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Tag: Sports industry

  • Thorns to be sold amid fallout from women’s soccer scandals

    Thorns to be sold amid fallout from women’s soccer scandals

    The owner of the Portland Thorns announced Thursday he is putting the club up for sale, the latest fallout from an investigation into misconduct in the National Women’s Soccer League.

    Merritt Paulson’s decision comes nearly two months after a pair of team executives were dismissed for their roles in systemic abuse and misconduct within the NWSL.

    Former acting U.S. Attorney General Sally Q. Yates and the law firm of King & Spaulding released results in early October of an investigation that detailed the series of abuses and misconduct that impacted multiple teams in the league, including the Thorns. U.S. Soccer retained Yates when a series of scandals rocked the league last year.

    Paulson had relinquished his decision-making role with the team in October. But calls had persisted for him to sell the Thorns.

    “The past year has been a challenging one for our club and our players. I regret the role our organization played in the failures identified by the investigations. Despite these challenges, the Portland Thorns have a bright future ahead and a lot left to accomplish,” Paulson said. “To fully realize that potential, I believe it is in best interest of the Thorns to have a new owner so that the club can operate at the league level with a fresh voice to be a driving force for the NWSL. This has been a difficult decision for me, but I believe this is the best way to position the Thorns for continued success during this next chapter of the NWSL and the sport.”

    The team doesn’t have a timeline for finding a buyer. A goal is to find an owner that will keep the team rooted in the Portland community.

    Paulson has owned the Thorns since the creation of the NWSL in 2013. The club has won three NWSL titles, including this year’s championship when it beat the Kansas City Current in the final.

    But the allegations of misconduct and the investigation by Yates have dogged the franchise for more than a year. The investigation was launched after two former players came forward with allegations of harassment and sexual coercion dating back a decade against former North Carolina Courage coach Paul Riley.

    Riley, who was fired, denied the allegations. He was one of five coaches in the league who were dismissed or stepped down last year amid claims of misconduct.

    The Yates report detailed how the Thorns mishandled complaints about Riley when he coached the team in 2014-15. In the wake of the report, the Thorns fired executives Gavin Wilkinson and Mike Golub.

    But some fans continued to call on Paulson to relinquish ownership. During the Thorns’ NWSL victory in the final at Audi Field, some fans held a sign that read: “Support The Players.”

    Those fans are getting their wish, although Paulson said the decision to sell the Thorns does not affect his ownership of his MLS franchise, the Portland Timbers. Paulson’s ownership group — Peregrine Sports LLC — also operates Providence Park, the home field for both teams.

    Paulson said he will work “to ensure a smooth transition and the continued success of the Thorns, including providing favorable usage terms for Providence Park.” Another lingering issue is development of a training facility for the Thorns, who have typically practiced at the stadium.

    “We are committed to continue to work collaboratively with the NWSL to ensure we find the right group to take the reins. We will not rush to a decision as we want to get it right for our players, for Portland and for women’s soccer,” Paulson said.

    Additionally, Paulson is contributing $1 million toward the establishment of an office within the NWSL focused on player safety.

    “I support Merritt Paulson’s decision to sell the Thorns, his commitment to aid in a smooth transition for a new ownership group in Portland, and the $1 (million) contribution to the league,” NWSL Commissioner Jessica Berman said in a statement. “This money will be used to launch a new NWSL Player Safety Department — coming out of this chapter in the NWSL’s history we will emerge stronger than ever before and make this a league the players are proud to play in.”

    ———

    AP soccer: https://apnews.com/hub/soccer and https://twitter.com/AP—Sports

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  • Inflation or not, price of pro sports teams keeps going up

    Inflation or not, price of pro sports teams keeps going up

    Inflation isn’t going to hurt the bankrolls of sports team owners.

    In fact, it may help.

    While the uber-rich will have to pay a little more for their eggs at the grocery store – just like everyone else – inflation isn’t likely to affect the bottom lines at their sports properties.

    “I’m resting pretty easy if I’m an owner,” said Tim Clarke, a senior analyst at PitchBook, which researches private financial markets. “That’s how people are viewing assets of the professional sports industry. They’re just not going down.”

    Inflation surged this year to levels unseen for four decades, slowing the economy and raising prices for consumers from the checkout line to the gas pump. For the most part, sports are no exception: Rising costs are making it more expensive for fans to go to games, for families who participate in youth sports and for college athletic departments trying to stay on budget.

    But the millionaires and billionaires who own sports team won’t be feeling the pinch, whether it’s the day-to-day cost of running the business or the sale price when they decide to move on. On the contrary: A franchise can be a safe place to park money and ride out a bear market.

    “I do think there is somewhat of a hedge,” said Inner Circle Sports CEO Rob Tillis, who has worked on the sale of dozens of teams in all four major U.S. pro sports and the top international leagues. “I have been doing this for 30 years. We’ve been through lots of business cycles and valuations have been strong. I don’t see that as any different now.”

    Most sports owners are also well-capitalized enough to keep their team budgets separate from their outside business and other sources of wealth. So even though rising interest rates have cooled the housing market, that’s unlikely to affect Cleveland Cavaliers and Rocket Mortgage owner Dan Gilbert, who with an estimated net worth of almost $52 billion is the 23rd-richest man in the world, according to Forbes magazine.

    (One exception: Losses in the Bernard Madoff Ponzi scheme squeezed the Mets payroll and forced owner Fred Wilpon to sell off first part, then the rest of the team.)

    “These guys, they have so much money that I think if they start to get pinched elsewhere, it’s more or less a rounding error for their clubs,” said Tom Pitts, the European head of LionRock Capital, a private equity firm that has a one-third interest in the Inter Milan soccer team. “Most of these guys haven’t stretched to buy the club. It’s an expensive hobby.”

    Rising interest rates could make it more expensive for would-be owners to buy into the club if they have to borrow money to pay for their new prize. “It just costs a lot more money in absolute dollars to service the debt,” Pitts said.

    A handful of high-profile teams are currently on the market.

    Washington Commanders owner Dan Snyder, who is under pressure to sell his team after an investigation revealed a toxic corporate culture, says he would consider unloading all or part of the once-proud NFL franchise. It is expected to fetch even more than the $4.65 billion paid for the Denver Broncos this summer by Walmart heir Rob Walton, who with an estimated net worth of $61 billion is the 16th-richest person in the world.

    Robert Sarver has put his teams, the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury, on the market after an investigation found evidence of a racially and sexually insensitive workplace. Baseball’s Washington Nationals are for sale and the family that owns the Baltimore Orioles has made noise about selling, as well. The NHL’s Ottawa Senators can also be had for the right price.

    Two of English soccer’s biggest names, Manchester United and Liverpool, are also on the market. Man U. was valued by Forbes in September at $4.6 billion — just a bit higher than Liverpool; both are expected to eclipse the $3.2 billion price paid for Chelsea this spring that was briefly the highest ever for a sports team.

    That record was less than two weeks old when the Broncos deal was announced.

    “You’ve got the likes of the Waltons, and it’s a drop in the bucket,” Clarke said. “It’s a club. It’s like, ‘When is the next Picasso up for sale?’ … The value sector has nothing to do with the economy. There’s always demand and there’s always scarce supply.”

    ___

    AP Sports Writer Jay Cohen contributed to this story.

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  • Inflation or not, price of pro sports teams keeps going up

    Inflation or not, price of pro sports teams keeps going up

    Inflation isn’t going to hurt the bankrolls of sports team owners.

    In fact, it may help.

    While the uber-rich will have to pay a little more for their eggs at the grocery store – just like everyone else – inflation isn’t likely to affect the bottom lines at their sports properties.

    “I’m resting pretty easy if I’m an owner,” said Tim Clarke, a senior analyst at PitchBook, which researches private financial markets. “That’s how people are viewing assets of the professional sports industry. They’re just not going down.”

    Inflation surged this year to levels unseen for four decades, slowing the economy and raising prices for consumers from the checkout line to the gas pump. For the most part, sports are no exception: Rising costs are making it more expensive for fans to go to games, for families who participate in youth sports and for college athletic departments trying to stay on budget.

    But the millionaires and billionaires who own sports team won’t be feeling the pinch, whether it’s the day-to-day cost of running the business or the sale price when they decide to move on. On the contrary: A franchise can be a safe place to park money and ride out a bear market.

    “I do think there is somewhat of a hedge,” said Inner Circle Sports CEO Rob Tillis, who has worked on the sale of dozens of teams in all four major U.S. pro sports and the top international leagues. “I have been doing this for 30 years. We’ve been through lots of business cycles and valuations have been strong. I don’t see that as any different now.”

    Most sports owners are also well-capitalized enough to keep their team budgets separate from their outside business and other sources of wealth. So even though rising interest rates have cooled the housing market, that’s unlikely to affect Cleveland Cavaliers and Rocket Mortgage owner Dan Gilbert, who with an estimated net worth of almost $52 billion is the 23rd-richest man in the world, according to Forbes magazine.

    (One exception: Losses in the Bernard Madoff Ponzi scheme squeezed the Mets payroll and forced owner Fred Wilpon to sell off first part, then the rest of the team.)

    “These guys, they have so much money that I think if they start to get pinched elsewhere, it’s more or less a rounding error for their clubs,” said Tom Pitts, the European head of LionRock Capital, a private equity firm that has a one-third interest in the Inter Milan soccer team. “Most of these guys haven’t stretched to buy the club. It’s an expensive hobby.”

    Rising interest rates could make it more expensive for would-be owners to buy into the club if they have to borrow money to pay for their new prize. “It just costs a lot more money in absolute dollars to service the debt,” Pitts said.

    A handful of high-profile teams are currently on the market.

    Washington Commanders owner Dan Snyder, who is under pressure to sell his team after an investigation revealed a toxic corporate culture, says he would consider unloading all or part of the once-proud NFL franchise. It is expected to fetch even more than the $4.65 billion paid for the Denver Broncos this summer by Walmart heir Rob Walton, who with an estimated net worth of $61 billion is the 16th-richest person in the world.

    Robert Sarver has put his teams, the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury, on the market after an investigation found evidence of a racially and sexually insensitive workplace. Baseball’s Washington Nationals are for sale and the family that owns the Baltimore Orioles has made noise about selling, as well. The NHL’s Ottawa Senators can also be had for the right price.

    Two of English soccer’s biggest names, Manchester United and Liverpool, are also on the market. Man U. was valued by Forbes in September at $4.6 billion — just a bit higher than Liverpool; both are expected to eclipse the $3.2 billion price paid for Chelsea this spring that was briefly the highest ever for a sports team.

    That record was less than two weeks old when the Broncos deal was announced.

    “You’ve got the likes of the Waltons, and it’s a drop in the bucket,” Clarke said. “It’s a club. It’s like, ‘When is the next Picasso up for sale?’ … The value sector has nothing to do with the economy. There’s always demand and there’s always scarce supply.”

    ———

    AP Sports Writer Jay Cohen contributed to this story.

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  • AP source: Rizzo, Yankees agree to $40M, 2-year contract

    AP source: Rizzo, Yankees agree to $40M, 2-year contract

    A person familiar with the negotiations tells The Associated Press that first baseman Anthony Rizzo is staying with the New York Yankees, agreeing to a $40 million, two-year contract

    NEW YORK — Anthony Rizzo is staying with the New York Yankees, agreeing Tuesday to a $40 million, two-year contract, according to a person familiar with the negotiations.

    The person spoke to The Associated Press on condition of anonymity because the agreement was subject to a successful physical.

    Rizzo gets $17 million in each of the next two seasons, and the deal for the first baseman includes a $20 million team option for 2025 with a $6 million buyout. Rizzo had opted out of his previous contract with New York, giving up a $16 million salary for 2023.

    Since joining the Yankees at the 2021 trade deadline, Rizzo had provided needed left-handed power for New York and has taken advantage of the right field short porch at Yankee Stadium.

    Now 33, Rizzo hit .224 with 75 RBIs and had 32 home runs for the fourth time in his career. While the Yankees led the major leagues with 254 home runs, just 77 were by left-handed batters.

    His agreement is the first major offseason move for the Yankees, who are attempting to re-sign star right fielder Aaron Judge.

    ———

    AP MLB: https://apnews.com/hub/mlb and https://twitter.com/AP—Sports

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  • Wife of Phillies’ Hoskins puts beers on her World Series tab

    Wife of Phillies’ Hoskins puts beers on her World Series tab

    PHILADELPHIA — Jayme Hoskins is tapped in to Philly sports fans.

    The wife of Philadelphia Phillies first baseman Rhys Hoskins has let fans crush some World Series beers on her tab. Jayme Hoskins has turned into a baseball barfly and let the free beers fly during recent Phillies’ postseason games.

    The beer runs are nearly as popular as the ones the Phillies poured on against the Astros in Game 3, a 7-0 drubbing that included a homer from Rhys.

    Wearing a red Phillies blazer with “Hoskins” printed on the back, Jayme had fans chanting her name Wednesday night as she sidled up to the closest bar to right field on the concourse before Game 4.

    She had previously tweeted out section 104 as the corner bar of her choice at Citizens Bank Park and sent out a hint she could be found there again about 30 minutes before first pitch — and her husband set to take the field at first base.

    “If you know anything about baseball and it’s quirks then you know where beers are about to be,” she tweeted.

    One bartender painted Hoskins “No. 17″ in red on her cheek and wore the first baseman’s “Ring the Bell” T-shirt. Another exclaimed, “she wants 50 more?” when Jayme ordered another round.

    Yes, of 50. At $17 a pop.

    Hoskins may as well have been Rhys as fans mobbed her for selfies, and she took a knee for a group photo with dozens of World Series suds suckers. She was polite — she is a Phillies fan, after all — and asked the drinkers to have their IDs ready and to say “please” and “thank you” to the servers sliding out Buds at a faster rate than her husband is crushing postseason homers.

    She sent her first “beer here!” tweet when the Phillies clinched the NL pennant in Game 5 of their Championship Series against San Diego. She joked on Twitter that someone should buy her a beer.

    Hoskins said she then decided, “No, I’m buying you all a beer.”

    She kept up the boozy tradition — the couple hosted a charity event this year at Philly’s Yards Brewery — and has no plans to stop for Game 5 on Thursday night

    “I’ve been hearing about Red October for about seven years,” she said. “It has not disappointed in any way. It’s been amazing.

    “And I know it’s not over!”

    Joseph Connolly of South Philly, wearing a Bryce Harper jersey, sipped his first free Hoskins beer at the first World Series game of his life. The 28-year-old Phillies fan read Hoskins’ tweets and, ahem, just happened to linger in the area at the same time frame as her tweets from previous beer giveaways.

    “It’s one of the more generous things you could ever do,” he said.

    Rhys Hoskins was on board with his wife playing baseball bartender.

    “Whatever it takes right now, really,” he said before Game 4. “She’s having a lot of fun with it. Obviously, the fans are enjoying it, too.”

    Hoskins, though, just might pass on one of those Budweiser tall boys. The slugger’s beer of choice: Yuengling.

    ———

    AP MLB: https://apnews.com/hub/mlb and https://twitter.com/AP—Sports

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