Jul 31, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Our guest on the WB -- line next is mark -- president of sports corp. That's sports business consulting firm that's based in Chicago but again as good morning. Aren't ordinary yeah we're doing fine Marco who are your clients are they people selling sports teams people buying sports teams or all of the above. Are all the above and stadium and arena developments came acquisitions can relocations. -- sort of regional sports networks. I think part that we've worked our projects related to more than half of the NFL teams over the years and little most of these people -- Are there have been people who wanna biking or shocking -- which which people would liberal looks. Well let's say you. Someone understood by the Buffalo Bills probably ask you. What they would actually what it's worth how they could raise some money for border of league rules. Related to ownership in and questions related to what the future believed would be -- what are comparable have been recently to get -- sales of things to think like that. You know where we're at league is going. In terms of -- future revenues profitability. And they think that think that that. You'd asked generally about any kind of business but sports is is are unique business. Mark on the bills -- we learned a couple of things yesterday first that we learned that there were three -- and we learn that Terry -- the sabres owner. And put a -- in of one point three billion. What was your reaction to any and that. Well first I I I don't know that we actually have learned that Susan we -- we -- further pressure character I think you're right track. There's been no no statement by -- -- by the trust. This. Correct -- -- so I'm not I'm not convinced. That that that those two pieces of information nor are entirely accurate so so that's that's the first thing would be Sampras -- yeah. I I'm not sure how how I don't buy those -- being completely accurate and certainly not the first one about the number of bidders. But what if we if we take it at face value. What we see is that that. A number of parties who may have been interested in re located in and potentially -- on the bills for potential relocation at a market. Decided not to not to step up and actually bit. NFL teams have got tremendous value. They are very strong assets now and in the future and because of the unique feature that it has were all broadcast revenues shared equally whether you're here in buffalo New York City. Every team has got that's a great value and the number will likely be a very significant number -- when to -- to get sold. OK if the Buffalo Bills shill for one point three billion dollars or maybe even more. In your opinion is that a good investment for a team that is another so called small NFL market. IE. DIC I know what the future the NFL listen I think the answer to that is yes. -- -- or very few teams could actually get sold at the averages one every other year. -- -- and so you've got to scarcity and revealed these and we learned an economics one -- one supply and demand there's a lot of our demand and very little supply. And that helps increase the -- the value and appreciate your -- But there is there is no question that that in the small market there is small profitability. If the New England Patriots for example one up for sale that are. That and that number would do are likely be double the number that stepped that's been suggested that tropical look -- Turkoglu ansari has offered for a for the bills. So is that there is a difference based on the market but even the smaller market teams have got very significant value in the NFL. OK I don't wanna get off track but do you think the Los Angeles Clippers were worth two billion dollars. They were worked out to -- ball. -- RNA on a purely. The economic value if you look at just the the the business itself. Now they'll probably worked in the range of one point two -- one point five billion or potential starters were not -- to port 15 billion. I went when they were part but if you are if you have the access and you really wanna be in this business and and you like to location. If you're willing to hold on to the team. As as Ballmer is going to -- this as the Dodgers owners are as as placing whomever is gonna by the yet the bills well. Our long term basis the price will they need to value will catch up to the price. These these teams continue to go up in value so you tend to overpay. They start to these valuable crux of the expectations were the value will be fighting in years into the future. Speaking of value market wanna ask you this about a Toronto group did for the bills. What do they Canadian -- team present. A new set of problems for the NFL just from a currency standpoint with the fluctuating value of the dollar and that kind of thing. You mean it's eighteen was in Canada well and play yeah yeah. Well there there are holed host of issues that come up wind when sports teams crushed orders. Our currency is war and labor laws or another. There have been but but the NHL and NBA have found ways to to address them. And they they they they can pose a unique challenges frankly but. You know if for example in the NHL. When you win the Canadian dollar was worth eighty how much sense to the to the US dollar it it crescent real hardship. Offer the teams that better than Europe and Canada and then when it got what what is that slipped. It made them be easier to electric operate now they're Reagan below aren't sensitive -- and it. To make it -- so there are the art change there are differences or challenges. But they are -- -- we're grateful to -- take a -- -- -- with us thank you again answer. My pleasure every -- you do mark -- president of sports corp in Chicago.