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Random 2024 Bengals related stuff


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4 hours ago, JC said:

 

 

 

Man I wish "investing heavily" meant that something was no longer a need.  Unfortunately that investment has to show value on it's own, not just because we paid a lot for it.

 

Anyone want to buy some NFTs?

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26 minutes ago, BlackJesus said:

 

... Such a terrible idea. Inviting in the soul-less blood-sucking leeches will not benefit the game at all. 


The current group of NFL owners aren’t exactly saints.  The problem they are facing is the pool of individuals who can afford to buy a franchise shrinks every year as valuations go up and up.  Private equity could actually help cash poor franchises like the Bengals or Raiders and they won’t be calling the shots with a 10% stake.

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^ Private Equity will have a corrupting influence on the league in my view, plus it's just terrible optics.

 

So now when you get evicted by BlackRock or Vanguard from your house you can look at your favorite NFL team wearing their chest logo patch, because they're 10% owners.

 

I would love to see the approved list? Are the Saudis, Qatar, or Emirates money on it? Any dictators from various countries and their funds? What happens when X owns 10% and that team asks Elon Musk to kill an unpopular story involving their QB which is trending on his app? 

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Private Equity has gotten involved in areas where no one expected them to like healthcare and residential housing.  Trying to squeeze blood from a turnip in those areas and causing issues.

 

We all know NFL teams are crazy profitable, so of course private equity would want some of that.  At those low ownership percentages they aren't going to have any influence unless its to sue a crazy owner who is driving the team into the ground (like Snyder).  It gives an owner a chance to cash out a bit of dough, especially a guy like Brown.  NFL owners are probably having a tough time finding really rich guys who want to buy minority shares and have zero say in management.  Guys with tens to hundreds of millions to plop down on a small share of a NFL team still have big egos and want things done their way.  Private equity will gladly take the returns and stay quiet.  In this case I don't see a problem.

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3 minutes ago, UncleEarl said:

Private Equity has gotten involved in areas where no one expected them to like healthcare and residential housing.  Trying to squeeze blood from a turnip in those areas and causing issues.

 

We all know NFL teams are crazy profitable, so of course private equity would want some of that.  At those low ownership percentages they aren't going to have any influence unless its to sue a crazy owner who is driving the team into the ground (like Snyder).  It gives an owner a chance to cash out a bit of dough, especially a guy like Brown.  NFL owners are probably having a tough time finding really rich guys who want to buy minority shares and have zero say in management.  Guys with tens to hundreds of millions to plop down on a small share of a NFL team still have big egos and want things done their way.  Private equity will gladly take the returns and stay quiet.  In this case I don't see a problem.

 

 

That's never how it works. PE will insist on showing profit and growth at the expense of all else. Which means corners get cut on things like stadium upgrades, or prices of food get increased 10 fold. There is zero chance they come in and just be quiet. 

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I have dealt with PE firms a lot in my bsuiness life. Two important things to consider: 

 

(1) They are more interested in the compnaies valuation increase then they are the annual income. In a normal business these go hand in hand in that the annual income created the increased value (EBITDA times an X factor). So for the NFL, they would be more interested in helping get greater overall revenue that disperses to the teams and increases the value of each club in turn. So they may start to want to do things 'overall' (not club specific) that may produce short term revenue but hurt the game long term.

(2) They ususally on hold on to investments for 5-7 years - so once the value goes up they sell and take thier gains. Probalem is, once you let them in the door and the value goes up who do you then sell to?

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