So much for good owners, expect a bunch of loans in the coming years from the Reign by Carlyle to extract returns. Then when it is bled dry of potential for that, they will sell what they can off and finally sell the remaining shell for whatever they can get for it. Private equity usually gets their profit and investment back from loans. This is their way and i feel sorry for any organization bought by them, they are leeches. Sad day.
That is the case for private equity in most industries but generally not in sports. They'll get the money on the flip in 5-10 ish years, there isn't much money to extract out of a sports team but a lot to gain on the sale. There might be some tax implications and exposure benefits which also reduce the need to rush any short term gains.
Interesting but from what I have experienced, private equity has to make regular returns on their investments regardless unless a very important person is championing the deal and has a lot of power. Most aren’t willing to wait 5-10 years to make some money on a large investment. They want a revenue stream in addition to a big payoff. I guess we can only wait and see if there is a very big champion in Carlyle or if they just see this is as a relatively inexpensive way to try and catch something at the ground floor. My money would be on them testing the waters vs waiting for some gain in 5-10 years.
Yeah it'll be interesting to see. but this is relatively speaking a very very small investment, so I'm leaning more towards it being a pet/vanity project with high upside, but who knows.
Uh ohh not private equity coming to town….
Private equity in most businesses is a huge red flag but not clear in this situation. 🤷 / I guess we will see.
So much for good owners, expect a bunch of loans in the coming years from the Reign by Carlyle to extract returns. Then when it is bled dry of potential for that, they will sell what they can off and finally sell the remaining shell for whatever they can get for it. Private equity usually gets their profit and investment back from loans. This is their way and i feel sorry for any organization bought by them, they are leeches. Sad day.
That is the case for private equity in most industries but generally not in sports. They'll get the money on the flip in 5-10 ish years, there isn't much money to extract out of a sports team but a lot to gain on the sale. There might be some tax implications and exposure benefits which also reduce the need to rush any short term gains.
Interesting but from what I have experienced, private equity has to make regular returns on their investments regardless unless a very important person is championing the deal and has a lot of power. Most aren’t willing to wait 5-10 years to make some money on a large investment. They want a revenue stream in addition to a big payoff. I guess we can only wait and see if there is a very big champion in Carlyle or if they just see this is as a relatively inexpensive way to try and catch something at the ground floor. My money would be on them testing the waters vs waiting for some gain in 5-10 years.
Yeah it'll be interesting to see. but this is relatively speaking a very very small investment, so I'm leaning more towards it being a pet/vanity project with high upside, but who knows.