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NFL feeding itself to the sharks (Private Equity)


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3 hours ago, oldmanfan said:

Could be the beginning of the end for franchises like the Bills, Bengals. Etc.

 

I actually think the opposite.  Permitting the sales of minority interests in the teams will enable the asset-rich owners to get some cash and properly do some estate planning.  Given the valuations of teams (which will only rise), the number of potential majority owners is tiny.  And those mega billionaires could buy/move teams wherever they wish.  At least this way, there is at least a chance a team could be passed down through the family.  

 

Most teams that are passed down like the Giants and Steelers have trusts that were established before the skyrocketing valuations so the mechanisms are already in place.  The Bills do not have that.  So, unless we find another Terry Pegula in 15 or so years, we could be in some trouble.  This would allow Terry to create a trust, pay the taxes now and pass the Bills to his daughter if he so chooses.

Edited by bills_fan
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5 minutes ago, bills_fan said:

 

I actually think the opposite.  Permitting the sales of minority interests in the teams will enable the asset-rich owners to get some cash and properly do some estate planning.  Given the valuations of teams (which will only rise), the number of potential majority owners is tiny.  And those mega billionaires could buy/move teams wherever they wish.  At least this way, there is at least a chance a team could be passed down through the family.  

 

Most teams that are passed down like the Giants and Steelers have trusts that were established before the skyrocketing valuations so the mechanisms are already in place.  The Bills do not have that.  So, unless we find another Terry Pegula in 15 or so years, we could be in some trouble.  This would allow Terry to create a trust, pay the taxes now and pass the Bills to his daughter if he so chooses.

Interesting points.  My concern is based on what I’ve seen in my field of reproductive medicine.  A good number of IVF clinics now are owned by private equity and they only care about making $$ and selling to a bigger firm.  No one cares about the customer (in our case patients), employees are abused, and such.  
 

I have trouble seeing private equity only having a 10% stake unless they see return on ROI.  And the only way they’ll get that is by things like jacking up ticket prices, etc.  To me the 10% is the tip of the iceberg.  But you are probably much more knowledgeable about financial matters than me.

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1 hour ago, GoBills808 said:

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

Please. Billionaire owners are not robots and soulless. Their EGOS are gigantic, so wining matters to them. And to think they have zero love for the game and its history is just jealousy. Sure, some might be like that, especially among some family members, but overall, they care about the product and about the thrills, the ups and downs. They could have found many other ways to invest.

Private equity firms are all about SHORT TERM profits, at any current or later costs. Hence the danger.

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20 minutes ago, Jerome007 said:

Please. Billionaire owners are not robots and soulless. Their EGOS are gigantic, so wining matters to them. And to think they have zero love for the game and its history is just jealousy. Sure, some might be like that, especially among some family members, but overall, they care about the product and about the thrills, the ups and downs. They could have found many other ways to invest.

Private equity firms are all about SHORT TERM profits, at any current or later costs. Hence the danger.

😂😂Is that why the owners are inviting them in? For love of the game?

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Private Equity money is probably the most "expensive" money (in terms of conditions to get the money) you can get outside of a loan shark. 10% seems like a fairly nominal amount but PE firms will only want more influence. NFL teams are multi-billion dollar assets and there's not too many people with the cash and interest to be able to buy these teams at the evaluations the league and owners want. 

 

Sovereign Wealth Funds and PE Firms are some of the only entities that have the piles of cash and seemingly the interest to buy these teams. The NFL's greed will undermine its sustainability as is the case for many businesses sadly. 

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7 hours ago, msw2112 said:

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

 

Being a Bills fan the season is like having a continuous heart attack with bouts of anger and then then  depression after the playoffs. I can relate and find some relief when the season is over. 

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The hubris and greed of the NFL is a sight to behold at times - besides thinking they can keep a lid on gambling, that crew thinks they can and will "control" the private equity beast.  The NFL owners see it as a way of enriching themselves using someone else's money - thinking they are the titans of industry in the room - but the fox they just let in the hen house was counting on that.  

 

A decade from now, the 10% will be increasingly closer to majority control and the acceptable firm list will have quadrupled in number.  

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9 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.

Officiating on the field is disgusting 

Edited by JerseyBills
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9 hours ago, oldmanfan said:

Interesting points.  My concern is based on what I’ve seen in my field of reproductive medicine.  A good number of IVF clinics now are owned by private equity and they only care about making $$ and selling to a bigger firm.  No one cares about the customer (in our case patients), employees are abused, and such.  
 

I have trouble seeing private equity only having a 10% stake unless they see return on ROI.  And the only way they’ll get that is by things like jacking up ticket prices, etc.  To me the 10% is the tip of the iceberg.  But you are probably much more knowledgeable about financial matters than me.

 

They aren't the owners tho. 10% means they get to contribute money but have no real say in anything.

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