Taking on Limited Partners

[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.