25 Years Experience, Over 100 Valuation Engagements, More Than 40 Transactions
Since 2003, Trusted Analysis in the Business of Sports
Minority Investors SVC's history includes significant work understanding the rights and restrictions of a minority partner's shares in a sports franchise. One rule does not apply to all teams. If you are a minority partner or a general partner looking to add investors, a well-drafted partnership agreement is critical. In addition to some common rights and privileges you may negotiate, are there provisions for repurchase of your shares? Do these provisions consider discounts for lack of marketability and control in determining the price? Were these discounts considered when you bought into the club? Does the minority partner have Tag and Drag rights? Most valuation firms look to academic and professional studies to quantify the discounts; however, our experience has shown these studies are not applicable and potentially easy for the IRS to refute. SVC relies on its own internal database of deals and analysis to quantify these discounts.
Trusted Experience SVC has conducted over 40 transactions in professional sports. This extensive experience is the foundation of the services we offer our clients. Unless a firm is solely focused on this industry and is involved directly with transactions, how can it provide a reliable, credible value? Many firms wish to provide their opinion of a sports franchise, yet few have little, if any, experience in transactions. Other sport advisory firms outsource the valuation aspect of engagement, as they do not hold the ASA designation. Ask before you engage.
Precise Valuation There are many variables to consider when affixing a hypothetical value to a professional sports franchise. Most people in the business of sports agree that traditional financial metrics cannot be used when predicting what anyone is willing to pay for the acquisition of one of these unique assets. SVC will consider all three valuation approaches in determining the fair market value of the interest considered.
Unmatched Service Sports Value Consulting’s qualifications in the sports industry are unparalleled. We tailor our services to meet each of our client’s individual needs. Unlike other firms, SVC offers a true commitment to the business of sports. Read more…