

Investing in Sports: A New Media Model
9 snips Nov 22, 2024
Dave Dase, Global Co-Head of Sports Investment Banking, and Gene Sykes, Co-Chair of Mergers and Acquisitions, dive into the shifting tides of sports media. They explore the staggering valuations of sports teams and the fierce competition between traditional broadcasters and tech giants for premium content. The conversation highlights how athletes are leveraging social media to create personal brands and drive social issues. Also on the table is the excitement surrounding the 2028 LA Olympics and the role of technology in transforming fan engagement.
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Dodgers Sale and Media Rights
- Gene Sykes recalls the 2012 Dodgers sale to Guggenheim Baseball Partners for $2 billion, double any previous baseball team's price.
- This sale highlighted the significance of media rights in team valuations, driven by a lucrative contract with Time Warner Cable for a new regional sports network (RSN).
Tech's Impact on Sports Media
- Technological advancements, like MLB Advanced Media's multicasting tech (later sold to Disney), have significantly impacted sports media.
- Combined with streaming platforms like Netflix, this enables wider content distribution, putting pressure on traditional broadcasters and altering sports media consumption.
RSN Disruption and Local Relationships
- The shift to streaming and cord-cutting impacts regional sports networks (RSNs), as consumers can now choose sports-specific packages.
- RSNs face lower revenue, forcing teams to explore national-local packages with digital platforms, potentially impacting local team relationships.