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Sports Business Journal: Limited Opportunities - Minority Stakeholders in Difficult Position

June 15, 2020

O’Melveny sports industry group co-chair Chuck Baker is quoted in this article, which examines the financial hardships minority stakeholders face as a result of the COVID-19 pandemic. Sports team owners are facing a tough time financially, but most majority stakeholders are wealthy enough to backstop the losses and ultimately ride things out, this article reported. That’s not necessarily the case for their less wealthy minority investors, and now many of those limited partners are facing increased pressure to sell amid the economic downturn, Sports Business Journal reported. “I don’t know whether it’s in three months or six months, but I expect a lot of deal activity,” Baker said. “I think you’re going to see a lot of LP trades and potentially a few control deals.”