In the latest development of the Washington Spirit ownership dispute, Y. Michele Kang and Steve Baldwin are set to present to the NWSL’s board of governors on Tuesday, according to Steven Goff of the Washington Post.
Kang will reportedly make a case for her majority ownership of the club, while Baldwin will present why he is against it.
To clarify, Boehly was asked by the league to address the board but he declined.— Steven Goff (@SoccerInsider) January 17, 2022
To clarify, Boehly was asked by the league to address the board but he declined.
Prospective buyer Todd Boehly was asked by the league to address the board but declined. According to The Athletic, he withdrew from negotiations to purchase the club last week.
The news comes after Kang reportedly wrested control of the club early last week. According to reports from The Athletic, Kang convinced eight of the Spirit’s debt-holders to convert that debt to equity. In return, the holders would gain the right to vote on the club’s governance issues.
The largest of the debt-holders, Devin Talbott, reportedly sold his stake in the team to Kang. With the shares, Kang now owns more than either Baldwin or Lynch own individually, leaving her as the club’s majority investor. The other seven investors reportedly did not sell their stake in the club but are committed to aligning with Kang’s vision.
On Tuesday, Goff reported that Tom Daschle and his wife Linda Daschle are selling their stake in the club to Kang. Daschle, who is the former Senate majority leader, had previously been part of a group of investors who urged Baldwin to sell to Kang as part of his fiduciary duty to his fellow stakeholders. The group threatened legal action if Baldwin were to sell to someone other than Kang.
The NWSL has not yet approved elements of Kang’s move to gain control. The Board of Investors has to sign off on the new investors, the conversion of debt to equity and the subsequent transfers of equity.