Connect with us

Business

An elite new JP Morgan unit is driving deals for sports teams and stadiums—and bringing in billions

Published

on


Mergers may have slowed but one asset class continues to increase in valuation and interest: sports team franchises. Some of the largest investment banks, such as JPMorgan Chase and Goldman Sachs, have created dedicated sports teams to cater to this group.

Valuations for major sports teams surged to record levels this year, with several leagues seeing their price tags increase by double and triple digit percentages. The highest price ever paid for a professional sports team was notched in June when Mark Walter, CEO of Guggenheim Partners, agreed to buy a majority stake in the Lakers in a deal that valued the basketball team at $10 billion. This surpassed the prior record holder—the $6.1 billion sale of the Boston Celtics to a consortium led by private equity executive William Chisholm—which was also clinched earlier this year.

Scarcity is one big reason sports team valuations have soared in the past 25 years, said Eric Menell, JPMorgan’s global co-head of sports investment banking. There are roughly 1500 billionaires in the U.S., but only about 200 professional sports teams. (This includes seven men’s and women’s sports leagues.) Controlling stakes in these teams “don’t go up for sale that often,” Menell said.

Interest in sports leagues is so high that stock market volatility and politics have little impact, Menell said. Valuations for high-profile NBA teams have jumped by more than 1000% in the past quarter century. In 2000, Shaquille O’Neal and Kobe Bryant led the Los Angeles Lakers to the NBA Championships. The team was valued that year at a meager $360 million, according to Forbes. The Lakers’ sale this year for $10 billion represents a gain of around 2677% over 25 years. By comparison, the S&P 500 has increased by more than 300% for the same period. (The Buss family, which is selling the Lakers, originally acquired the franchise for $67.5 million in 1979—a gain of 14,714.8%.)

In 2002, Wycliffe Grousbeck led an investor group to buy the Celtics for $360 million and their $6.1 billion sale in June represents a 1,594% increase. There’s also the Washington Commanders football team, which was sold for $6.05 billion to a group led by PE exec Josh Harris in 2023. Twenty-five years ago, when the team was still known as the Washington Redskins, the franchise was considered the most valuable in the NFL with a $741 million market value. Their $6.05 billion price represents a near 710% gain.

Wall Street’s attraction

JPMorgan Chase has long advised on sports deals. In 2024, the bank consolidated its sports efforts, naming Menell and Gian Piero Sammartano co-heads of a dedicated sports investment banking group. The unit coordinates with bankers across the firm, including JPMorgan’s private bankers who cater to wealthy clients, such as team owners. (Customers of the private bank must maintain a minimum $10 million balance.) 

JPMorgan now offers advisory, financing and wealth management for sports teams and their owners. Another key part of its strategy is stadium financing. The effort is led by Zach Effron, a 20-year industry veteran who has spent the last nine years at JPMorgan. The bank provides loans for infrastructure projects, with past financings including SoFi stadium in Los Angeles and Real Madrid’s Santiago Bernabeu stadium.

The investment bank will often provide the financing for the transactions while the clients, or owners, are typically customers of the private bank. JPMorgan estimates that it has financed well over $10 billion in sports-related deals since 2021, including debt financings for owners, teams, stadiums and leagues.

“Ten of the last 15 major sports transactions that have happened in the world have been financed by J.P. Morgan,” said Mary Callahan Erdoes, CEO of JPM’s asset and wealth management division, during the bank’s investor day in May. 

Bulge bracket firms catering to the rich and sports-oriented aren’t new. Goldman Sachs in 2023 launched a global sports franchise division that offered rich clients opportunities to invest in professional sports teams, leagues and related entities. The group is led by Greg Carey and Dave Dase. Citi has a long-standing sports advisory and financing group that caters to the world’s wealthiest individuals and families who are considering investing in sports as an asset class. It also advises leagues, teams and aspiring team owners on M&A and capital raise transactions. The group is led by John Hutcheson, head of global sports advisory, and Ivo Voynov, head of sports finance for North America. (Hutcheson is part of investment banking at Citi while Voynov is with the wealth business.)

While the price of sports teams has skyrocketed, the wealthiest potential buyers typically don’t have $1 billion in cash sitting around to buy these teams. “They need liquidity,” Menell said. 

That’s where JPMorgan’s private bank will step in to help with the financing. The bank will typically lend against personal assets, like an art collection that a potential buyer owns, to help them secure a loan that complies with league rules.

“As deals have gotten more complicated, the need for a full-service bank to do everything [has grown]. It’s one-stop shopping,” Menell said.

Here are 10 deals where JPMorgan has advised or provided financing.

Jayson Tatum of the Boston Celtics, the NBA team that was sold earlier this year to a group led by private equity executive William Chisholm for $6.1 billion.

Courtesy of Al Bello/Getty Images

1. The Boston Celtics

In July 2024, the Grousbeck family decided to sell the Boston Celtics. They hired JPMorgan, along with  Bryan Trott’s merchant bank BDT & MSD Partners, a month later to find a buyer.  As part of the deal, JPMorgan’s private bank contacted roughly 186 international clients to find a buyer, the Wall Street Journal reported. A sale was announced in March. 

For a few months in 2025, the $6.1 billion sale of the Celtics was the highest price ever paid for a sports team. It was then eclipsed by the $10 billion Los Angeles Lakers sale. JPMorgan advised the Grousbeck family on the deal.

Lionel Messi’s Inter Miami football club will soon have a new stadium.

Courtesy of Michael Owens/Getty Images

2. Miami Freedom Park

Miami has waited for its new soccer-specific stadium for over 10 years. Miami Freedom Park, a 25,000-seat stadium, is scheduled to be the home of Lionel Messi’s Inter Miami football club. Construction is scheduled to finish later this year, with the stadium opening in 2026.    

JPMorgan served as lead arranger on $650 million in loans to fund Inter Miami CF’s new stadium and refinance the team’s existing debt. The deal represents one of the largest financings for a major league soccer franchise to date.

Leon Draisaitl of the Edmonton Oilers is considered one of the best German hockey players ever.

Courtesy of Federico Gambarini/Getty Images

3. ICE District (Canada)

For over a decade, the ICE District—a 25-acre mixed-use sports and entertainment district in downtown Edmonton, Alberta—has undergone extensive renovation and redevelopment. Its transformation was led by Canadian billionaire Daryl Katz, owner of the Edmonton Oilers. In March, Oilers Entertainment Group Canada (Edmonton Oilers) secured $200 million canadian ($145.6 million) in bonds to fund improvements in the ICE District surrounding the arena. Oilers Entertainment had previously obtained about $700 million canadian ($510 million) in bonds and debt ($524 million canadian in bonds plus a $150 million loan canadian) to fund general corporate purposes and further build out the ICE District. JPMorgan arranged all three transactions. 

The Capital One Arena is home to the Washington Capitals.

Courtesy of Jess Rapfogel/NHLI via Getty Images

4. Capital One Arena (Washington D.C.)

The Capital One Arena in Washington D.C. is home to the Capitals (NHL) and Wizards (NBA) teams. Renovation of the 20,000-seat stadium began in late 2024 and is expected to finish during the summer of 2027. The cost of the transformation is estimated at more than $800 million.

In March, Monumental Sports & Entertainment, the sports and entertainment company that owns Capital One, raised $135 million in bonds to fund the revamp. JPMorgan helped with financing. It also guided Monumental Sports in negotiations with the District of Columbia, which is buying the arena and leasing it back to MSE. The renovations are expected to keep the Wizards and Capitals in D.C. through at least 2050.

Dominic Calvert-Lewin plays for Everton FC, which will soon have a new stadium.

Courtesy of Chris Brunskill/Fantasista/Getty Images

 5. Everton Stadium (UK)
The Friedkin Group, led by CEO Dan Friedkin, completed its acquisition of English Premier League club Everton FC in December. One big reason for the deal, estimated at 400 million pounds ($537.2 million), is Everton’s new stadium which is expected to enhance the team’s long-term value.

In February, Everton Stadium Development, a subsidiary of Everton FC, raised 350 million pounds ($470.1 million) in bonds for the new Everton Stadium. The more than 52,000-capacity stadium, located on Liverpool’s waterfront, is scheduled to host its first competitive Premier League game in August. Everton also secured a 130 million pound loan ($174.6 million) to support its operations under Friedkin’s new ownership. JPMorgan structured both deals.

Hannes Wolf is a star attacker for the New York City FC.

Courtesy of Jordan Bank/Getty Images

6. Etihad Park (New York City)

Etihad Park has been in the works since 2022.  The soccer-specific stadium is the new home of New York City FC. Located in Willets Point, Queens, Etihad will have 25,000 seats, features a bowl design that is intended to make it more intimate, and a transparent roof to allow more light. Construction of the stadium is expected to finish in 2027.  In November, JPMorgan arranged a $425 million construction loan for New York City FC’s new stadium.

Rodrigo Mora is a breakout star at FC Porto.

Courtesy of Robbie Jay Barratt – AMA/Getty Images

7. FC Porto (Portugal)

Founded in 1893, FC Porto is one of the big three football clubs in Portugal, alongside Benfica and Sporting CP. Always successful domestically, FC Porto was facing pressure from its debt load, which exceeded 500 million euros ($581.3 million). In November, Dragon Notes S.A., a financing company created by the club, raised 115 million euros ($133.7 million) in bonds to refinance FC Porto’s debt. The debt securities are guaranteed by revenue from Porto StadCo, which handles the commercial and economic aspects of Estádio do Dragão (the football stadium in Porto, Portugal that’s home to FC Porto). JPMorgan organized the financing.

Sir Jim Ratcliffe is co-owner of Manchester United FC.

Courtesy of Nicolò Campo/LightRocket via Getty Images

8. Manchester United (UK)

As valuations rise, more soccer clubs have gone up for sale. In February 2024, Sir Jim Ratcliffe, a British billionaire and CEO of INEOS, acquired a 29% stake in the Manchester United football club. The deal was valued at 1.25 billion pounds ($1.6 billion). The Glazer family remained the majority owner. JPMorgan served as advisor to Ratcliffe and INEOS.

Ari Emanuel is CEO of TKO Group Holdings

Courtesy of Chris Unger/Zuffa/Getty Images

9. World Wrestling Entertainment (WWE)

In 2023, World Wrestling Entertainment merged with Ultimate Fighting Championship to form TKO Group Holdings. Endeavor Group, the sports and entertainment conglomerate then led by CEO Ari Emanuel, took a 51% stake in TKO, while existing WWE shareholders received the rest. The deal was valued at $21.4 billion. JPMorgan advised WWE in the transaction.

Tony Ressler is co-founder and executive chairman of lender Ares Management.

Courtesy of Michael Nagle/Bloomberg/Getty Images

10. Centennial Yards (Atlanta)

For decades, the city of Atlanta has sought to redevelop the area known as “the gulch,” an underutilized area in its downtown that was originally a central hub for the city’s railroad industry. Atlanta’s city council in 2018 approved a major financing package to back the development of Centennial Yards. The 50-acre mixed-use site is adjacent to Mercedes Benz Stadium and State Farm Arena. The $5 billion project will feature over 1,000 hotel rooms, thousands of apartments as well as restaurants, bars, and retail shops. Completion of Centennial Yards is expected by 2030. JPMorgan arranged $575 million in financing for the project.

CIM Group, a real estate investment firm led by Richard Ressler, is the master developer of the Centennial Yards project. A group led by Tony Ressler, principal owner of the Atlanta Hawks, has co-invested. (Tony and Richard are brothers. Tony Ressler is also co-founder and executive chairman of Ares Management.)



Source link

Continue Reading

Business

Nicotine pouches can be a better alternative to cigarettes says CEO

Published

on



Smoking is one of the clearest public-health failures of our time. More than 500,000 Americans still die each year from smoking-related illnesses, and globally the picture is even more alarming. In the United States, anti-smoking campaigns have reduced the number of new cigarette users, but the effectiveness of these measures may be fading. Indeed, the headline of a widely-shared news story notes “Celebrities Are Making Smoking Cigarettes Cool Again”. Yikes. Meanwhile, a quick trip to Mexico, Europe, or Asia is enough to see that cigarettes remain very much in style.

Reducing cigarette use, and preventing a new generation from getting hooked on nicotine, is a noble goal. That is one reason James Monsees and Adam Bowen founded the vape company JUUL Labs, as a potentially less harmful alternative for adult smokers. But a mix of regulatory missteps by a hostile FDA and market loopholes opened the door to a wave of counterfeit and bootleg vapes, often imported from China, sold in local stores, highly addictive, and completely unregulated. Many people became sick from using vapes with unknown ingredients. Teenagers were easily able to access bootleg vapes from China in youth-friendly flavors. What began as an idealistic goal—moving adult smokers off of cigarettes—turned into a new epidemic. 

Now we have two problems: cigarettes and vapes.

I believe science and technology can solve both. I was a tobacco user who became addicted to vaping. I tried everything to quit and cut down my nicotine use. Eventually, I discovered Swedish-style white pouches. That experience led me to create Sesh+, a premium, tobacco-free nicotine pouch made with transparent ingredients. It has been life-changing for me personally: I haven’t picked up a vape since switching to pouches. In Sweden, where oral nicotine products have been widely used for decades, smoking rates are among the lowest in Europe and smoking-related disease is correspondingly lower.

There is growing evidence that nicotine itself, while addictive, is not what primarily causes smoking-related disease; it’s the toxic byproducts of combustion that kill. With vaping, the concern is different: it’s the lack of transparency and quality standards that should alarm us. As a health-conscious consumer, I want to know exactly what I’m putting into my body. That’s why our pouches are independently lab-tested for contaminants like heavy metals and are manufactured in the United States under strict quality controls. 

Fake nicotine pouches are already in the U.S. market. Sofia Hamilton writes for Reason that her favorite convenience store unknowingly sells counterfeit nicotine pouches, and how only someone deeply familiar with FDA nicotine rules could tell the difference. No one should have to be a nicotine policy expert just to know whether a product is safe.

Important questions remain. We do not want to create a product that attracts people who don’t already use nicotine. The average Sesh+ customer is over 35, and I’m very proud of that. Early data is encouraging: a recent Rutgers study found that new nicotine users taking up pouches remains very low. Government has a responsibility to keep black-market and counterfeit pouches out of consumers’ hands. Industry must ensure retailers are educated and know what they’re selling. And we need strong youth prevention laws.

Nicotine pouches will only be effective if industry and government work together to ensure we are not attracting youth or non-nicotine users.

In the U.K., the proposed Tobacco and Vapes Bill would ban people born in or after 2009 from ever purchasing nicotine products. In the United States, we have already raised the legal age to buy tobacco to 21. These are the kinds of measures our industry should support. If the legislation in the U.K. passes, I hope other countries will adopt similar policies to prevent youth from accessing nicotine products. I also hope to see product-verification technology adopted as an industry standard so counterfeit nicotine products never reach consumers. Age verification is not enough; we must ensure a market for counterfeit and bootleg nicotine pouches does not emerge.

If companies in the nicotine pouch space work together, we can learn from JUUL’s experience and avoid repeating the same mistakes. Our responsibility is clear: help adult smokers move to potentially less harmful alternatives, without creating a new generation of nicotine users. If we get this right, a world free from tobacco is not just aspirational. It’s achievable.

Max Cunningham is the CEO of Sesh+, a nicotine pouch company based in Austin, Texas and backed by 8VC. The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



Source link

Continue Reading

Business

Kevin Hassett says Trump’s opinion would have ‘no weight’ on the FOMC

Published

on



National Economic Council Director Kevin Hassett, one of the top contenders to replace Jerome Powell as Federal Reserve chair, downplayed any role that President Donald Trump’s opinion would have in setting interest rates.

That’s despite Trump repeatedly insisting that he ought to have some say on monetary policy. Most recently, he said Friday his voice should be heard because “I’ve made a lot of money.”

In an interview Sunday on CBS’ Face the Nation, Hassett said Trump has “very strong and well founded views” but pointed out that the Fed is independent, with the chairman tasked with driving consensus among other policymakers on the rate-setting Federal Open Market Committee.

“But in the end, it’s a committee that votes,” he added. “And I’d be happy to talk to the president every day until both of us are dead because it’s so much fun to talk, even if I were Fed chair of if I wasn’t Fed chair.”

Hassett said he hopes Kevin Warsh, a former Fed governor who is also being considered for the chairmanship, would talk to the president as well if he becomes Fed chief.

Trump told the Wall Street Journal on Friday that Warsh was at the top of his list and said “the two Kevins are great.”

The comment surprised Wall Street, which had overwhelming odds on Hassett as the favorite. On the prediction market Kalshi, the probability that he will be nominated as Fed chair has plunged to 50% from 80.6% earlier this month, while Warsh’s odds shot up to 41% from 11%.

Trump has said he will nominate a Fed chair in early 2026, with Powell’s term due to expire in May. Until then, the contenders have time to make their case. According to the Journal, Trump met Warsh on Wednesday at the White House and pressed him on whether he could be trusted to back rate cuts. 

When asked on Sunday if Trump’s voice would have equal weighting to the voting members on the FOMC, Hassett replied, “no, he would have no weight.”

“His opinion matters if it’s good, if it’s based on data,” he explained. “And then if you go to the committee and you say, ‘well the president made this argument, and that’s a really sound argument, I think. What do you think?’ If they reject it, then they’ll vote in a different way.”

For his part, Hassett has regularly supported more easing and is one of Trump’s fiercest economic surrogates. But since joining Trump’s second administration, some of Hassett’s previous colleagues have expressed alarm over signs he’s serving more as a political loyalist.

He has become a regular presence on cable news, defending Trump’s policy priorities, downplaying unfavorable data, and echoing the White House line on everything from inflation to the legitimacy of federal statistics.

Meanwhile, the Fed’s early reappointment of its regional bank presidents eased concerns the central bank would soon lose its independence as Trump continues demanding steeper rate cuts.

That’s after the administration floated a district residency requirement for Fed presidents—an idea Hassett backed—raising fears it was seeking a wider leadership shake-up.

“If I’m reading this properly, they just Trump-proofed the Fed,” Justin Wolfers, a professor of public policy and economics at the University of Michigan, wrote in a post on X about the reappointment announcement.



Source link

Continue Reading

Business

Police have person of interest in custody over Brown Univ. shooting that killed 2, wounded 9

Published

on



Police in Rhode Island said early Sunday that they had a person of interest in custody after a shooting that rocked the Brown University campus during final exams, leaving two people dead and nine others wounded.

Col. Oscar Perez, chief of the Providence police, confirmed at a news conference that the detained person was in their 30s and that authorities are not currently searching for anyone else. He declined to say whether the person was connected to the university.

Separately, an FBI agent said that the arrest occurred at a Hampton Inn hotel in Coventry, about 20 miles (32 kilometers) from Providence. Officers remained on the scene there, with police tape blocking off a hallway.

The shooting erupted Saturday afternoon in the engineering building of the Ivy League school in Providence, Rhode Island, during final exams. Hundreds of police officers had scoured the Brown University campus along with nearby neighborhoods and pored over video in pursuit of a shooter who opened fire in a classroom.

Armed with a handgun, the shooter fired more than 40 9mm rounds, according to a law enforcement official. Authorities as of Sunday morning hadn’t recovered a gun but did recover two loaded 30-round magazines, said the official, who spoke on the condition of anonymity because they were not authorized to publicly discuss the investigation.

University officials on Sunday canceled all classes, exams, papers and projects for the remainder of the fall semester and said students were free to leave. Those who remain on campus will have access to services and support, Provost Francis Doyle said in a statement.

“At this time, it is essential that we focus our efforts on providing care and support to the members of our community as we grapple with the sorrow, fear and anxiety that is impacting all of us right now,” Doyle wrote.

Providence leaders warned that residents will notice a heavier police presence on Sunday. Many local businesses announced they would remain closed and expressed shock and heartbreak as the community continued to process the news of the shooting.

“Everybody’s reeling, and we have a lot of recovery ahead of us,” Brown University President Christina Paxson said at the news conference. “Our community’s strong and we’ll get through it, but it’s devastating.”

Surveillance video released by police showed a suspect, dressed in black, calmly walking away from the scene.

Earlier, Paxson said she was told 10 people who were shot were students. Another person was injured by fragments from the shooting but it was not clear if the victim was a student, she said.

The search for the shooter paralyzed the campus, the nearby neighborhoods filled with stately brick homes and the downtown in Rhode Island’s capital city until a shelter-in-place order was lifted early Sunday. Streets normally bustling with activity on weekends were eerily quiet. Officers in tactical gear led students out of some campus buildings and into a fitness center where they waited. Others arrived at the shelter on buses without jackets or any belongings.

Mayor advised people to stay home

Investigators were not immediately sure how the shooter got inside the first-floor classroom. Outer doors of the building were unlocked but rooms being used for final exams required badge access, Providence Mayor Brett Smiley said.

Smiley was emotional as he discussed the city’s efforts to prepare for a mass shooting.

“We all, intellectually, knew it could happen anywhere, including here, but that’s not the same as it happening in our community, and so this is an incredibly upsetting and emotional time for Providence, for Brown, for all of us,” he said. “It’s not something that we should have to train for, but we have.”

Nine people with gunshot wounds were taken to Rhode Island Hospital, where one was in critical condition. Six required intensive care but were not getting worse and two were stable, hospital spokesperson Kelly Brennan said.

Exams were underway during shooting

Engineering design exams were underway when the shooting occurred in the Barus & Holley building, a seven-story complex that houses the School of Engineering and physics department. The building includes more than 100 laboratories, dozens of classrooms and offices, according to the university’s website.

Emma Ferraro, a chemical engineering student, was in the building’s lobby working on a final project when she heard loud pops coming from the east side. Once she realized they were gunshots, she darted for the door and ran to a nearby building where she sheltered for several hours.

Former ‘Survivor’ contestant just left the building

Eva Erickson, a doctoral candidate who was the runner-up earlier this year on the CBS reality competition show “Survivor,” said she left her lab in the engineering building 15 minutes before shots rang out.

The engineering and thermal science student shared candid moments on “Survivor” as the show’s first openly autistic contestant. She was locked down in the campus gym following the shooting and shared on social media that the only other member of her lab who was present was safely evacuated.

Brown senior biochemistry student Alex Bruce was working on a final research project in his dorm directly across the street from the building when he heard sirens outside.

“I’m just in here shaking,” he said, watching through the window as armed officers surrounded his dorm.

Students hid under desks

Students in a nearby lab turned off the lights and hid under desks after receiving an alert about the shooting, said Chiangheng Chien, a doctoral student in engineering who was about a block away from the scene.

Mari Camara, 20, a junior from New York City, was coming out of the library and rushed inside a taqueria to seek shelter. She spent more than three hours there, texting friends while police searched the campus.

“Everyone is the same as me, shocked and terrified that something like this happened,” she said.

Brown, the seventh oldest higher education institution in the U.S., is one of the nation’s most prestigious colleges with roughly 7,300 undergraduates and more than 3,000 graduate students. Tuition, housing and other fees run to nearly $100,000 per year, according to the university.



Source link

Continue Reading

Trending

Copyright © Miami Select.