Many owners of pro sports teams have other business interests that are “really taking it hard right now,” and that “could mean that owners need to raise capital” as a way to maintain both ventures, according to CNBC’s Eric Chemi. They are “trying to avoid selling their teams,” resulting in many owners “looking at creative financing right now, trying to get some sort of loan.” Bankers are noting that teams “are not for sale right now,” but acknowledge that could change “if the shutdown lingers.” Bruin Sports Capital Founder & CEO George Pyne: “If people lose liquidity, it's going to impact their other business interests, which could be pro sports teams.” Many leagues currently “look pretty smart” for having a “reasonable level of debts.” Pyne notes that “protects the financial integrity of teams.” However, if the owner “is in these other industries that are hard hit and they have liquidity issues, that's going to impact the situation.” Pyne: “Within the ecosystem of sports, there are going to be huge pressures for liquidity and there is going to be dislocation and there are going to be changes. The severity of those changes are going to depend on how long the delay is (before sports return).” He added, “If it's three or four months, I think it's one set of circumstances. If it’s six, nine, 12 or 18 months, you're looking at a very difficult and different situation” (“Power Lunch,” CNBC, 4/2).
