🍋 NFL 🤝 Private Equity

The NFL will vote on new rules later this month that could allow private equity firms to buy up to 30% of an NFL franchise, plus Peloton meets PE.

Together With

“It's so hard to forget pain, but it's even harder to remember sweetness. We have no scar to show for happiness. We learn so little from peace.” —Chuck Palahniuk

 

Good Morning! TikTok is firing back at the U.S., claiming a ban violates the First Amendment. Meanwhile, Peloton’s battered stock skyrocketed on reports of a potential private equity buyout. Sweetgreen is giving those sad desk salads a makeover by incorporating steak. And it looks like New Yorkers will be able to afford it - a new study found NYC is one of the world’s wealthiest cities with 1 in 24 residents now being a millionaire. Plus Apple dropped a new iPad Pro, and Stifel fired two traders for an inappropriate relationship with…the office cleaner. 

Mother's Day is approaching this Sunday, and if you're searching for inspiration, check out our guide: Top 9 Gift Ideas for Mother's Day.

Looking for niche private market opportunities led by a Wall Street veteran with skin in the game? Check out today’s sponsor, 10 East.

SQUEEZ OF THE DAY

NFL 🤝 Private Equity

NFL owners want to bring in new teammates - private equity firms.

Out of the four major professional sports leagues, the NFL is the only one that outright bans private equity ownership. But it’s looking like that’s all trending to change at the annual league meetings later this month

And under the proposed rules, private equity firms would be able to buy as much as 30% of NFL franchises.

A key reason? NFL teams are just too expensive for individuals to buy on their own. With price tags ranging from $4-6 billion and some teams like the Dallas Cowboys flexing $10B+ valuations, even billionaires need to tap private equity to fund their acquisitions.

And private equity doesn’t just want to own the teams - they’re potentially even more interested in the real estate that comes with it. For example, the Chicago Bears just announced plans for a $4 billion stadium - and you’d have to think the notoriously cheap franchise is hoping to tap private equity investors for the state-of-the-art development. 

Of course, there would need to be guardrails before allowing private equity involvement. The NFL would vet and need to approve owners. The NBA might be a good model to follow - they don’t let one firm own more than 20% of a single franchise, and you can only own stakes in five teams.

Takeaway: While some current NFL owners are optimistic about opening up the league to private equity involvement, it’s not clear what the move would do to current franchise valuations. And it raises a few interesting questions. Even though investors say they’re most interested in the real estate opportunities behind sports, what would have happened if, for example, Ares held stakes in both the 49ers and the Chiefs before the Super Bowl?

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HEADLINES

Top Reads

  • TikTok sues U.S. government, says ban violates First Amendment (CNBC)

  • Private equity firms considering potential Peloton buyout (YF)

  • Sweetgreen including steak to beef up desk salad dinners (Axios)

  • Reddit soars after strong sales in first report since IPO (YF)

  • 1 in 24 NYC residents now a millionaire (CNBC)

  • Stifel traders fired for inappropriate relationship with office cleaner (YF)

  • Apple debuts new iPad Pro powered by M4 chips (Axios)

  • Fed’s Kashkari says rates likely on hold for an extended period of time (YF)

  • Elizabeth Holmes sees more months trimmed from prison release date (CNBC)

  • Disney's stock falls as company attempts to make streaming business profitable (YF)

  • Americans can’t stop spaving - and how to avoid common pitfalls (CNBC)

CAPITAL PULSE

Markets Rundown

S&P ended slightly up, extending closing streak despite Disney drag.

Movers & Shakers

  • (+) Peloton ($PTON) +16% after reports of potential private equity takeover interest.

  • (–) Walt Disney Co ($DIS) -10% after the company struggles to make streaming profitable.

  • (–) Palantir ($PLTR) -15% after issuing weaker-than-expected guidance.

Private Dealmaking

  • Global Infrastructure Partners and CPP Investments bought Allete for $6.2 billion

  • Clearlake Capital and Francisco Partners bought the software integrity unit of Synopsys for $2.1 billion 

  • Wayve, a self-driving software developer, raised $1.05 billion

  • Akamai bought Noname Security for $450 million

  • DocuSign bought Lexion, a contract automation startup, for $165 million

  • Privateer, a space data startup, raised $56.5 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Deep Utopia

Bostrom’s previous book, Superintelligence: Paths, Dangers, Strategies changed the global conversation on AI and became a New York Times bestseller. It focused on what might happen if AI development goes wrong. But what if things go right?

Suppose that we develop superintelligence safely, govern it well, and make good use of the cornucopian wealth and near magical technological powers that this technology can unlock. If this transition to the machine intelligence era goes well, human labor becomes obsolete. 

We would thus enter a condition of "post-instrumentality", in which our efforts are not needed for any practical purpose. Furthermore, at technological maturity, human nature becomes entirely malleable.

Here we confront a challenge that is not technological but philosophical and spiritual. In such a solved world, what is the point of human existence? What gives meaning to life? What do we do all day?

Deep Utopia shines new light on these old questions, and gives us glimpses of a different kind of existence, which might be ours in the future.

"A really fun, and important, book... the writing is brilliant... incredibly rich... a constant parade of fascinating ideas."

DAILY VISUAL

Can HOOD meme again

Robinhood Stock Price

Source: Axios

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DAILY ACUMEN

Likable People

Some individuals have a magnetic quality that makes them instantly likable upon first meeting. These people often exhibit a set of habits that enhance their ability to connect and communicate effectively, contributing significantly to their charisma. Here are six common traits they tend to practice:

Presence: Likable people are fully engaged in their interactions, focusing entirely on the conversation rather than how they are perceived. Their attention to the present moment makes others feel valued and understood.

Generosity in Giving Credit: In professional settings, these individuals boost their likability by acknowledging the contributions of others. Recognizing team members’ efforts fosters a collaborative environment and makes others feel appreciated.

Authenticity: People are drawn to those who are genuine and transparent. Being true to oneself builds trust and relatability, enhancing personal connections. 

Empathy and Care: Showing genuine concern for others’ well-being and feelings can significantly increase a person’s likability. Empathetic individuals build strong, trusting relationships.

Active Listening: Good listeners make people feel heard and understood, which is a key component of being likable. They engage in conversations with curiosity and without interrupting, showing a genuine interest in others.

Clear Communication: People appreciate straightforwardness, even when the message might be difficult. Clear communication reduces misunderstandings and builds respect.

These habits not only make someone likable but also help in creating deeper and more meaningful connections. Whether in personal or professional contexts, these qualities can lead to more effective communication and better relationships.

ENLIGHTENMENT

Short Squeez Picks

  • How to make decisions with a VC-mindset

  • 5 steps to boost your visibility at work

  • 10 questions I used to get hired at JP Morgan, Goldman Sachs and Citi

  • 4 phrases securely-attached adults use regularly 

  • Where the $68M in coins Americans throw out end up

MEME-A-PALOOZA

Memes of the Day

 

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