December 7, 2023

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Rock veterans Def Leppard and Journey teamed up back in 2018 for a lengthy tour that featured stops at nine MLB ballparks, grossing more than $27 million at those venues. The bands, with support this time from Heart, Cheap Trick, and the Steve Miller Band, will double their baseball presence with a 2024 tour announced today that will visit 18 MLB venues. The dates comprise the vast majority of the entire run of shows and provide a source of critical non-gameday revenue to those teams.

— Eric Fisher [[link removed]]

NBA in Vegas? LeBron and RedBird Are All In [[link removed]]

Kirby Lee-USA TODAY Sports

LeBron James has been increasingly vocal [[link removed]] in recent years about his desire to own an NBA expansion team in Las Vegas, going so far as to say last year, “I would love to bring a team here at some point.” Now, some of his biggest financial partners are confirming their interest in aiding that goal, providing what could prove to be crucial support.

“We’re looking at bringing an NBA expansion team [to Vegas] in partnership with LeBron and Fenway Sports Group,” Gerry Cardinale, the founder of RedBird Capital Partners, said Wednesday at the Sports Business Journal Intercollegiate Athletics Forum. “We started this project three years ago.”

James and RedBird are both currently partners in FSG, the parent organization of the Boston Red Sox, Pittsburgh Penguins, Liverpool FC, and the New England Sports Network. Their joint Las Vegas initiative would in part look to take advantage of an ongoing sports boom [[link removed]] in the Nevada city previously shunned by most sports leagues.

Beyond the upcoming Super Bowl to be held at the Raiders’ Allegiant Stadium, the city in just a few years has become home to the Golden Knights, Aces, Formula 1’s Las Vegas Grand Prix, the end of the inaugural NBA In-Season Tournament, and soon will also have the A’s.

The NBA efforts could be further boosted by a planned $10 billion development [[link removed]] led by Oak View Group, with an NBA arena as its centerpiece.

Cost Factors

But while that prospective ownership group contains plenty of star power and financial muscle, Cardinale cautioned that rising franchise values could prove to be a sizable impediment.

“The price talk on an NBA team three years ago was $3 billion. The price talk today on an NBA expansion team is $5.5 billion to $6 billion,” he said. “I’m not sure I can make that work. … Maybe I’m evolved out of existence. Maybe now I’m turning over the baton to a sovereign [wealth fund] or to a lower-cost-of-capital provider. Could be.”

There is no firm timetable for any NBA expansion moves, but the league is expected to focus [[link removed]] more on that area after completing its next round of domestic media rights.

Editor’s Note: RedBird IMI is an investor in Front Office Sports.

EXCLUSIVE

LIV Golf Was Warned Signing Rahm Could Hurt PGA Tour Talks

A source tells Front Office Sports that representatives close to the PGA Tour had warned LIV Golf that signing Jon Rahm could complicate efforts toward ending the schism in pro golf. Rahm is the first big-name golfer signed since June’s framework agreement was announced.

Read more about this exclusive story [[link removed]] by Front Office Sports senior reporter A.J. Perez.

More U.S. Money Into Euro Soccer: PSG Stake Sale Values Club at $4.6B [[link removed]]

PSG

One of Qatar’s biggest sports endeavors has now made a significant financial partnership with a leading U.S.-based sports investment fund — continuing a trend of American money being poured into European soccer.

Dallas-based Arctos Sports Partners has acquired a minority stake in Paris St. Germain, the most successful club in France’s Ligue 1 and majority-owned by Qatar Sports Investments. Terms weren’t disclosed, but multiple reports indicate Arctos is buying a 12.5% team stake that values PSG at $4.59 billion, making the firm’s investment worth about $573 million.

Other recent deals involving U.S. money pouring into European soccer include:

Miami-based 777 Partners’ ongoing takeover [[link removed]] of Everton Los Angeles-based Ares Management investing [[link removed]] $500 million in Chelsea New York-based Dynasty Equity buying [[link removed]] a $200 million stake in Liverpool

PSG’s new valuation is slightly higher than the $4.21 billion Forbes estimated [[link removed]] earlier this year, which pegged the French powerhouse as the seventh-most valuable soccer club in the world.

While Arctos won’t influence any of PSG’s on-field soccer operations, the firm will provide some strategic advising for QSI, a subsidiary of the state-run sovereign wealth fund Qatar Investment Authority. QIA — not QSI — recently became the first sovereign wealth fund to invest in major U.S. sports teams thanks to its deal with Washington Capitals and Wizards parent company Monumental Sports & Entertainment.

Growing The Pot

PSG is just the latest investment for Arctos, which has announced funding deals with more than 20 franchises across the NBA, NHL, MLB, MLS, Formula 1, and European soccer.

Just last month, Arctos invested an undisclosed amount in the Aston Martin F1 team, taking the latter’s valuation past [[link removed]] $1 billion. Arctos was also reportedly among the American investors [[link removed]] interested in partnering with the PGA Tour, potentially alongside Saudi Arabia’s Public Investment Fund.

SPONSORED BY TICKETMASTER

Gifts for Every Fan in Your Life

Gift the unforgettable this holiday season with Ticketmaster’s 2023 Holiday Gift Guide.

Through December 31, Ticketmaster is offering a variety of holiday events and gifts for everyone on your list.

Whether you’re looking for tickets to a can’t miss-game or concert, the hottest shows on Broadway or fun events for the whole family, they’ve got it all.

Explore [[link removed]] their Gift Guide and find the perfect present for every sports, music and entertainment fan in your life.

Get your tickets today [[link removed]]!

Ex-Jags Employee Accused of Stealing $22M, Going on Massive Shopping Spree [[link removed]]

Charles LeClaire-USA TODAY Sports

In a saga resembling an NFL version of the George Santos political scandal, a former Jacksonville Jaguars employee has been accused of stealing more than $22 million from the team by taking advantage of a virtual credit card program to fund his own lavish lifestyle.

According to a story first published by The Athletic [[link removed]], Amit Patel, who worked for the team from 2018-23 in various financial planning roles, has been charged [[link removed]]in the U.S. District Court for the Middle District of Florida with using that team program to buy a series of luxury goods.

Among the items Patel is alleged to have acquired for himself using team funds:

• Condo in Ponte Vedra Beach, Florida

• Tesla Model 3 sedan and Nissan pickup truck

• Use of private jets and luxury hotels

• $95,000 Patek Philippe watch

• Cryptocurrency and NFTs

• Bets with online gambling sites

• Sports memorabilia and event tickets

Jacksonville wasn’t named in the suit, which refers to the team as “Business A,” but the Jaguars have confirmed they were victimized by Patel and are cooperating with federal officials.

“This individual was a former manager of financial planning and analysis who took advantage of his trusted position to covertly and intentionally commit significant fraudulent activity at the team’s expense for personal benefit,” the Jaguars said in a statement.

The alleged scheme ran for more than three years. The Jaguars fired Patel in February, and he now faces one count of wire fraud and another of making illegal monetary transactions.

Conversation Starters Texas and Oklahoma have officially agreed to a contract extension [[link removed]] that keeps the Red River Rivalry at the Cotton Bowl through 2036. The stadium will undergo $140 million in renovations, the single largest investment in its history. Remember that golf-themed bar in Cedar Rapids that offered free beer [[link removed]] until Iowa scored in its final match against Michigan — which never happened? The bar is running that promotion again for the Citrus Bowl. Hoping for a packed house [[link removed]] for its Cup Final on Saturday, MLS is scrambling to make sure fans can get tickets after a presale code was leaked and exploited by third-party ticket resellers.

FUTURE OF SPORTS

More Than a Stadium

Everywhere your turn, sports teams are unveiling groundbreaking venues, setting a new standard for fan engagement — an evolution just getting started.

Our next virtual event [[link removed]] immerses you in the transformative initiatives driving this venue revolution. Across three enlightening sessions, we unravel the reasons fueling the arena and stadium boom, exploring their profound effects on fans, athletes, and advertisers.

Join us as experts share invaluable insights into this evolving landscape on December 13 at 1 p.m. ET for Future of Sports: Venues [[link removed]]. Take a deep dive into the innovations shaping the future of fan experiences and be part of this immersive journey into tomorrow’s sports and entertainment realms.

Register now [[link removed]]!

Editor's Picks Jim Harbaugh Reportedly Eyes Five-Year Extension With Michigan [[link removed]]by Michael McCarthy [[link removed]]The Michigan coach is close to a $55 million contract. But the school wants written pledge he won't jump back to NFL. Florida’s Federal Lawmakers Are Going After the College Football Playoff [[link removed]]by Amanda Christovich [[link removed]]Rep. Gus Bilirakis and Sen. Rick Scott have both made statements. ‘The Amount of Useless Stuff You Guys Do Is Staggering.’ Inside a Shakeup at Sports Illustrated’s Publisher [[link removed]]by Michael McCarthy [[link removed]] and A.J. Perez [[link removed]]The new owner of the company that operates SI made a jarring first impression Wednesday, warning his employees: 'No one is important.' Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Brian Krikorian [[link removed]]

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