![]() ![]() … Deals involving sports teams are resistant to market fluctuations, said Sal Galatioto, president and founder of Galatioto Sports Partners (GSP), a sports firm that advises on buy-side and sell-side transactions involving teams. “Even teams that aren’t operationally successful, or aren’t successful on a cash-flow basis, are selling at sizable gains.” The $6.05 billion clinched by the Commanders beat the $4.65 billion attained by the Denver Broncos when it was sold last year to Walmart heir Rob Walton…“What’s the last sports team that sold at a loss? I don’t know either,” said Jeff Klein, an attorney with the law firm Clarick Gueron Reisbaum who advises clients in the sports and entertainment industries. One reason for all the deals is skyrocketing valuations, according to bankers and private equity executives. Formerly of Bain Capital, Ian Loring (now at Haveli Investments, per his LinkedIn) is also part of the group. The group of investor buyers included Gabe Plotkin (of Melvin Capital and meme stock fame), as well as Rick Schnall, a partner at PE firm Clayton, Dubilier & Rice Chris Shumway, former senior managing director of Tiger Management and current managing partner of Shumway Capital and Dan Sundheim, founder and CIO of D1 Capital Partners. The most recent big sports deal came in June, Luisa writes, when Michael Jordan agreed to sell his majority stake in the Charlotte Hornets basketball team. For example, private equity funds generated an annualized return of 14.8% for the 25 years ended December 2020, more than double the 5.76% produced by the S&P 500 for the same time period, according to a 2022 World Economic Forum study. The rise in alt exec ownership is, of course, in part due to the stunning returns alt firms have made in their bread-and-butter businesses over the past 25 years. ![]()
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