It does when we took a hit for the new members followed by $22 mil for players. They won't be able to compete.
Lots of opinions here from without a lot of facts. I do not claim to have a thorough understanding of this PE transaction. Apparently a lot of you do.
If they are acquiring only 20% then they are looking for a long-term play and are along for a ride. Usually, PE firms buy majority, control the Board and strategy, and the selling shareholders are receiving a cash payment and another bite at the apple within 5 years.
At 20%, these guys are along for a ride and they know that. Why? My guess is they are going to make between a 4-7% safe and annual yield off the top on their billion dollar investment. They will not have put rights.
At a 6% return, they recoup their money (exclusive of the the time value of money) in 12 years and own 20% of a viable long-term play.
What will out TV revenue be in 2036? Let's say it goes up by 50% so their return is now 9% after recouping their investment. This doesn't include extra revenue to be brought in by naming rights and whatever else Yormark can do in the next 5-10 years.
It appears to me to be brilliant for them and us. They get a stable long-term return without much risk. We split a billion dollars today plus naming rights to get us thru the next 3-4 years.
Because they are buying a minority without put rights, they are along for the ride.
At first blush, this looks outstanding. All u negative nannies need to relax unless you want to double your ticket prices and double your donations, if u make any at all.
Relax.