NFL feeding itself to the sharks (Private Equity)

[Ed_Formerly_of_Roch]

55 minutes ago, DrDawkinstein said:

 

 

 

Bengals were the lone "no" vote.

 

There goes the neighborhood...

 

Could be Mike Brown didn't know what a private equity firm is??

[ddaryl]

10 minutes ago, MJS said:

Popularity is at an all time high. The entire nation is shoveling money toward the NFL. Players get paid way more. Coaches get paid way more. Owners make way more money. The game is safer.

 

I'm struggling to think of what's worse.

Cost/price increases. Fans are geting priced out. Have to have 4 differenct streaming services to watch all the games

 

[msw2112]

1 hour ago, ddaryl said:

Cost/price increases. Fans are geting priced out. Have to have 4 differenct streaming services to watch all the games

 

 

To add - over exposure.  Do we really need Sunday afternoon, Sunday night, Monday night, Thursday night, Thanksgiving Day, Christmas, New Year's, and now Black Friday?  And frankly, I LOVE NFL football, but was opposed to the move to 17 games and will be opposed to the eventual move to 18.

 

There's already plenty to eat at the buffet.  All that last trip up there will do is make you sick.  At some point there will be diminishing returns with the over-exposure of the game and it will start to turn some fans off.  Monday night used to be "special."  Now, it's just another game.  Or, now, multiple games.

 

While I'm a die-hard and love NFL football, I truly feel a sense of relief when the season ends.  It's difficult to explain, but maybe others here can relate.

Edited August 29 by msw2112

[BillsVet]

1 hour ago, T.E. said:

Honest question - what about the NFL now is objectively better than it was in the pre-Goodell era?

 

Owners are making bank and that's who Goodell represents.  Best part is seeing the post-Gene Upshaw NFLPA put up almost no resistance to anything.  

 

I'm not surprised to see PE given the ability to have minority interest, even if unable to make decisions.  They'll eventually be allowed to have more of an ownership stake.

[RoyBatty is alive]

Some of these responses only demonstrate the extreme ignorance and unrealistic fear.    I think this discussion is way beyond this board.

 

Only 10%, no football decision input but the panic starting with the title "feeding itself to the sharks", LOL.  Private equity is just another tool in these billion dollar investment.  It is a financial necessity for some franchisees,   Do you all just want only multi-billionaires owning NFL franchises because that will be the end result.

[GunnerBill]

1 hour ago, GoBills808 said:

You mean other than the product, the safety of the players, the ratings, and the league's overall popularity?

 

Yea. And the aqueducts. 

[EasternOHBillsFan]

8 minutes ago, RoyBatty is alive said:

Some of these responses only demonstrate the extreme ignorance and unrealistic fear.    I think this discussion is way beyond this board.

 

Only 10%, no football decision input but the panic starting with the title "feeding itself to the sharks", LOL.  Private equity is just another tool in these billion dollar investment.  It is a financial necessity for some franchisees,   Do you all just want only multi-billionaires owning NFL franchises because that will be the end result.

 

Panera and Dunkin are both owned by private equity firms. Their quality and service have gone down tremendously, to the massive detriment of customers. Today's 10% becomes tomorrow's 30% and then over 50% after that. It's a Pandora's Box that the NFL just opened and you take it so lightly.

[oldmanfan]

1 hour ago, SoonerBillsFan said:

Not with a new stadium being built.   Maybe with that extra cash flow, Terry would have put a dome on the new stadium?

I hope you’re right.  But I have seen the impact of private equity in my field:  healthcare.  It becomes no longer about patient care but $$.   While they say it’s only 10% that a PE firm can own, the only thing that counts in the NFL is $$.   And while again I hope I’m wrong, I can see within 10 years that PE become majority stakeholders, and then the only thing that will matter is ROI.  And small market teams simply won’t hold up.

[RoyBatty is alive]

4 minutes ago, EasternOHBillsFan said:

 

Panera and Dunkin are both owned by private equity firms. Their quality and service have gone down tremendously, to the massive detriment of customers. Today's 10% becomes tomorrow's 30% and then over 50% after that. It's a Pandora's Box that the NFL just opened and you take it so lightly.

Because Panera and Dunkin are owned by private equity firm's and, in your opinion, have both gone down dramatically.  Yep, that is an PERFECT example of private equity going to ruin the NFL.

 

This is what I said and about fear and ignorance and it is way beyond this board.

 

There is no comparison between a private equity owning a company and private equity owning a non-football decision making investment limited to 10%.  If you cant comprehend that, it is up to you.

 

There is no logic to what you wrote, none.

 

I guess by your standard your should NEVER invest in a public traded stock or take your firm public because there have been many bankruptcies of publicly traded companies.  Fear and ignorance.

 

You really think the Jerry Jones's of the world are going to risk the NFL standard, not a chance.

2 hours ago, SoonerBillsFan said:

Not with a new stadium being built.   Maybe with that extra cash flow, Terry would have put a dome on the new stadium?

Someone actually thinking about the process.  I think you comment re Pegula is spot on, especially when a franchises needs CASH and wants to do some capital improvements with the facilities/stadium.

[DrDawkinstein]

17 minutes ago, RoyBatty is alive said:

Because Panera and Dunkin are owned by private equity firm's and, in your opinion, have both gone down dramatically.  Yep, that is an PERFECT example of private equity going to ruin the NFL.

 

This is what I said and about fear and ignorance and it is way beyond this board.

 

There is no comparison between a private equity owning a company and private equity owning a non-football decision making investment limited to 10%.  If you cant comprehend that, it is up to you.

 

There is no logic to what you wrote, none.

 

I guess by your standard your should NEVER invest in a public traded stock or take your firm public because there have been many bankruptcies of publicly traded companies.  Fear and ignorance.

 

You really think the Jerry Jones's of the world are going to risk the NFL standard, not a chance.

 

Not fear. Hate. Hate for private equity firms that are a cancer on the world.

 

All they do is put people out of work, kill small business and competition, and drive up costs.

 

Housing, the trades (plumbers, electricians, etc), veterinarians, dentists, hospitals, even ***** renaissance fairs. All are being bought out, to the tune of billions a year, by private equity looking to suck the life and profit out of these entities before they dump the asset.

 

Of course there is some hyperbole in the thread about the NFL because the owners may be greedy but I dont see them losing their teams either. But letting these vultures in the door wont lead to anything being better for us fans.

Edited August 29 by DrDawkinstein

[msw2112]

I deal with a lot of suppliers in my business.  There seems to be a common thread with those suppliers whose quality and service have dropped off, and who would rather fight (and possibly litigate) over an issue than attempt to come to a mutually beneficial resolution.  What's that common thread? They've all been purchased in whole or in part by private equity.

[MattM]

1 hour ago, Ed_Formerly_of_Roch said:

 

Could be Mike Brown didn't know what a private equity firm is??

I’m kind of surprised he voted against—I strongly suspect this is all about liquidity for owners like him (and Mark Davis) who don’t have large assets outside his team. This allow them to get liquidity out of an illiquid asset. Can come in handy for things like family succession or divorces even, as well as just general funds for high in the hog living expenses. 

[msw2112]

5 minutes ago, MattM said:

I’m kind of surprised he voted against—I strongly suspect this is all about liquidity for owners like him (and Mark Davis) who don’t have large assets outside his team. This allow them to get liquidity out of an illiquid asset. Can come in handy for things like family succession or divorces even, as well as just general funds for high in the hog living expenses. 

 

While I'm not a fan of private equity, I think this is right.  All of Davis' net worth is tied up in the franchise, so without that, he has little cash flow.  To clarify, I'm sure his cash flow is better than ours (TBD members), but as far as the world of NFL billionaire owners, his cash flow is low.

[Augie]

Having some liquidity for estate planning and facility improvements, etc makes some sense. Kind of like using Josh’s contract as the piggy bank you go to when you need cap space. 

 

My first question is why would private equity consider this? They aren’t in control and they can’t just flip or take it apart and sell it for a profit. Is the cash flow worth the investment? These franchises do not turn over very often, so what’s the return?  Maybe if I knew more about the terms it would be obvious. 🤷‍♂️

 

We bought some stock in a bank a buddy was with as CEO. He went there to take a healthy but stagnant bank and grow it to get it sold. For a variety of reasons he was only there about 2 years. The PE investor on the board wants things to move faster, but they don’t own enough to make it happen. I agree with that PE firm, the time value of money is not nothing, so the NFL PE guys will find a way to make it worth their while. 

 

I have no control over this, so I’m not going to worry about it. 

[T.E.]

2 hours ago, MJS said:

Popularity is at an all time high. The entire nation is shoveling money toward the NFL. Players get paid way more. Coaches get paid way more. Owners make way more money. The game is safer.

 

I'm struggling to think of what's worse.

Virtually everything for the consumer

[Augie]

16 minutes ago, MattM said:

I’m kind of surprised he voted against—I strongly suspect this is all about liquidity for owners like him (and Mark Davis) who don’t have large assets outside his team. This allow them to get liquidity out of an illiquid asset. Can come in handy for things like family succession or divorces even, as well as just general funds for high in the hog living expenses. 

 

Exactly, I’d think the Bengals would be the first team to benefit from having this tool available if needed. They are going to need some cash for guarantees if nothing else. 

 

 

.

Edited August 29 by Augie

[Jauronimo]

See...this is why I keep my money stuffed in various mattresses or in old coffee cans buried around the backyard.  Everything is going straight to hell!

[Lost]

34 minutes ago, DrDawkinstein said:

 

Not fear. Hate. Hate for private equity firms that are a cancer on the world.

 

All they do is put people out of work, kill small business and competition, and drive up costs.

 

Housing, the trades (plumbers, electricians, etc), veterinarians, dentists, hospitals, even ***** renaissance fairs. All are being bought out, to the tune of billions a year, by private equity looking to suck the life and profit out of these entities before they dump the asset.

 

Of course there is some hyperbole in the thread about the NFL because the owners may be greedy but I dont see them losing their teams either. But letting these vultures in the door wont lead to anything being better for us fans.

 

Owners generally have a love for their product.   Private equity firms have a love for their profit.   What happens above is usually the end result. 

[bigduke6]

nothing good ever happens for the consumer when Private Equity gets involved,  nothing.   i dont care about the parameters of this potential deal. PE is all about the return on investment at the expense of everything else.   might not seem like much right now,  but its a very slippery slope and greed gonna greed.  seen it too many times,  in too many industries.  if PE doesnt wreck the NFL,  it will be the first time they havent destroyed an entity that they've sunk their fangs into.

Edited August 29 by bigduke6

[GoBills808]

30 minutes ago, Lost said:

 

Owners generally have a love for their product.   Private equity firms have a love for their profit.   What happens above is usually the end result. 

Don't be fooled

Your perceived sentimentality of the league and how it's viewed by the owners is a commodity to be profited from in and of itself