Arctos的动态

Outside of the obvious editorializing, I found this article interesting. Naturally, the sports franchise space is lucrative for PE groups given the consistent growth the sector experiences. Yet, PE ownership in other leagues has (in certain cases) left smaller franchises behind and impacted parity. Given the limited scope of this decision, nothing will likely change overnight. However, it will be tough to uncross the Rubicon here. Link to full article in the comments below.

The Allure of Building an NHL Franchise: A Dream Worth Pursuing?? The text discusses the key elements necessary for establishing an NHL franchise, highlighting the importance of a solid fan base, viable market, management team, players, and infrastructure. Bruce M Firestone emphasizes the commitment and emotional investment required for building a franchise. It then delves into the advantages of investing in real estate, such as constant cash flow from rent, asset appreciation over time, and investor control and flexibility. However, it acknowledges the challenges and risks associated with both NHL franchises and real estate investments. The volatile nature of the sports industry contrasts with the stability of real estate investment, with each having its own set of risks and potential rewards. While an NHL franchise can bring massive profits through ticket sales and sponsorship deals, real estate offers steady income and long-term appreciation. Overall, both investment avenues have their merits and pitfalls, requiring thorough understanding and strategic management for success.

Arctos recently released the Q2 2024 performance of the Ross-Arctos Sports Franchise Index (“#RASFI”). Sports franchises in RASFI, representing the “Big 4” North American leagues, saw valuation growth of 3.0%, or 12.6% on an annualized basis, in the second quarter of 2024. RASFI performance through the first half of 2024 was 7.8% (~16% annualized), performing ~300 bps higher year-to-date than the long-term annualized performance for RASFI of ~13%. Read More: https://lnkd.in/g6Wkcpk2

**Top 10 Most Expensive Sports Team Sales** The world of sports continues to see record-breaking sales as the value of major franchises skyrockets. Here are the top 10 most expensive sports team sales in history: These transactions underscore the tremendous financial stakes and global interest in owning premier sports franchises.

Arctos Partners LP has launched the Ross-Arctos Sports Franchise Index, a groundbreaking financial benchmark for North American sports franchises. Developed in partnership with the University of Michigan's Ross School of Business, this index tracks sales of team stakes across MLB, NBA, NFL, and NHL, sampling over 400 transactions since 1960. Institutional investors are increasingly viewing sports franchises as a viable investment. With an annualized return of 12% over the past two decades, it outperforms the S&P 500’s 10% and shows less sensitivity to market swings. This new benchmark aims to attract institutional investors by offering a rigorous, scientific approach to sports investing. The stability and profitability of sports franchises, supported by guaranteed media revenues and controlled costs, make this an appealing asset class for long-term growth.

The recent data on the growth of sports franchise values is quite striking. As the chart shows, sports franchises, especially in leagues like the Major League Soccer and National Basketball Association (NBA), have significantly outpaced the S&P 500 in terms of growth over the past two decades. Considering this data, the question arises: is it time to diversify investments into sports franchises instead of traditional indexes like the S&P 500?

The NFL has made a transformational decision to allow private equity to invest in its franchises. Join KPMG leaders for a LinkedIn Live conversation where they will explore why PE is interested in sports, what both PE firms and franchises should know, and how PE can spur more growth within the sports industry. https://bit.ly/4dHvNPX

The Dallas Wings usurp the Las Vegas Aces' $140M valuation from June to become the most valuable WNBA franchise. ??? ?? The WNBA (Women's National Basketball Association) has seen a dramatic rise in popularity, largely attributed to superstar rookies Caitlin Clark and Angel Reese. However, neither Clark’s Indiana Fever nor Reese’s Chicago Sky WNBA are the league’s most valuable team. That title belongs to the Dallas Wings, despite their struggles on the court this season. ??? ?? The Wings, who are tied for last place with a 6-19 record, have recently been valued at $208 million, making them the most valuable franchise in the WNBA. This represents a significant increase from the $75 million valuation in June when the Wings were ranked 11th in the league. ??? ?? The jump in value came after two investors, Jed Kaplan and Randy Eisenman, purchased a 1% stake in the team for $2.08 million. Greg Bibb, the Wings’ CEO and part-owner, facilitated the sale, which more than doubled the team’s valuation. ??? ?? The surge in interest and investment highlights the growing prominence of the WNBA, with the Dallas Wings’ recent valuation serving as a testament to the league’s expanding influence and commercial appeal. We love to see it! ??? ? c/o Sports Business Journal

The NFL has made a transformational decision to allow private equity to invest in its franchises. Join KPMG leaders for a LinkedIn Live conversation where they will explore why PE is interested in sports, what both PE firms and franchises should know, and how PE can spur more growth within the sports industry. https://bit.ly/3TqYEji

Soccer’s popularity is surging in North America, with over 80 million fans in a market of 400 million. But MLS continues to underperform, and the blame lies squarely with its flawed model. Despite the hype, key competitions like the 2024 League Cup are barely attracting an average of 30,000 viewers per game—a glaring failure given the sport’s potential. The problem is MLS’s closed, pay-to-play system that’s driven by greed. Franchise fees now exceed $500 million, locking out ambitious clubs and prioritizing profit over growth. The lack of promotion/relegation keeps the league stagnant, protecting mediocre teams and stifling competition. This rigid, overpriced franchise model is suffocating the growth of soccer in North America. Fans want real stakes, intense competition, and a league that reflects the passion they have for the game—not a sanitized product that caters to wealthy owners. Until MLS breaks free from its outdated, self-serving approach, it will remain a minor player in a market with massive untapped potential.