The stakes must be of at least 3 percent and of no more than 10 percent, and no more than 10 percent of a team’s equity may be held by private equity in any combination of stakes.
The President of the New York Giants, John Mara, thinks he might put 10 percent of the team up for sale, according to Sports Business Journal, which cites “sources.” The motives are undisclosed, but the idea is serious enough for the Giants, apparently, to have hired a banker, Moelis & Co.
The NFL voted to enable equity sales to private equity last August, after about five years’ consideration. The stakes must be of at least 3 percent and of no more than 10 percent, and no more than 10 percent of a team’s equity may be held by private equity in any combination of stakes. Also, sovereign-wealth and pension funds are banned from direct investment.
How much 10 percent of the Giants will cost is unclear. In December the Philadelphia Eagles (winners of last month’s Super Bowl) sold two stakes that add up to 8 percent for $8.1 and $8.3 billion. That same month the Miami Dolphins sold a 10 percent stake on the basis of a team valuation of $8.1 billion – so about $810 million. And this year the Buffalo Bills sold 10 percent of $5.8 billion – or $580 million. New York – with two NFL teams, two MLB teams, two NBA teams – is a bigger market than any of those other cities.
The Giants have been in the Mara family from the team’s founding, by Tim Mara, in 1925. A nephew – also named Tim Mara – of the founder’s son sold a 50 percent stake to Preston Robert “Bob” Tisch in 1991. This 50-50 split between the Mara and Tisch families is where the team’s ownership stands today.
