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- ☕ NFL Owners Open the Door to Institutional Investors, increasing figures for Valorant, 26 job offers, etc.
☕ NFL Owners Open the Door to Institutional Investors, increasing figures for Valorant, 26 job offers, etc.
Your daily shot of sports business.
Olivier Spaeth
August 28, 2024
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How Technology Is Transforming The Sports And Entertainment Industries
In a historic decision, the National Football League has voted to allow select private equity firms to purchase minority stakes in its teams. This landmark move, which marks the NFL as the last major U.S. sports league to embrace private equity, is expected to inject billions of dollars into the league and significantly alter the landscape of team ownership.
A Measured Approach
While the NFL has joined its counterparts in the NBA, MLB, NHL, and MLS in allowing private equity investment, it has taken a more cautious approach. The league has initially approved only a limited number of firms to participate, and the maximum ownership stake allowed is 10%, significantly lower than the 30% permitted in other leagues.
A Windfall for Teams
The influx of private equity capital is expected to provide a substantial boost to NFL teams. With approved firms like Ares Management, Sixth Street Partners, and Arctos Partners, as well as a consortium including Blackstone, Carlyle Group, and Dynasty Equity, collectively managing over $2 trillion in assets, the potential for investment is immense. Each firm is allowed to invest in up to six teams, translating to an average of $500 million in additional capital per team.
Driving Stadium Development
The infusion of fresh capital is also expected to accelerate the construction of new stadiums and related projects. Several NFL teams, including the Buffalo Bills, Tennessee Titans, and Cleveland Browns, are actively pursuing or already in the process of building state-of-the-art facilities. The additional funding provided by private equity can help offset the substantial costs associated with these projects.
NFL's Strategic Move
The NFL's decision to allow private equity investment is a strategic response to several factors. The rising valuations of NFL teams have made it increasingly difficult for individual owners to afford the price tag when franchises become available. The sale of the Washington Commanders for a record $6.05 billion last year highlighted this challenge.
By welcoming private equity, the NFL is not only addressing the financial constraints faced by existing owners but also opening up the league to a wider pool of potential investors. This could lead to increased competition for team ownership and potentially drive up franchise values further.
NFL's Future Plans
While the initial 10% ownership cap is a starting point, NFL Commissioner Roger Goodell has indicated that the league may consider increasing this limit in the future. This suggests that the NFL is open to further expanding its partnership with private equity as the league continues to grow and evolve.
NFL to Share in Private Equity Profits
In a significant development, the NFL has announced that it intends to retain a portion of the profits generated by private equity firms on any future sales of ownership stakes. This marks a departure from the practices of other major sports leagues, which typically do not share in such profits.
The exact percentage of profits that the NFL will claim remains to be determined, but this move could provide the league with a substantial additional revenue stream. It also highlights the NFL's position as a highly valuable and sought-after investment opportunity for private equity firms.
Quick Takes
Paris 2024
Infront and IPC partner to drive international exposure for Paralympic Games - svg europe, sportbusiness.com 💰
Football / US Football
Packers, NFL invite local businesses to apply for the 2025 NFL Draft source program - packers
NFLPA sues DraftKings, seeks approximately $65M - espn
Ice Hockey
NHLPA bolstering commercial units, eyes N.Y. office - sports biz journal 💰
Hurricanes Launching New Marketplace Travel Platform, 'Canes Travel' - hurricanes
Soccer / Football
John Textor to file plan for $2.3bn Eagle Football float - sky, sports pro media
UEFA Euro 2024 tournament generates €7.44 billion in economic impact, more than 68% from fans and visitors - the sports examiner
Rangers board respond to US investor '£150m takeover bid' as Dave King releases statement - football scotland
Alan Savage ready to go it alone as leading Inverness Caley Thistle investor IF £3 million debt deal is sealed with watertight legal agreement - northern scot
Spurs Women to host Arsenal, United, Chelsea at Tottenham Hotspur Stadium - cartilage free captain
College Sports
UofL volleyball coach: 'We can be a revenue-generating sport' - lousville business first 💰
Fan experience enhancements will be coming for OU in 2024 - sooners wire
Premium Seating Options And Enhanced Concessions Experiences Highlight New Fan Amenities At Scheumann Stadium This Fall - ball state sports
Sports marketing agency ESM facilitates $4.3 million in NIL deals for Georgia football - on 3
Tennis
The USTA is seriously worried about looming pickleball threat - fortune
USTA targeting 1 million U.S. Open fans through enhanced experiences - sports biz journal 💰
Ralph Lauren and La Roche-Posay: These are a few of my favorite things from Amex at the US Open - the points guy
Why Fashion Loves the Next Generation of Tennis Stars - business of fashion
Motorsports
NASCAR Makes History with Cup & Xfinity Races in Mexico in ’25 - seriously fast motorsports, forbes
Other sports
PGA Championship will need 1,000-person army to serve food at Quail Hollow Club - charlotte biz journal 💰
INEOS’ cycling team are in freefall – should Manchester United be worried? - the athletic 💰, bvm sports
Esports & Gaming
G2 Esports and Warner Bros. reveal Batman Streetwear Capsule Collection - European Gaming Industry News - european gaming, esports insider
Sponsorship
Washington Commanders reach a deal to rename their home field Northwest Stadium - ap news, hogs haven
JD Sports partners with MLBB Esports for Up Your Game campaign - esport insider
Sunderland AFC unveils new shirt sponsor deal - sunderland echo
Shirt Sponsorships in Serie A: Nice Mix of Various Organisations - football italia
Cannabis Giant Trulieve Breaks Ground As First Cannabis Sponsor Of U.S. Pro Pickleball - benzinga
Lavazza returns as coffee sponsor of US Open - global coffee report
Finance brands’ love affair with tennis, explained - marketing brew
Yeo's CMO on partnering with Olympic medallist Max Maeder - campaign asia
Stadium & Arena
Panathinaikos soccer stadium gets green light from city - ekathimerini, greek city times
San Francisco 49ers investing $200m in Levi’s Stadium upgrades - the stadium business
Findings released for 4 impact studies on proposed 76ers arena in Center City - abc 🎥
State evaluating lone proposal for new Aloha Stadium Entertainment District - hawaii news now
Denver Broncos Near Start of $175M Football Training Center and HQ - engineering news record 💰
Companies & Brands
What can fashion expect from the Paralympic Games? - fashion united
How Retired Nike Historian Preserved the Brand’s History - muse by clios
Audity Unveils Athlete Audio Experience With Aliyah Boston, Kelsey Plum, Mikaela Shiffrin - variety
Local marketing agency that serves clients worldwide is one of America’s ‘fastest-growing companies’ - east idaho news
Sports brands in China turn in uneven performance despite Olympic year - nikkei asia
Media
Travis and Jason Kelce’s ‘New Heights’ Podcast Moves to Wondery in Nine-Figure Deal - hollywood reporter
NBC hails record ad sales for Paris 2024 Paralympics - sports pro media
Amazon Reportedly Pulls $115 Million Funding Offer to Diamond Sports Group - barrett media
Tech’s entrance into live sports creates new threat to major broadcasters - the hill
Anaheim Ducks will move local broadcasts from Bally to over-the-air channel and streaming - financial post
Football Australia and Paramount Australia ink multi-year media rights deal - mi3
Other
Youth sports market a new darling for private equity investors - real assets adviser 🔒
ASIC’s ‘grave concerns’ over use of investor funds amid sports star payment claims - the age
Travis Kelce buys stake in racehorse with fitting name: Swift Delivery - the athletic 💰, daily caller
Men & Women
Puma: Johan Adamsson head of sports marketing and sports licenses - fahsion network
Jay Shah Appointed New ICC Chairperson - ndtv profit
Wells Fargo Hires Sports Banking Exec Peter Dorfman From Truist - sportico
Long format
Patrick Hooper, Director, Digital Experiences, San Jose Sharks, is the guest of Sean Callanan and his podcast: Sports Geek HQ
Listen on sportsgeekhq, spotify, apple podcast
Warren Deutrom, CEO of Cricket Ireland, is the guest of Sport for Business Podcast
Listen on sport for business, spotify, apple podcast
Activation
SNICKERS Presents the 'SatisFORTUNES' for NFL Fans - trend hunter
Figure
1 400 000
It is the peak audience of VALORANT Champions 2024. It is a roughly 120,000 increase compared to its predecessor.
The event garnered 441,971 average viewers and nearly 50m watch hours across its 106-hour run time.
Read on esports insider
Did you miss it?
This was the most popular link in the last newsletter:
McDonald’s, Nike & Coca-Cola: The Winners & Losers Of Olympics Sponsorships - bandt
Jobs
USA / Canada
Monarch Collective Miami Marlins Peak Sports MGMT Texas Ranger Oak View Group Tampa Bay Lightning University of Calgary Coca-Cola Life Time Event New York Mets | Anaheim Ducks Utah Jazz Minnesota Vikings Army West Point Athletic Association Jacksonville Jaguars Orlando Magic dentsu NCAA DraftKing |
UK & Ireland
LiveScoreGroup Chelsea FC | Manchester United |
Australia / NZ
Northern Territory Cricket Ltd | Capital Football |
Other parts of the World
Freeride World Tour |
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