Ted Seago’s Post

Mark Cuban is selling a majority stake in the Dallas Mavericks What sets this deal apart is that, despite selling a majority stake the family of the late casino mogul Sheldon Adelson, Mark Cuban will retain complete control over basketball operations. That means he would turn $285 million into $3.5 billion AND maintain control of the franchise — a totally unprecedented move in sports. If the deal is finalized, it would merge the interests of Cuban and the Las Vegas Sands Corporation, which have planned to partner in building a casino and resort in Dallas if gambling is legalized in the Lone Star state. What a legendary move by Cuban, who continues to disrupt sports by thinking outside the box! 

Latest for PE Hub, after The Carlyle Group and Seattle Sounders FC acquired the Seattle Reign FC for $58 million from the OL Groupe, there's been a few institutional investors interested in the growing National Women's Soccer League (NWSL). A main reason is the rising valuations of franchises in the league. Read more (subscription req'd) about how the NWSL has grown in viewership on television and live attendance, and why we could be seeing more PE firms want to get involved at the ownership level. Thanks to Sean Clemens for the insight. #sports #womenssports #privateequity

DEAL OF THE WEEK: Mark Cuban Sells Majority Stake In Dallas Mavericks To Casino Billionaires 🏀 ❔ So what's the deal? Mark Cuban, the billionaire investor, known for selling Broadcast.com to Yahoo during the dotcom boom and his seat on the US TV show Shark Tank, has seen his $285m acquisition of the Dallas Mavericks (in 2000) balloon into a $3.5bn sports franchise. The buyers? The billionaire Adelson and Dumont families, who together control the Sands real estate and gambling company. Sands operates six integrated resorts across Macao and Singapore. 🧠 Rationale? In part, this is a bet on Texas legalising gambling. The Adelson family has spent millions lobbying for the state to legalise gambling, which would enable the Dallas Mavericks to become the centre of an integrated resort, with accommodation, casinos, shopping, and live entertainment. Cuban is partnering with the two families because of their expertise in real estate. He sees the future of sports franchises as the centrepiece of physical assets, not having to rely on sponsorship and TV revenue. 🔢 Structure? Cuban is selling a majority stake to the two billionaire families for just over $2bn, keeping a 27% ownership stake. Patrick Dumont and Cuban will both be governors of the franchise, with Cuban taking responsibility for all basketball-related decisions. 📝 Additional comment? A price tag of $3.5bn is hefty and has almost doubled in the last three years, however, the valuation falls some way short of the recent $6bn acquisition of the NFL’s Washington Commanders. Why are NFL teams so much more valuable than NBA teams? The answer is straightforward. Simply, NFL teams generate more TV, sponsorship, and gameday revenue, generating much larger profits than NBA teams, despite a much shorter season, with far fewer fixtures. #dallasmavericks #markcuban #sports #investing #finance

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 😂

The Washington Commanders set an all-time high record sale for a sports team at $6B in 2023 📈. Alpine F1 was recently valued at $900M 🏎️. The Denver Broncos joined the high-stakes club with a $4.65B acquisition by the Walton-Penner Group in 2022, while the Phoenix Suns and the WNBA’s Mercury were sold to billionaire Matt Ishbia for $4.65B. These transactions underscore a major industry shift. With only a limited number of teams available and a globally expanding fan base, owning a sports franchise has emerged as a rare and sought-after investment, merging entertainment with significant investment potential. The intersection of highly engaged audiences and digital growth avenues is transforming sports franchises into hotbeds for innovation and market expansion 🚀. This evolving landscape heralds a new era where passion meets profit, heralding exciting prospects for investors and fans alike. #SportsBusiness #InvestmentTrends #GlobalSports #SportsInnovation #RecordBreaking #TeamOwnership #SportsEconomy

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

Exciting news on the horizon: the NFL considering PE (private equity) ownership. How can ClearEdge help staffing agencies dive into this? We specialize in marketing for staffing agencies, analyzing diverse investment models to showcase stability and growth potential. Say what? I know, it's not just a cool graphic for social. Our focus? Empowering your team to attract top-notch clients and candidates through strategic partnerships and investments with the right marketing and STRATEGY. There is even more. Imagine having another executive in your corner, someone you can safely have conversations with about mergers, negotiations, and strategic decision-making. With ClearEdge Rising, that becomes a reality. And everyone signs NDA's. Leadership development is key. Let's navigate this landscape together, honing negotiation skills and strategic decision-making to secure your agency's success. And when it comes to recruiting? We've got you covered. With expanded resources from strategic investments, we can help you hire the best talent in marketing and sales, elevating your agency to new heights. Let's WIN together! Ready to amplify your revenue strategy with ClearEdge? Let's connect and score big together - all the football analogies all day long. #StaffingMarketing #PEOwnership #LeadershipDevelopment #Recruiting #NFLInvestments

PRIVATE EQUITY IN THE NFL ??? A special committee of NFL owners has been investigating potential changes to team ownership rules to address a shrinking pool of potential buyers amid soaring team valuations. One significant possibility is allowing institutional wealth, such as private equity, to invest in NFL franchises, which is currently prohibited. This could provide liquidity for team owners to pursue projects like stadium renovations and attract more potential minority owners. Discussions and potential votes on these changes are expected at upcoming league meetings. The move would mark a shift from the traditional family-run ownership model, reflecting the increasing financial demands and valuations of NFL teams What are your thoughts on this??? Like, Share, & Comment below! #NFL #PRIVATEEQUITY #PE #SPORTS #FOOTBALL #SELBYJENNINGS Jamie Remp Mary Tran Cameron Cooper, MSM Stephen Money Jaden Damesek Logan Shipley

The Gardner Institute was joined at our March Newsmaker Breakfast by business leaders and policymakers who shared the background and outlook for bringing new professional sports franchises to Utah. They discussed the legislation passed in the 2024 Legislative Session, the economic contribution of new professional teams, and the next steps to fund, plan, and operate National Hockey League and Major League Baseball organizations in Salt Lake City. Read more about the discussion in a recent article from the Deseret News!

The Minnesota Timberwolves sit atop the NBA's Western Conference, and the team's new ownership group led by Alex Rodriguez and Marc Lore is set to take over pending a final ~$600 million payment to Glen Taylor and approval from the NBA Board of Governors. This payment is the last piece of a savvy agreement signed in 2021, which gives Rodriguez and Lore the option to acquire 80% ownership of the Timberwolves and the WNBA's Minnesota Lynx via fixed annual options that imply a franchise valuation of $1.5 billion. NBA valuations have skyrocketed since then, and per Forbes, the Timberwolves are now worth $2.5 billion. Talk about an IRR. Rodriguez' and Lore's 'buy-now, figure-it-out-later' approach capped upfront risk and seems certain to generate arbitrage in the near term. Strapped for cash and with no shortage of investment firms looking to invest in pro sports teams, it seems a matter of when, not if, Rodriguez and Lore announce additional equity partners at or above their initial $1.5 billion entry valuation. A cash infusion will allow them to take some chips off the table and, critically, bolster the coffers as the Timberwolves look to retain their young stars and chase sustained contention. What does it mean and where do things go from here? My full breakdown on Substack: https://lnkd.in/gDiVM4V4 🏀 🐺 National Basketball Association (NBA)