Taking on Limited Partners

[*pally*]

Yesterday the NFL owners approved sales of limited partnerships for the Eagles, Bills, and Dolphin. Limited meaning 10% or less of the teams valuation in total. The Eagles raised over $600 million

Mike Brown and the Brown family own virtually 100% of the Bengals. I believe they still have one limited partner from the original purchase of the team but his share is small

Selling a small percentage of the team could reap all sorts of benefits, including having the cash to escrow guaranteed contract money. The team has some big capital expenditures coming up as well with the renovation of Paycor and building the permanent training facility.

The team ranks last in value according to the experts but last still means $5 billion so a 10% limited partnership is still worth $500 million of cold hard cash for the Brown family

Unfortunately I don't see Mike going that route

[*Synric*]

(12-12-2024, 08:45 AM)pally Wrote: Yesterday the NFL owners approved sales of limited partnerships for the Eagles, Bills, and Dolphin.  Limited meaning 10% or less of the teams valuation in total. The Eagles raised over $600 million

Mike Brown and the Brown family own virtually 100% of the Bengals.  I believe they still have one limited partner from the original purchase of the team but his share is small

Selling a small percentage of the team could reap all sorts of benefits, including having the cash to escrow guaranteed contract money.  The team has some big capital expenditures coming up as well with the renovation of Paycor and building the permanent training facility.

The team ranks last in value according to the experts but last still means $5 billion so a 10% limited partnership is still worth $500 million of cold hard cash for the Brown family

Unfortunately I don't see Mike going that route

I don't blame the Brown family for not liking this. They are one of the few family own teams left that just finished buying the team outright 15 years ago. Now the league is forcing them to sell a percentage again.


It's not just Mike Brown's side of the family that owns shares I'm sure Pete and Robin Browns families have shares too.

[Whatever]

(12-12-2024, 08:45 AM)pally Wrote: Yesterday the NFL owners approved sales of limited partnerships for the Eagles, Bills, and Dolphin.  Limited meaning 10% or less of the teams valuation in total. The Eagles raised over $600 million

Mike Brown and the Brown family own virtually 100% of the Bengals.  I believe they still have one limited partner from the original purchase of the team but his share is small

Selling a small percentage of the team could reap all sorts of benefits, including having the cash to escrow guaranteed contract money.  The team has some big capital expenditures coming up as well with the renovation of Paycor and building the permanent training facility.

The team ranks last in value according to the experts but last still means $5 billion so a 10% limited partnership is still worth $500 million of cold hard cash for the Brown family

Unfortunately I don't see Mike going that route

Well, that's short term gain for long term pain.

Yes, they gain a big immediate influx of cash, but that cuts into the profits they would earn in future years.  If they sold 10%, they would only get 90% of the profits in future years instead of 100%.  They would only get get more cash poor in future years, especially if revenue continues to climb.  

The only way it truly helps them is if they find someone with deep pockets willing to come on as a minority owner and is willing and able to front cash for escrow for contracts.  That's going to be tough to find.

[Nepa]

(12-12-2024, 08:45 AM)pally Wrote: Yesterday the NFL owners approved sales of limited partnerships for the Eagles, Bills, and Dolphin.  Limited meaning 10% or less of the teams valuation in total. The Eagles raised over $600 million

*****

Unfortunately I don't see Mike going that route

According to reports, Cincinnati was the only team to vote against private equity firms being able to buy shares in NFL teams. So, even though those are non-voting shares, and doesn't give the power to make decisions like player contracts, the Bengals voted against it. So, yes, I don't see the Bengals going that route while Mike is alive.

[*TheLeonardLeap*]

(12-12-2024, 10:39 AM)Whatever Wrote: Well, that's short term gain for long term pain.

Yes, they gain a big immediate influx of cash, but that cuts into the profits they would earn in future years.  If they sold 10%, they would only get 90% of the profits in future years instead of 100%.  They would only get get more cash poor in future years, especially if revenue continues to climb.  

The only way it truly helps them is if they find someone with deep pockets willing to come on as a minority owner and is willing and able to front cash for escrow for contracts.  That's going to be tough to find.

Yuuuup.

https://www.forbes.com/sites/mikeozanian/2019/09/04/the-nfls-most-valuable-teams-2019-cowboys-lead-league-at-55-billion/
Just 5 years ago the Bengals valuation was at $2b according to Forbes.

https://www.forbes.com/sites/justinteitelbaum/2024/08/29/the-nfls-most-valuable-teams-2024/
Now they have it at $4.1b.


Between valuation and actual profits, that $500m today becomes you losing >$50m per year for the rest of time in less than a decade.

Besides, it's not like the Browns/Blackburns don't have money. They are just cheap, there's a difference.

[PCB Bengal Fan]

(12-12-2024, 12:07 PM)TheLeonardLeap Wrote: Yuuuup.

https://www.forbes.com/sites/mikeozanian/2019/09/04/the-nfls-most-valuable-teams-2019-cowboys-lead-league-at-55-billion/
Just 5 years ago the Bengals valuation was at $2b according to Forbes.

https://www.forbes.com/sites/justinteitelbaum/2024/08/29/the-nfls-most-valuable-teams-2024/
Now they have it at $4.1b.


Between valuation and actual profits, that $500m today becomes you losing >$50m per year for the rest of time in less than a decade.

Besides, it's not like the Browns/Blackburns don't have money. They are just cheap, there's a difference.

The Bengals FO is lost somewhere in the late 60s through 80s. I honestly believe the team, the city, the fans would all be better off with new owners who want to win at all costs. The Bengals want to do it their way which has proven not to work their entire existence. If not for Joe Burrow they would'nt be selling out every game. They actually gained fans because of Joe & Chase. Just because you have money does'nt mean you have brains for the business. The Bengals are only here because of Paul Brown's football brain, no other person in that family is anywhere near Paul when it comes to that. They're all lawyers.

[WeezyBengal]

(12-12-2024, 12:07 PM)TheLeonardLeap Wrote: Yuuuup.

https://www.forbes.com/sites/mikeozanian/2019/09/04/the-nfls-most-valuable-teams-2019-cowboys-lead-league-at-55-billion/
Just 5 years ago the Bengals valuation was at $2b according to Forbes.

https://www.forbes.com/sites/justinteitelbaum/2024/08/29/the-nfls-most-valuable-teams-2024/
Now they have it at $4.1b.


Between valuation and actual profits, that $500m today becomes you losing >$50m per year for the rest of time in less than a decade.

Besides, it's not like the Browns/Blackburns don't have money. They are just cheap, there's a difference.

They get 300 million in revenue sharing alone each year. They are just fine. 

They are cheap AND stubborn. 

[*Nately120*]

Much like at the trade deadline, I assume Mike Brown is going to take his rotary phone off the hook when it comes time to field offers.

[*TheLeonardLeap*]

(12-12-2024, 03:50 PM)Nately120 Wrote: Much like at the trade deadline, I assume Mike Brown is going to take his rotary phone off the hook when it comes time to field offers.

[Luvnit2]

(12-12-2024, 12:50 PM)WeezyBengal Wrote: They get 300 million in revenue sharing alone each year. They are just fine. 

They are cheap AND stubborn. 

In my humble opinion Bengals are cheap is dying each year. They spend or roll over cap dollars each year. The made Joe Burrow the highest paid QB in the NFL. The invest in renovations from practice facilities, weight rooms to locker rooms.

I could care less about 20 years aga, please explain why the 2024 Bengals are cheap.

[t3r3e3]

(12-12-2024, 10:22 AM)Synric Wrote: I don't blame the Brown family for not liking this. They are one of the few family own teams left that just finished buying the team outright 15 years ago. Now the league is forcing them to sell a percentage again.


It's not just Mike Brown's side of the family that owns shares I'm sure Pete and Robin Browns families have shares too.

Modern NFL contracts require liquid cash for guaranteed portions of salary. While we don’t know what the Bengals have on hand, they’re negotiating strategies and loss of players due to more guaranteed money being offered lead us to believe that they don’t have the liquid cash that many other ownerships do. Meaning, They are going to be at a disadvantage in perpetuity until they find more liquid cash. A limited partnership opportunity, and subsequent cash injection, could solve a lot of the Bengals contract woes. And hopefully, put a reasonable voice in the ownership room.

[*TheLeonardLeap*]

(12-12-2024, 04:02 PM)Luvnit2 Wrote: please explain why the 2024 Bengals are cheap.

They still have a scouting department of 4, which they could double and still be the smallest in the NFL. The average scouting department in the AFCN outside of us is like 14-17 people.

[t3r3e3]

(12-12-2024, 04:02 PM)Luvnit2 Wrote: In my humble opinion Bengals are cheap is dying each year. They spend or roll over cap dollars each year. The made Joe Burrow the highest paid QB in the NFL. The invest in renovations from practice facilities, weight rooms to locker rooms.

I could care less about 20 years aga, please explain why the 2024 Bengals are cheap.

Multiple years of contract negotiations show us that the Bengals are in fact cheap when it comes to guaranteed portions of contracts. The rest of the NFL operates differently than the Bengals because the rest of the NFL has liquid cash on hand to give out guaranteed portions of contracts in the form of signing bonuses The Bengals don’t have that, and they’ve lost several star players to other teams because they could not offer the guaranteed cash that other organizations did. Instead, we got Nick Scott, Geno Stone, and Sheldon Rankins. We also were treated to the Ja’Marr Chase contract negotiations turning into a shit show, Trey Hendrickson holding out, and Tee’s contract circus. The Bengals are behind the times with respect to most NFL front offices.

[SunsetBengal]

(12-12-2024, 04:08 PM)TheLeonardLeap Wrote: They still have a scouting department of 4, which they could double and still be the smallest in the NFL. The average scouting department in the AFCN outside of us is like 14-17 people.

And with so many Youtube highlight videos released each year, there's just not enough time to evaluate them all properly. 

[Southpaw Frerotte]

(12-12-2024, 12:48 PM)PCB Bengal Fan Wrote: The Bengals FO is lost somewhere in the late 60s through 80s. I honestly believe the team, the city, the fans would all be better off with new owners who want to win at all costs. The Bengals want to do it their way which has proven not to work their entire existence. If not for Joe Burrow they would'nt be selling out every game. They actually gained fans because of Joe & Chase. Just because you have money does'nt mean you have brains for the business. The Bengals are only here because of Paul Brown's football brain, no other person in that family is anywhere near Paul when it comes to that. They're all lawyers.

LOL And I honestly believe I would be better off if every American paid me $1.  Only difference is, there's maybe a slightly better chance of that happening then Brown selling the Bengals. 

Mike Brown is pretty old.  I think the biggest concern is how the Blackburns will run the franchise.  Troy married into the family business and from all accounts, he may be a cheaper SOB then Mike.  Scary thought to ponder...

[samhain]

Modernization is nice, but I despise private equity getting involved.  I dislike private equity firms significantly more than the Brown family.  

The family is a huge pain in the ass to the fans, but they hate change.  They (the older ones anyway) seem to have little to no inclination to leave Cincinnati if they can avoid it.  The more private equity gets it's hooks into ownership, the more likely that decisions will be made with increasing profit as the sole factor.  This gradually will motivate them to maximize their money in a larger market.  These groups, like the family will have zero attachment to the city and a lot more agility when it comes to business dealing.  

I'm not sure the sky is falling, but this isn't the best for fans of teams like the Bengals.

[SunsetBengal]

(12-12-2024, 07:27 PM)samhain Wrote: Modernization is nice, but I despise private equity getting involved.  I dislike private equity firms significantly more than the Brown family.  

The family is a huge pain in the ass to the fans, but they hate change.  They (the older ones anyway) see to have little to no inclination to leave Cincinnati if they can avoid it.  The more private equity gets it's hooks into ownership, the more likely that decisions will be made with increasing profit as the sole factor.  This gradually will motivate them to maximize their money in a larger market.  These groups, like the family will have zero attachment to the city and a lot more agility when it comes to business dealing.  

I'm not sure the sky is falling, but this isn't the best for fans of teams like the Bengals.

IDK man, I could really get behind the idea of the Tokyo Bengals. 

[*jason*]

(12-12-2024, 05:51 PM)SunsetBengal Wrote: And with so many Youtube highlight videos released each year, there's just not enough time to evaluate them all properly. 

Especially when the scouts are locked into Michigan games on the Big 10 Network.

[Nicomo Cosca]

(12-12-2024, 04:08 PM)TheLeonardLeap Wrote: They still have a scouting department of 4, which they could double and still be the smallest in the NFL. The average scouting department in the AFCN outside of us is like 14-17 people.

Not getting Chase’s deal done over guaranteed money reared its ugly head again this year, too.

[WeezyBengal]

(12-12-2024, 04:02 PM)Luvnit2 Wrote: In my humble opinion Bengals are cheap is dying each year. They spend or roll over cap dollars each year. The made Joe Burrow the highest paid QB in the NFL. The invest in renovations from practice facilities, weight rooms to locker rooms.

I could care less about 20 years aga, please explain why the 2024 Bengals are cheap.

Yeah, I'd go more stubborn...especially with how they handle contracts. Which I guess can come off to cheap to some people...