http://www.forbes.com/sites/mikeoza...luation-1-8-billion-in-minority-sale-of-team/
2/27/2015 @ 10:42AM4,020 views[h=1]Chicago Cubs Valuation Hits $1.8 Billion In Minority Sale Of Team[/h]<!-- Make individual group author appear -->
<iframe style="border-width: 0px; margin: 0px auto; display: none;" src="about:blank" loaded="1"></iframe>
<iframe style="border-width: 0px; margin: 0px auto; display: none;" src="about:blank" loaded="1"></iframe>How is this for a home run?
In 2009, the Ricketts family paid $845 million for the Chicago Cubs, Wrigley Field, 25% of Comcast CMCSA +0.41% SportsNet Chicago and a small parcel of land outside the stadium. The owners recently recently raised a total of $150 million of equity to help fund the renovation of their ballpark by selling minority interests of the same assets to six investors, plus a tiny piece of land they subsequently bought for $20 million where there was a McDonald's MCD -0.61%, for $2.25 billion, according to two people at different companies who have insight on the transaction.
That means the Ricketts family earned a 166% return on their investment in less than six years. Perhaps even more incredible is that the Cubs alone were valued at $1.8 billion for the transaction–the highest price ever paid for a non-controlling interest in sports team TISI -1.59% and just shy of the $2 billion paid for the Dodgers (excluding the real estate surrounding Dodger Stadium). Of the $845 million price, $700 million was assigned to the Cubs.
The Ricketts family was represented by Galatioto Sports Partners for the sale of the minority interests in the Cubs, as well as the family’s original purchase of the team in 2009.
On a return on equity basis, the Ricketts bet look even more phenomenal. The $2.25 billion enterprise value on the equity investment of the new minority investors is 540% more than the $350 million of equity they used in their original $845 million purchase. And these returns are real given the Cubs have been highly profitable, generating $27 million in operating income (earnings before interest, taxes, depreciation and amortization) during the 2013-14 season.
2/27/2015 @ 10:42AM4,020 views[h=1]Chicago Cubs Valuation Hits $1.8 Billion In Minority Sale Of Team[/h]<!-- Make individual group author appear -->
<iframe style="border-width: 0px; margin: 0px auto; display: none;" src="about:blank" loaded="1"></iframe>
<iframe style="border-width: 0px; margin: 0px auto; display: none;" src="about:blank" loaded="1"></iframe>How is this for a home run?
In 2009, the Ricketts family paid $845 million for the Chicago Cubs, Wrigley Field, 25% of Comcast CMCSA +0.41% SportsNet Chicago and a small parcel of land outside the stadium. The owners recently recently raised a total of $150 million of equity to help fund the renovation of their ballpark by selling minority interests of the same assets to six investors, plus a tiny piece of land they subsequently bought for $20 million where there was a McDonald's MCD -0.61%, for $2.25 billion, according to two people at different companies who have insight on the transaction.
That means the Ricketts family earned a 166% return on their investment in less than six years. Perhaps even more incredible is that the Cubs alone were valued at $1.8 billion for the transaction–the highest price ever paid for a non-controlling interest in sports team TISI -1.59% and just shy of the $2 billion paid for the Dodgers (excluding the real estate surrounding Dodger Stadium). Of the $845 million price, $700 million was assigned to the Cubs.
The Ricketts family was represented by Galatioto Sports Partners for the sale of the minority interests in the Cubs, as well as the family’s original purchase of the team in 2009.
On a return on equity basis, the Ricketts bet look even more phenomenal. The $2.25 billion enterprise value on the equity investment of the new minority investors is 540% more than the $350 million of equity they used in their original $845 million purchase. And these returns are real given the Cubs have been highly profitable, generating $27 million in operating income (earnings before interest, taxes, depreciation and amortization) during the 2013-14 season.
