NFL Owners vote to allow team ownership by Private Equity

[jetstream23]

Ticket prices to $1,000 in the preseason? 😛

 

https://www.cnbc.com/2024/08/27/nfl-private-equity-ownership-vote.html

 

[nj meadowlands]

"Thank goodness!" - bickety bam

[jago]

good, maybe the pricks can sell a few hundred thousand single-family homes to real people.

[Matt39]

I don’t know the details or really care to know, but I don’t love this.

[Bronx]

Let's do it! 

[jeremy2020]

This will end well for the fans

[southparkcpa]

Allows current owners to cash out partially and still maintain control while availing themselves to fairly smart people to now sit on the board. I can't imagine these investments will come without some input to ownership.

[slats]

Oh yeah, nothing can go wrong when you’re talking about corporate ownership. 

[Matt39]

1 hour ago, southparkcpa said:

Allows current owners to cash out partially and still maintain control while availing themselves to fairly smart people to now sit on the board. I can't imagine these investments will come without some input to ownership.

Oh there will be loopholes 

[jetstream23]

Can't wait until the first PE Fund invests in the Jets and then goes bankrupt in two years. lol

 

"The Jets seemed like such a rock solid investment.  I mean, the only way to go was up, right?....Right?"

- Investors

 

[jetswin]

Nothing ruins something you like faster than a hedge fund 

[kdels62]

Private equity has only maintained the true intention of companies and done great to preserve the culture around brands while innovating the delivery of services. Right? That’s what’s happened? Right?

[southparkcpa]

1 hour ago, slats said:

Oh yeah, nothing can go wrong when you’re talking about corporate ownership. 

Could it be worse than Woody?  Dan Snyder? 

[PS17]

The NFL thinks its too big to fail. And it is, for now. But little by little every cumulative dumb, greedy decision erodes the league just a bit. Eventually the empire will fall. Baseball was America’s sport until it wasn’t. 

[FootballLove]

I was actually thinking about picking up 10% of the NY Jets. Who wants in?

[BigRy56]

Dear god….. this is where Zach Wilson get appointed by JetBlue to own the Jets, isn’t it?

[Warfish]

I eagerly await someone telling me specifically why I should care, much less be mad about this.

[Matt39]

34 minutes ago, kdels62 said:

Private equity has only maintained the true intention of companies and done great to preserve the culture around brands while innovating the delivery of services. Right? That’s what’s happened? Right?

 

[Green Ghost]

37 minutes ago, PS17 said:

The NFL thinks its too big to fail. And it is, for now. But little by little every cumulative dumb, greedy decision erodes the league just a bit. Eventually the empire will fall. Baseball was America’s sport until it wasn’t. 

As long as people can find a way to, or live where it’s legal to bet football, it will be the #1 sport in America.
I’d venture a guess that a large percentage of NFL “fans” care more about their Fantasy football team(s) than any particular NFL team.

[Larz]

I would invest for sure. 
 

 

[varjet]

It’s tough to see how a 10% interest in any team could have too much of a bad effect.

The people in charge of PE firms have also been minority investors in teams, like the Steelers.  it’s basically the same thing.

The Private Equity business is more complicated than people give it credit for.  Yes, you read about guys who became billionaires managing PE firms.  But their investors are mostly US state pension funds.  So, basically, they buy companies and fire their employees so they can make money for government employees when they are retired.  Nice.  

But this 10% is just a starter drug. It will be 30% before long. 

[rldev]

It starts at 10%. It won't end there. 

[Green Ghost]

Anyone who didn’t see this coming hasn’t been paying attention to the $$$ involved when talking about buying an NFL team, now and in the future.

The other obvious benefit would be to a “not as mega wealthy” owner such as Davis in Las Vegas. He can retain majority ownership and get a huge influx of do re mi while doing so.

[jetsons]

3 hours ago, slats said:

Oh yeah, nothing can go wrong when you’re talking about corporate ownership. 

or gov’t run programs. 

[jeremy2020]

The big reasons is so that owners can see massive returns without selling the entire team. Yes, the owners make a lot of money annually, but nothing close to the amount the team's valuations go up. Most NFL teams see a 4-5% increase in revenue annually. However, valuations on teams are going up by 20%.

I'm also curious if anyone knows the particulars of whether this money would be subject to the CBA and split with players as I don't believe the sale of a team goes into the pot.

If you think the NFL is bad about monetizing every aspect of the game now.. just wait. Nothing will be off the table soon. Digitally projected ads on the field (think of all that wasted time showing the game instead of commercials), Jersey/Helmet ads, a tattoo on Jerry Jones' ass so they monetize every time he speaks..

[Green Ghost]

1 hour ago, jetsons said:

or gov’t run programs. 

I kinda like Social Security, don’t you?

[jetsons]

Just now, Green Ghost said:

I kinda like Social Security, don’t you?

all I know about that is paying into it.

[Maxman]

1 hour ago, Green Ghost said:

Anyone who didn’t see this coming hasn’t been paying attention to the $$$ involved when talking about buying an NFL team, now and in the future.

The other obvious benefit would be to a “not as mega wealthy” owner such as Davis in Las Vegas. He can retain majority ownership and get a huge influx of do re mi while doing so.

That is definitely the good use case of this for an owner that inherited a team and doesn't have the cash others do.

Venture debt though, it latches on to your soul. They may only get 10% but for some of these owners that will be answering questions they never had to before, it will feel so bad.

[The Crusher]

5 minutes ago, Green Ghost said:

I kinda like Social Security, don’t you?

Holy hell! Don’t you gotta be like 68 or something? You old man 

[Green Ghost]

12 minutes ago, jetsons said:

all I know about that is paying into it.

It gets better, my friend. Trust me… you’re gonna love it!

[Green Ghost]

11 minutes ago, The Crusher said:

Holy hell! Don’t you gotta be like 68 or something? You old man 

Hell, I can remember watching the Jets winning the Super Bowl when I was a kid, so yeah… I’m old. 😂😂😂😂

(I’m still incredibly handsome though)

[Green Ghost]

28 minutes ago, Maxman said:

That is definitely the good use case of this for an owner that inherited a team and doesn't have the cash others do.

Venture debt though, it latches on to your soul. They may only get 10% but for some of these owners that will be answering questions they never had to before, it will feel so bad.

Whenever there’s a situation with minority investors there are going to be questions, and a lot of them can be irritating. At the end of the day though, they’re coming from someone in the minority, no?

The type situation I never saw lasting was the “marriage” between the Mara’s and the Tisch’s, yet it has, so who knows with these type things?

 

[Maxman]

7 minutes ago, Green Ghost said:

Whenever there’s a situation with minority investors there are going to be questions, and a lot of them can be irritating. At the end of the day though, they’re coming from someone in the minority, no?

The type situation I never saw lasting was the “marriage” between the Mara’s and the Tisch’s, yet it has, so who knows with these type things?

 

Well they could be minority investors but these things get structured funny. And venture will have way more than 10% of a voice. I can't see Woody bringing in anything like that. Would be so painful for him.

[The Crusher]

17 minutes ago, Green Ghost said:

Hell, I can remember watching the Jets winning the Super Bowl when I was a kid, so yeah… I’m old. 😂😂😂😂

(I’m still incredibly handsome though)

I was 3 for Super Bowl 3. I’m 58 this year and I’m all honesty very sexy and desirable. It’s a gift. 

[Green Ghost]

1 minute ago, Maxman said:

Well they could be minority investors but these things get structured funny. And venture will have way more than 10% of a voice. I can't see Woody bringing in anything like that. Would be so painful for him.

Here’s what you have to remember, the NFL and their teams are the equivalent of a mega rich conglomeration of wealthy companies to begin with… they’re not about to become lambs led to slaughter by some venture capitalists.

I don’t want this to come off like I’m a fan of PE, but it’s not always a bad thing. A few years back one of the 4 biggest OEMs in golf was bought for about 2 billion by PE, and everyone assumed they would strip the company down to it’s bare bones then walk away leaving the carcass.

Instead, the exact opposite has happened. They poured money in, and Taylormade Golf has had an incredibly successful rebirth. To the point where they might now be the biggest in the world.