September 15, 2023

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One of the most reliable truisms in the business of sports is the continued growth of pro team values. But that growth is now escalating to the point where leagues and owners are considering new investment mechanisms that would have been quickly dismissed not too long ago. Goldman Sachs’ new effort to allow its wealthiest clients to buy into sports assets is only the latest.

Meanwhile, Everton finally gets a new American owner in a bid to shore up its rocky situation, and Diamond Sports Group looks to use an NHL team rights deal as a template in its forthcoming reorganization.

— Eric Fisher [[link removed]]

Goldman Sachs Opens Door For Clients To Invest In Sports Teams [[link removed]]

Christopher Hanewinckel-USA TODAY Sports

Goldman Sachs will soon offer their clients the ability to buy into pro teams, the latest development in a growing industry push to find new ways to keep up with rising franchise values.

A newly created division of the financial services giant called Sports Franchise in Investment Banking, co-led by Goldman Sachs executives Greg Carey and Dave Dase, will provide [[link removed]] extremely wealthy clients with the opportunity to invest not only in teams but also other entities in sports and entertainment. The effort also combines Goldman Sachs’ prior activities in sports mergers and acquisitions and in sports financing.

The division will focus on the “global sports ecosystem across all major sports, including federations, leagues, franchises, and clubs, as well as sports media, entertainment, and tech businesses,” according to an internal memo seen [[link removed]] by the U.K.’s Financial News.

It is unclear which teams or other assets will be immediately available to firm clients. Goldman Sachs has been active in numerous major transactions, including sales of the Premier League’s Chelsea, Formula 1, and a minority stake in the NFL’s Tennessee Titans.

The effort, however, is designed to allow investors a clearer path to fast-growing interest in sports-related investments.

A New Trend In Sports

Franchise values have escalated to the point where a variety of alternative measures for team ownership and investment are increasingly being considered.

Most recently, the NFL is reviewing [[link removed]] its traditional ownership rules, and several other pro leagues allowed the introduction of private equity and sovereign wealth funds into ownership.

International ownership has also grown, as Saudi Arabia’s PIF has invested heavily in sports in the U.S. and elsewhere, and the Qatar Investment Authority [[link removed]] became an investor in Monumental Sports, parent company of the Washington Capitals, Wizards, and Mystics, earlier this year.

Everton Acquisition By 777 Partners Extends U.S. Presence in Premier League [[link removed]]

Tommy Gilligan-USA TODAY Sports

Soccer’s reverse British Invasion continues.

The Florida-based 777 Partners have completed their anticipated [[link removed]] deal to acquire the Premier League’s Everton, extending a growing American presence in arguably the sport’s top league.

The pact will see 777 Partners acquire a controlling 94.1% stake in the club from Farhad Moshiri, who oversaw a highly difficult period for the club that included near-relegation, five straight years of financial losses, and ongoing delays and rising [[link removed]] costs for a new stadium.

Everton is getting a critical lifeline following unsuccessful efforts to stabilize the club. The deal is now going before several entities, including the Premier League and Football Association, for approval in advance of intended closing later this year.

Multiple reports pegged the deal at about $685 million.

“Our primary objective is to work with fans and stakeholders to develop the sporting and commercial infrastructure for the men’s and women’s teams that will deliver results for future generations of Everton supporters,” said Josh Wander, 777 Partners founder and managing partner.

Local Unease

777 Partners — which is steadily amassing [[link removed]] one of the world’s leading soccer portfolios — had previously considered [[link removed]] an investment in Everton. But this deal and entry into the Premier League represents the largest and boldest step to date by the firm.

The deal will bring the number of American-owned Premier League clubs to 10 out of 20 — a group that also includes iconic clubs such as Arsenal, Chelsea, Liverpool, and Manchester United. Already a situation causing unease within English soccer, tension has only grown through ongoing struggles and fan protests at several of the U.S.-owned clubs.

“We recognize the news today raises many questions for Evertonians, and we have already asked for an urgent meeting with the club and 777 representatives to obtain some clarity on the plans for the development of the club,” said the Everton Fan Advisory Board.

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DSG Looks To Use NHL Kings Deal As Reorganization Model [[link removed]]

Isaac Brekken/Pool Photo-USA TODAY Sports

Diamond Sports Group, the embattled and bankrupt parent of Bally Sports, has completed a multiyear rights agreement with the NHL’s Los Angeles Kings — one it intends to use as a template for its reorganization efforts.

The newly completed deal will keep the Kings on Bally Sports, and the network will show about 65 games this coming season, as well as pre- and post-game shows and original programming.

The agreement also includes digital rights that will offer Kings games both on an authenticated basis to linear subscribers or direct-to-consumer through Bally Sports+.

Most importantly for DSG, the structure of the Kings deal will be a key pillar of the company’s reorganization strategy ahead of a Sept. 30 deadline [[link removed]] to submit a formal plan. DSG will have to determine which of its 27 total NBA and NHL team media rights it will keep [[link removed]], a decision requiring meaningful progress on distribution renewal negotiations with Comcast, DirecTV, and Spectrum.

“We are encouraged by the progress we are making in our restructuring progress and are hopeful that this agreement can serve as a model for future discussions with team and league partners,” said David Preschlack, DSG CEO.

While other pro teams such as the Utah Jazz [[link removed]] and former Bally Sports partner Phoenix Suns [[link removed]] voluntarily opted for other paths in distributing their local games, the Kings still preferred a situation more closely resembling what they’ve been doing for nearly four decades.

“Because of the current, ever-changing dynamics surrounding the broadcasting landscape, our organization is thrilled to present a tremendous broadcast package in conjunction with national league broadcast partners,” the Kings said. “It is an unprecedented reach for us.”

Conversation Starters When Colorado State coach Jay Norvell joked [[link removed]] that unlike Deion Sanders, he “takes his glasses and hat off” when talking to adults, Sanders responded by giving [[link removed]] a pair of his signature Blenders line of sunglasses to every Colorado football player. “They don’t realize they just helped me with business,” Sanders said. Speaking of the Coach Prime phenomenon: Colorado has overtaken Ohio State for the highest [[link removed]] average ticket price in college football. Amazon is incorporating AI into its “Thursday Night Football” broadcasts on Prime. Check out [[link removed]] how it works.

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Editor's Picks Liberty-Mystics Is Best-Selling Playoff Series of WNBA’s First Round [[link removed]]by Andrew Cohen [[link removed]]The average resale price for Mystics-Liberty at Barclays Center is $100. Ole Miss Football Player Files $40M Lawsuit Against Lane Kiffin, School [[link removed]]by A.J. Perez [[link removed]]Ole Miss coach Lane Kiffin is being sued by one of his players. Suns Give Free Antennas to Fans Before Television Shift [[link removed]]by Andrew Cohen [[link removed]]The giveaway supports the Suns' shift to Gray's over-the-air channels. Media Battle Heats Up As Skip Bayless, Stephen A. Smith Vie for Deion Sanders’ Spotlight [[link removed]]by Michael McCarthy [[link removed]]It's an ESPN-Fox Sports battle for the attention of Coach Prime. Three Chances to Win

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