Sports Business

Investors will keep Ari Emanuel in the boxing ring

24 Oct 2024

The Hollywood super-agent is selling a bull riding franchise from Endeavor to TKO for $3 bln. The price is hard to justify, and shareholders are throwing tomatoes at the deal. While stuffing the assets together makes sense, it adds a complexity to an already convoluted match.

NFL gives buyout barons a view from cheap seats

28 Aug 2024

The US football league is giving private equity firms access to a coveted investment venue. Returns like the one on the $6 bln Washington Commanders are tempting enough for Carlyle and others to accept tough terms and cede some profit. It’s a steep price for a lousy ticket.

Paris Olympics warrant medal for budget restraint

26 Jul 2024

The French capital has forked out $9 bln on the Games, but compared to some previous hosts the cost overruns have not been excessive. Pre-existing infrastructure helped. Given France’s political ructions and high deficits and debt, such relative sangfroid is well timed.

Good luck finding a new Boston Celtics pot of gold

2 Jul 2024

The leprechaun-logoed NBA champs are for sale after two decades under venture capitalist Wyc Grousbeck’s group. At a mooted $6 bln, the investment return would top US stocks and private equity. A repeat depends on the dubious scenario of broadcast rights rising wildly again.

NFL can turn a $5 bln court loss into a touchdown

1 Jul 2024

The American football franchise may have to pay billions after a jury deemed bundling teams’ Sunday games to be anticompetitive. The NFL is TV’s biggest prize, so a single package commands top dollar. But other leagues prove dicing up rights can spark a wider feeding frenzy.

Building the WeWork of workouts will be a stretch

21 Jun 2024

Life Time is flexing its luxe brand of gyms to fitness-crazed New Yorkers and Bostonians. Selling property slims the business model, but fattens the long-term rents backed by uncertain membership fees. Putting mega-clubs into malls and office towers also bulks up the fad factor.

Disney Bob Iger sequel slated for HBO owner

10 Jun 2024

The Magic Kingdom’s boss beat back pushy activists including Nelson Peltz. But Warner Bros Discovery has similar issues and a boss, David Zaslav, that is grossly overpaid. With dying cable networks and a struggling streaming service, WBD is ripe for an activist – and a breakup.

Oaktree can still score a skilful goal with Inter

6 Jun 2024

The US fund ended up owning the loss-making Italian club after the previous owner missed a payment. Fetching valuations similar to what Elliott secured for rival AC Milan looks tricky. Yet American interest in soccer and on-field success point to a sale price exceeding $1 bln.

Basketball deal will help settle TV score

7 May 2024

Comcast is trying to steal NBA rights from rival Warner Bros Discovery for its Peacock streamer and NBC network. The indebted owner of TNT and HBO is probably tempted to pass up the $2.5 bln annual cost. But with live sports so pivotal for viewership, it would be a big miss.

Motor-racing deal faces quick antitrust pitstop

11 Apr 2024

F1 owner Liberty Media is doubling down on sports broadcasting rights with its $4.5 bln buy of MotoGP’s parent. CVC’s 2006 attempt to own both racing series got an EU antitrust black flag. The rise of streaming channels means mogul John Malone will have an easier ride this time.

Hollywood super-agent casts himself as deal star

4 Apr 2024

Endeavor boss Ari Emanuel was unexpectedly humbled: some of his bonuses went unpaid because the company’s stock price has sputtered. A $13 bln sale to buyout shop Silver Lake fixes the problem. Between equity, royalties and other goodies, he stands to pocket more than $400 mln.

Ari Emanuel baits investors to swim with sharks

2 Apr 2024

The CEO of Hollywood powerhouse Endeavor agreed to a $13 bln buyout billed, via creative math, as the decade’s biggest. After separating crown jewel UFC, Endeavor is complex – and cheap. For buyer Silver Lake, expert at exploiting such aberrations, this deal is perfect chum.

Capital Calls: Motorcycle M&A

1 Apr 2024

Concise views on global finance: John Malone’s Liberty Media is buying Dorna, the parent of motorcycling racing championship MotoGP, for 4.3 billion euros. It’s hard to see how the media mogul can make the deal work.

Remington deal fight is all about guns’ taboo

1 Apr 2024

Political backlash made gunmakers the orphans of capital markets, leaving the 208-year-old ammo brand to be fought over by unusual suspects: a Czech firm drawing national security scrutiny and a former insider. Investors’ retreat ensured a scrappy end for the military supplier.

Adidas catch-up remains off the necessary pace

13 Mar 2024

The $37 bln sneaker maker is emerging from its Yeezy trainer crisis. CEO Bjorn Gulden’s focus on fashionable trainers is helping to grow sales. But given the ropey economic outlook, which is hitting rival Nike, investors don’t yet look convinced he can deliver on his ambitions.

Warner Bros Discovery makes case against media M&A

23 Feb 2024

The HBO owner’s first full year since the merger of Warner and Discovery was a grim one. Boss David Zaslav lived up to cost-cut goals but missed nearly everywhere else. Even well-run deals can’t stem industry woes, making future tie-ups - with, say, Paramount - look ill-advised.

Basketball-maker will bounce back from IPO brick

1 Feb 2024

Amer Sports sold shares at $13 apiece, below its $16 to $18 range, valuing the owner of the Wilson, Salomon and Arc’teryx brands at just $6 billion. The steep discount to Lululemon, Nike and On partly stems from overblown fears about China. Buying now should be a slam dunk.

Sporting goods IPO plays winning China game

18 Jan 2024

Amer is growing fast in the home market of Fujian-based Anta, which co-bought the maker of Arc’teryx parkas and Salomon skis in 2019. Using Nike, Lululemon and On as guides imputes a $15 bln valuation. But chunky debt and the Wilson tennis brand weaken its competitive edge.

Man Utd deal is messy substitute at trophy price

27 Dec 2023

Tycoon Jim Ratcliffe’s purchase of a 25% stake values the British club at a hefty $6.2 bln. That still leaves him running behind the Glazer family with no easy path to control. A fuzzy turnaround plan means the Red Devils’ fortunes on the pitch may not recover soon either.

Paramount casts itself in next season’s M&A hit

21 Dec 2023

By starting talks with potential acquirer Warner Bros Discovery, the Redstone family is effectively putting its $10 bln media empire in play. There are multiple ways to structure a deal, and many possible suitors. It’s just not clear debt-laden WBD is the best for the role.