NFL owners to approve private equity investment in teams.

[lucas80]

Interesting development
https://abcnews.go.com/Sports/sourc...-private-equity-investment/story?id=113182790

 

[onlyTheObvious]

Seems odd on the surface. Will the team owners issue dividends? The individual franchises don’t sell very often so where is the ROI?

chance to grab some Saudi money?

 

[mnole03]

A huge part of the value of a football team comes in depreciation. I wonder how the PE firms will access that value.

 

[lucas80]

Seems odd on the surface. Will the team owners issue dividends? The individual franchises don’t sell very often so where is the ROI?

chance to grab some Saudi money?

One of the sticking points I heard was working out details for teams/families to buy back the interest in the team. Short term it might help fund a purchase or a stadium, but long term do some of these people really want a partner in the room, or to make payouts?

 

[onlyTheObvious]

One of the sticking points I heard was working out details for teams/families to buy back the interest in the team. Short term it might help fund a purchase or a stadium, but long term do some of these people really want a partner in the room, or to make payouts?

That makes sense. Sort of a private loan

 

[hawkeyetraveler]

This makes perfect sense. It is simple supply and demand. The more possible owners you have that value a scarce resource, the more the resource will be worth. There are only so many billionaires interested in sports, by opening up a new segment of investors you will see appreciation in team value as a result.

Plus the cash infusion can generate further returns as they build out more amenities, etc.

 

[Greenway4Prez]

I need a crash course on PE. If someone has an article or link of some sort, that would be great.

And yes, I acknowledge that I’m being lazy. Or in the social media relationship/gender role world, I’m creating mental load for someone else.