If you had invested in a North American sports franchise between 1991- 2022, you would have earned at least a seven-fold return on your investment, bettering the return from the S&P 500 over that period of time by a two-to-one ratio. According to Sportico, in the past year alone, the average value of an NFL franchise has increased by 24 percent. The strong growth in the value of these franchises has proven to be particularly attractive to investors, especially in recent years. For example, the sale of the Denver Broncos in 2022 was for a 22% premium over a third party’s pre-sale valuation. Valuation premiums are not only limited to sales of controlling investments; in 2023, a minority share of the parent company of the Toronto Raptors, Toronto Maple Leafs and Toronto FC was sold for a similar premium over a recent third-party valuation for the franchises. Not surprisingly, franchise owners have been eager to cash in either in whole or in part.Continue Reading How High Can It Go? What Private Equity Needs to Know about How Professional Sports Leagues’ Rules Impact Sports Franchise Valuations
David Sunkin is a partner in the Corporate Practice Group in the firm's Century City office.
This blog post originally appeared as an article in Profiles In Diversity Journal.
On September 30, 2020, California Governor Gavin Newsom signed into law Assembly Bill 979 (AB 979), an act that promises to greatly increase the diversity of the board of directors of a number of California-based publicly-traded corporations.
Continue Reading CA Bill AB 979 Seeks to Increase Board Diversity
The coronavirus (COVID-19) outbreak has impacted publicly traded companies that have to provide information to trading markets, shareholders and to the Securities and Exchange Commission (SEC) in a number of ways. The SEC has been particularly active in acknowledging the challenges that the outbreak poses to such companies and has provided conditional relief and has issued guidance as the outbreak has developed. The SEC Enforcement Division is also on high alert for COVID-19 scams.
Continue Reading Coronavirus and Considerations for Publicly Traded Companies