140. Sports Investing 101 with Eli Manning and David Adelman

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Feb 8, 2025

Eli Manning, the former NFL quarterback turned investor, joins sports investor David Adelman to discuss the lucrative world of sports investing. They explore how shifts in private equity rules are reshaping ownership dynamics in the NFL and the financial disparities between major leagues like the NBA and MLB. Eli shares his journey from athlete to investor, emphasizing his focus on sports-related businesses. They also delve into the significance of TV contracts, revenue-sharing models, and strategies for maximizing profits in this competitive market.

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INSIGHT

NFL Financial Structure

The NFL is a well-run sports league due to its revenue-sharing model and salary cap.
Teams receive significant national revenue, making local revenue less critical.

INSIGHT

New Opportunities in Sports Investing

Recent rule changes now permit certain private equity firms to invest in NFL teams.
This has sparked broader interest in sports investing across various levels.

INSIGHT

Salary Cap Impact

Tom Brady's salary was sometimes less than Gisele's due to NFL salary caps.
He even accepted less to allow the team to recruit better players.

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In this episode of The Wall Street Skinny, Jen and Kristen dive deep into sports investing. They discuss the structural shifts driving new opportunities, including changes in private equity rules that now allow institutional players to invest in NFL teams. They also break down the cash flow mechanics behind major leagues like the NFL, NBA, and MLB—revealing why some leagues are financial juggernauts while others face stark disparities between high and low earners.

The discussion continues with key insights on revenue-sharing models, salary caps, and the differences in local vs. national-level cash flows across the major sports leagues. The NFL stands out for its near-guaranteed profitability through lucrative national TV contracts and rigid salary caps, while the NBA and MLB face more complex financial landscapes. They explore how ownership stakes, infrastructure investments, and strategic planning play critical roles in maximizing profits for investors. With special attention on high-profile sports franchise investors, they illustrate how both billionaires and smaller investors are making plays in this competitive market.

The episode features exclusive interviews with NFL legend Eli Manning and sports investor David Adelman, who share their experiences navigating this space. Eli Manning discusses his transition from athlete to investor, explaining how he’s strategically leveraging sports-related business adjacencies such as media, youth sports, and equipment. Meanwhile, David Adelman delves into his investments in the Philadelphia 76ers and an upcoming state-of-the-art sports arena, demonstrating how commercial real estate and sports ownership can create powerful synergies. Whether you’re a casual sports fan or a seasoned investor, this episode offers a comprehensive breakdown of how the business of sports is evolving.

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