Sabates group could potentially join Navarro or Tepper

[Mr. Scot]

More information regarding the Panthers upcoming sale.  Sounds like things are changing a lot from what we originally thought we knew.

Remember when the big story was that a local investment group was looking to buy the team?

Sabates: Tepper and Navarro would keep the team in Charlotte

Quote

Charlotte entrepreneur Felix Sabates hopes his partnership can either buy the Carolina Panthers or become minority investors if another buyer negotiates a purchase agreement first. On Monday, Sabates told CBJ the latter option would be viable with two of the prospective buyers — hedge-fund billionaire David Tepper or South Carolina consumer finance executive Ben Navarro — but not with Fanatics.com executive chairman Michael Rubin.

Rubin’s is the latest name to surface in the pursuit of the Panthers, as reported by The Charlotte Observer on Sunday. Other media outlets, including NFL Network and ESPN, have cited Pittsburgh Steelers minority investor David Tepper, a hedge-fund billionaire, as a likely bidder. Sabates’ group, Navarro and Rubin are the bidders most often mentioned, though Golden State Warriors star and native Charlottean Stephen Curry and hip-hop mogul Sean “Diddy” Combs previously expressed interest.

League rules require the lead partner to buy at least 30% of a team and limit debt financing to $250 million of the total price.

Prior articles mentioned Curry as a potential part of Sabates' group.  More recent news mentioned Curry and Diddy might be part of a bid with Rubin.  No definitive confirmation yet on any of that.

Really sounds like Felix is out of the running on his own.  Now he's starting to talk about other options.

Quote

An NFL spokesman told me Sunday the league had no updates on the sale of the Panthers.

Referring to Navarro, a Charleston businessman whose Sherman Financial Group includes credit cards, loans, real estate and consumer debt, among other investments, and Tepper, Sabates said, “(Navarro) and Tepper could stroke a check for the whole thing. Rubin is a different story. I don’t know him. I would not partner with him.”

Sabates said he is confident that if Navarro or Tepper buy the Panthers, they will stay in Charlotte. NFL executives, including commissioner Roger Goodell, have said they want the team here, but the league doesn’t include keeping a team in the same city as a requirement for buyers.

I expect they'll stay anyway.

Still, there are some hints that the new stadium idea might actually be gaining some traction.

Quote

An industry analyst told CBJ the sale could be finished as soon as this month, but also said there is no guarantee that will happen. Numerous reports have projected the sale will conclude this month or next, with NFL owners approving it at their May meeting in Atlanta. Twenty-four of the 32 clubs must approve the transaction.

Much of the speculation about the Panthers’ long-term future centers on 22-year-old Bank of America Stadium and whether the next owner can generate enough revenue from the stadium to make a purchase price of $2 billion or more feasible. Analysts differ on the stadium’s shelf life, though, at minimum, most believe more upgrades would be needed.

The Panthers, with $75 million worth of tourism tax money, are scheduled to finish a five-year, $177 million series of improvements to the stadium this summer.

“The mayor publicly acknowledging the issue and starting to spearhead the issue with the state is a very strong position for Charlotte,” industry consultant Marc Ganis, described by Bloomberg as the NFL’s “33rd owner,” told me. “That’s very positive for football fans in the Carolinas. If she can executive on that, it’s highly likely the team will stay in Charlotte.”

Ganis was referring to Charlotte Mayor Vi Lyles, who told me last week, “Our biggest retention effort will be the Carolina Panthers.” She declined to disclose specific possible inducements, similar to the stance taken by Gov. Roy Cooper, who, like Lyles, is a Democrat. Leaders in the Republican-controlled state legislature have not addressed whether they are willing to help the Panthers fund renovations or a new stadium.

Richardson sought state funding in 2013 and lobbied lawmakers, but was rebuffed.

Hoping the timelines favors sooner rather than later, but we should see either way.

Sounds like there's been some talking going on behind the scenes. Speaking of which, here's some info we didn't know before.

Quote

Sabates and Navarro have connections through auto racing, and Sabates told me his interactions with Navarro’s company have all been “first-class.”

Credit One Bank, part of Sherman Financial, sponsors the NASCAR race team owned by Sabates and Chip Ganassi. Ganassi is majority owner and Sabates is a minority investor. Credit One is also the official credit card of sanctioning body NASCAR.

Hmmmmm...

Here's more about the "serious" bidders we know of at the moment.

Quote

Rubin has extensive business interests in professional sports, starting with Fanatics, the online retailer that sells caps, T-shirts and other apparel and souvenirs for the major sports leagues and teams, including the NFL. He is also a minority investor in the NBA Philadelphia 76ers and the NHL New Jersey Devils. Forbes estimates his net worth to be $3 billion.

Tepper, according to Forbes, has built a personal fortune of $11 billion. Navarro isn’t included in Forbes’ billionaire list, but ESPN.com reported last month he is worth $3 billion.

Sabates, whose holdings also include a minority stake in the NBA Charlotte Hornets, has declined to disclose the names of his other investors, though he has said others in NASCAR and some current minority partners in the Panthers’ ownership group are involved.

On Monday, Sabates said his group remains interested in buying or investing in the Panthers, but again emphasized it has “to make business sense” and can’t be a vanity project. Sabates has said the next owner will need a new domed stadium to justify the sale price.

There's definitely some transitional sounding talk going on here.

More regarding the business side of it all...

Quote

Analysts told CBJ the prospect of several more NFL teams being put up for sale over the next three years could also play into the Panthers’ sale price, though opinions were mixed on how much that possibility will affect the franchise’s value.

Rick Burton, the Falk Professor of Sport Management at Syracuse University, told CBJ the combination of aging NFL owners and speculation about whether franchise values have peaked will likely lead to a few teams going on the market before the current national media rights deals expire in 2022.

“It’s kind of like guessing on a bull market on Wall Street,” Burton said. “If you paid $2 billion, you want to get out while you can still get $2.5 billion or $3 billion.”

The average NFL franchise is worth $2.5 billion, according to the Forbes valuations published last September. Pro football remains the most lucrative and most popular sport in the U.S., powered in large part by its $7 billion worth of annual TV and media rights agreements.

Ratings and viewership have slipped in recent years, exacerbated, in part, by concerns over player safety and protests during the national anthem last season that sparked a partisan cultural debate.

Even with those declines in mind, pro football still accounts for larger audiences more consistently than any type of programming, sports or otherwise. Fox Sports recently paid a reported $650 million per year for Thursday night games, a figure that, if accurate, represents an increase of 44% over 2017.

Former Green Bay Packers executive Andrew Brandt, a sports business expert at the MMQB, told me Monday, “I’ve never believed the naysayers about the NFL. It’s six weeks past the Super Bowl and still all of the news is about the NFL.”

If you're not a business major (majoring in business) and you read all of that last part, I'm impressed.

As has been discussed before, Tepper doesn't need additional investors.  That said, given his frugal nature, I doubt he'd turn them down if it works in his best interests.

Overall, I'd say it sounds more likely that Sabates joins up with Navarro, especially given that they actually have a business relationship we hadn't seen mentioned before.  That could definitely make things more interesting, but it's still hard to imagine Tepper isn't the favorite.

[CatMan72]

I still don't get how replacing a stadium that is already paid off and already has most if not all of the modern conveniences (besides a roof) is needed to get a return on the investment? The current stadium accounts for a big chunk of the franchise value and the only costs associated with it at this point are standard operating expenses and $1 a year to the city for the land it's sitting on. 

[Dilla]

I'm on the Rubin/Tsai bandwagon. I doubt Richardson chooses them over Tepper, but that's who I'm with.

[Mr. Scot]

4 minutes ago, CatMan72 said:

I still don't get how replacing a stadium that is already paid off and already has most if not all of the modern conveniences (besides a roof) is needed to get a return on the investment? The current stadium accounts for a big chunk of the franchise value and the only costs associated with it at this point are standard operating expenses and $1 a year to the city for the land it's sitting on. 

 Because it's not Jerryworld.

Jerryworld reset everybody's expectations. Now it's like everyone in the neighborhood was perfectly satisfied with their 2014 BMWs until someone purchased a 2018 Porsche. Now everybody wants one.

[CatMan72]

3 minutes ago, Mr. Scot said:

 Because it's not Jerryworld.

Jerryworld reset everybody's expectations. Now it's like everyone in the neighborhood was perfectly satisfied with their 2014 BMWs until someone purchased a 2018 Porsche. Now everybody wants one.

Yeah I get that, it's a high stakes d*ck measuring contest - just don't get the argument that continues to be floated about a new stadium being needed to recover the investment and I'm surprised the business journal would print that without editorially challenging it. 

[Growl]

Tepper seems like a yutz and a P Diddy/E-sports merch guy bid sounds like a one way ticket to LaughingStock City and/or playing alongside the the raiders in their big fancy new Vegas stadium.

 

Give me the local guy.

[Jon Snow]

2 minutes ago, CatMan72 said:

Yeah I get that, it's a high stakes d*ck measuring contest - just don't get the argument that continues to be floated about a new stadium being needed to recover the investment and I'm surprised the business journal would print that without editorially challenging it. 

Oh it's needed to recover investment alright.  Especially if they can blackmail the local idiots...err I mean officials into paying for it.  A new stadium will generate considerably more money than the current one.  

[Malt Liquor]

4 minutes ago, Mr. Scot said:

 Because it's not Jerryworld.

Jerryworld reset everybody's expectations. Now it's like everyone in the neighborhood was perfectly satisfied with their 2014 BMWs until someone purchased a 2018 Porsche. Now everybody wants one.

This is why I don't like Jerry Jones and the dallas cowboys. Its a franchise built up on hype and drama. Living off of it success in the past. But  haven't     won s hit recently. Cheerleaders and a mega stadium is not what the true fans care about. 

[Mr. Scot]

I think in the beginning, Felix genuinely believed that he could play a really big role in the whole thing.

Now it seems like he's just looking for a way to not be excluded.

[JakeDel5674]

I'm down with Tepper or Navarro at this point. But, if we have to get a new stadium. All that money the city of Charlotte put in the old one is rendered useless, which is not a good start. 

[Moo Daeng]

2 hours ago, Mr. Scot said:

Other media outlets, including NFL Network and ESPN, have cited Pittsburgh Steelers minority investor David Tepper, a hedge-fund billionaire, as a likely bidder. Sabates’ group, Navarro and Rubin are the bidders most often mentioned, though Golden State Warriors star and native Charlottean Stephen Curry and hip-hop mogul Sean “Diddy” Combs previously expressed interest.

This seems to downplay the Tepper potential.

[luke nukem]

Im going to have to stick with Navarro at this point. Nothing is more important than the longer term commitment to Charlotte. He seems like a guy who will just run the business as it should be.... sure would love  to know what the hell JR is thinking because in the end, this is the decision for him and him alone to make.... just make it soon ya old goober!!

[Mr. Scot]

11 minutes ago, luke nukem said:

Im going to have to stick with Navarro at this point. Nothing is more important than the longer term commitment to Charlotte. He seems like a guy who will just run the business as it should be.... sure would love  to know what the hell JR is thinking because in the end, this is the decision for him and him alone to make.... just make it soon ya old goober!!

His decision does have to be approved by at least 24 other owners though.

It's his decision first, of course.

[Sam Mills Fan]

Joseph Tsai entering the mix is a game changer. He has that Alibaba money. Tsai and Rubin together could outbid even Tepper. And, guys, seriously, f Peter Navarro. If you think the word of the wealthiest debt collector in the world means a damn thing, you don't understand that world.