Source: Fortune
Summary
Billionaires are increasingly investing in sports teams, with recent purchases including the Clippers, Lakers, and Celtics. According to David Silverman, a partner in Cooley’s mergers and acquisitions group, owning a franchise provides access to a premium club with elite business opportunities and tax benefits. The value of teams has compounded rapidly due to long-term media rights deals and increased consumer spending on in-person experiences. Silverman notes that franchise values have become less tied to the number of people attending games, making them a more stable investment.
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The numbers tell one story.
Bill Chisholm’s $6.1 billion purchase of the Celtics is just one example of the trend. Silverman says that owning a team provides a unique business opportunity and tax benefits. The value of teams has increased rapidly, making them a desirable investment. The appeal of owning a team goes beyond the financial benefits, with Silverman noting that it provides access to a premium club with elite business opportunities. The trend is not limited to basketball, with private equity firms like Apollo circling investments in teams like the Yankees.
It’s not just about the money; it’s about the exclusivity and the business opportunities that come with it.
Author: Evan Null
