Marlins owner Jeffrey Loria agreed to sell the franchise to Sherman and Jeter for $1.2 billion, sources told the Miami Herald. Sherman is the co-founder of Private Capital Management, although he retired from the Naples-based firm in March 2009.
Here’s what you need to know about Sherman.
1. Sherman, Jeter & 14 Other Investors Won Marlins Ownership With a $1.2 Billion Bid
The deal was first reported by the Miami Herald, which noted that Major League Baseball is expecting a written agreement on Friday. Loria agreed to sell the team to Sherman and Jeter, who are leading a group of 16 investors, for $1.2 billion.
The Herald reports that Sherman will be the “control person,” like a managing general partner, while Jeter will run the business and baseball sides of the franchise. Jeter is only contributing $25 million of his own money.
Loria bought the team in 2002 and the franchise did win its second World Series in 2003. However, the team hasn’t been to the postseason since and the team is expected to lose over $60 million this season, the Herald reports. Loria wanted to sell the team for personal reasons.
2. Sherman Owns a $70 Million Yacht Called Majestic & Has an Estimated Net Worth of $500 Million
In September 2010, the 68-year-old Sherman bought yacht called Secret for $69.5 million, the Broward Palm Beach New Times reports.
According to Super Yacht Fan, which lists Sherman’s estimated net worth at $500 million, the boat has been renamed Majestic. The boat was originally built for Nancy Walton Laurie, the daughter of Bud Walton and a niece of Walmart founder Sam Walton.
As the New Times notes, Sherman was involved in a legal drama with the yacht, as his broker, David Frazer, sued his then-employer because he spent “countless hours” with Sherman before he finally bought a boat. Frazer said he was planning a trip to Europe with Sherman to find the right boat, but another salesman went instead and he was fired two months later. The salesman who eventually sold Sherman the boat and the firm earned $4.8 million from the deal.
3. Sherman’s Firm Was One of the Biggest Losers When Bear Stearns Collapsed
In March 2009, Sherman retired from Private Capital Management, the firm he co-founded, after 23 years. Its parent company is Legg Mason Inc.
When Sherman retired, the firm wasn’t in good shape. As Naples News notes, the firm was once the biggest independent money management firm in the Southeast. But by the end of 2008, its assets shrunk to $2.4 billion. Sherman said the downturn in the market was to blame.
In 2008, Sherman made Fortune’s list of investors who lost the most from the Bear Stearns collapse. Fortune reported that his firm lost $478.5 million.
The New York Times reported in 2008 that Sherman’s firm also lost big from newspaper company stocks. Between 2005 and 2008, it shrunk from $31 billion in assets to $15 billion. Before the failures, he was considered a success story, even being mentioned in a 1997 book called Investment Gurus.
In a 2009 interview with the Naples Daily News, Sherman said the bad investments in newspaper companies wasn’t the only reason for Private Capital’s downturn. “Over 40 percent of our portfolio is technology,” Sherman told the Daily NEws. “The disappointments have been in technology, consumer discretionary stocks and financials.”
“My outlook going forward is more cautious,” Sherman told the Naples News in 2009. Today, he is the CEO of M4 Capital.
4. Sherman Has Two Daughters Were Diagnosed With Crohn’s Disease
Sherman has two daughters, who were both diagnosed with Crohn’s Disease. Sherman’s late father also fought the disease, which has no cure.
“Fortunately, both daughters were able to access excellent medical care, allowing them to live full lives and raise beautiful families,” reads a statement on the Sherman Prize website. “We established the Sherman Prize to recognize the accomplishments of leaders in the field in the hope that it will create a ripple effect, spreading awareness, innovation, and inspiration to others, so that other families won’t have to contend with the disease as ours has.”
“You have to know where the bathrooms are. It’s not pleasant, especially when striking young people. It’s not just the kind of disease that strikes then leaves you alone,” Sherman told Naples News in 2016.
The 2017 recipients of the prize are Doctors Stephan R. Targan and Lee A. Denson and Heidi Drescher, MMS, PA-C.
5. Sherman’s Wife Cynthia Is a Retired Lawyer
According to their New York Times wedding announcement, Sherman and Cynthia married in July 1999. She is a graduate of Queens College and earned her law degree from Georgetown University.
Sherman graduated from the University of Rhode Island and earned an MBA from Baruch College.
In his 2009 Naples Daily News interview, Sherman said he retired because he didn’t want to spend more time at his desk than with his family.
“This is not a 9-to-5 business,” Sherman said in 2009. “Stock markets are open 24-7 around the world.”