Charlotte Knights’ Post

It's not surprising that the NFL--BY FAR the most competitively balanced league in professional sports--is the most valuable on a per-team basis. But to also have 30 of the top 50 most valuable franchises worldwide? Wild. Whether we like it or not, the parity trend we're seeing (F1 car redesigns, CFB realignment, push for European Super League, etc.) is only just beginning. Too much value on left on the table otherwise. https://lnkd.in/gZsxMirQ

🏈 With NFL team valuations skyrocketing, private equity investors are being identified as a potential source of capital for franchises. Clark Hunt, the owner of the Kansas City Chiefs, has made it clear that he sees the value in this option, which is interesting given his position on the committee that will decide if NFL opens up to private equity. This could be a major shift in the league's ownership structure. Read more about Hunt's take on this topic in this Bloomberg article. #NFL #privateequity #sportsbiz

The NFL is next. This week it was reported that private equity investors may soon be allowed to buy as much as 30% of NFL franchises. The team owners will present their findings in Nashville over three days starting May 20, during the second of four annual league meetings. I believe this is inevitable for a few reasons among others: 1) Valuations are growing. As teams get more expensive to purchase, there are few individuals or families who can purchase these assets. This results in outside funding to come into the picture. 2) Innovation and leadership expertise. Many private equity firms pride themselves on their operational expertise. These funds can bring a new perspective or methods to help increase engagement, fandom, and retention. 3) The league is expanding globally. There is a lot of institutional capital coming from different countries. As the league looks to grow its footprint, it might be beneficial to allow global investors to deploy capital in these franchises to help with that expansion and reach new demographics. Whether this is overall net positive or net negative for the league is TBD, but regardless it is coming. S/O to Randall Williams #privateequity #sportsmoney #sportsbusiness https://lnkd.in/duv2DtUJ

A group of buyers acquired the Boston Celtics for $360 million in 2002. In 2024, after winning a championship and signing two of the largest contracts in NBA history with Jayson Tatum ($314M, 5 years) and Jaylen Brown ($304M, 5 years), they're putting the Celtics up for sale. Estimates for the final transaction are $4 billion (surpassing the sale of the Phoenix Suns in 2022). Two things: 1. The growth in valuation is a huge reason why investing in sports franchises (and their Netflix documentary counterparts) are so hot right now: Michael Jordan and the Charlotte Hornets, A-Rod and the Timberwolves, Ryan Reynolds and Wrexham AFC Alpine (F1), David Beckham and Inter Miami FC, etc. There's a lot of attention and money that goes into sports, and men's sports in particular, especially if you've got anchor stars that are driving that attention. 2. Signing the largest player contracts in NBA history, then walking away so someone else pays for it - that's a mic drop if I've ever seen one 😂

Superb overview of sports finance today

Celtics are on the block after taking NBA title. The team’s ownership group, Boston Basketball Partners LLC, has decided to sell the franchise for estate and family planning considerations, according to a Celtics statement. The owners expect to sell a majority interest this year or early 2025, with the remainder closing in 2028. The Celtics are going on sale at a time of surging valuations for pro sports teams. That’s prompted more franchises to sell minority stakes or offer up control. In the past year, the NBA alone has seen three franchises change hands, with the Phoenix Suns, Charlotte Hornets and Dallas Mavericks all going for $3 billion or more. Sportico values the Celtics at $5.1 billion, the fourth-highest in the league. The current ownership group, led by Wyc Grousbeck and including Stephen Pagliuca, bought the team for $360 million in 2002. #estateplanning #premiumfunding #lifeinsurance #premiumfinance #taxstrategies #estatetax #PPLI

Just another reason why you need to be using SportsPro ! More business intelligence and insights to delve deeper into… 🧐 Drop me a message for a closer look into all the tools available! 🏈 #SportsProPlus #sportbiz #NFL

The 25% Investment by Jim Ratcliffe in Manchester United for Sporting Control is similar to what we recently saw with the Dallas Mavericks. In that instance, Owner Mark Cuban sold 75% of the Dallas Mavericks to the Adelson Family, but retained Sporting Control of the Franchise. In my opinion this is a recent shift. Investors want to diversify and they view Franchise or Club Ownership as an important Asset Class. In the case of United, the Glazers are relinquishing Sporting Control after a decade of underperformance, where they inexplicably failed to employ and empower a Chief Football Officer. Unlike the Glazers, the Adelson’s are choosing not to engage on the Sporting Side from the beginning, in doing so they are entrusting Mark Cuban. The latter in my opinion is a questionable decision but one that I will follow with great interest.

The NFL London Games alone won't boost the sport’s popularity in the UK – it needs its own franchise. The NFL has been growing in popularity in the UK since 2007. Its organisers have been repurposing Wembley Stadium and Tottenham Hotspur's White Hart Lane into American Football stadiums. Ten per cent of UK sports fans say they like to watch the NFL, according to Ampere Analysis, which is a credit to the London Games' success. Retrofitting stadiums have worked well to introduce new fans to American Football, although if the NFL wants to keep fans engaged, the UK needs its own franchise. A UK-based franchise would deliver purpose-built American Football stadiums, regular matches that fans could attend, and a grassroots culture in the sport. Only until serious planning and investment are made to launch a UK-domestic franchise will we see American Football truly take off in the UK. #NFLLondonSeries #stadiuminnovation #sportsfans #sportsbiz