7 hours ago
The booming business of sports has attracted a flood of private-equity investment, and even the most notable franchises require the influx of cash to keep up in the arms race. As of May, more than 74 North American professional teams had some level of private-equity involvement, according to the CFA Institute, an organization providing finance education to investment professionals. Private-equity-backed consolidators have been responsible for 61% of all mergers and acquisition transactions in the sports industry since 2019, according to Oaklins, a global M&A and financial advisory company. For private equity — in which investors buy into companies that aren’t available on the public market — sports offer safe harbor. Media deals provide predictable revenue over several years. The NBA’s current deal that stretches to the 2035-36 season is worth $6.9 billion per year. Additional revenue streams with merchandise, sponsorships and ticket sales pile on. Owning an arena, which the Lakers do not, opens the floodgates for concerts and events that add to the revenue.
Los Angeles Times
Los Angeles Times