Subject: Big Changes in Sports
Given the outsize impact of Sports in our society, I note two big changes which have the potential to upend two disparate parts of the industry. And no, I am not talking about the NBA’s rights negotiations leaving TNT out of the mix and the gnashing of teeth over the fate of one (apparently) beloved program on that network. (No, I am not a viewer, so I wouldn’t know.)

The first is the antitrust suit against the NCAA which presages the payment of college athletes for use of their likeness. This may also force colleges and universities to start paying athletes to participate on their teams - potentially changing the economics for many universities sports divisions (and I’m thinking about several years down the line when the kind of escalation of sports salaries we have seen in the pros). Sure, there’s soft bribes now in the form of “scholarships”, but I’m talking actual, real world paychecks.

It also means that a lot of 18 year olds will suddenly be flush with cash (again, thinking a few years down the road) and who generally are clueless about what to do with it. I see lots of blow, women, and aggravated parents who lose control of their progeny at a vulnerable time in their lives. (There is probably some opportunity for scrupulous and other “advisers” to profit from these financial neophytes.)

A Flood of Money Is Changing Young Athletes’ Lives. What Parents Need to Know.
Endorsement deals and possible direct payments to athletes from their universities mean that student athletes must navigate a whole new landscape.
https://www.barrons.com/articl...

The other issue is the entrance of private equity into sports ownership. The costs for professional teams has become stratospheric, and hedge funds and similar have noticed, given the remarkable gains over time. Now the NFL (and probably others) are encouraging the idea of “partial ownership shares” as a way to keep the money train going. The NFL is the only league which has one “public corporation” as an ownership group, the Green BayPackers, which has caused them some difficulty as teams tend not to like the kind of public scrutiny that can come with that arrangement.

Private Equity Says It’s Got the Data to Back a Push Into Sports

PE firm Arctos Partners is launching a sports-franchise index
Gauge shows steadier returns, beats S&P 500 in history

The business of sports investing is getting its own index, with one of the firms behind private equity’s incursion into the industry looking to bring a more scientific approach to the burgeoning asset class.

Dallas, Texas-based Arctos Partners LP, which runs about $7 billion in funds with stakes in teams including the Los Angeles Dodgers and the Golden State Warriors, on Tuesday unveiled a new financial
https://www.bloomberg.com/news...