Sports

Disney chief’s unlikely fairy godfather: Murdoch

21 Nov 2012

With News Corp snapping up a piece of the Yankees TV network, Bob Iger’s battle with Rupert Murdoch is becoming more intense. But News Corp’s rich price for the deal implies a punchy valuation for Disney’s much-coveted ESPN. That could make the whole Magic Kingdom worth more.

Baseball is due to face a financial curveball

20 Nov 2012

Rupert Murdoch is buying into the New York Yankees cable network at a Ruthian EBITDA multiple. Player salaries and ticket prices have surged at triple the rate of inflation over 20 years while franchise values are at 42 times operating income. These diamonds aren’t forever.

Bayern’s profits shine in fickle football economy

19 Nov 2012

The German Bundesliga team’s steady profit stands in stark contrast to the exuberant irrationality that is the rule in European football. Other teams, as well as real-world managers or bankers, could learn a few things from the world’s most financially successful team.

Big scores inspire participation in sports M&A

20 Sep 2012

Billionaire Philip Anschutz is shopping an empire that includes the Stanley Cup champs, the NBA’s Lakers and David Beckham’s U.S. soccer club. After the eye-popping $2.2 bln Dodgers sale price and Manchester United’s IPO, it’s no wonder if owners get off the sidelines.

Soros backing could lift Manchester United

21 Aug 2012

The soccer club’s U.S. float was panned for leaving the Glazer family firmly in control - and for missing their lofty goals on value. But George Soros’s emergence as a major shareholder could lift sentiment. Despite his $20 bln fortune, Soros is not a typical trophy investor.

Italians railroad China’s PLA on soccer pitch

2 Aug 2012

How else to explain an investment in Inter Milan by China Railway Construction, a state group with origins in the People’s Liberation Army? Bragging rights are limited and industrial rationale non-existent. At best it’s a quid pro quo for the contract to build Inter’s new stadium.

Olympics a bad metaphor for economic rivalry

2 Aug 2012

China breaks the rules, the U.S. loses its edge, Britain barely registers at all. It’s easy to see the Games as a mirror for reality. But economics is different. Co-operation is rewarded, the prizes keep growing, and there are many ways to win, provided the competitors play fair.

Man Utd counts on investors behaving like fanatics

2 Aug 2012

The English soccer club’s supporters expect nothing but success. That ethos carries over to Manchester United’s IPO, which seeks to value the enterprise at an optimistic 22 times EBITDA. Though Man Utd fans are rarely disappointed, buyers of the stock at the mooted price will be.

As steel’s lure fades China searches for gold

31 Jul 2012

Steel production was once a leading sign of industrial competence for developing economies. China bought into that story, but now the country’s huge steel industry is a drag. Olympic gold is another sign of greatness. In that domain, China still has a long way to go.

Olympics feel good value, even if they aren’t

27 Jul 2012

The world may gloat at London’s mishaps. And for the over-extended UK, the economic wisdom of spending $14 billion on the Games is uncertain at best. Yet British spirits are high. Olympic investment is paying dividends, even if they aren’t strictly financial.

Scottish soccer’s own goal sets example for banks

13 Jul 2012

Glasgow’s Rangers soccer club wasn’t too big to fail - the Scottish Premier League ejected it for reckless financial behaviour. The authorities must now choose how far down to relegate the side. Like financial regulators, they should fight hard against moral hazard.

Euro cup boost could be brief for triumphant Spain

2 Jul 2012

The country’s soccer triumph over Italy provides some welcome relief in the economic gloom. It shores up Spain’s image when it is at its lowest ebb, due to the country’s euro travails. But if history is any guide, the boost from this victory will be short-lived.

Man U’s New York listing crowns race to the bottom

25 Jun 2012

Most of the $24 bln raised by the 21 top U.S. IPOs this year consisted of shares with lousy voting rights. Greater leeway for poor governance in the Big Apple rather than Americans going gaga for the sport is likely to be the greater driver of the UK soccer club’s market debut.

English soccer deal is doubly worrying

14 Jun 2012

Domestic rights to top-flight matches just sold for 6.6 mln pounds a game. Auction winners BSkyB and BT lost at least a billion pounds in combined market value. That implies the duo over-paid. It also reflects investor unease that the two are increasingly direct competitors.

Man Utd’s IPO transfer keeps owners in control

13 Jun 2012

The English soccer club may switch a $1 bln listing from Singapore to New York. So much for brand-building in Asia. Despite public indifference, U.S. investors will see value in a strong global franchise. And the owners can bring over the lopsided governance in the original plan.

U.S. basketball finals hold odd election allure

8 Jun 2012

Embattled Chesapeake boss Aubrey McClendon and Bain Capital’s Steve Pagliuca are respective part-owners of the Thunder and Celtics, teams still in the hunt to be champs. The White House winners’ fête would tickle a President Romney, but could prove awkward for a re-elected Obama.

Lululemon’s downward dog gnaws at yoga bubble

7 Jun 2012

The $9 bln maker of pricey sweatpants rattled investors’ chakras by warning of slower than expected sales and profit growth. Yoga may still be one of the world’s fastest-growing forms of exercise, but Lululemon’s stretched valuation is more about fashion than yogi proliferation.

The business of ice hockey has never been so good

21 May 2012

National Hockey League viewership and attendance has surged, revenue has reached $3.2 bln - even laggardly teams are getting their skates on. But you won’t hear the NHL boasting about it. Once the Stanley Cup is won, expect the gloves to come off between players and team owners.

BC Partners faces wrong kind of gym workout

2 May 2012

Just months ago Fitness First was set to IPO. Now distressed investors are taking control of the gym chain. Excess leverage and lean rivals left it out of shape. The restructuring will burn off most of private-equity owner BC Partners’ roughly 400-million-pound equity investment.

Why is IBM even sponsoring the Masters?

5 Apr 2012

Golf and business often mix well. But Augusta National remains an all-boys club. That defies IBM’s diversity aims - very noticeably so given its new CEO, Virginia Rometty. Even if the financial logic for sponsorship wasn’t fuzzy, the tech firm would be better off pulling the plug.