The New York Giants have announced plans to place a limited stake in their NFL team on the market. This move comes amid expectations of setting a new record for franchise valuation. The Giants are considering selling up to 10% of their team, although the reasons behind this decision remain undisclosed. This development aligns with the NFL's recent policy change in August, permitting private equity firms to acquire up to 10% ownership in teams.
Forbes recently valued the Giants at $7.3 billion, while CNBC placed their worth at an impressive $7.85 billion. Such valuations highlight the significance of this potential transaction, which could surpass previous records in the NFL. The Giants have engaged Moelis & Co. as their banker to facilitate this process.
"The Mara and Tisch families have retained Moelis & Company to explore the potential sale of a minority, non-controlling stake in the New York Giants." – The New York Giants
The Mara and Tisch families each own 50% of the Giants, with John Mara and Steve Tisch managing the organization since inheriting control from their fathers in 2005. The team has a rich history, having been founded by Tim Mara in 1925 for just $500. Now, nearly a century later, it stands poised to make significant waves in the sports financial landscape.
Private equity firms have shown increasing interest in the NFL market. Arctos Partners acquired a 10% stake in the Buffalo Bills, and Ares Management purchased a similar portion of the Miami Dolphins and related assets. Furthermore, the Philadelphia Eagles recently sold combined stakes totaling 8% to two families, valuing their franchise between $8.1 billion and $8.3 billion, yet owner Jeffrey Lurie maintains an 85% majority.
The Giants' decision reflects broader trends within the league, allowing for strategic financial partnerships without ceding controlling interest. Despite the announcement, the Giants remain tight-lipped about further details or motivations behind this exploration.
"There will be no further comment in regard to the process." – The New York Giants
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