Owners Box: Club Member Newsletter - October 18th
The NBA eyes Las Vegas, Dyal & Arctos Announce $3.1B in AUM, LA Rams still dealing with St. Louis relocation fallout
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Highlights:
Adam Silver Says Las Vegas Is Under Consideration for Potential NBA Expansion
Saudi wealth fund buys England’s Newcastle United soccer club after months of wrangling
Here’s what’s at stake as St. Louis takes the NFL to court over the Rams’ relocation
Inter Milan’s Third-Straight Annual Loss Moves Oaktree Closer to Control
Barcelona receive £1.2bn offer from Dubai company to write off club's debts
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Recent Sports M&A News and Developments
Report: Maple Leafs have highest franchise value in NHL - Sportsnet - October 14th, 2021
The Toronto Maple Leafs have the highest franchise value of any NHL team, according to Sportico.
The Leafs' value is pegged at US$2 billion, despite their Stanley Cup drought lingering since 1967.
Like many pro sports teams during the COVID-19 pandemic, the Leafs face more of a challenge than usual filling their venue. Attendance at their season opener on Wednesday was announced at 18,493, short of their traditional sellout.
Ontario agreed to allow sports teams to have full capacity just five days before the opener.
Four other Original Six teams -- The New York Rangers ($1.87 billion), Montreal Canadiens ($1.58 billion), Chicago Blackhawks ($1.56 billion) and Boston Bruins ($1.31 billion) -- round out the top five. The Detroit Red Wings -- the other Original 6 team -- are 10th at $1.03 billion.
Adam Silver Says Las Vegas Is Under Consideration for Potential NBA Expansion - Bleacher Report - October 12th, 2021
The NFL and NHL each have teams in Las Vegas, and the NBA may eventually join its fellow professional sports leagues in Sin City
Mick Akers of the Las Vegas Review-Journal noted NBA commissioner Adam Silver discussed the subject of expansion while speaking at the CAA World Congress of Sports in New York on Tuesday and mentioned Las Vegas as a potential destination.
"It's on a list at the point that we do turn to expansion, which isn't right now, but at some point, no doubt Vegas will be on the list," he said.
While the NBA does not have a team in Las Vegas, the league has a presence in the city through the Summer League.
Silver pointed out the city is "almost like our 31st team with the kind of presence that we have. It's a huge presence in Vegas in the summer. We sell well over 100,000 tickets and all of our teams are out there. It's sort of like baseball winter meetings."
Dyal HomeCourt NBA Fund Discloses $200 Million in Assets - yahoo!sports - October 11th, 2021
Private equity fund Dyal HomeCourt has $200 million in assets under management, according to a recent investor presentation, the first disclosures that specify the size of Dyal’s fund.
Last year, Dyal HomeCourt became the first fund approved to own minority stakes in NBA franchises and bought into its first teams this summer. In a September presentation to investors, Dyal parent Blue Owl disclosed that HomeCourt has $200 million under management. A separate filing to the SEC said the fund had $155 million in assets, as of June 30. The strategy had no investors at the start of 2021, according to filings with regulators.
The HomeCourt fund is one of the pioneers of an investment strategy built on acquiring equity stakes in pro sports teams. In 2019, the NBA approved a Dyal plan to purchase limited partner stakes in franchises in a deal that sees the league participate in HomeCourt’s upside. While other investment funds have since gained access to ownership stakes, Dyal HomeCourt still maintains privileged status: It is the only institutional investor that can own equity in more than five franchises. To date, Dyal has purchased a part of the Sacramento Kings and a small stake in the Phoenix Suns. No team can have more than 30% of its equity owned by PE funds.
Saudi wealth fund buys England’s Newcastle United soccer club after months of wrangling - CNBC - October 7th, 2021
A Saudi consortium led by Saudi Arabia’s sovereign wealth fund has successfully purchased England’s Newcastle United soccer team after 18 months of protracted disputes.
A major final obstacle was overcome Thursday when the Premier League received legally binding assurances from the Saudi kingdom guaranteeing “separation” and that it will not control the 128-year-old soccer club.
The purchase, for a reported £300 million ($409 million), ends British billionaire businessman Mike Ashley’s 14-year ownership of the team, and will give the Saudi consortium 80% ownership, with a further 10% going to property developers Simon and David Reuben and another 10% to British investor Amanda Staveley’s PCP Capital Partners.
Here’s what’s at stake as St. Louis takes the NFL to court over the Rams’ relocation - CNBC - October 6th, 2021
The National Football League still can’t quite escape St. Louis.
Lawyers representing the NFL, the Los Angeles Rams and team owner Stan Kroenke filed an appeal to move their January 2022 trial out of St. Louis. The trial stems from a lawsuit regarding the Rams’ relocation in 2016.
The appeal was filed on Oct. 1. It cites “prejudicial effects of extensive pretrial publicity” as a cause for the venue change. The filing was first reported by Conduct Detrimental, a website that covers sports law.
Beneath all of that legalese lies a pivotal fight for the NFL.
St. Louis officials are seeking financial damages they claim they suffered when the Rams moved to Los Angeles in 2016. The move left St. Louis with debt on the team’s former stadium, which built with public funds. A judge in August already denied a Rams request for change of venue. And sensitive documents about NFL owners’ finances could become public during the trial, which has already been postponed.
Arctos Sports Partners Fund Reaches $2.9 Billion in Assets - yahoo!sports - September 28th, 2021
Sports-focused private equity firm Arctos Sports Partners has $2.9 billion in assets in its first fund and has made 14 investments, according to a person familiar with the fund’s details.
The updated figure means the Arctos Fund I has more than tripled its assets under management in 2021, based on a regulatory disclosure that the firm ended last year with $866 million in assets. The fund is backed primarily by institutional investors and, given its size, is likely to stop accepting money from new investors soon, according to the person who asked not to be named because the information is private. Among the investments Arctos has made are a minority stake in Fenway Sports Group, parent of the Boston Red Sox, Liverpool FC and Roush Racing, and sizable limited partner equity in the NBA’s Golden State Warriors and Sacramento Kings. The other investments haven’t been disclosed, and it isn’t known how much of the firm’s capital is yet to be invested.
Inter Milan’s Third-Straight Annual Loss Moves Oaktree Closer to Control - CNBC - October 1st, 2021
Italian soccer power Inter Milan on Thursday posted a $285 million loss for the fiscal year that ended in June, its third-straight year of reported losses. Last season’s Serie A champions reported $421 million in revenue, down from $443 million the previous year.
The Nerazzurri, as the team is known, has been struggling financially since September 2020. The club’s majority stakeholder, the Chinese electronics retailer Suning Group, fell into financial distress after its $700 million deal with the English Premier League for Chinese broadcast rights was terminated due to non-payment. Suning tried to renegotiate the contract, citing the pandemic, but the EPL did not renew.
Barcelona receive £1.2bn offer from Dubai company to write off club's debts - Mirror - September 28th, 2021
FC Barcelona have reportedly received a £1.2bn offer to stabilise the Catalan club and write off their substantial debt that has caused havoc over the summer.
The La Liga giants had to part with one of the all-time greats over the summer, as financial issues at Barcelona ensured that under league rules, they couldn't afford to re-sign Lionel Messi.
In an attempt to lower their wage bill, the club also let Antione Griezmann return to Atletico Madrid, with Emerson Royal and Junior Firpo heading to the Premier League.
The club has been in a terrible state, but a company from Dubai could revive the club.
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