Year In Review
Year in Review: Finance
Mergers, acquisitions and investments in 2019
After a busy 2018, it was a roller-coaster year for investors in sports, according to Sports Business Journal analysis of Crunchbase data. On the franchise front, scarcity continued to be the buzzword: Four majority ownership changes occurred among the five major league team sports, one more than in in 2018 but still a far cry from the first three years of the decade, when 18 such transactions occurred.
Worth noting:
■ Endeavor Group Holdings’ pending acquisition of On Location Experiences, worth an estimated $700 million, is expected to close by Dec. 31. The NFL will retain a stake while On Location’s other shareholders — RedBird Capital, Bruin Sports Capital and the Carlyle Group — will exit.
■ United Talent Agency made “a significant investment” in Rich Paul’s Klutch Sports Group.
■ AEG Facilities, the venue management subsidiary of AEG, and SMG, owned by investment firm Onex, agreed to merge. Each own 50% of the newly created company called ASM Global.
Worth noting:
■ Ron Burkle (part owner of the Pittsburgh Penguins), Sacramento Kings investor Kevin Nagle and entertainment executive and producer Matt Alvarez led a group that paid a $200 million expansion fee to MLS to field Sacramento Republic FC in 2022.
■ An ownership group including Carolyn Kindle Betz and six other members of the Taylor family (founders and owners of Enterprise Car Rental) paid a $200 million expansion fee to MLS and became the first female majority-owned club in league history. Jim Kavanaugh, a minority owner of the St. Lous Blues, is also an investor in the team that will begin in 2022.
* Forbes’ estimate.
Worth noting:
■ Artist Capital Management, a private equity firm with stakes in 100 Thieves and Washington Justice, raised $91.5 million and launched Artist e-Sports Edge I fund for investments in esports.
■ Major League Baseball and music management company Red Light Management were the lead investors on a $3 million round of funding for Satisfi Labs. The company’s other investors include Tampa Bay Lightning owner Jeff Vinik and Stadia Venture.
■ Lance Armstrong founded Next Ventures, an investment firm to help fund startups in the sports, fitness, and wellness industries. He has since invested in PowerDot, an app-based muscle stimulation device, and Amp Human, a “performance and recovery sports lotion.”
■ Super League Gaming made its Nasdaq debut in February with an initial public offering. The company raised $24.9 million by selling 2.27 million shares, but as of Dec. 11, its stock was down 76% from its $11.00 launch price.
