Seaport Capital Partner Claims MiLB Cash Flow A "Little More Predictable"
Seaport Capital Partner Bill Luby discussed MiLB franchise values at the inaugural SBJ/SBD Dealmakers in Sports conference, and the sustainability of clubs. Seaport Capital was the majority owner of several MiLB franchises, and Luby himself is an owner of the Single-A South Atlantic League Lakewood BlueClaws. Luby estimated a Single-A team in the Carolina League that makes $1M a year is worth $10M, while a team in the same league that makes $1.5M a year is worth $12M. “The beautiful thing about MiLB is that the cash flow is a little more predictable,” he said. “You don’t pay anything for your content.” Rather, it is the responsibility of the MLB affiliate. Still, Luby said, “It takes a while for the cash flow to catch up with the franchise value.” Meanwhile, Luby said Teamworks -- the software platform that primarily sells to sports teams -- is doing well, with more than 1,000 teams using the software. That includes more than 50 D-1 athletic departments and more than 25 teams from the Big Four leagues.
* Luby has worked with Warriors co-Owner Peter Guber over the years, most notably with Guber’s Mandalay Baseball, of which Seaport Capital served as the majority owner. Luby: “He’s the most high-energy guy I’ve ever met in my life. In terms of his ability to stay relevant and on top and see around corners. He’s a true visionary. That term is overused, but in this case, I don’t think it is.”