News & Events

Eric Geffner, Co-Head of the Firm’s Sports group, was quoted in a Los Angeles Business Journal special report titled, “Banking & Finance Quarterly: Private Equity’s Two-Minute Drill,” which detailed how private equity has invested billions of dollars into the sports industry. Eric explained that, as team valuations rise, private equity funds with the institutional capital and know-how to absorb minority stakes in teams are “creating a market for themselves for potential exits in the future.” He further noted that leagues could help firms move in that direction by vetting and approving potential buyers of minority stakes in advance, saying that “You could see there being a pre-approved pool of secondary buyers that the league has to approve on a regular basis.” He also said that leagues may consider becoming more lenient with the cap on the number of teams in which a single private equity fund can invest and the relevant debt financing rules as team valuations continue to rise.

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