Taking on Limited Partners

[*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.