SBJ Morning Buzzcast
SBJ Morning Buzzcast: August 28, 2024
(upbeat music) - Good morning. It's Wednesday, August 28th, and I'm Ted Keith with your morning buzz cast. The NFL League meetings in Minneapolis only lasted one day this week, but that was enough to formalize a landmark policy change that had been expected for months and could have a far-reaching impact on America's most popular and profitable sport. Owners voted to allow private equity funds to buy up to 10% of individual NFL teams, which could open the door to nine-figure LP stakes being acquired within weeks. With NFL teams getting increasingly expensive, think of the commanders going for $6 billion to a Josh Harris-led group last year, or Rob Walton's group buying the Broncos a year before for north of $4 billion. The pool of candidates willing and able to pay enormous sums for even part of a team was shrinking. This move opens the door to institutional investment of NFL teams for the first time, although the other five big leagues in North America had already allowed for that. There is a unique element to the NFL's approach, however. As our Ben Fisher reported from Minnesota last night, the League itself will claim part of the profits when an institutional investor sells at stake in a team, a tactic to win support from owners who have no intention of selling to private equity themselves, and a recognition that much of the upside, likely to accrue, will be the result of coordinated, league-wide activity like bigger media rights deals. The policy was overwhelmingly approved by a 31-to-1 vote with only the Bengals' Katie Blackburn dissenting. Three funds and one consortium were approved at the start, but more funds are expected to be approved in short time. Among the new rules, no team can sell more than 10% of its team to funds. One fund can buy the maximum 10% on its own. A fund can purchase as low as 3% of a team, meaning that one team could involve up to three private equity funds, and any single fund cannot hold stakes in more than six teams. With no NFL teams currently up for sale, it'll be worth tracking to see which clubs engage in this new practice first, and what the price you're able to get for their stakes becomes. Well, another day had another development in the ongoing RSN saga. The Anaheim Ducks are the latest former Bally Sports team to find a new home. This time, landing with streaming platform Victory Plus, agreeing to air every game, and local Fox-owned affiliate KCOP, simulcasting 65 games for the team's fans in Southern California. With four games on national TV, that means Victory Plus will have 13 exclusive Ducks games next season. The Dallas Stars had previously struck a deal with Victory Plus, an ad-supported service that will launch next month well in time for the new NHL season. College football season has already started. Well, sort of, hey, congrats again, Georgia Tech fans. And Bud Light is targeting college fans with its largest ever collection of team-themed cans. Among the 26 schools getting their logo on a can of Bud Light, are traditional college football powers, Florida, LSU, Oklahoma, and Texas, as well as Arkansas, Kansas State, and Iowa. Bud Light also dropped a new college-based commercial starring comedian Shane Gillis that marks a return to the light-hearted form that helped the brand dominate its market for years. The bit plays on the idea of admitting to a mistake, even if you may not have actually made a mistake. No doubt, a nod to the controversy Bud Light found itself in last year when it got tangled up in the culture wars and seeded significant ground to competitors like Modelo. It's a funny spot and is worth checking out on sportsbusinessjournal.com. If you like this podcast, and if you're listening to this one, I assume you are, you might like a different podcast that you'll get to check out soon. Chicago Sky Rookie Sensation Angel Reese is launching a video podcast on September 5th called Unapologetically Angel. Reese has stood out not only for her strong play, she leads to WNBA and rebounding, but for her willingness to speak honestly and openly, and she is promising much more of the same in this Playmaker-produced podcast. Quote, "We are going to spill the tea in our real lives, period," she said. Finally, be sure to check out this week's issue of Sports Business Journal, which includes the announcement of our class of new voices under 30. The group represents the rising generation of leaders, entrepreneurs, and influencers across sports business. SBJ and presenting partners Ally and Heiser Bush, MGM Resorts International, Turnkey, ZRG, and Verizon will recognize the entire class at a special event on November 21st at the Paradise Club at the Times Square Edition Hotel in New York. This has been your morning buzzcast for Wednesday, August 28th. I'm Ted Keith. Thanks for listening. (upbeat music) (upbeat music) (upbeat music)