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Private equity firms Ares and Arctos buy NFL team stakes

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Private equity firms Ares and Arctos buy NFL team stakes

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The $4tn private equity industry has struck its first two deals to buy stakes in National Football League teams as Wall Street’s most powerful funds eye long-term investments in the world’s most profitable sports league.

Ares Management on Wednesday acquired a 10 per cent stake in the NFL’s Miami Dolphins franchise. Arctos, a sports-focused private equity investor, led a group that purchased a minority equity stake in the Buffalo Bills, based in upstate New York and owned by oil billionaire Terry Pegula, father of US tennis star Jessica Pegula.

The NFL approved the two deals at its owners’ meeting in Dallas, ushering in a new era when Wall Street investment funds will be allowed to own direct stakes in popular and valuable US football teams.

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The deals are the first in what investors expect will be a torrent of similar minority investments in the coming years, after NFL owners approved major changes to ownership rules in August and permitted private equity groups to invest in teams.

Ares, which manages nearly $500bn in assets, is buying its minority stake from Dolphins owner and billionaire real estate mogul Stephen Ross at a valuation of $8.1bn, said people briefed on the deal.

In addition to a stake in the football team, Ares and other investors in the group — including Alibaba co-founder Joe Tsai — will own minority stakes in the Dolphins’ Hard Rock Stadium in Miami and the Formula One Miami Grand Prix.

Finance firms have long hoped to invest in the NFL. “It’s the most valuable global sports property from an economic standpoint,” said one prominent dealmaker, who also noted investors have been drawn to the consistency of team profits and the belief new revenue streams will generate rising cash flows to ownership groups.

NFL teams also carry unleveraged balance sheets, making the investments recession-resistant. “The cap tables are not what we are used to seeing in a traditional leveraged buyout,” said another dealmaker. Team values are priced at multiples of about nine to 12 times revenues, said people familiar with the matter, who noted those can go higher or lower depending on whether a team owns their stadium.

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Buying an NFL franchise outright is beyond even some of the world’s richest people, as valuations have soared. That has strengthened the case for allowing buyout firms to enter the ownership ecosystem to smooth the sales process for existing owners and facilitate liquidity.

The average NFL team was worth roughly $5.9bn in Sportico’s valuations report in August, an increase of more than 15 per cent on last year, bolstered by the league’s domestic media rights, which are worth $110bn over the 11 years through 2033.

Arctos and Ares have a long record of investing in sports teams around the globe.

Dallas-based Arctos has minority stakes in several baseball teams, including the Los Angeles Dodgers and the San Francisco Giants, and basketball franchises such as the Utah Jazz. Last year the firm acquired stakes in the Qatari-owned football team Paris Saint-Germain and Aston Martin F1. The firm’s co-founder Ian Charles told the Financial Times earlier this year it planned to focus future investment in North America after it raised a new $4.1bn fund in April.

Ares, which specialises in credit, has completed deals with several football teams including Chelsea, Olympique Lyonnais and Inter Miami. In 2022, it raised $3.7bn for a fund dedicated to sport and media investments. It has also backed the McLaren Racing F1 team.

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Ares and Arctos were among a small group of private equity firms the NFL approved as potential buyers. The others were Sixth Street and a consortium made up of Blackstone, Carlyle, CVC, Dynasty Equity and Ludis.

The NFL stipulated that firms are only permitted to buy up to 10 per cent of any individual team, and blocked so-called preferred equity deals that give certain shareholders superior rights such as first dibs on dividends.

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Map: 4.9-Magnitude Earthquake Shakes Louisiana

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Map: 4.9-Magnitude Earthquake Shakes Louisiana

Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Central time. The New York Times

A light, 4.9-magnitude earthquake struck in Louisiana on Thursday, according to the United States Geological Survey.

The temblor happened at 5:30 a.m. Central time about 6 miles west of Edgefield, La., data from the agency shows.

U.S.G.S. data earlier reported that the magnitude was 4.4.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Central time. Shake data is as of Thursday, March 5 at 8:40 a.m. Eastern. Aftershocks data is as of Thursday, March 5 at 10:46 a.m. Eastern.

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Donald Trump has no ‘phase two’ plan for Iran war, says US senator

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Donald Trump has no ‘phase two’ plan for Iran war, says US senator

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Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

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Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

The allegation sounded like the stuff of spy movies: A Pakistani businessman trying to hire hit men, even handing them $5,000 in cash, to kill a U.S. politician on behalf of Iran ‘s powerful paramilitary Revolutionary Guard.

It was true, and potential targets of the 2024 scheme included now-President Donald Trump, then-President Joe Biden and former presidential candidate and ex-U.N. Ambassador Nikki Haley, the man told jurors at his attempted terrorism trial in New York on Wednesday. But he insisted his actions were driven by fear for loved ones in Iran, and he figured he’d be apprehended before anything came of the scheme.

“My family was under threat, and I had to do this,” the defendant, Asif Merchant, testified through an Urdu interpreter. “I was not wanting to do this so willingly.”

Merchant said he had anticipated getting arrested before anyone was killed, intended to cooperate with the U.S. government and had hoped that would help him get a green card.

U.S. authorities were, indeed, on to him – the supposed hit men he paid were actually undercover FBI agents – and he was arrested on July 12, 2024, a day before an unrelated attempt on Trump’s life in Butler, Pennsylvania.  During a search, investigators said they found a handwritten note that contained the codewords for the various aspects of the plot, CBS News previously reported

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Merchant did sit for voluntary FBI interviews, but he ultimately ended up with a trial, not a cooperation deal.

“You traveled to the United States for the purpose of hiring Mafia members to kill a politician, correct?” Assistant U.S. Attorney Nina Gupta asked during her turn questioning Merchant Wednesday in a Brooklyn federal court.

“That’s right,” Merchant replied, his demeanor as matter-of-fact as his testimony was unusual.

The trial is unfolding amid the less than week-old Iran war, which killed Iranian Supreme Leader Ayatollah Ali Khamenei in a strike that Trump summed up as “I got him before he got me.” Jurors are instructed to ignore news pertaining to the case.

The Iranian government has denied plotting to kill Trump or other U.S. officials.

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Merchant, 47, had a roughly 20-year banking career in Pakistan before getting involved in an array of businesses: clothing, car sales, banana exports, insulation imports. He openly has two families, one in Pakistan and the other in Iran – where, he said, he was introduced around the end of 2022 to a Revolutionary Guard intelligence operative. They initially spoke about getting involved in a hawala, an informal money transfer system, Merchant said.

Merchant testified that his periodic visits to the U.S. for his garment business piqued the interest of his Revolutionary Guard contact, who trained him on countersurveillance techniques.

The U.S. deems the Revolutionary Guard a “foreign terrorist organization.” Formally called the Islamic Revolutionary Guard Corps, the force has been prominent in Iran under Khamenei.

Merchant said the handler told him to seek U.S. residents interested in working for Iran. Then came another assignment: Look for a criminal to arrange protests, steal things, do some money laundering, “and maybe have somebody murdered,” Merchant recalled.

“He did not tell me exactly who it is, but he told me – he named three people: Donald Trump, Joe Biden and Nikki Haley,” he added.

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In 2024, multiple sources familiar with the investigation told CBS News Merchant planned to assassinate current and former government officials across the political spectrum.

Merchant allegedly sketched out the plot on a napkin inside his New York hotel room, prosecutors said, and told the individual “that there would be ‘security all around’ the person” they were planning to kill.

“No other option”

After U.S. immigration agents pulled Merchant aside at the Houston airport in April 2024, searched his possessions and asked about his travels to Iran, he concluded that he was under surveillance. But still he researched Trump rally locations, sketched out a plot for a shooting at a political rally, lined up the supposed hit men and scrambled together $5,000 from a cousin to pay them a “token of appreciation.”

This image provided by the Justice Department, contained in the complaint supporting the arrest warrant, shows Asif Merchant. 

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AP


He even reported back to his Revolutionary Guard contact, sending observations – fake, Merchant said – tucked into a book that he shipped to Iran through a series of intermediaries.

Merchant said he “had no other option” than to play along because the handler had indicated that he knew who Merchant’s Iranian relatives were and where they lived.

In a court filing this week, prosecutors noted that Merchant didn’t seek out law enforcement to help with his purported predicament before he was arrested. He testified that he couldn’t turn to authorities because his handler had people watching him.

Prosecutors also said that in his FBI interviews, Merchant “neglected to mention any facts that could have supported” an argument that he acted under duress.

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Merchant told jurors Wednesday that he didn’t think agents would believe his story, because their questions suggested “they think that I’m some type of super-spy.”

“And are you a super-spy?” defense lawyer Avraham Moskowitz asked.

“No,” Merchant said. “Absolutely not.”

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