1.15 billion 9% Beat Earnings per share $0.81 $0.56 (31%) Missed Home closings 2,031 2,232 10% n/a Net new orders 1,712 1,938 13% n/a Dream Finders Remains On Course Despite Difficult Market Dream Finders grew revenue by 9% and home closings by 10% in what is a difficult housing environment, but higher homebuilding cost of sales and financial services expense ate into profitability. Homebuilding gross margin fell 250 basis points to 16.5%. Elevated interest rates, an uncertain economy, and pressures from soaring costs on home building supplies and labor have created what CEO Patrick Zalupski called "perhaps the most challenging environment in the past three years." Dream Finders continues to execute on its plan despite the downturn. In the quarter, the company closed deals for Alliant National Title Insurance Co. and Green River Builders, bringing its total to 10 acquisitions in the past six years. Alliant opens up new revenue sources, while Green River expands Dream Finders' presence in the fast-growing Atlanta area. The company also repurchased more than 700,000 shares for $16 million during the period. Immediate Market Reaction Investors knew going in that this was a tough housing market, and the results had little impact on sentiment. Dream Finders stock is down about 1% in early Thursday trading. What to Watch The big question facing homebuilders is when the housing market will turn. On Wednesday, the Federal Reserve held rates steady, and the odds of a September rate cut fell slightly, opening up the possibility of higher for longer on interest rates. Dream Finders ended the quarter with a backlog of 2,513 homes valued at $1.2 billion and reiterated its guidance for about 9,250 home closings in 2025. If the market remains weak, expect the company to continue to hunt for acquisition candidates in its core Sun Belt markets in anticipation of an eventual turnaround. The company cannot control the macro environment, and it is unlikely to see oversized growth until buyers return. But Dream Finders appears to be holding serve in a difficult climate, which is about the best investors can hope for for now. Helpful Resources Full earnings report Investor relations page Additional coverage Should you invest $1,000 in Dream Finders Homes right now? Before you buy stock in Dream Finders Homes, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dream Finders Homes wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,629!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,098,838!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dream Finders Homes. The Motley Fool has a disclosure policy. Dream Finders Homes: Riding Out the Storm was originally published by The Motley Fool Sign in to access your portfolio
Business Wire
10 hours ago
- Business
- Business Wire
Dream Finders Announces Second Quarter 2025 Results
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Dream Finders Homes, Inc. (the 'Company', 'Dream Finders Homes', 'Dream Finders' or 'DFH') (NYSE: DFH) announced its financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights (As Compared to Second Quarter 2024) Homebuilding revenues increased 4% to $1.1 billion Home closings increased 10% to 2,232 from 2,031 Net new orders increased 13% to 1,938 from 1,712 Homebuilding gross margin of 16.5% compared to 19.0% Adjusted homebuilding gross margin (non-GAAP) of 25.9% compared to 27.0% Pre-tax income of $74 million compared to $106 million Net income attributable to DFH of $57 million, or $0.57 per basic share compared to $81 million, or $0.83 per basic share Financial services pre-tax income increased 86% to $12 million from $7 million Controlled lot pipeline of 63,180 as of June 30, 2025 compared to 54,698 as of December 31, 2024 Total liquidity of $433 million as of June 30, 2025, comprised of cash and cash equivalents and availability under the revolving credit facility Return on participating equity of 25.0% compared to 33.5% Repurchased 705,404 Class A common shares for $16 million during the three months ended June 30, 2025 Management Commentary Patrick Zalupski, Dream Finders Homes Chairman and CEO, said, 'Dream Finders delivered another quarter of solid performance, with homebuilding revenues reaching $1.1 billion, largely consistent with the prior year quarter, while growing home closings by 10% and net sales by 13%. The industry continues to be faced with challenges from elevated interest rates straining housing affordability and weakening consumer confidence. While this is perhaps the most challenging environment in the past 3 years (since rates became elevated in mid 2022), I am proud of our team's execution and focus on our long term vision and I am confident in our ability to drive meaningful growth organically and through acquisitions. In the second quarter, we successfully closed the acquisitions of Alliant National Title Insurance Company, Inc. and Green River Builders, Inc., bringing Dream Finders to a total of ten acquisitions in the past six years. While not necessarily newsworthy from an acquisition price perspective, we believe these are both very strategic in nature and will generate significant long-term earnings. The acquisition of Alliant Title has enhanced vertical integration across the organization while significantly expanding our financial services capabilities and offerings. Acquiring Green River Builders expands our presence in the greater Atlanta region, namely on the northern side of Atlanta, complementing our acquisition of Liberty Communities last quarter, which builds predominantly on the south side of Atlanta and strengthening our position to capitalize on the largest housing market in the Southeast. We believe these acquisitions will create meaningful growth opportunities across our homebuilding and financial services segments, supporting our goal of delivering strong earnings and superior returns for our shareholders. While the near-term is likely to remain choppy, our continued confidence in the long-term strength of our business is evident in the repurchase of over 700,000 shares of our common stock during the second quarter. We believe deploying capital into the repurchase of our own shares when we feel there is a meaningful discount to intrinsic value reinforces our commitment to creating long-term value for our shareholders. We maintain a constructive outlook and are reiterating our full-year 2025 guidance of approximately 9,250 home closings.' Acquisitions Alliant Title On April 18, 2025, the Company acquired Colorado-based title insurance underwriter, Alliant National Title Insurance Company, Inc. and a related affiliate (collectively, 'Alliant Title'). The operations of Alliant Title are included in the Financial Services segment as of the date of acquisition. Green River Builders On May 2, 2025, the Company acquired the majority of the homebuilding assets of Green River Builders, Inc. ('Green River Builders') allowing us to further expand our operations in the Atlanta, Georgia market. The operations of Green River Builders are included in the Southeast segment as of the date of acquisition. Homebuilding Second Quarter 2025 Results Homebuilding revenues in the second quarter of 2025 of $1.1 billion reflected an increase of 4% when compared to the second quarter of 2024. Home closings increased 10% to 2,232, compared to 2,031 in the second quarter of 2024. Average sales price ('ASP') of homes closed for the second quarter of 2025 was $481,027, a decrease of 7% compared to the prior year quarter ASP of $514,833. The growth in homebuilding revenues was primarily due to the increase in home closings, largely attributable to the January 2025 Liberty Communities acquisition, which added 179 home closings with an ASP of $355,550. The lower ASP from the Liberty Communities closings contributed to the overall decrease in ASP for the quarter. The increased use of sales incentives during the second quarter of 2025 also had a partially offsetting impact on the homebuilding revenue growth. Homebuilding gross margin percentage in the second quarter of 2025 was 16.5%, a decrease of 250 basis points ('bps'), compared to 19.0% in the second quarter of 2024. The decrease in homebuilding gross margin percentage for the second quarter of 2025 was primarily the result of increased incentives, higher land and financing costs, and changes in product mix, partially offset by direct cost reductions and continued cycle time improvements. Adjusted homebuilding gross margin in the second quarter of 2025 was 25.9%, a decrease of 110 bps from the second quarter 2024 adjusted homebuilding gross margin of 27.0%. Adjusted homebuilding gross margin is a non-GAAP financial measure. See 'Reconciliation of Non-GAAP Financial Measures' below. Selling, general and administrative expense ('SG&A') in the second quarter of 2025 increased 39% to $135 million, compared to $97 million in the second quarter of 2024. SG&A as a percentage of homebuilding revenues in the second quarter of 2025 increased 310 bps to 12.3%, compared to 9.2% in the second quarter of 2024. The increase was primarily attributable to the costs of the forward mortgage commitment programs, which allow homebuyers to lock in their mortgage interest rates at the time of sale as well as higher compensation costs and other marketing and general expenses from our recent acquisitions and organic expansion. In the second quarter of 2025, the Company recorded $13 million of contingent consideration income in relation to the MHI acquisition earnout arrangement, which ends on September 30, 2025. The income is attributable to actual pretax income achieved being lower than expected for the second quarter of 2025 and reduced forecast estimates for the upcoming third quarter of 2025, driven by lower ASPs from a strategic change in product offerings in the Texas markets, as well as weakness in consumer demand. Consolidated net income attributable to DFH in the second quarter of 2025 was $57 million, or $0.57 per basic share, compared to $81 million, or $0.83 per basic share in the second quarter of 2024. Net new orders in the second quarter of 2025 were 1,938, an increase of 13% compared to 1,712 net new orders for the second quarter of 2024. The cancellation rate in the second quarter of 2025 was 14.0%, an increase of 80 bps compared with the second quarter of 2024 cancellation rate of 13.2%. The Company believes the 13% increase in net new orders and low cancellation rate is reflective of its successful sales incentives and availability of quick, move-in-ready homes in its communities. Second Quarter 2025 Backlog As of June 30, 2025, DFH had a backlog of 2,513 homes, valued at $1.2 billion, compared to the backlog of 2,802 homes, valued at $1.4 billion as of March 31, 2025. As of June 30, 2025, the ASP in backlog was $477,865 compared to $494,987 as of March 31, 2025. As of June 30, 2025, approximately 1,997 of the homes in backlog are expected to be delivered in 2025 and 516 of homes are expected to be delivered in 2026 and beyond. The following table shows the backlog units and ASP as of June 30, 2025 by homebuilding segment: Financial Services Financial services revenues and income before taxes increased by $47 million and $6 million for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, respectively, which was primarily due to the April 2025 acquisition of Alliant Title and the July 2024 consolidation of Jet HomeLoans. To a lesser extent, DF Title's expansion of operations into the Texas markets also contributed to the additional financial services revenues and income before taxes for the three months ended June 30, 2025. Full Year 2025 Outlook Dream Finders Homes maintains its guidance of approximately 9,250 home closings for the full year 2025, inclusive of those resulting from the Liberty Communities and Green River Builders acquisitions. About Dream Finders Homes Dream Finders Homes (NYSE: DFH) is a homebuilder based in Jacksonville, Florida. Dream Finders Homes builds single-family homes throughout the Southeast, Mid-Atlantic and Midwest, including Florida, Texas, Tennessee, North Carolina, South Carolina, Georgia, Colorado, Arizona, and the Washington, D.C. metropolitan area, which comprises Northern Virginia and Maryland. Through its wholly owned subsidiaries, DFH also provides mortgage financing as well as title agency and underwriting services to homebuyers. Dream Finders Homes achieves its industry-leading growth and returns by maintaining an asset-light homebuilding model. For more information, please visit Forward-Looking Statements This press release includes forward-looking statements regarding future events which include, but are not limited to, projected 2025 home closings and market conditions, possible or assumed future results of operations, benefits of recent acquisitions and statements regarding the Company's strategies and expectations as they relate to market opportunities and growth. All forward-looking statements are based on Dream Finders Homes' beliefs as well as assumptions made by and information currently available to Dream Finders Homes. These statements reflect Dream Finders Homes' current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in Dream Finders Homes' Annual Report on Form 10-K for the year ended December 31, 2024, subsequently filed Form 10-Q and other filings with the U.S. Securities and Exchange Commission. Dream Finders Homes undertakes no obligation to update or revise any forward-looking statement, except as may be required by applicable law. Dream Finders Homes, Inc. Consolidated Statements of Operations (In thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues: Homebuilding $ 1,099,580 $ 1,052,236 $ 2,069,688 $ 1,877,457 Financial services 50,925 3,511 70,688 6,090 Total revenues 1,150,505 1,055,747 2,140,376 1,883,547 Homebuilding cost of sales 917,871 852,837 1,701,407 1,531,477 Financial services expense 40,058 2,072 52,924 3,756 Selling, general and administrative expense 134,699 96,854 251,393 176,963 Income from unconsolidated entities (17 ) (5,299 ) (197 ) (10,202 ) Contingent consideration revaluation (12,706 ) 4,638 (11,606 ) 7,845 Other (income) expense, net (3,464 ) (1,363 ) 1,226 (3,124 ) Income before taxes 74,064 106,008 145,229 176,832 Income tax expense (17,525 ) (23,245 ) (33,680 ) (38,386 ) Net income 56,539 82,763 111,549 138,446 Net loss (income) attributable to noncontrolling interests 41 (1,820 ) (66 ) (3,009 ) Net income attributable to Dream Finders Homes, Inc. $ 56,580 $ 80,943 $ 111,483 $ 135,437 Earnings per share Basic $ 0.57 $ 0.83 $ 1.12 $ 1.38 Diluted $ 0.56 $ 0.81 $ 1.10 $ 1.35 Weighted-average number of shares Basic 93,444,326 93,722,953 93,495,455 93,524,396 Diluted 101,913,888 100,125,681 101,635,185 100,030,603 Expand Dream Finders Homes, Inc. Other Financial and Operating Data (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Other Financial and Operating Data Home closings 2,232 2,031 4,157 3,686 Average sales price of homes closed (1) $ 481,027 $ 514,833 $ 489,018 $ 505,926 Net new orders 1,938 1,712 3,970 3,436 Cancellation rate 14.0 % 13.2 % 12.8 % 16.8 % Homebuilding gross margin (in thousands) (2) $ 181,709 $ 199,399 $ 368,281 $ 345,980 Homebuilding gross margin % (3) 16.5 % 19.0 % 17.8 % 18.4 % Adjusted homebuilding gross margin (in thousands) (4) $ 285,162 $ 284,571 $ 555,262 $ 501,784 Adjusted homebuilding gross margin % (3)(4) 25.9 % 27.0 % 26.8 % 26.7 % Active communities as of period end (5) 271 222 Backlog as of period end - units 2,513 4,205 Backlog as of period end - value (in thousands) $ 1,200,875 $ 2,123,618 Net homebuilding debt to net capitalization (4) 44.7 % 42.7 % Return on participating equity (6) 25.0 % 33.5 % Expand (1) Average sales price of homes closed is calculated based on homebuilding revenues, adjusted for the impact of percentage of completion revenues, and excluding deposit forfeitures and land sales, over homes closed. (2) Homebuilding gross margin is homebuilding revenues less homebuilding cost of sales. (3) Calculated as a percentage of homebuilding revenues. (4) Adjusted homebuilding gross margin and net homebuilding debt to net capitalization are non-GAAP financial measures. For definitions of these non-GAAP financial measures and reconciliations to our most directly comparable financial measures calculated and presented in accordance with GAAP, see 'Reconciliation of Non-GAAP Financial Measures' below. (5) A community becomes active once the model is completed or the community has its fifth net sale. A community becomes inactive when it has fewer than five homesites remaining to sell. (6) Return on participating equity is calculated as net income attributable to DFH, less redeemable preferred stock distributions, divided by average beginning and ending total Dream Finders Homes, Inc. stockholders' equity ('participating equity') for the trailing twelve months. Expand Reconciliation of Non-GAAP Financial Measures Management utilizes specific non-GAAP financial measures as supplementary tools to evaluate operating performance. These include adjusted homebuilding gross margin and net homebuilding debt to net capitalization. Other companies may not calculate non-GAAP financial measures in the same manner that we do. Accordingly, these non-GAAP financial measures should be considered only as a supplement to relevant GAAP information, as reconciled for each measure below. In the future, we may incorporate additional adjustments to these non-GAAP financial measures as we find them relevant and beneficial for both management and investors. Adjusted Homebuilding Gross Margin The following table presents a reconciliation of adjusted homebuilding gross margin to the GAAP financial measure of homebuilding gross margin for each of the periods indicated (unaudited and in thousands, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Homebuilding gross margin (1) $ 181,709 $ 199,399 $ 368,281 $ 345,980 Interest expense in homebuilding cost of sales (2) 56,197 41,662 98,002 72,404 Amortization in homebuilding cost of sales (3) 396 2,518 1,725 7,100 Commission expense 46,860 40,992 87,254 76,300 Adjusted homebuilding gross margin $ 285,162 $ 284,571 $ 555,262 $ 501,784 Homebuilding gross margin % (4) 16.5 % 19.0 % 17.8 % 18.4 % Adjusted homebuilding gross margin % (4) 25.9 % 27.0 % 26.8 % 26.7 % Expand (1) Homebuilding gross margin is homebuilding revenues less homebuilding cost of sales. (2) Includes interest charged to homebuilding cost of sales related to our senior unsecured notes, net, and revolving credit facility and other homebuilding notes payable included within revolving credit facility and other borrowings on the Condensed Consolidated Balance Sheets ('homebuilding debt'), as well as lot option fees. (3) Represents amortization of purchase accounting adjustments from our acquisitions. (4) Calculated as a percentage of homebuilding revenues. Expand We define adjusted homebuilding gross margin as homebuilding gross margin excluding the effects of capitalized interest, lot option fees, amortization included in homebuilding cost of sales (adjustments resulting from the application of purchase accounting in connection with acquisitions) and commission expense. Our management believes this information is meaningful as it isolates the impact that these excluded items have on homebuilding gross margin. We include internal and external commission expense in homebuilding cost of sales, not selling, general and administrative expense, and therefore commission expense is taken into account in homebuilding gross margin. As a result, in order to provide a meaningful comparison to the public company homebuilders that include commission expense below the homebuilding gross margin line in selling, general and administrative expense, we have excluded commission expense from adjusted homebuilding gross margin. However, because adjusted homebuilding gross margin information excludes capitalized interest, lot option fees, purchase accounting amortization and commission expense, which have real economic effects and could impact our results of operations, the utility of adjusted homebuilding gross margin information as a measure of our operating performance may be limited. Net Homebuilding Debt to Net Capitalization The following table presents a reconciliation of net homebuilding debt to net capitalization to the GAAP financial measure of total debt to total capitalization for each of the periods indicated (unaudited and in thousands, except percentages): As of June 30, 2025 2024 Total debt $ 1,580,352 $ 1,185,440 Total mezzanine equity 178,039 169,951 Total equity 1,335,686 1,051,581 Total capitalization $ 3,094,077 $ 2,406,972 Total debt to total capitalization 51.1 % 49.3 % Total debt $ 1,580,352 $ 1,185,440 Less: Mortgage warehouse facilities and other secured borrowings 158,041 — Less: Cash and cash equivalents 210,320 274,797 Net homebuilding debt $ 1,211,991 $ 910,643 Total mezzanine equity 178,039 169,951 Total equity 1,335,686 1,051,581 Net capitalization $ 2,725,716 $ 2,132,175 Net homebuilding debt to net capitalization 44.5 % 42.7 % Expand We define net homebuilding debt to net capitalization as homebuilding debt, less cash and cash equivalents ('net homebuilding debt'), divided by the sum of net homebuilding debt, total mezzanine equity and total equity ('net capitalization'). Net homebuilding debt excludes borrowings under our mortgage warehouse facilities, as well as any other non-homebuilding borrowings the Company may incur from time to time. Management believes the ratio of net homebuilding debt to net capitalization is meaningful as it is used to assess the performance of our homebuilding segments, as well as to establish targets for performance-based compensation. We also use this ratio as a measure of overall leverage.
Axios
22-07-2025
- Business
- Axios
St. Petersburg preps for Tropicana Field roof installation
City officials have begun laying the groundwork — er, ceiling work — to install a new roof on Tropicana Field. Why it matters: The city is on a tight timeline to repair the Tampa Bay Rays ballpark in time for Opening Day next spring. State of play: Workers are currently installing blue netting that will serve as a base from which to build out the roof, city spokesperson Samantha Bequer said in an email. The city will build out the new roof in phases beginning next month, with expected completion in December. Also that month, repairs to the interior and the addition of turf are slated to begin. The project's expected completion date is April. By the numbers: The repairs are projected to cost about $56 million, with $22.5 million allocated for the roof alone. Between the lines: The renovation comes amid a potential sale of the team to a group led by Jacksonville developer Patrick Zalupski, who The Athletic reported wants to see the team relocate to Tampa.
Forbes
19-07-2025
- Business
- Forbes
Tampa Bay Rays Find New Owner But Still Battle Old Problems
When Hurricane Milton imploded the Tropicana Field dome last fall, the Tampa Bay Rays had to find a ... More new place for home games. (Photo by) Thanks to pending new ownership, the probability of the Tampa Bay Rays moving elsewhere now seems as likely as the resurrection of Tropicana Field, the team's original ballpark. According to The Athletic, Stuart Sternberg is concluding arrangements to sell the American League East franchise to Jacksonville developer Patrick Zalupski. The $1.7 billion deal is expected to be approved by the required three-quarters of incumbent owners, perhaps as early as September. Even if that happens, however, Sternberg would still receive the 2025 World Series trophy if the Rays rebound from an erratic first half to win their first world championship. The team lost both of its previous Fall Classic appearances, in 2008 and 2020. Under Sternberg, who purchased the Rays in 2004 for a reported $200 million, the team has established a reputation for making the most of minimal resources. The Rays rank 26th among the 30 teams in 2025 payroll, according to Roster Resource, and are one of just five teams to pay their players less than $100 million. They also have a long track record of avoiding the sting of free-agent desertions by trading their highest-salaried stars – a trend that may continue before the trade deadline of July 31. Stuart Sternberg, owner of the Tampa Bay Rays since 2004, will escape a myriad of problems when he ... More completes negotiations to sell the team in September. (Photo by A. Messerschmidt/Getty Images) *** Local Caption *** Sternberg's stewardship has been controversial. To combat flagging attendance at Tropicana Field, he allowed the team to play six games (two three-game series in 2007 and 2008) at Disney World, hoping that the Orlando locale would attract regional fans. He also flirted with the idea of playing half his home schedule in Montreal, which the Expos deserted when they became the Washington Nationals in 2005. Ideas for building new ballparks in Ybor City, on the Tampa side of the bay, or even in St. Petersburg, across a causeway crowded with evening rush-hour traffic before night games, have also been considered. But financing has always been a stumbling block, even after the Rays convinced the City of St. Petersburg, Pinellas County, and assorted private investors to share the cost of a proposed $1.2 billion ballpark to replace the outdated Trop. The projected completion date was 2028. And then the roof fell in – literally. Hurricane Milton imploded the Tropicana dome last October, making the field unplayable. After considering various options, the Rays agreed to play their 81-game home schedule at George M. Steinbrenner Field, the Tampa-based spring training home of the New York Yankees. For the first time, the vagaries of the humid summer climate became a scheduling factor. Because that minor-league ballpark is located in Hillsborough County rather than Pinellas County, the impact on the local economies compounded the catastrophe. Sternberg, who had scuttled the idea of building the new ballpark on the Tropicana site, found himself stuck in no-man's-land, pressured to sell rather than shift. He finally found a buyer in Zalupski, the billionaire CEO of Dream Finders Homes. His net worth is $1.4 billion and his company is valued at $3.4 billion, according to Forbes. Injecting new cash into the team could end its years of fiscal frugality, such as trading players before they become free agents and not signing any high-priced players once they join the market. Once new ownership is finalized, the team must decide on a 2026 home, either returning to a repaired Tropicana Field or staying put in their current borrowed minor-league ballpark. Finding a permanent home will also take on new urgency. Should the Rays reach the playoffs this fall, they already have permission from Major League Baseball to play those games where they are. The team drew an average of 16,575 fans into Tropicana Field in 2024, ahead of only the Marlins and Athletics in attendance, but couldn't fit that many into Steinbrenner Field, which has a capacity of just 10,046. Staying there indefinitely is not a solution that seems satisfactory to the team, its fans, or new ownership. Zalupski prefers a Tampa location over St. Pete, according to The Athletic, but that will require detailed and delicate negotiations with civic leaders in both locations. Until they come up with a site for a new stadium, not to mention financing and a projected opening date, the Rays are likely to remain in a baseball Twilight Zone. Although they are one of two clubs, along with the Athletics, playing home games in minor-league parks this year, the A's have earmarked a 2028 opening for their Las Vegas ballpark, now under construction. That leaves them light-years ahead of the Rays, who share Florida with the Miami Marlins, another team with attendance woes. Critics have long contended that the Sunshine State cannot sustain full-time teams despite its history as the birthplace of spring training. In addition, Commissioner of Baseball Rob Manfred, who plans to retire when his term expires in 2029, insists that expansion from 30 to 32 teams will not commence until all existing clubs are anchored in permanent parks. The Rays reached the All-Star break last weekend with a record of 50-47, 5½ games behind the front-running Toronto Blue Jays and 1½ games removed in the race for the third and final wild-card spot. The team lost eight of its last ten before the break.
Yahoo
18-07-2025
- Business
- Yahoo
Manfred Expects Rays to Be Sold, Play 2026 Season in the Trop
ATLANTA — Major League Baseball commissioner Rob Manfred said Tuesday he expects the $1.7 billion sale of the Tampa Bay Rays from Stu Sternberg to Jacksonville, Fla., developer Patrick Zalupski to move forward. Sportico broke the news that the two sides were in advanced talks in June. 'I have no reason to quibble with or dispute the rumors that are out there about the Tampa sale,' Manfred said during his annual pre-All-Star Game briefing with members of the Baseball Writers' Association of America. More from Aaron Judge, Shohei Ohtani Carry MLB Into the All-Star Break MLB Pension Fights Tom Browning's Widow Over Benefits Buster Posey Bet Big on Rafael Devers. It's Been a Slow Start. As far as the process is concerned, Zalupski must be vetted by MLB's owners committee, which will pass its recommendation on to the 29 other owners for a vote. As in all ownership issues, 75% of that group must approve the franchise transfer. Manfred would not comment on the current status of the sale process. Sternberg bought the team in 2004 for $200 million. Sternberg has previously scuttled two deals related to ballpark projects on both sides of Tampa Bay. Most recently, the team pulled out of a projected $1.3 billion ballpark deal in St. Petersburg adjacent to the hurricane damaged Tropicana Field earlier this year. Manfred had urged Sternberg to sell the Rays after that. The Rays are playing this season in 11,000-seat Steinbrenner Field, the spring training home of the New York Yankees. The team will remain in the Tampa Bay area for at least the next three seasons by virtue of their lease with the city of St. Petersburg, Fla., and depending on when the facility is reopened. A new home will be addressed when and if the team is sold. Manfred said he expects the renovated facility to be ready by the start of the 2026 season, but MLB has contingencies if that doesn't happen. 'Look, we think we're going to be ready to play 2026 in the Trop,' Manfred said. 'I'm not going to get into details, but we do have contingency plans if the Trop is not ready to go in 2026. This is not the Rays telling us we're going to be ready. We have our own engineers on site monitoring construction, so we do believe we're going to be ready to go.' The St. Pete City Council voted in April to apportion $22.5 million to reconstruct the roof of the ballpark, which is made of Teflon slats that were destroyed last October by Hurricane Milton. By contract, the government entity is legally required to maintain Tropicana and repair it in the case of catastrophic damage. The roof slats are being manufactured overseas and are not expected to be installed until after the current hurricane season. More funds will be needed to fix flood damage inside the ballpark, which is expected to become more severe throughout the rest of the summer. The entire repair could cost in excess of $50 million. As far as where the Rays might play postseason games in 2025 if they happen to make the playoffs, Manfred told the Tampa Bay Times that it will be at Steinbrenner Field. The Rays are currently fourth and 5.5 games back in the American League East and fourth in the AL Wild Card race, 1.5 games behind Seattle in the third spot. 'Our rule has always been that people play in their home stadiums during the World Series,' Manfred said. 'And I'm not of a mind to change that rule. I understand it's a unique situation. It's different, but that's where they're playing. That's where they're going to play their games.' Best of Tennis Prize Money Tracker: Which Player Has Earned the Most in 2025? Browns Officially Get Public Money for New Stadium in Ohio Budget WNBA Franchise Valuations Ranking List: From Golden State to Atlanta
