With investments in the Australian Professional League and overseas soccer leagues...it looks like no sport is safe.
Background: Silver Lake are a global investment firm with investments in Dell, Klarna and Peloton.
What happened: Now, the company is investing NZ$200 million into New Zealand Rugby (aka the organisation behind the All Blacks) for a 8.58% stake.
What else: Last year, Silver Lake bought a minority stake in the company behind Aussie soccer teams. So it ain't its first sporting rodeo...and it ain't the only P.E. firm investing in sports.
💡 As ownership rules relax, private equity firms have been ramping up their investments in professional sporting franchises. In 2020 alone, the number of P.E. investments in US sports teams more than doubled on previous years.
💡Most sporting organisations were smashed by COVID (ya know, unable to sell tickets to games). So, they're kinda desperate for cash.
💡 P.E. firms also love injecting their business acumen and expertise into businesses with the aim to transform them into profit puppies. But they'll need to tread carefully, 'cos sports fans hate sell-outs.
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