We frequently work as a buy-side advisor to lead the purchase of a sports franchise or sports-related operating company. We work side-by-side with acquirers to identify compelling investment opportunities and to facilitate all aspects of deal execution.
ICS has an expertise in:
- Identifying transaction opportunities based on a client’s investment objectives
- Performing comprehensive operational and industry due diligence
- Determining an appropriate valuation for the franchise, company, facility and/or other assets
- Arranging acquisition financing from multiple sources to ensure efficient execution
- Negotiating relevant legal documentation and facilitating league approvals (if applicable)
- Managing public relations around the transaction
- Helping source key management executives post-acquisition
As a sell-side advisor, we draw upon our industry expertise to properly position the asset in the marketplace while leveraging our network to help sellers maximize sales proceeds for their assets. In addition to our extensive North American network, we have developed relationships with emerging market investors across Asia, India, and the Middle East. Through our sell-side services, we provide our clients access to an international investor base, increasing the likelihood of a successful outcome.
Minority & Limited Partnership Team Transactions
In addition to majority purchases and sales of teams, we advise both buyers and sellers on transactions involving minority or limited partnership stakes in teams or other entities. We understand the complexity surrounding the purchase or sale of a non-control stake in a franchise or other asset which allows us to successfully execute minority and limited partnership deals for our clients.
Capital Raising for Sports and Media Operating Companies
We advise and execute on equity and debt capital raising for the founders and management teams of sports and media operating companies. We focus on businesses that directly interface with fans, teams, leagues, corporate sponsors and/or media operators. Our clients are generally post-revenue and have demonstrated significant revenue growth and defensible competitive positioning.
Acquisition & Facility Financing
We perform debt and equity capital raising for high-net-worth individuals, professional sports franchises, facilities, leagues and sports-related media and entertainment companies. Using our network of capital providers, we are able to access multiple funding sources to identify the most efficient structure on the most favorable terms.
We provide valuation analyses of sports franchises/assets, often in conjunction with M&A and capital raising situations. During these assignments, we perform a comprehensive assessment of the business and capital structure for professional sports franchises and sports-related media and entertainment companies.
Valuation services include:
- Full analysis and benchmarking of all relevant revenue (ticketing, media, sponsorship, etc.) and cost (player payroll, stadium operations, team operations, etc.) drivers
- Detailed review of lease economics between team and facility (if not owned by team)
- In-depth analysis of capital structure including any contingent liabilities
- Thorough review of all key contracts (media, sponsorship, player, etc.)
- Use of multiple valuation methodologies
We specialize in providing value-added consulting services to sports franchises and sports-related businesses with an emphasis on financial and operating performance improvements. Services provided include analyzing and formulating business plans, advising on corporate structure, evaluating liquidity and cash flow, assisting in hiring senior management, managing public relations and other areas as needed.
Our team has experience in providing a wide array of restructuring services to assist debtors and creditors in numerous capacities across a variety of scenarios. Our services include leading restructuring negotiations, assisting with the creation of business plans, providing fairness opinions and raising capital in support of restructured entities.