BAM Tech Switches To Buying Mode, Takes Minority Stake In Silver Chalice Ventures
BAM Tech has acquired a minority stake in Silver Chalice Ventures, MLBAM’s existing partner in the 120 Sports venture. As part of a broad-based digital rights and technology partnership, BAM Tech will provide the tech infrastructure for Silver Chalice's Campus Insiders and ACC Digital Network. It will also gain an undisclosed stake in Silver Chalice, formed in ’09 by the White Sox, with an option to expand its equity position. This is the first time Silver Chalice has taken on outside investment. Financial terms were not disclosed. The deal also follows last week’s announcement of 120 Sports moving its morning show, “The Morning Run,” from Chicago to MLBAM’s Manhattan HQ, where BAM Tech also is based. Silver Chalice CEO and White Sox Senior VP/Sales & Marketing Brooks Boyer said, "There were a ton of obvious synergies between us, and we already have a strong working relationship with them through the 120 Sports partnership. BAM Tech is big believer in the college sports market and 120 Sports and there is a lot we can do being even closer together.” BAM Tech and Silver Chalice said a "new suite of live streaming products and experiences" will be created as a result of the expanded partnership. The ACC Digital Network and Campus Insiders have more than 3,000 live collegiate events per year between them, and it is possible some of that content becomes part of the planned multisport over-the-top video network BAM Tech is now developing with ESPN and its parent Disney.
WIN-WIN SITUATION: The deal additionally created an unusual situation, in which White Sox Chair Jerry Reinsdorf was on both sides of the transaction through his majority stake in Silver Chalice and his equity positions in MLBAM and BAM Tech as an MLB team owner. But the Silver Chalice-BAM Tech deal was primarily constructed between Boyer, MLB President of Business & Media Bob Bowman and MLBAM Exec VP/Business Kenny Gersh. Boyer: "Jerry really removed himself from this one."