It’s just a terrible terrible idea.
It’s already commercialized to fuck – Imagine it getting worse? Plus the outright corruption re: Vegas money… It will make the product somehow even LESS appealing than it currently is.
Has private equity ever made anything better? Ever? This will kill the NFL, but of course it’ll make a bunch of billionaires even richer first.
But then where will they go to see and be seen when nobody is watching them do hooker shots of Johnnie Blue in the luxury box?
It’s a way to cash out while retaining ownership.
Since lots of costs like stadium and infrastructure are paid for by the host city, and profit sharing based on ad revenue, even the worst teams are lucrative.
But it’s not a stock where you can get divends, you don’t make any money unless you sell
So they voted to let themselves sell up to 10% to equity firms, and have likely colluded on the lowest price they’ll sell for.
But it’s not a stock where you can get dividends, you don’t make any money unless you sell
Dividends are (basically) just giving your operating profits to the owners instead of trying to infinitely reinvest in infinite growth.
Teams are operating at a profit. That’s why they have so much value. That money doesn’t just disappear (though the silly rules about putting huge guarantees in escrow or whatever do hold meaningful cash up).
Find me one person rich enough to own an NFL team that doesn’t feel like they should have more money…
You’re right that they all make a profit and owners get that profit. I’m saying they want more money.
Slicing off 10% gets a huge check now, and if they’re ever dumb enough to sell, 90% is probably gonna be the same price as 100% because of scarcity of NFL teams and being one of the few investment opportunities at that level that absolutely guarantees income along with an increase in valuation.
It’s just a cash grab. And like I said, they likely colluded to set the price, there’s only so many NFL teams. So if they all give a big number, that’s what the number is.
That’s not my argument, just that there isn’t any difference between owners getting their profits and a stock dividend.
