Just weeks after Iowa-based Perfect Game, Inc. announced it was suspending its partnership with LakePoint Sporting Community, Rimrock Capital Management has gone public with a "sizable investment" in Illinois-headquartered scouting service Prep Baseball Report (PBR.)
Rimrock — a California-based hedge fund manager and the top investor and operator of LakePoint Sports — announced Tuesday that PBR will host its inaugural season at the Emerson complex spring of next year.
"As we were going through the reorganization, we were evaluating all of our business arrangements," Dan Berman, a representative of Rimrock affiliate LP Investments I, told The Daily Tribune News. "We elected to modify that arrangement with [Perfect Game] … as part of looking at other options and creating a new arrangement, we identified PBR as a major player in the baseball space, with a tremendous reputation and expertise."
PBR operates in 41 states and portions of Canada. Founded in 2005, the operation runs hundreds of "stratified levels of events across the country," including its marquee attractions the Prep Baseball Report Future Games and the Super 60 Pro Showcase.
"They have a huge following around the country, a very strong reputation in the baseball world," Berman said. "What it does is it attracts people from around the country because they know and trust PBR … they do ratings of players, which helps the players get to the next level."
In a press release statement, PBR President Sean Duncan praised LakePoint for its "amenity-rich baseball complex" infrastructure.
"LakePoint is already the premier baseball facility in the country, but their vision for what the entire campus will become personally aligned with my visions of taking Prep Baseball Report to a new level," he said.
While Berman wouldn't give specifics on the length of the agreement with PBR, he did say the deal is multi-year and that under the arrangement, LakePoint has financially invested in the event organizer — and vice-versa.
"Both of us have ownership in our partnership, as well as we've taken an ownership in their business," he said. "Part of our vision is to make sure that we're really integrated with the tournament operations … this is one area we thought could be a real opportunity and PBR was a player that we felt we needed to align with in the baseball space."
Regarding the monetary size of the deal, Berman said he wasn't disclosing any numbers. Ultimately, he said the partnership simply made "great sense" for both entities — strategically and economically.
"They know that we've got the top facilities in the country, and we know they're at the top in the scouting services in the country," he said. "It's a good nexus, a good alignment … it's going to make us very competitive and compelling in the baseball space for years to come."
Eight LakePoint subsidiaries filed for Chapter 11 bankruptcy earlier this year. After several months of restructuring, Berman said the organization will kick off 2019 with an all-equity balance sheet.
Moving forward, he said LakePoint's vision is to "marry" sports operation with real estate, capital and strategic partnerships.
"That's the stuff of of sustainable, long-term financial success," he said.