Earlier in the year Nintendo announced its intent to sell its majority stake in Major League Baseball franchise Seattle Mariners, a move that was authorised late last week. Nintendo has now revealed just how much money it's set to make from the deal.
A press release confirms that a significant stake has been sold for $661 million, and MLB's equivalent press release states that this sale was made to other members of the existing ownership group, First Avenue Entertainment LLLP; 10% of the holding company that operates the Mariners will remain under Nintendo of America's ownership.
That's a hefty sale and well beyond the apparent $125 million paid in 1992 (even accounting for inflation), albeit Nintendo will have managed costs in the many years it was managing the franchise. The initial purchase was approved by former company President Hiroshi Yamauchi as a goodwill gesture near Nintendo of America's headquarters, with the move praised by many as saving the franchise from relocation.
An excerpt from Nintendo's press release is below.
The Company hereby announces that the sale has officially been closed following approval by the Major League Baseball organization. The sales amount is 661 million U.S. dollars.
We expect that it will take some time to calculate and confirm the impact of this sale to the Company's consolidated financial performance. After the impact has been confirmed, the Company will disclose the effect to the Company's consolidated financial performance as necessary.
The company has been in strong financial health for a number of years, maintaining solid levels of finance even in tougher recent years. This lump sum, or at least as much of it is left once it goes through various accounting and tax mechanisms, will certainly help the company's bottom line further.
It's the end of an era, in any case, even though the company retains a minority stake.