Whether you’re talking about building an iconic team that wins championships or a strong portfolio that will generate successful returns, you need a plan, a coach and a team that will consistently perform and win.
Building a sports franchise that succeeds athletically and financially can be a challenge. Not only does this involve developing the best team player by player, but it also means investing in complementary ventures, such as merchandising, broadcasting rights, real estate and hospitality.
That’s the approach Gerry Cardinale and his team at RedBird Capital Partners are taking as they partner with the New York Yankees to negotiate a deal, estimated at $3.5 billion, to buy back the YES Network from 21st Century Fox.
As well as having the exclusive local broadcasting rights to the Yankees’ games, the YES Network is the most-watched regional sports network in the United States. Owning a 20-per-cent stake in YES, the Yankees want to take back ownership as the team seizes the opportunity of Fox putting the network on the market.
Networks like YES are major money makers, as die-hard fans tune in not just to live games, but pre-game shows and team-related feature programs.
Amazon is also interested, as YES would help build its Amazon Prime base. There are others competing for the prize, including private equity firms and broadcast groups, the New York Times reports.
Putting together a winning bid takes expertise, the same kind of talent as putting together a legendary sports team.
RedBird Capital all-star team aims to score again
The private equity firm’s all-star team includes specialists in principal investing, investment banking, strategic consulting, restructuring and corporate finance. RedBird has built a reputation for not only negotiating deals, but also spotting talents that make an outstanding team.
RedBird’s strategic view and diverse team helps build companies that are global winners. RedBird partnered with the NFL to create On Location Experiences – the Official Hospitality of the NFL. The company’s mission? To create once-in-a-lifetime experiences at sports, music and entertainment events, such as the Super Bowl, and to develop the expansive collegiate athletic travel market in the United States.
Sports merchandise, viewing rights and travel combine for financial win for the strategic investment team.
Winning the sports business
Even before the season starts, spring training gets fans and players warmed up. In stores, you’ll see team-branded hats, shirts and accessories as harbingers of the action ahead. During the season, the sports networks boost fan spending and drive up profits with games and related shows.
Worldwide, KPMG estimates the global sports market is worth between $600 and $700 billion a year. Driving the increase is broadcasting rights, which further spurs the sale of team-branded merchandise and sponsorship deals for major brands such as Nike and Adidas. It’s a virtuous circle.
In North America, the sports market is forecast to reach almost $74 billion this year, and the biggest driver is the rising revenue from media rights deals, which is projected to reach $20.6 billion, reports Forbes magazine.
Sponsorships and team and player endorsements reach consumers on social media, particularly Instagram, the leading platform with younger demographics. The Millennials, who are about to surpass the Baby Boomers as America’s largest living adult generation, re enjoying the paycheques they’re receiving without the burden of a mortgage. Winning with the Millennials and staying strong with die-hard Boomers who continue to spend means winning the season, not just the game.
(Featured image by Popartic via Shutterstock)
Virginia adult-use cannabis law goes into effect on July 1st
Virginia has recently legalized the use of cannabis. Two amendments to the cannabis bills SB 1406 and HB 2312 were...
Open finance bridges the gap between debit and credit: Finerio
The lack of publication of the secondary rules delays the adoption of this model contemplated in the Fintech law. The...
AI could reduce greenhouse gas emissions by 10% in ten years
A Boston Consulting Group survey explains that applying AI to processes with the highest consumption works even after just one...
The demand on the futures markets influenced by speculative selling
Rice was a little lower on Friday and for the week on what appeared to be speculative selling tied to...
Burkina Faso: Japan grants $6.5 million for access to health, education for the most vulnerable children
The grants follow a partnership signed between the Government of Japan, the Japan International Cooperation Agency (JICA) and UNICEF Burkina...
Cannabis7 days ago
UN fears imperfect decriminalization of cannabis in Mexico
Business7 days ago
Gold vs. Bitcoin: The 21st Century Debate
Crowdfunding7 days ago
Profit Farm prepares the third round of capital increase and two new campaigns
Featured7 days ago
AXA IM launches its first US High Yield low carbon fund