Owners Box: Club Member Newsletter - February 1st
F1 looks to add track in Sin City, Broncos tap Allen & Co as new adviser on sale, and ReKT Global (eSports) is targeted by Baron Davis' SPAC
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Recent Sports M&A News and Developments
Vegas Closer to Adding F1 to Growing Sports Roster - Front Office Sports - January 31st, 2022
Formula 1 is reportedly closer to bringing a race to Las Vegas and a deal could be announced anytime in the next six months.
According to a report in Sports Business Journal, the two sides are in advanced discussions, and Formula 1 aims to have a race in Sin City by next year.
Between 1981 and 1984, F1 held the Caesars Palace Grand Prix in Las Vegas, which took place in the hotel’s parking lot. A new track would reportedly incorporate the strip, specifically around the Bellagio casino’s fountains.
Why Sports Teams Are Welcoming Private Equity Ownership - Front Office Sports - January 29th, 2022
Prolific sports team owner Ted Leonsis broke down the first three generations of business types who purchase pro franchises.
“The first phase were the real estate people,” Leonsis said. “They wanted to build or buy the stadium and they were looking for things to put in it. They were in the rental business, basically. The second phase of entrepreneurs came in and they were more media oriented. Cable was just launching, which became a big, new revenue stream. Turner, CBS, and Tribune got involved. The third generation was my generation: the web/internet [entrepreneurs].”
Broncos Trust Hires Investment Firm to Advise Sale - Front Office Sports - January 28th, 2022
The trust in control of the Denver Broncos has tapped Allen & Co. to advise on the potential sale of the team.
The Broncos are expected to be sold — either through an outright sale or an auction — for around $4 billion, which would make it the most expensive franchise sale in sports history.
A source told Front Office Sports that Allen & Co. would advise the Patrick D. Bowlen Trust “on all the potential opinions” related to the team’s expected sale.
NWSL’s D.C. Spirit Sale: ‘Coup, Lies’ Baldwin Says in Letter - yahoo!sports - January 26th, 2022
The contentious dispute over the sale of the Washington Spirit women’s soccer team grew even more heated Wednesday, as the NWSL team’s controlling owner, Steve Baldwin, characterized co-owner Y. Michele Kang’s attempts to purchase the team as “a coup attempt” in a letter to investors viewed by Sportico.
An attorney for Kang fired back, calling allegations in Baldwin’s letter “false and inappropriate” and saying Kang intends to press ahead with the purchase of the team.
Broncos Sale Will Offer Record $3 Billion Tax Write-off for New Owner - yahoo!sports - January 26th, 2022
A ruling last month by Denver’s Second District Court has paved the way for the sale of the Denver Broncos, whose ownership future has been in flux since Pat Bowlen died without naming a successor in 2019. It is expected to be the most expensive team sale in U.S. sports history, topping the $3.3 billion Joe Tsai paid for the Brooklyn Nets and the rights to operate Barclays Center in a deal completed in 2019. Sportico valued the Broncos at $3.8 billion in September.
Another likely milestone: The biggest tax write-off ever for a team owner, expected to exceed $3 billion, based on the current tax code.
Inter Milan Issues $468.3M Bond To Manage Debt - Front Office Sports - January 25th, 2022
Inter Milan is issuing $468.3 million in new debt to pay off old debt.
The Serie A club is juggling its finances as it continues to be weighed down by pandemic-related losses. The senior secured notes, issued by its broadcast, media, and sponsorship division Inter Media and Communication, will be due in 2027.
Baron Davis SPAC In Talks With ESports Startup ReKTGlobal - Bloomberg - January 14th, 2022
ReKTGlobal, an esports startup, is in talks to go public through a merger with Baron Davis’s blank-check firm Bull Horn Holdings Corp., according to people with knowledge of the matter.
The special purpose acquisition company is discussing raising a so-called private investment in public equity, or PIPE, to support the transaction, which is set to value the combined entity at more than $400 million, the people said.
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