Minority Investors
SVC's history includes significant work on understanding the rights and restrictions of a minority partner's shares in a sports franchise. Not all rules apply to every team. If you are a minority partner or a general partner seeking to bring in investors, having a well-drafted partnership agreement is essential. Besides common rights and privileges you might negotiate, are there provisions for the repurchase of your shares? Do these provisions consider discounts for lack of marketability and control when setting the price? Were these discounts factored into your initial investment in the club? Does the minority partner have Tag and Drag rights? Most valuation firms rely on academic studies to estimate these discounts; however, our experience shows these studies are not always applicable and can be easily challenged by the IRS. SVC relies on its own internal database of deals and analysis to quantify these discounts.
Trusted Experience
SVC has completed over 40 transactions in professional sports, and this extensive experience forms the basis of the services we provide to our clients. Unless a firm is solely focused on this industry and directly involved in transactions, how can it offer reliable and credible value? Many firms want to give their opinion on a sports franchise, but few have meaningful transaction experience. Other sports advisory firms outsource the valuation part of their work, as they do not hold the ASA designation. Ask questions before you engage.
Precise Valuation
There are many factors to consider when assigning a hypothetical value to a professional sports franchise. Most people in the sports industry agree that traditional financial metrics cannot be relied upon when estimating what someone would be willing to pay for these unique assets. SVC will evaluate all three valuation approaches to determine the fair market value of the interest in question.
Registered Brokerage
Sports Value Consulting and Mr. Rapkoch is a registered broker offering investment banking services. All transactions will be conducted through Open Lane Capital Advisors, LLC (OLCA), a member of the Financial Industry Regulation Authority and Security Investor Protection Corporation.
As an Accredited Senior Appraiser with ASA and a member of FINRA, Mr. Rapkoch must meet all the requirements outlined by ASA when providing deliverables to clients. A report from any advisor should not overlook key elements of analysis or research and must adhere to ASA's self-sustaining requirement. Additionally, each report is customized for a specific client and not a generic, one-size-fits-all document.
Remember, when evaluating advisors, clients should ask what they will receive at the end of the analysis. Be sure to inquire if the report is customized to your needs and relevant to your professional sports.
Contact Us
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Telephone:
(972) 248-9374
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Cellphone:
(817) 368-0952
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Address:
100 Crescent Court Suite 700
Dallas, TX 75201