FOS PM: Several offers of 4 billion dollars for Chelsea

Taxpayers in Georgia’s Cobb County are collectively losing $15 million a year on the Atlanta Braves’ stadium as the project’s cost of financing more than $300 million exceeds its tax benefits, according to a sports economist from Kennesaw State University. Meanwhile, Braves revenue nearly tripled from $35 million to $102 million last quarter.

Chelsea FC/Design: Alex Brooks

Russian oligarch and Chelsea FC owner Roman Abramovich officially announced he would sell the team on Wednesday, with Raine Group – the bank handling the sale – asking for “indicative offers” by Friday.

The AP news agency reported that Abramovich had has received several serious offers in the 4 billion dollars interval — he’s turned down offers of $3 billion in the past. Goal reported that Abramovich, who was worth around $12.5 billionseeks to sell its UK-based assets quickly before sanctions were imposed after Russia invaded Ukraine.

“I and three other people received an offer to buy from Chelsea on Tuesday,” said Swiss billionaire Hansjorg Wyss. Los Angeles Dodgers and Lakers co-owner Todd Boehly would be Wyss’ first major consortium partner.

Chelsea change

While Chelsea is worth seeing $3.2 billionthe team is also about $2 billion in debt.

  • Abramovich noted Wednesday that he “will not ask for the repayment of the loans”.
  • His team will also set up a “charitable foundation where all net proceeds from the sale will be donated” to benefit the victims of the war in Ukraine. He would be looking around $2.66 billion to give away.
  • On Thursday, the UK Charity Commission said it had not received an application for registration for the charity described by Abramovich.

Premier League chief executive Richard Masters says the fastest sale the league has ever made is in 10 daysbut “that doesn’t mean this record can’t be broken.”

Tim Heitman-USA TODAY Sports/Design: Alex Brooks

Negotiations often come down to who has the most to lose. A report from Fitch Ratings reveals that MLB owners could go an entire season without baseball.

MLB’s “adequate cash position” at the end of last month and debt reserve funds may cover the loss of a full seasonthe financial analyst wrote.

  • Potential losses in 2022 could be covered by ticket revenue and media deals, Fitch noted.
  • The league can to design Up to $2 billion of its A-rated MLB Club Trust securitization and $1.25 billion of its MLB Facility Fund, which has an A- rating.
  • MLB holds firm $2.1 billion indebted by these two establishments.

Fitch warned that a prolonged lockdown could “alienate the fanbase and erode match attendance and viewership,” resulting in “lower key revenue renewals, including club seats, luxury suites and sponsorship deals.”

Win by losing?

MLB told MLBPA officials last week that it would be willing to lose a month of games, which some players believe is a desirable outcome for team owners. The April games are sparsely attended and media arrangements are not widely affected until about 25 games Are lost.

“They kept making offers that they knew were in the players best interest to turn down,” Chicago Cubs outfielder Jason Heyward wrote in an Instagram post. “They see the first month of the season as a debt … delayed season [equals] they achieve their goals.

On Friday, the MLBPA announcement he threw a $1 million fund to support workers affected by the lockout. MLB said it would create a similar fund.

Hibbett Sports/Design: Alex Brooks

In its fourth quarter earnings report, Hibbett reported net income of $17.7 million, compared to $23.9 million in the same period in 2021.

The report notes that the sportswear retailer has seen a “strong sales trend ahead of the Christmas holiday.” CEO and Chairman Mike Longo attributed the lack of major growth to supply chain disruption, inflation fears and the rise of the Omicron variant.

  • Net sales increased 1.7% over the same period last year, from $376.8 million to $383.3 million.
  • But comparable sales were down 1%.
  • While e-commerce sales increased by 1.8%, comparable physical store sales decreased by 1.6%.

Longo noted, “We also achieved significant growth on a two-year basis.”

During the third quarter, the Alabama-based company posted net income of $25.2 million – also down slightly from the same period in 2021.

Annual Report

The company’s full-year earnings provided a brighter outlook.

Net sales reached $1.69 billion, a 19.1% increase of last year’s total of $1.42 billion – and a 42.8% increase from 2020.

Comparable sales increased 17.4% and physical comparable sales increased 21.4%. E-commerce sales, on the other hand, show a slight drop of 1.6%

  • In The Leadoff, NCAA officials outline improvements to Division I women’s basketball tournament fairness, Amazon launches new gaming service, Mubadala Capital invests in motorcycle racing and Signa Sports releases results quarterly. Click here to listen.
  • The University of Oregon, in collaboration with Opendorse, spear an official marketplace to connect brands to athletes for name, image and likeness deals.
  • DraftKings has been a fine $150,000 by New Jersey gambling regulators after it was discovered that a Florida resident was using a New Jersey friend to place bets for him on the platform.

Find out exactly what’s happening in private markets every week with highlights from our Front Office Sports Insights trade tracker.

We carefully monitor public and private market data to capture a picture of the sports landscape.

This week Transaction tracking strong points:

  • Power-up acquisitiona blank check company targeting companies in the media, digital media, sports, entertainment and/or leisure sectors, with a particular focus on video games, adjacent games and new metaverse video game spaces, raised $250 million in an IPO.
  • Fanatics, an operator of a multi-channel sporting goods retailer and digital sports platform, raised $1.5 billion in development capital from Blackstone, MSD Capital and Fidelity Management & Research.
  • Serena Venturesa San Francisco-based venture capital firm led by Serena Williams, has closed its first $111 million seed and seed fund.
  • iFIT Health and Fitnessa health and fitness subscription technology company, raised $355 million in capital from L Catterton.
  • Reebok, the activewear maker, distributor and retailer, has reached an agreement with Authentic Brands Group through its financial sponsors CVC Capital Partners and HPS Investment Partners to be purchased via a leveraged buyout for $2.46 billion.
  • Thatgamecompanythe developer of a video game designed to provide an interactive gaming experience, raised $160 million in venture capital from TPG and Sequoia.

To try full Transaction tracking.

The Chicago Bulls (39-24) host the Milwaukee Bucks (38-25) Friday at the United Center.

How to watch: 7:30 p.m. ET on ESPN

Betting odds: Dollars -4.5 || ML-180 || O/U 223*

Take: Expect the Bucks to take advantage of the Bulls’ injuries. Take Milwaukee to cover.

*Ratings/lines are subject to change. The T&Cs apply. To see for more details.