Latest news with #Blitzer
CNBC
10-07-2025
- Business
- CNBC
How family offices are betting on the sports boom from fantasy apps to pickleball courts
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. 2025 has been a banner year for sports mergers and acquisitions. In June, billionaire and Guggenheim Partners CEO Mark Walter bought a majority stake in the Los Angeles Lakers at a record $10 billion valuation. That same month, Apollo's Josh Harris and Blackstone's David Blitzer picked up a new Philadelphia WNBA team for $250 million through their titular sports and entertainment company. While sports team ownership changes get most of the buzz, ultra-rich individuals and their private investment firms are taking multiple tacks to profit from the sports industry. BNY Mellon's recent family office survey found that 33% of 282 respondents had invested in sports. BNY Mellon CIO Sinead Colton Grant told CNBC in June that family offices were increasingly investing in sports assets as an inflation hedge. Moreover, while larger family offices were more likely to have sizable equity stakes in teams, investors are also drawn to sports-related assets like merchandise and hospitality venues. "You've got media rights in addition to broader franchise interest. You've got real estate, like the broader complex around the stadium," she said. "There are many strands that are coming together to provide that, that quasi-inflation hedge." Investing in the picks and shovels of sports also comes with a lower barrier to entry. Betting on a strength-training app or buying a ski resort costs a fraction of what it takes to buy an equity stake in a multibillion-dollar sports team. While many family offices are agnostic when it comes to specific sports, the Chaifetz Group has built a pickleball portfolio. Launched by Richard Chaifetz, the founder of employee resource giant ComPsych, the Chicago-based family office not only owns pickleball team St. Louis Shock but also has invested in at least four pickleball-centric companies including Pickletile, a pickleball court construction company, and DUPR, which provides live ratings of pickleball matches. Billionaire Blitzer, the first person to own equity in all five major men's U.S. sports leagues, has invested in a slew of sports startups this year including Fantasy Life, a sports betting media firm, and Ballers, a chain of social clubs for racket sports. Blitzer told CNBC in 2023 that sports teams hold their value due to limited supply, while yielding related investment opportunities. "They're not making any more of them, and they're growing," he said at that year's CNBC x Boardroom Game Plan summit. "They're not just growing on their existing fan base. They're creating new fans for creating new revenue streams."
Business Insider
20-06-2025
- Business
- Business Insider
How a Blackstone exec built a sports investing empire
David Blitzer's interest in sports investing began after he became, in his own words, a "failed athlete." "I thought I was good when I was, you know, like a teenager. Then I realized by high school that I was adequate at best and certainly was not playing past high school," he said in a Thursday episode of the Bloomberg podcast "The Deal." The billionaire, who is a chairman at Blackstone's cross-asset investment group, made a name for himself as a pioneer in sports investing — a now-hot segment of the media and entertainment dealmaking world. On the podcast, Blitzer sat down with hosts Alex Rodriguez and Jason Kelly to talk about the empire of team ownerships he has built. Blitzer is the cofounder and managing partner of Harris Blitzer Sports and Entertainment, which owns the NBA's Philadelphia 76ers and the NHL's New Jersey Devils. He also holds stakes in the NFL's Washington Commanders, the MLB's Cleveland Guardians, and the MLS's Real Salt Lake. "Being an investor in any of these teams and leagues is fun, it's rewarding, it's challenging, it's really difficult," he said. Harris Blitzer Sports and Entertainment did not immediately respond to a request for additional comment from Business Insider sent outside regular business hours. Why Blizter is betting on sports Blitzer's first sports investment was with Josh Harris, the cofounder of Apollo, in 2011 when they acquired the Philadelphia 76ers for $280 million. Together, they founded Harris Blitzer Sports & Entertainment. "We had a lot of experience in corporate carve-outs. We had a lot of experience in bringing in new management teams and thinking about incentive structures in ways that I don't really think sports had had really done in the past," Blitzer said. The early thesis for investing is the same one he has now: supply and demand, he said. There are a set number of sports teams, and more ultrawealthy people and newer entrants, like private equity firms, want to buy them. "These are content and media businesses, and they have some of the best IP in the world. And frankly, in today's world, when you think about live content, there's probably nothing more valuable." He's the first person to own equity in all five of the major men's sports leagues in the US. His portfolio is strategically broad, he said, so he can offer wide, cross-sport reach for advertisers. Earlier this year, for example, they did a deal with Campbell's — the soup company — across the Commanders, the Sixers, the Devils, and Joe Gibbs Racing. As with private equity portfolio companies, the scale of Blitzer's portfolio also allows the company to better spread the cost of cutting-edge tools, such as AI and data analytics, he said. Blitzer is also betting on sports outside pro men's leagues. Last year, Blitzer and Harris launched Unrivaled Sports, a company that specializes in youth sports. Blitzer also holds a stake in NWSL's Utah Royals. Blitzer's advice to would-be sports owners Even though Blitzer takes a strategic, portfolio approach to investing in sport, he points out that owning sports teams goes beyond crunching numbers. He says his best advice for anyone investing in a sports franchise or a league is to go slow. "Don't do anything in your first season, like literally. Just learn. Just go around and meet everyone in the organization, watch what they do, how they do it. Do not come in and do big things in your first season," he said, before adding: "By the way, no one has taken that advice."
Yahoo
12-06-2025
- Business
- Yahoo
Woody Johnson makes £190m bid for Textor's Crystal Palace shares as Uefa delays decision
The New York Jets owner, Woody Johnson, has offered £190m to buy John Textor's stake in Crystal Palace. The move comes with Uefa expected to delay until the end of the month a decision on whether the club will be allowed to compete in next season's Europa League. The offer from Johnson, the former US ambassador to the UK, has the backing of Palace's co-chair Steve Parish and is believed to be under consideration by Textor despite falling significantly short of his valuation of about £240m for his 44.9% stake. Advertisement That figure is based on his failed attempt to buy out Parish and his fellow co-owners Josh Harris and David Blitzer in April, when a £550m bid was rebuffed. Textor is understood to be prepared to accept up to £50m less than his valuation after Harris and Blitzer turned down an opportunity to buy his stake at the discounted price. A consortium that includes the NBA star Jimmy Butler and Sportsbank, which has held talks with Textor about investing in Palace, is also in the frame. Download the Guardian app from the iOS App Store on iPhone or the Google Play store on Android by searching for 'The Guardian'. If you already have the Guardian app, make sure you're on the most recent version. In the Guardian app, tap the Menu button at the bottom right, then go to Settings (the gear icon), then Notifications. Turn on sport notifications. All four Palace co-owners were part of the club delegation that attended a meeting at Uefa's headquarters in Nyon this month and argued that Textor, the majority shareholder in the French club Lyon, who have also qualified for next season's Europa League, does not have a decisive influence at Selhurst Park despite being the largest shareholder. As reported by the Guardian, Uefa rejected attempts by Textor and Blitzer to place their shares in a blind trust because they missed 1 March deadline. Blitzer's Danish club, Brøndby, have qualified for the Conference League. A decision on Palace had been expected imminently but sources at Uefa have indicated its club financial control body (CFCB) would like more time to consider the case, with the end of June regarded as more realistic. That could give Textor an opportunity to complete a sale – a move that would also be viewed favourably by Uefa – although he is believed to be reluctant to rush through a deal having spent about £180m since purchasing his original 40% stake in August 2021. Palace are understood to remain confident they will be cleared to participate in the Europa League having been in regular contact with the CFCB since their meeting in Nyon. But if they do get the green light, Nottingham Forest could appeal to the court of arbitration for sport after they wrote to Uefa this week raising concerns about a potential breach of multi-club ownership rules by Palace. Advertisement Forest, whose owner, Evangelos Marinakis, is close to Textor, would stand to be promoted from the Conference League if Palace are banned by Uefa. Brighton would then be in line to take Forest's Conference League place after finishing eighth in the Premier League. It is understood Brighton have no intention of making a complaint to Uefa and would be unlikely to join Forest in any legal action to prevent Palace, their arch-rivals, from competing in Europe.
Yahoo
05-06-2025
- Business
- Yahoo
Crystal Palace's Europe place in balance after Uefa rejects owners' blind trust move
Uefa has rejected offers from Crystal Palace shareholders John Textor and David Blitzer to put their shares in a blind trust to ensure the club can compete in Europe next season. Palace's participation in the Europa League has been cast into doubt as the club's largest shareholder Textor is also the majority owner of Lyon, who have also qualified for the second tier competition. And to compound matters, Blitzer's Danish club Brøndy have qualified for the Conference League, so the prospect of the FA Cup winners dropping into that competition is also not an option due to the European governing body's multi-club rules. Related: John Textor seeks sale of Crystal Palace stake in bid to avoid European ban Palace executives, including Textor and chairman Steve Parish, met with Uefa officials in Nyon on Tuesday to try to broker a solution without reaching a resolution. The Guardian has learned that the so-called blind trust option in which Textor's Palace shares would be placed in the hands of trustees next season was rejected by Uefa, as the club missed the deadline for registering the trust. Manchester City and Manchester United both used blind trusts to ensure compliance with Uefa multi-club rules last season after their partner clubs, Girona and Nice, both also qualified for the Champions League and Europa League respectively, while Nottingham Forest owner Evangelos Marinakis also transferred his shares when Nuno Espirito Santos' side and his Greek club Olympiacos looked on course to qualify for next season's Champions League. Uefa rules state that such ownership changes must take place before 1 March to take effect in time for the following season, however, with Palace told this week that they will not be shown any flexibility. European qualification was not on the agenda for Palace before March, as they were mid-table in the Premier League and had not progressed beyond the FA Cup fifth round. Palace are in danger of paying a heavy price for their lack of foresight, leading to considerable frustration at Uefa's lack of flexibility. Uefa declined to comment, but sources at the European governing body stressed that given more than 300 clubs take part in its competitions each season, it has to ensure that the regulations are applied consistently. Textor told the Daily Mail after Tuesday's meeting that he is looking to sell his 45% stake in Palace, but there is little realistic prospect of that happening in time to influence Uefa's decision, with the Europa League qualifying draw due to take place on 17 June. Just three weeks ago on the eve of the FA Cup final, The Guardian revealed that Textor was seeking to buy out fellow American shareholders, Blitzer and Josh Harris, who own 36% of the club between them. The two parties have previously held on-off talks about buying each other out, but have never got close to an agreement on price. Textor also signalled his intention to sell Palace when he was attempting to buy Everton last summer without making any discernible progress. With a quick sale and the transfer of shares seemingly off the table, Palace's best hope of playing in the Europa League for the first time appears to be persuading Uefa that Textor has no influence at Selhurst Park, although this may not be straightforward. In addition to his 45% stake Textor has 25% equal voting rights with Parish, Blitzer and Harris, and is known to have played a key role in the appointment of the manager Oliver Glasner last year. Textor has declined to comment. Uefa rules make clear that any influence at two clubs in the same competition is prohibited. 'No one may simultaneously be involved in any capacity whatsoever in the management, administration, and/or sporting performance of more than one club participating in a Uefa club competition,' the regulations state. 'No individual or legal entity may have control or influence over more than one club participating in a Uefa club competition, (including) holding a majority of the shareholders' voting rights; having the right to appoint or remove a majority of the members of the administrative, management or supervisory body of the club; being a shareholder and alone controlling a majority of the shareholders' voting rights pursuant to an agreement entered into with other shareholders of the club; or being able to exercise by any means a decisive influence in the decision-making of the club.' In the event of Palace being barred from the Europa League, Forest could be promoted to take their place after qualifying for the Conference League by finishing seventh in the Premier League. Palace's rivals Brighton, who finished eighth, could then replace Forest in the Conference League. Palace's European position is under threat rather than Lyon's, as Uefa rules state that the club ranked highest in its domestic championship will be given entry to the competition. Lyon's sixth-place finish in Ligue 1 gives them precedence over Palace, who came 12th in the Premier League.
Yahoo
18-04-2025
- Business
- Yahoo
Miller family buys MLS's Real Salt Lake, NWSL's Utah Royals in $600 million deal
It was four months ago that David Blitzer first touched base with the Miller family, pioneers in Utah sports ownership, to see if they'd be interested in discussing 'the art of the possible.' That 'possible' being if the Millers, who were owners and stewards of the Utah Jazz for 35 years before selling the franchise in October 2020, were fascinated at the prospect of getting back involved in professional sports in Utah. Blitzer, who is involved in ownership groups in the NBA, NFL, NHL as well as numerous professional soccer clubs throughout Europe, was searching for a local majority owner for two other clubs: MLS's Real Salt Lake and NWSL's Utah Royals FC. Advertisement 'One of the things that we realized frankly, and maybe more recently, was that the control owner of a franchise should really be local and immensely embedded in their community,' Blitzer told Less than five years after the Millers sold the Jazz for a reported $1.66 billion, they are back on the ground level — this time in soccer. On Friday, the Miller family and Miller Sports & Entertainment finalized their majority holding acquisition of RSL and the Royals from Blitzer, who is staying on as a minority owner. Terms of the sale were not made public, but sources familiar with negotiations confirmed to that the sale totaled $600 million for: both clubs, MLS Next Pro's Real Monarchs and the home stadium (America First Field in Sandy) and facility assets (Zions Bank Training Center in Herriman). Steve Miller, chairman of Miller Sports & Entertainment, said it was never a guarantee that the family was going to return to the world of operating professional sports on a day-to-day basis. Advertisement 'We've got a fairly stringent set of criteria that we apply to any opportunity that comes our way. One of the filters we put everything through is, 'Is this opportunity good for the community?'' Miller told 'It was more about opportunity, and it had to be the right opportunity. We never ruled anything out, nor was it a foregone conclusion that we would be back in other sports.' As reported last month, Ryan Smith, who bought the Jazz from the Millers in 2020, will no longer have ownership stakes in RSL and the Royals. Smith partnered with Blitzer when he bought RSL from former owner Dell Loy Hansen in January 2022 for a reported $400 million. Smith Entertainment Group had the right of first refusal on the majority ownership of both RSL and the Royals, according to a source with knowledge of the sale, but declined that option both to focus on the Jazz and the NHL's Utah Hockey Club, which launched this season, and because the Miller Group had emerged as another Utah-based ownership group that would run the club. 'We are glad that soccer is staying in Utah, and Gail Miller is an ideal local steward to lead Utah's professional soccer franchises moving forward,' Smith said in a statement provided to . 'We will always be strong supporters of the clubs. Smith Entertainment Group has been thrilled to be part of the journey growing Real Salt Lake and bringing professional women's sports back to Utah with the Utah Royals alongside incredible partners like David Blitzer, our amazing players, and our loyal fans. We are proud of the momentum achieved, which furthered SEG's ongoing mission to showcase Utah as one of the most exciting, dynamic destinations for professional sports and entertainment. 'With so much growth on the horizon for Smith Entertainment Group — from enhancing the success of our major sports franchises with the Utah Jazz and Utah Hockey Club and supporting the reimagination of downtown Salt Lake City to running the nation's largest youth basketball program and recently launching a youth hockey program — now is the right time to tighten our focus on the NBA, NHL, and other areas where we can make the biggest impact on our state, our community, and the world of sports.' Advertisement Blitzer helped guide professional soccer throughout choppy waters. The 2022 sale process was led in conjunction with MLS. Hansen put the team up for sale after revelations of racist behavior were reported by in 2020. Blitzer bought the team along with Smith and Arctos Partners, a private equity platform. Blitzer and Smith also kept the NWSL expansion rights for the Royals to potentially return to the league, which was valued at $2 million. The Royals were sold and relocated to Kansas City, where the organization would become the Kansas City Current as a result of the investigations into Hansen's behavior. A year into their combined tenure as owners, Blitzer and Smith, along with NWSL, announced that the Royals would return to the league as an expansion team starting in 2024. Valuations in NWSL are soaring. Advertisement NWSL's new Denver franchise paid a $110 million expansion fee earlier this year and will begin play in 2026. Last year the San Diego Wave sold for $120 million, while Angel City FC sold a controlling stake to Disney CEO Bob Iger and his wife, Willow Bay, at a $250 million valuation. In April 2023, former Meta COO Sheryl Sandberg supported a $125 million investment in Bay FC (including a $53 million franchise fee). 'Strong conviction that the valuations would grow over time,' NWSL commissioner Jessica Berman told 'It's been only a couple of years where our valuations have really skyrocketed. I guess I was a little surprised at how quickly it's happened, but it is quite amazing what is possible when you bring together a committed group of owners who are well-resourced and have a shared vision for building the best league in the world. With that, it's been clear in the markets where we play that we've been hungry for the best women's soccer in the world. That has really fed our growth story.' MLS commissioner Don Garber called Salt Lake City and Utah 'one of the best soccer markets' in the league and said having a local anchor like the Miller family as majority owner of RSL to work with Blitzer will only continue his belief. Valuations in MLS are surging, too, at a time when the next men's World Cup is set to be played in the U.S., Mexico and Canada. The latest MLS expansion franchise, San Diego FC, paid a $500 million expansion fee to join the league. 'It just speaks to how bullish we've been about the sport,' Garber told 'I still think our best days are still ahead.' Advertisement The Miller family believes the same for RSL and the Royals. Steve Starks, chief executive officer of Miller Sports & Entertainment, said one of the main topics at a dinner with Blitzer in Salt Lake City Thursday night was how to morph each club into a quality contender in each respective league. 'We're really excited about the tailwinds behind both Major League Soccer and the NWSL and where (soccer is) going around the world and specifically here in America,' Starks said. 'And we wouldn't be doing this if we didn't compete at the highest level.' This article originally appeared in The Athletic. 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