in the news
SportBusiness: US Leagues ‘Need to Loosen Debt Restrictions’ to Help Potential Purchasers5월 07, 2019
Charles Baker, co-chair of O’Melveny’s sports industry group, believes that US sports leagues need to increase team debt limits to help prospective owners afford increasingly high valuations. Prior to the 2018 $2.275 billion purchase of the Carolina Panthers by David Tepper, the NFL Finance Committee recommended a 40 percent increase in the allowed borrowing limit, from $250m to $350m.
“The leagues are looking to loosen the debt restrictions – not many people can write these checks,” said Baker. “Ten per cent of an NFL team now costs $250m.” With numerous high profile former athletes becoming minority owners in pro sports teams, Baker added that these individuals are seen as significant assets by owners.
To read the full article, click here.